All Forum Posts by: Brandon Turner

Hey Mike M. - around here, our security deposit is usually equal to rent. I'd actually be nervous to do any less, since about half my tenants don't get their deposits back after all the cleaning/maintenance I have to do when they move out. So I usually just make it the same, not changing based on the length. How long I hold a property for really depends on a case by case basis, but I try to never hold for more than a week or so. I time my advertising right and prepare ahead of time - so typically I don't have a vacancy more than a couple days.

I suppose you could make the holding fee any amount. I also convert my "holding fee" (In my state, we call it a "Deposit to Hold.") to the security deposit. But there is no reason you couldn't convert the "holding fee" to the first month's rent.

I'm pretty similar to Jon. I make sure to let all prospective callers know about my minimum standards which are:
1.) Minimum income of 3x the monthly rent
2.) No recent felonies (I keep this vague so I can be flexible if needed)
3.) Good references from previous landlords
4.) No evictions.

I try to schedule as many showings at the same time. I've found that 50% of scheduled showings will not show up, so by having several at one time, while a little awkward, it creates both a competitive atmosphere (good for business) and reduces wasted time.

I bring with lots of applications and give one for each applicant (so two applications if its a husband and wife). I charge $35 for the app fee for the first person and $20 each person after the first (over 18 years old).

I tell people that I run applications on a first-come-first-serve basis so be sure to get the application in quickly. I also let them know I don't even look at applications if they don't include a money order or cashiers check for the application fee.

I then run the background check (I don't do a full credit check - just background, criminal, eviction, judgments, etc ... I assume they all have bad credit). I call past landlords (not just current) and their job.

If they qualify, I then call and tell them that they have 24 hours to pay the "deposit to hold" - which is basically the security deposit. This guarantees the property is theirs. If the property is real "hot" sometimes tenants will pay the "deposit to hold" money with their applications (this is uncommon around here, though).

I will generally never hold a property more than two weeks, but I'm flexible depending on how strong of a tenant the person is.

Finally, we get together and sign the lease on the day they move in, where they pay the entire first months rent (no matter what day they move in) via cashiers check or money order.

Hope this helps! Good luck and keep in touch!

I'm not investing in the Midwest (though I am originally from there) -but I do buy a lot of that age home. I find that those properties are, yes, in much greater need of work but I find that a lot of homes were built much better back then. The trim and other features are something of a lost art in today's homes so I love them. Don't expect walls to be straight or level - but mud and caulk can fix a lot!

I know very little about this stuff (so hopefully someone smarter will come behind me) but I do remember my financial advisor telling me something about being able to do this using some kind of "universal whole life" product. PM me if you want his info to talk to him!

Welcome Monica Burt! You are definitely doing the right thing by reaching out and learning from those who have come before! Also I hear Memphis is an incredible place to invest. You'll do awesome Monica!

Welcome Matt Sheridan! It's great to see someone pulling the trigger and not being caught in "analysis paralysis!" I think that as long as the math works (it's all about the numbers) you are going to do great. I also believe that 10 years is totally doable. Invest conservatively but work hard and you'll make it!

Nice to meet you Mike M.! I love small multifamily properties and I've always heard Texas is a great place to invest - so you have a great plan and great launching pad! You'll do great!

Just be sure to always listen to the math!

Keep in touch!

Hey Michael Green it's great to meet you! I'm also in my twenties and it's an excellent time to get started! I am totally in love with small multifamily properties like duplexes, triplexes, and 4-plexes. I think it's a great idea. Buying a property as an owner occupied and then moving later is an excellent way to build a portfolio quickly and with rock-bottom interest rates. You'll get "maxed out" fairly quick with the number of mortgages allowed (and like you said, lender's don't always like to give you credit for the rent you receive for the first few years) but you can probably pick up three or four before needing to get creative (and that's when it gets fun!)

The important thing is to make sure the math works!

I like what Callum Kerr said above - read, pick a niche, and pull the trigger! (I like that!)

Hey James Wilson! I'm also a fellow Washingtonian (Aberdeen area!) so welcome to the club! Someday we may need to have a BP Northwest meetup, as I think there are quite a few of us!

Keep in touch James!

Lou M. - A lot of investors will tell you the ROI will be much higher when you leverage to the hilt and that the taxes are higher when you don't have that "interest payment" deduction.

Sure this may be true, but to quote Dave Ramsey, "100% of foreclosures last year happened to people with a mortgage." In other words - loans add risk and if you aren't comfortable with that risk - don't take it. a 10% return that's almost risk-free sounds pretty darn good to me. I can't wait for the day when I can pay every loan off and just relax. For me - security is more important than maxing out my ROI.

Good luck Lou and keep us updated!