All Forum Posts by: Victor Yap

Thank you both! I'll look into this insurance.

Hello BP, I could use some ideas or input on how to screen a tenant who is here on a visa. My tenant screening process is the following.

They fill out a rent application. I review their info, verify employer, income and previous landlords, and send them a background and credit check through TransUnion SmartMove. If everything looks good, send them a Lease.

However, this potential tenant is here on a non immigrant student visa, so they do not have a social security number. Without that, I can't use TransUnion SmartMove to do a background and credit check. They are currently living with a friend. I asked if they have rented anywhere and what that process was like, but they said they have not.

So my question is, does anyone have a process for screening this type of tenant? If so, how do you do it? Or does anyone have ideas on what I could do to screen? I want to be fair and at least provide a process, and so I can be prepared next time this happens.

Thank You!

Hi James,

If you're looking around Houston, I'd have to recommend Wale Lawal, https://www.biggerpockets.com/.... He works with investors and is an investor himself. Since you already have some properties, I'm sure it'll be easy for you to find what your looking for through him. I just started my real estate journey last year, bought my first property in November, and Wale was really key to guiding me through.

Best of luck in your search!

For this form: https://www.trec.texas.gov/sites/default/files/pdf-forms/20-14_0.pdf , can someone help explain section 6A-8?

Why would I choose (i)? Wouldn't I always want it to be amended?

I am about ready to submit my first offer, but I want to understand everything that I'm signing.

Any links to learn more about this is greatly appreciated. Thank you BP.

Hi Bp,

I was pre-approved by a big company. However, I've since found a different loan officer that I believe is a better fit for me. I have a follow-up appointment with the big company lender, and I'm wondering how should I tell him that I'm not interested in using a loan with his company on my next deal.

I'd like to maintain a relationship if I ever need to do another deal with him. How should I approach my appointment with him so I don't waste his time but also keep the relationship?

@Steve Morris

For the backstory, my dad is a very DIY type of person. He’s also a handy man and mechanic. He and another person built the house I grew up in.

So I trust he knows how to build and how to spot problems with a property, but he’s just not as financially savvy. He’s retired now so I think that’s put him in a very relaxed mindset.

Every now and then he reminds me about that piece of land and how he wants to build something and make it a learning experience for me. I hope so too, but that’s why I’m asking for suggestions. Then I can go to him with a plan and get this property earning something!

Thanks everyone for the ideas so far. 🙏

Hello BP,

My parents own a 0.54 acre (23522 sqft) piece of land. It is near Prarie View Texas A&M University, about 50 minutes from Houston, TX downtown. I believe it has potential for student housing.

My question to you is, what would you suggest doing with this piece of land? My dad has experience with building (he built the house I live in), but he lacks consistent motivation. What's something I could suggest that would be simple, yet profitable?

I'd appreciate any feedback you have.

Is this the right forum topic? If not, what is?

@Kathleen D.

I am sorry to hear about your mother's loss. I don't want to sound like a broken record, but I think it's important to acknowledge the loss and the emotions that come with it. Money management is a very logical thing but emotions can interfere with that. I wish you patience as you help her through this.

I'm not a financial advisor.

TLDR: Calculate annual expenses. Strategy One: Most passive (to my knowledge) is an annuity. Strategy Two: Move 5-7 years expenses into a high interest savings account. Invest the rest into a low-cost index fund.

About your question, I don't think you can answer it until you figure out your mother's trust in you, health, financial education, lifestyle and goals. Then you can help her plan her finances around that. What if she wants to donate a portion of the money? It's easy to come up with a financial plan that looks great on paper. But it takes motivation to follow through on that plan. That motivation will come from her goals (travel, creative outlet, etc.).

Get a clearer picture on her expenses. If you're able, review her past statements and categorize her spending. Identify annual expenses like doctor appointments, insurance, taxes, Christmas gift shopping, etc. Identify unplanned expenses like car maintenance, house repairs, etc. Sum it all together into a total annual expenses number. Then multiply it by 1.2 (more or less) as a buffer.

Strategy One: Buy a fixed annuity with 2% inflation. This is probably the most passive option (to the best of my knowledge). But you need to make sure the monthly income does meet the monthly expenses you calculated. In my opinion, the biggest downside to this strategy is it locks the money up. You can't take your money out of an annuity (again, to my knowledge).

Strategy Two: With the annual expense number, you're able to figure out how much she will roughly need for the next 5-7 years. Let's say that is $50k. I'd move $350k into a high interest savings account. And then I'd invest the rest into a low-cost index fund that tracks the total stock market (VTSAX, FSKAX, etc...). Then reallocate once a year, adjusting the cash savings for inflation.

I like strategy two more because it is more flexible. Life changes all the time, and if your mother decides to use this money differently, the money isn't locked into an annuity. The plan you set up today doesn't have to be the same next year.

Don't forget about taxes! If you want to reduce your taxable income, you could research some municipal/tax-exempt bond funds.

Reading Sci Fi and DJing

Hi Andrew, I think you're asking some really good questions. Full disclaimer, I'm new to real estate investing and the market in Austin. However, I have lived in Austin for over 5 years and have worked as a software engineer here for 3+ years. What I can offer is my experience living and working in tech in Austin.

The company I work for has less than 500 total employees, and even though we have gone completely remote, there are still reasons for us to not go completely remote. A dedicated office space is not something everyone can or wants to afford in their residence. Also, being able to communicate in person is better for meetings and building friendlier work relationships. For these reasons, I don't think working remote will cause every tech company to abandon their office space.

A possible reason for big companies like Google and Indeed to mandate remote work is because they are big, they aren't as flexible to go back and forth on physically returning to the office. It's simpler to ask everyone to work remote until there's more evidence of this pandemic subsiding.

I have no idea if more people will move from NYC and SF to Austin, that's just out of my knowledge.

In my opinion, music venues will be one of the last businesses to come back. And even when they are allowed to open, I think it will still be slow until the majority of concert-goers feel it is safe.