Is there a demand for rentals in Baltimore City?
Vienna, VA · Member since 2016 · 9 posts · 0 votes
Hi there. I'm a newbie here and looking closely at Baltimore's market. Very promising at first glance. For those of you who recently purchased and rented out the property, how quickly you were able to place a tenant? What issues I might run into once I have my first property ready? Thank you for your time.
Sure and thank you Obinna for your vote - I appreciate votes - makes me feel good.
When I was an agent/broker years ago I decided that the best client I had was ME. I gave up driving buyers around looking at houses - I dumped the idea representing sellers and being abused by other agents, brokers, title companies, lenders, underwriters and other gate keepers who tried to stop me from succeeding in the real estate business!
I decided that the best client I had was myself! At that time in my life I had very little money, my credit was OK, but not what banks would readily accept.
So the question I had was HOW DO I MAKE MONEY IN REAL ESTATE WITHOUT all of those folks and without money or a great credit score.
The other question that haunted me was - how could I profit in real estate without owning real estate!
At 3 in the morning I jumped out of bed, pen in hand and started writing - the system came to me as clear as could be..... the answer was CONTROL AND ROLL!
If I could control real estate and assign it before I had to kiss the ring of lenders and all those other gate keepers - I could make money.
Not to confuse you Obinna - but what I did was to create a system I call Control and Roll - that is - I controlled real estate with a skinny contract and special clauses that allowed me to take possession and assign my interest (equity ownership) during my contract period and the right to walk if not successful in my assignment. It couldn't get any better than that!
So when the sun came up - I was in my office on the MLS making offers on expired listings - testing my system -
WOW - I couldn't believe it - the system worked. I made 22 offers and got 11 accepted and assigned 6 transactions. I made more money in one month than I made in a year working as an agent.
Today as an auctioneer, developer and investor - I continue to use this very simple system to SELL (assign) REAL ESTATE I don't own for attractive profits and cash flow.
I hope this was helpful and answered your question.
Charles
In response to the title - in a word, yes. :)
@Andrew Ninnemann,
Thanks Andrew! I know it does sound silly to the majority of you guys. :) Can you address other two questions in the body?
The relative quickness to rent a property really depends on how much you're trying to get in rent and the quality of tenant you are screening for. I aim for market rate tenants. I keep my homes very nice. I've never had a problem filling a vacancy.
There are thousands of "high end" apartment building units under construction right now around Inner Harbor. So clearly the big money thinks there is demand for rental property.
Have the rental units and the tenants will come - We have many rental units and still buying and assigning properties - never had an issue with finding tenants (those folks who pay my mortgages) it is a great business here in Baltimore - Our family have been hanging around here for over 40 some years and have done well - you will also - I wouldn't worry about tenants - you should concern yourself with controlling real estate - work on -----
There are many ways to control vacancies and to build an attractive monthly cash flow ----
Good luck - Charles
Sure and thank you Obinna for your vote - I appreciate votes - makes me feel good.
When I was an agent/broker years ago I decided that the best client I had was ME. I gave up driving buyers around looking at houses - I dumped the idea representing sellers and being abused by other agents, brokers, title companies, lenders, underwriters and other gate keepers who tried to stop me from succeeding in the real estate business!
I decided that the best client I had was myself! At that time in my life I had very little money, my credit was OK, but not what banks would readily accept.
So the question I had was HOW DO I MAKE MONEY IN REAL ESTATE WITHOUT all of those folks and without money or a great credit score.
The other question that haunted me was - how could I profit in real estate without owning real estate!
At 3 in the morning I jumped out of bed, pen in hand and started writing - the system came to me as clear as could be..... the answer was CONTROL AND ROLL!
If I could control real estate and assign it before I had to kiss the ring of lenders and all those other gate keepers - I could make money.
Not to confuse you Obinna - but what I did was to create a system I call Control and Roll - that is - I controlled real estate with a skinny contract and special clauses that allowed me to take possession and assign my interest (equity ownership) during my contract period and the right to walk if not successful in my assignment. It couldn't get any better than that!
So when the sun came up - I was in my office on the MLS making offers on expired listings - testing my system -
WOW - I couldn't believe it - the system worked. I made 22 offers and got 11 accepted and assigned 6 transactions. I made more money in one month than I made in a year working as an agent.
