All Forum Posts by: Al Pat

@Jason James I bought at least five or six properties with no inspection contingency and at asking price. When you know the property is fairly prices and has room to make repairs, you can and should do it. You must inspect it yourself though. I have also bought properties sight unseen with no inspection because the price was right.

@Nathan Killebrew Well, listen to one of the Jim Rohn’s motivation videos sometimes. In one of them he says “you become who you hang out with, and you are an average of five of your closest friends”. Anyway, it may be time for you to explore new network of like minded people and develop new friends. Obviously, don’t leave the friends you enjoy but don’t allow their company to deviate you from your goals and journey that leads you to it. You are on the right path so carry on.

@Eric Jones I would keep on collecting the late fees and be patient. Finding new tenant and turn around cost it higher. I have two tenants who pays three days to five days late because of their paycheck cycle ( I was able to find that out) so they pay with late fee. I waive daily late fee of $5 that is on top of $50 and $100 for each tenants. They gladly pay it. However, I insist them to make biweekly payment when they have heads up that next paycheck will be after 5th and they will miss due date. I keep all late fees along with one month rent in my operating account to pay for the mortgage so even if they are late, it doesn’t create anxiety on my end. They have paid way more than their security deposit just in late fees. I sometimes feel bad to collect late fees so I waive daily accrual in case by case basis. I renewed their lease with $50 rent increase in January and they accepted and still pay late fee. Can’t explain 🤔

 This is very clear. today is 6th and I hope you stopped by the court to file an eviction to post it on her door on your way back. If not, do it before court closes at 4pm. Once she realizes you are serious, she will adjust her attitude. It will cost you less than $100 (here in my state it's $50). You gave her enough opportunities, its now time for action.

When I show my properties, I run into people who want to pay me deposit on the spot, I know its very easy in the days of Zelle, CASH app and Venmo. However, I always tell them to go home and sleep over before they commit to a place. Also, I send them off with a list of required documents and application form and link for MySmartmove. If they complete the online credit check and pass it then I collect all documents via email. Once their application is accepted, they have 24 hours to bring their deposit and sign a lease. I have strict rule of not collecting any money until lease is signed. I only collect cashier check or money order for the deposit and hold it until they move in. I usually want them to move within 7 days at minimum so all my leases are signed between 23rd and 28th day of the month so they can move in on 1st or that week end. Once they move in then I deposit the funds along with first month's rent. I had tenant change mind once after signing a lease and I still returned the deposit because I had a backup tenant, I always screen and choose two tenants whenever possible. Second one knows they are in waiting so never had any drama, they pray for first one to not make it, as always. I know this is irrelevant but may be helpful in future. 

@Brett Palmer Very simple, buy more rentals to replace your W-2 or earned income. Then use the cash flow to pay off your primary home and then rentals in the order of highest interest rate.

@Robert Shedden Congratulations on your progress. What part of Chicago did you invest in? Just curious because I didn’t know how well Chicago is for landlords.

@Zachary Bellinghausen, I’m sure by now they know what their fellow students are paying. They are also checking with other two empty units. It doesn’t take whole lot for students to move because they don’t have lot of stuff. If you know you are high then make adjustments otherwise you will loose one month rent to vacancy and that will cost you $1300 anyway. Kids these days are lot more smarter when it comes to college rentals. They are looking to save a dime. Worst case you will have empty condo competing with other two that are available for $1250 a month and you will waste two months looking. I would lower it to keep them. Don’t play hardball.

@Vinh Huynh, you will most likely cash flow negative as house ages and requires maintenance. You have over $100k invested that is absolutely NOT returning anything. You will not retire rich with this kind of math in real estate investing. Love the cash flow not the investment a.k.a house.

@Sejj Jackson, I don’t believe in offering money to leave. This sets the bad precedent and encourages tenants to expect move out bonus. Eviction in GA is less than $200, with results in less than 30 days, very landlord friendly state. Duplex rent can’t be more than $1000 in the state OP is referring to. I would recommend to pursue eviction as it will go tenants permanent record, so in most cases they leave as soon as they get served by the sheriff because they realize that the landlord is not playing around. I don’t like trading tenants to get money to move as it makes them seasoned and cause issues for future fellow landlord.