WRITING YOUR FIRST LEASE

21 Replies

Hello All!

I am still I'm the planning phase of my investing journey and have been think about investing in real estate for about a year now. I go serious and started researching about 6 months months ago. I found many things I needed to work on to get me closer to me goals (credit, better budget, ect.) and have been aggressively attacking the things standing in my way. I have reached out to a lender in the same area as the market I will be investing in, and have reached out to a couple of real estate agents. 

Which brings me to my first set of questions. What is the respectful and responsible way to vet agents but also turn down the ones I choose not to work with for my first deal? All of them have their pros and cons, and I would like to keep them as possible "team members" for future deals. 

A lot of my research has come from blogs, articles, and videos of those thriving in this business alright. Bigger Pockets alone is have a wealth of knowledge to choose from. This brings me to my second question and first tip.

Tip#1: While no one can argue that books are a great resource, if you're like me and are diligently managing you budget, the internet has more information than you will ever be able absorb, extort it for everything it's worth. My one caveat to that is you must be able to pick apart what is a credible source is from a bogus one, because the internet is available to everyone.

I love Bigger Pockets, and want to access some of the Pro features. Can I justify paying for the Pro membership when I know my budget is one of my weak points?

I am just about ready to get preapproved for my first loan so I have very recently started to put rough systems I would like implement on paper (Google Docs to be exact). I am starting to build "my team" and have a property manager, as I am 1500 miles away from my market, a plumber, lender, and am narrowing down real estate agents as I mentioned. 

Tip#2: Word of mouth is a great thing. Start with someone you trust and just keep asking around. This is how I have start relationships with most of these professionals.

I am currently looking for some kind  folk who are knowledgeable and whiling to help a young guy as ignorant as myself. While I am confident in my research and have plenty of initiative to start many things on my own, I receive a lot of peace of mind having my work reviewed my someone more experienced than I. 

To close out I will leave one final tip that I picked up on just night.

Tip#3: My market is in Maine and one of the tasks I had assigned myself was getting a lease outlined when I simply googled "Maine Lease Outline"  I got much more than I had expected. In 1989 the state of Maine authorized the Attorney General to release a model residential lease. It was a gain update in 2014 by the Maine Human Rights Commission. While I'm sure it isn't perfect it was a great start. It even had foot notes referencing state legislation.

This discovery is what sparked this whole post. Maybe some of you who are in a similar place in your journey can benefit from this. If your market also happens to me in Maine here the link to the model lease:

https://www.maine.gov/tools/wh...

Thank you for all the insight this community has given me. I will continue to learn what I can from your contributions.

@Corey Harlow Goodluck, Corey! Where are you investing in Maine and where are you located? I also invest from afar in Maine but I grew up where I’m investing. I used that same lease template for my first rental. Probably not the best way to do it but I was on a small budget and just taking things one step at a time.

First tip: try breaking your thread into multiple threads. If you ask three questions in one post, at least one of the questions will be ignored or missed. You're more likely to get little response because the audience can't figure out what you really want or they don't want to take the time to answer everything.

Second tip: upgrade to Pro and you'll get access to their lease and other docs, marketplace, webinars, and more. If you can't afford $400 the sell some stuff, work extra hours, hustle, have a garage sale, or whatever. I bet you could earn $400 in one month 100 different ways. If you can't figure out how to raise $400 then how are you going to figure out how to raise $20,000 to buy an investment?

As for your question, just be honest with agents. Every agent knows (or should know) that there are a lot of agents out there and we aren't the right agent for every client. Simply tell them you've found someone that's a better fit for you and move on.

Thank you Eddie!

The area I am investing in is mainly Androscoggin and southern Kennebec County. I grew up in the L/A area. The property manager has a requirement of one hour travel time from their location in Auburn. I understand the risks I am taking but everywhere I look I hear or read that educated risks are necessary. How long ago did you buy your first property? 