Today as an auctioneer, developer and investor - I continue to use this very simple system to SELL (assign) REAL ESTATE I don't own for attractive profits and cash flow.
I hope this was helpful and answered your question.
Charles
@Aibek Akmat Very high demand for rentals. Filled mine in a couple of weeks....Make sure you do your research as markets change block to block in baltimore. Many areas may be mostly section 8 tenants.
What neighborhood / areas are you looking?
@Account Closed
Hey Charles, how do foreclosure auctions in baltimore work? are they weekly at the courthouse? How competitive are they these days?
@Aibek Akmat, a quick "hack" to understand rental demand is to look at Craigslist. You can keep tabs on open rental listings and see how quickly they are taken off. Also, feel free to call a property manager or two in the area to ask them as well. They'll give you some solid information.
@Brad Cogswell Your mentioning Craigslist made me feel like I am walking in the right direction. I like the idea of keeping "tabs" on properties. I will do this for many properties in many different areas to determine how quickly they fill.
A question: What do I say when I pick up the phone to talk to a property manager?
For instance: *Yells* Tell me all you know about Charles Village rentals?!
Yes there is demand for Baltimore city rentals. The demand will ebb and flow. It will also depend on neighborhood and condition. Sometimes we find tenants within days sometimes it is a month. Since we often rent to section 8 that can easily add a month to the process.
@Jasmine Wilborne I think it's most helpful when there is some value you can provide them (even if it's not now, but in the future). I don't know where you're at from an investing perspective, but when I do some of these calls I make it very clear that I am going to be needing a property manager as I grow my portfolio. That lets them know that there is a possibility you could do business in the future and gives them more incentive to help you out.
Sure and thank you Obinna for your vote - I appreciate votes - makes me feel good.
When I was an agent/broker years ago I decided that the best client I had was ME. I gave up driving buyers around looking at houses - I dumped the idea representing sellers and being abused by other agents, brokers, title companies, lenders, underwriters and other gate keepers who tried to stop me from succeeding in the real estate business!
I decided that the best client I had was myself! At that time in my life I had very little money, my credit was OK, but not what banks would readily accept.
So the question I had was HOW DO I MAKE MONEY IN REAL ESTATE WITHOUT all of those folks and without money or a great credit score.
The other question that haunted me was - how could I profit in real estate without owning real estate!
At 3 in the morning I jumped out of bed, pen in hand and started writing - the system came to me as clear as could be..... the answer was CONTROL AND ROLL!
If I could control real estate and assign it before I had to kiss the ring of lenders and all those other gate keepers - I could make money.
Not to confuse you Obinna - but what I did was to create a system I call Control and Roll - that is - I controlled real estate with a skinny contract and special clauses that allowed me to take possession and assign my interest (equity ownership) during my contract period and the right to walk if not successful in my assignment. It couldn't get any better than that!
So when the sun came up - I was in my office on the MLS making offers on expired listings - testing my system -
WOW - I couldn't believe it - the system worked. I made 22 offers and got 11 accepted and assigned 6 transactions. I made more money in one month than I made in a year working as an agent.
Today as an auctioneer, developer and investor - I continue to use this very simple system to SELL (assign) REAL ESTATE I don't own for attractive profits and cash flow.
I hope this was helpful and answered your question.
Charles
Is your control and roll method wholesaling? If not then what's the difference between the 2?
Control and Roll is the grandfather of "wholesaling". There is no better leverage in the world than selling real estate you don't own, don't need a loan for, don't have to apply for credit, have right of possession and if you miscalculated your estimate of time it takes to assign your contract - a nice clause that lets you out of the deal on a friendly and with little or no arbitration or hard feelings.
To answer you question - there is a BIG difference between "wholesaling" and and Control and Roll - and it has to do with negotiating - disclosures and turnaround time for profits to be realized. The system of Controlling real estate and liquidating it fast has been developed over many years and perfected. Wholesaling works but it is not as effective.
the big guys apparently think there is demand for rentals. Lot of apartment buildings going up. Read this Baltimore Sun article. http://www.baltimoresun.com/business/bs-bz-apartme...
I was going to post that article too @Kevin Favorite. Good read.
