Investor/Residential Developer · Newark, NJ · Member since 2013 · 33 posts · 20 votes
I have been a member of BiggerPockets for several months now and have been super quiet in the forums. I guess I have been quietly learning and absorbing as much information as I can :-) but my plan is to become more active and engaged on the site.
Well, I am happy to announce that I closed on my first investment property today located in Newark, NJ!! It is a duplex, "newer" construction, and one unit is already occupied. I will be managing the property myself in order to learn the business. Next up is cleaning the vacant unit and getting a (great) tenant.
I am really excited about what 2014 has to offer and am looking to network with investors from Newark, NJ!
You said: I need tenants that know how to put a check/money order in an envelope and use the United States Postal Service ;-)
Have you thought about AVOIDING the Postal Service? That way, the tenant can NOT make excuses, blaming the Postal Service. Lost in the Mail, Bad Weather, etc.
You have various choices:
Electronic payment using the Internet, or have the Tenant deposit the Monthly Rent in a Bank Account, setup just for that purpose.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
12y
Congratulations @Narelle Myke on your beginning in real estate investing. If you have not done so please read the Learn section above. I had invested for 20 years before discovering this site and I learned a lot from it. Feel free to post information and possible deals on the forums to get help or even sympathy when you need it. Its like having a great tool, you need to use it to get the benefit from it.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
12y
And be safe @Narelle Myke - it's a tough city (depending on where in Newark you are) and landlords face potential danger when dealing in certain neighborhoods. I strongly advise you to have your tenants mail you the rent and to NOT personally pick it up.
Thanks everyone for your congrats, advice, and sympathies LOL!
@Gerald K. I inherited the tenants that are living in one of the units.
OK. Were you able to obtain the rental agreement, security deposit, and last month's rent if that was collected? Is it a lease? If so, when does it end? That lease will likely have to be honored. If it's a month-to-month agreement, you could probably get them on your own rental agreement with a 30-day notice. Check your local landlord tenant laws as the rules can be strict. You might also want to join a local landlord association as they can be very helpful. Were you able to find out if the tenant's have been paying rent on time and in full? Don't take the previous owner's word for it since you really have no idea without some kind of proof such as cancelled checks, bank statements, etc. Run your own credit/background checks on the existing tenants as well as prospective tenants - refer to the BP tenant screening guide I referred you to in a previous post. Establish rules and expectations, enforce your lease. Be respectful, fair, but firm. Train the tenants from the beginning upfront, otherwise they may train you. If you have any problems, just follow the lease and landlord tenant laws and everything should work out. If you need any help or have issues, just post them here on BP. Good luck with your new adventure.
Real Estate Investor · Baltimore, MD · Member since 2014 · 21 posts · 3 votes
12y
@Narelle Myke Hi, and welcome aboard. I live in NY. I have 2 SFR in baltimore. One is currently rented out and the other is being fixed up to be rented by spring. Section 8 is the way to go. I receive my payments at the end of every month deposited directly into my bank account. You should consider looking into it. Especially since baltimore is similar to newark.
Investor/Residential Developer · Newark, NJ · Member since 2013 · 33 posts · 20 votes
12y
@Gerald K. I definitely reviewed the existing lease and original application before closing. I received a credit for the February rent as well as the security deposit. The tenant has a one year lease which expires in July and I've already notified them of where their security deposit is being held per the state law.
I did not have proof that the tenant was paying their rent on time and that's an oversight I won't forget on the next deal. However, I can say that I received March's full rent payment from the tenant within the specified timeframe in the lease. As for the second unit, I currently have it on hold for a family that brought copies of their pay stubs with them to the walk through and have passed my reference checks.
So, so far so good! I appreciate your recommendations and will be joining a landlord association for sure. Newark, NJ is an "interesting" place to invest in and so having a network of other experienced landlords will be essential to my success.
You said: I need tenants that know how to put a check/money order in an envelope and use the United States Postal Service ;-)
Have you thought about AVOIDING the Postal Service? That way, the tenant can NOT make excuses, blaming the Postal Service. Lost in the Mail, Bad Weather, etc.
You have various choices:
Electronic payment using the Internet, or have the Tenant deposit the Monthly Rent in a Bank Account, setup just for that purpose.
Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
12y
Narelle Myke I actually have a pickup service were tenants can set up a pickup of rent by my trusted associate (of course in the form of money order only) . 15 bucks a pickup
Raquel Thomas what part of Baltimore do your homes reside?
You said: I need tenants that know how to put a check/money order in an envelope and use the United States Postal Service ;-)
Have you thought about AVOIDING the Postal Service? That way, the tenant can NOT make excuses, blaming the Postal Service. Lost in the Mail, Bad Weather, etc.
You have various choices:
Electronic payment using the Internet, or have the Tenant deposit the Monthly Rent in a Bank Account, setup just for that purpose.
Raymond
@Raymond B. Funny you should mention this! I was speaking with an investor friend about this very thing after that post. He said to me " You gotta treat these people like children. Go get that money!!"
So that's what I did - I collected the rent in person and I'm fine with that for a number of reasons:
1 - it gives me face time with the tenants
2 - they know I'm serious about collecting the rent on time
So with that said, it's not that I won't consider other options of collecting in the future but I realize I need to be flexible. My investor friend is a native Newarker and also offered to collect for me when I can not.
Investor/Residential Developer · Newark, NJ · Member since 2013 · 33 posts · 20 votes
12y
Originally posted by @Account Closed:
Narelle Myke I actually have a pickup service were tenants can set up a pickup of rent by my trusted associate (of course in the form of money order only) . 15 bucks a pickup
Raquel Thomas what part of Baltimore do your homes reside?
Awesome - definitely a consideration for the future. Thank you
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Raymond
I'm beginning to think you're a mind reader! I was looking for this very instruction before responding to you and gave up. Thank you ;-)