 

Based on what you’ve stated I think I’d Keep saving and learning . There’s many ways to do real estate and you don’t need a dream team or a core four Or even an agent lol none of that is something that gets you money in the bank ! you need some cash flow and a cheap house to get started  . As Nathan said Your even worried about upgrading to a pro membership so how the heck are going to pull the trigger on a expensive rental property with your current mindset and budget 

Duly noted Nathan. 

I appreciate the feedback and will make the appropriate adjustments for my next post. 

Also, I definitely see the benefits of a Pro membership. I think the calculators allown are a huge value. I definitely will reorganize and reprioritize my budget to make it happen. 

I agree honesty is key. A lot of the problems I have is being so early in the process yet wanting advice and guidance from professionals. At the same time I do not feel right asking them for their time when they have other (paying) clients. I will finish my research and commit to one.

Your advice is much appreciated!

Thank you, Dennis!

Realistically I'm about 3 to 6 months from being ready to sign on a property. I'm not so much worried with a pro membership as I had trouble justifying the expense to myself. I'm trying not to find ways to spend money. My budget has room to move but I'm doing my best to make wise and educated decisions. I am always going to continue researching and educating myself. My mindset currently is to make sure I am able to continue to grow and make progress.

P.S. How do you tag users in a reply?

 Here’s an idea, it sounds like you struggle with procrastination. For example you’re looking at how to set up and design a lease and you don’t have a property nor a tenant nor any reason to have one yet. You can get a lease in five minutes by asking around. Have you considered buying a mobile home in a park near Auburn? You could probably find one for five to $10,000 and rent it out for seven or $800 a month. That way  you can get used to the management company and you’ll have very little invested and you’ll be profitable each month.  You can find the homes on craigslist or the Facebook marketplace or uncle Henry’s.  Once you take action on the first deal the next ones will be much easier. 

Ed, I love your idea!

I will definitely look deeper into this. The only question I have for you is this:

Is it not important to begin create systems so I do not begin completely unorganized?

Thank you!

@Corey Harlow:

I understand the risks I am taking...

I doubt it.  Choosing a target area based on the location of a property management company is akin to putting the cart before the horse.

P.S. We set to close on a property in your target area this Tuesday. 

Alex,

I chose this area because it is an area I know well. This also is close to several colleges. This is the area I grew up and will be returning to eventually. The property manager was selected after I selected a general location (L/A).

Congrats on the property though!

Originally posted by @Corey Harlow :

Hello All!

I am still I'm the planning phase of my investing journey and have been think about investing in real estate for about a year now. I go serious and started researching about 6 months months ago. I found many things I needed to work on to get me closer to me goals (credit, better budget, ect.) and have been aggressively attacking the things standing in my way. I have reached out to a lender in the same area as the market I will be investing in, and have reached out to a couple of real estate agents. 

Which brings me to my first set of questions. What is the respectful and responsible way to vet agents but also turn down the ones I choose not to work with for my first deal? All of them have their pros and cons, and I would like to keep them as possible "team members" for future deals. 

A lot of my research has come from blogs, articles, and videos of those thriving in this business alright. Bigger Pockets alone is have a wealth of knowledge to choose from. This brings me to my second question and first tip.

Tip#1: While no one can argue that books are a great resource, if you're like me and are diligently managing you budget, the internet has more information than you will ever be able absorb, extort it for everything it's worth. My one caveat to that is you must be able to pick apart what is a credible source is from a bogus one, because the internet is available to everyone.

I love Bigger Pockets, and want to access some of the Pro features. Can I justify paying for the Pro membership when I know my budget is one of my weak points?

I am just about ready to get preapproved for my first loan so I have very recently started to put rough systems I would like implement on paper (Google Docs to be exact). I am starting to build "my team" and have a property manager, as I am 1500 miles away from my market, a plumber, lender, and am narrowing down real estate agents as I mentioned. 

Tip#2: Word of mouth is a great thing. Start with someone you trust and just keep asking around. This is how I have start relationships with most of these professionals.