Some might say there's a lack of affordable housing around the downtown area. Many of the apartments that article talks about will rent for $1600 and up.
For many renters, those higher price points aren't obtainable. I think there will be continued demand for good homes in nice areas at price points that are still worthwhile for investors.
To be honest, I am curious where this is going with all those high rises.
It is out of control.
If they lose the control, it get can bad, that all I am saying
@Mark Moyer @Ozzy Sirimsi You guys are both right the price points are likely not sustainable for renters. As the affordability index climbs (tenants paying more than 30% of their income on rent) I imagine that will only lead to more turnover and evictions.I have read some of the other members posts and agree with some strategies like a lower more modest rent if that means a happierlonger term tenant that can pay on time. I would rather keep a modest cash flow than get greedy and stretch a tenants dollar.
@Account Closed Thanks for your post. Could you explain the different ways of controlling real estate you mentioned in your post? Obi
Control - to Buy or Control - that is the questions - for many years I have practiced the Control and Roll system - this is the highest leverage possible in real estate or other commerce - controlling an asset you don't own and selling it for a profit while in contract. (never an obligation to close)
Control with;
Control real estate with a contract offer subject to resale or assignment
Control and Roll - 4 steps
The art of Controlling real estate is the quickest way to earn profits in real estate while satisfying all parties to the transaction
Sure and thank you Obinna for your vote - I appreciate votes - makes me feel good.
When I was an agent/broker years ago I decided that the best client I had was ME. I gave up driving buyers around looking at houses - I dumped the idea representing sellers and being abused by other agents, brokers, title companies, lenders, underwriters and other gate keepers who tried to stop me from succeeding in the real estate business!
I decided that the best client I had was myself! At that time in my life I had very little money, my credit was OK, but not what banks would readily accept.
So the question I had was HOW DO I MAKE MONEY IN REAL ESTATE WITHOUT all of those folks and without money or a great credit score.
The other question that haunted me was - how could I profit in real estate without owning real estate!
At 3 in the morning I jumped out of bed, pen in hand and started writing - the system came to me as clear as could be..... the answer was CONTROL AND ROLL!
If I could control real estate and assign it before I had to kiss the ring of lenders and all those other gate keepers - I could make money.
Not to confuse you Obinna - but what I did was to create a system I call Control and Roll - that is - I controlled real estate with a skinny contract and special clauses that allowed me to take possession and assign my interest (equity ownership) during my contract period and the right to walk if not successful in my assignment. It couldn't get any better than that!
So when the sun came up - I was in my office on the MLS making offers on expired listings - testing my system -
WOW - I couldn't believe it - the system worked. I made 22 offers and got 11 accepted and assigned 6 transactions. I made more money in one month than I made in a year working as an agent.
Today as an auctioneer, developer and investor - I continue to use this very simple system to SELL (assign) REAL ESTATE I don't own for attractive profits and cash flow.
I hope this was helpful and answered your question.
Charles
Is your control and roll method wholesaling? If not then what's the difference between the 2?
I don't know where the term "wholesaling" came from - maybe a car salesman - it only makes sense to me - if you are an investor (one who controls, buys, contracts for, auctions or assigns/flips real estate for a profit) you are purchasing below market ( it would not be a wise investor who pays retail - unless for personal use or redevelop to a higher and more profitable use) - - I prefer to be an investor - to me and others in this business who see many of these folks who call themselves "wholesales" as less sophisticated in the real estate business (only understanding a limited and small portion of real estate) not a serious professional and knowledgeable making equity profits - others see them as opportunist often times getting over on sellers sometimes unintentionally. Many them use illegal and questionable marketing methods to attract sellers.
The system I developed years ago and still use to this day on houses - commercial - lots - land and nonconforming real estate is (STOP - understand - I am telling and not SELLING - only trying to answer a question) the system if followed - prospecting - evaluating- controlling and assigning by public auction is the basis of Control and Roll.
If you care to call that "wholesaling" well that's OK - but I call it making money without contingencies - agents - financing - depending on the condition of real estate - assigning (flipping) for all cash - in "as is" condition and a fast contingency free transaction.
There is NO greater LEVERAGE in the world than selling real estate you don't own for a reasonable fast equity or cash profit. I like to say - "control low - assign low and do it often"