All Forum Posts by: Wes S.

Its up to your trust level and risk tolerance but biggest things I can see is its your money/*** on the line. Some stuff they will do won't be worth 50% of the deal and other people do not value your money...they will spend your money like water on a materials/tools they wouldn't spend if they were financing it, ect

I would recommend being outside of the deal so to speak, but with a close eye on it, similar to a banks perspective:
(Look into 'Hard Money Lending')

Your son & GC could run their own flip or rental business. Flips - They invest certain %$ down so they have skin in the game or what you're comfy with and then pay you a good interest rate of 6-20% for a certain lenght of time 1-6 Months. You have to be paid off when deal is complete or their able to refinance with bank (which is tuff so that is why your success is determined on the 'Buy' end of the deal) If its a successful flip, they make money and so do you. If it fails, they lost money, you lost money but you'll atleast have the actual asset to take over and hopefully recover losses.

If their rental properties, you carry the note.

All in all, either route, you want to be involved to make sure YOUR money is invested into something that is worth it, but not too involved that you get the shaft.

PS: I'm in a smaller town and have been buying pretty cheap as well.

Mike: The rental market in general is wild in Iowa City. Big demand, huge rents and huge prices as a result. Tough to find a deal around there, like any college town, I've looked at a lot of deals and you have to have a sharp pencil.

Your doing the right thing by researching, talking to people and looking at some deals though.

Depending on your goals, maybe you should look at some Single Family homes (REO's), be patient to get a good deal, fix it up, start with 1 house, see how that goes and then continue to expand up to your desired goal or tolerance. I think you'll do a few things by this: 1)Lock in unbelievable rates right now bc of your down payment/cash on hand (which you won't need it all) 2) May catch some appreciation more-so in homes rather than Multi's 3) Potential higher quality/long term tenants 4) Easier exit strategy if you find Landlording is not for you.

Just my 2 cents. Go Hawkeyes

Looks like a buy Mr. Payne if your facts are straight and numbers are accurate. How long to get good tenants in there?

If your gut feels good and sounds like your walking into no-loose situation, don't sit on your hands too long.

HA, I thought you were talking about the 'Occupy' Wall Street thing going on...seems to me there is where the Zombies are. Majority of them do not even know what they are protesting for or about.

AND, if they were really 'alive' or had brains, they would be protesting the Government and their representatives!

Just sayin...Back to dead zombies in the front yard.

OVER - It seems as though a lot of tenants I have do not want to buy right now, even if they can afford it. Many people either a) don't have a down payment or b) don't want to spend/invest into a house because of the uncertainty...which creates a perfect storm for Buy & Hold Investors & rents will steadily increase.

All in all, I'm looking forward to several more deals coming down the pike, just missed out on 2 SFR but picked up another Duplex.

If we can continue to buy with a good Margin of Safety/Exit Strategy with solid Rental Rates, how can we loose?

Fair question but I agree all these guys...who cares what time of the year it is. If its a buy, its a buy. Bought 2 last year in Feb and got smokin deals, holding as rentals but . And what better time to remodel...

Ryan: You make it sound like your stocking up on peanuts!

Great answers. I try to bring the property up to speed immediately after purchase and before the tenant moves in.

I think my biggest problem is 'Perfectionism' AND trying to keep tenants happy so they'll stay longer. I'm finding its costing me a lot of money and stressing me out.

I'll have to do a better job of pointing this out in the lease or maybe add a 1 page 'Rules of Engagement': A straight forward, no bs, bullet pointed list of expectations of tenant. Thoughts...?

Building up a nice portfolio but feel like I'm being nickel and dimed to death!

I take pride in my properties...I want them to look nice, be safe and efficient which translates into good tenants and less headaches. But I feel like every time I turn around, something is needed or a good tenant is complaining about...(you name it - windows, doors, concrete cracked driveway, ect).

I am willing to work with good tenants on getting the place in line and also look longterm at the improvement of the property. On the flip side, I feel like I can't let my cash flow build up a nice cushion and start to get a good ROI.

Its a fine line we have to walk on to not spend much but keep quality tenants so 2 Questions:

1) How does an Investor/Landlord control spending habits? outside of necessary fixes/repairs.

2) How do you deal with an annoying tenant who wants this and that fixed replaced/improved? when to fix or tell tenant to 'beat feet'?

Get me out of the race...Spend $1M on debt reduction/setting up personal property and taking care of family...buy some Iowa Farmland and other safe 5%+ Investment Vehicles. Live off less than $450k/Year in interest income and continue to pick off good RE deals here and there...

Consider me good...

Then I'm going fishing with Daniel Payne

HUD REO:
4/2 SFR with potential ($100k ARV ~$20k Rehab)
Listed at $62,000 (Exclusive, Insured)
My Offer at 30 DOM $39,500
HUD Counter: $52,800
My Offer @ 58 DOM $40,000
HUD Counter to all bidders on day 60 - $46,500 & other Inv Accepted...somewhat pissed I missed the deal, oh well...next.