I am currently looking for some kind  folk who are knowledgeable and whiling to help a young guy as ignorant as myself. While I am confident in my research and have plenty of initiative to start many things on my own, I receive a lot of peace of mind having my work reviewed my someone more experienced than I. 

To close out I will leave one final tip that I picked up on just night.

Tip#3: My market is in Maine and one of the tasks I had assigned myself was getting a lease outlined when I simply googled "Maine Lease Outline"  I got much more than I had expected. In 1989 the state of Maine authorized the Attorney General to release a model residential lease. It was a gain update in 2014 by the Maine Human Rights Commission. While I'm sure it isn't perfect it was a great start. It even had foot notes referencing state legislation.

This discovery is what sparked this whole post. Maybe some of you who are in a similar place in your journey can benefit from this. If your market also happens to me in Maine here the link to the model lease:

https://www.maine.gov/tools/wh...

Thank you for all the insight this community has given me. I will continue to learn what I can from your contributions.

 What area of Maine?  I live and invest in Biddeford 

@Corey Harlow WOW!! You are working MUCH to hard, and WAY overthinking. 1st thing you need is a team to take care of all for you, and you focus on your career / job . Books, tape, all this " research "  95% is useless.  Connect with an investor that is actually doing deals vs reading , learn and do. I see A LOT of procrastinating. You have been thinking for a year ???? Hmm, , a year ? 

Good Luck  

Thank you Bob!

I agree that I have a tendency to over complicate things. The past year has mainly  been getting my self to a place where I can reasonably entertain the idea. In March I paid off over $9,000 in debt. 

What would you say is the 5% of useful information I should be concerned with?

Also I took a look at your website and love the work you do. Are the properties you work with mainly flipping or buy and hold?

@Corey Harlow I use Rocket lawyer for all my leases and eviction paperwork. They have a simple process of just answering questions and it fills out the lease. 
I like that you are doing your due diligence and getting your finances in order. 

Thinking you should stay focused on that along with more reading and hit a bigger pockets meetup near you. At least through the winter. I don’t recommend buying in the winter unless it’s an amazing deal. You start off with the extra expense of heating and snow removal. 

Warning Dont use this lease 

Tip#3: My market is in Maine and one of the tasks I had assigned myself was getting a lease outlined when I simply googled "Maine Lease Outline"  I got much more than I had expected. In 1989 the state of Maine authorized the Attorney General to release a model residential lease. It was a gain update in 2014 by the Maine Human Rights Commission. While I'm sure it isn't perfect it was a great start. It even had foot notes referencing state legislation.

This discovery is what sparked this whole post. Maybe some of you who are in a similar place in your journey can benefit from this. If your market also happens to me in Maine here the link to the model lease:

https://www.maine.gov/tools/wh...

 I did on my first few tenants lost ton money and was screwed out lots time money after 3 court dates had hire landlord lawyer to write a actual new one that actually holds up in eviction court.

Thank you Jeremy!

I definitely plan on having it reviewed, and added and took some parts out. Did my best to keep it within Maine State Law, but of course I'm not an attorney.

Hey there! The AG's lease is very slanted toward protecting the tenant's rights but not yours!  Atty. Shankman has a great Maine lease.  I'm not sure how much he charges for it.  It was in a book I purchased for a class I took a few years ago. You can probably buy the book, which includes other forms and info, for a few hundred dollars.

I do not think you should spend time getting a team together.  Once you have a house, if it needs a plumber you can Google it in a minute and have a list of options.  Plus a PM will have a preferred plumber.  Additionally you can not judge if you have a good one or an available one on your team, until you need one and try him out.  

Spend your time figuring out how to fund this adventure!

Some of the GURUs push the team stuff way too much.  If you have a PM, then don't worry about tradespeople.  You can have a different realtor in each town too.

For an education, leases and connections to find “a team”, look up your local Rental owners association, or multi family association....  i also would not spend 400 on BP.... instead become a member of the rental owners association and go to a new landlord bootcamp if they have one.  Its not rocket science.  ;)

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