All Forum Posts by: Tami DuBose

@Sam Leon , some excellent points were made:

• Confirm your insurance by @Eugene Hoffman 
• & @Elizabeth Colegrove advice to find the 'real reason'

I'm with @Beth L. , a little flexibility can have bonus results. Some of these guys are willing to drive a bit for work, but if they can stay, it can be a win/win. If the reason is the drive time, I'd do it licensed or not.

If he falls down the stairs at night or during day, it's still a problem. 

$1000 job shouldn't take more than a few days if he's staying there. Be sure your contract has a due date & penalties for every day after the due date. He may not be in a hurry if it's a nice place.

@Corey Threet securing a deletion won't really help your score because, based on what you've written, it's the only reason you have a score - VZ negatively reported you to the bureaus.

Other than that, you don't exist to FICO. Do what @Greg Baker noted & find out what's on your report. I normally suggest to pull just 1 report  & save the other 2 for later. However, in your case, pull all 3.

FOR YOU, I would recommend establishing credit. Yes, it sucks - you have to take out credit to be in good graces with FICO. HOWEVER, you do NOT need to take out a loan. Still, some small local banks are good about small installment loans when you take that money & put it into a savings account.

Because you have YUCK for a report today, to establish credit, you should set up a secured credit card. This means, you'll have to use your own money to become your own credit card with an institution who will report to all 3 bureaus on your behalf.

The larger amount you can begin with the better. Look at it this way - every month, you spend $400 on gas & groceries. This month, you're going to send that $400 to XYZ bank. They are going to send you a card. You use that card to buy your gas & groceries.

When the bill comes each month, pay it off. You want to wait for the bill before paying it off. The bank doesn't report until after statements are prepared. That's the information they use to send to the bureaus.

Use this card responsibly - ALWAYS stay under your limit & ALWAYS pay on time. Some cards offer the option to never go over your limit bc/s they will decline you. When the card arrives & you activate it, ask if they can put a denial option to go over the limit. When establishing credit, you'd rather be denied than go over the limit. Going over the limit is costly & effects your score.

KEEP IN MIND - your FICO score changes every time something reports on your account. Therefore, your FICO score could change daily.

For you, Corey, you want to use this card responsibly for 6 months (2 cards, if you can) & then, go to the site @Laura Fahey mentioned, MyFico.com and purchase a FICO score. This is the closest consumer option for purchasing a FICO score I've found. HOWEVER, their FICO model is different from the FICO model most lenders are using, BUT it is the closest.

The month before you pull your score, pay all credit balances to zero. Pull your score after you have statements showing the zero balance.

If you are correct & VZ is the only thing on your report, securing a good FICO score is foreseeable in 6 months, especially if you can have that collection DELETED. Honestly, if you can't have it DELETED, I would tell you NOT to pay it.

Hope this helps.

Tami (not Chad)

@Jeff V. , videoing is a great idea. I think the challenge might come in with liability concerns of presenters & respondents. I know I occasionally share an idea or two that worked for me but wouldn't want to be held liable if it didn't work for others.

However, Facetime or some other live broadcast option is attractive.

@Matt Clark , @Robert Sepulveda & @Shaun Weekes are both correct when it comes to traditional lenders & SFRs up to 4 plexes. I'd focus on Robert's last statement to consider a smaller lending institution.

Start with your small local banks. If you have good credit and have reported your rental history on your tax returns, you'll find a bank happy to create a relationship.

Tami (not Chad)

Ooops - don't like that floating mouse. As I was saying. . .

@Richard McCray (<-what is going on?->) & Robert Leonard @Robert Leonard - I thought you'd like this thread. Some innovative ideas could pop up.

@Brett K. , Richard & Robert host the 2 Louisiana meetings I attend. I like how both meetings host a speaker (as others noted above.) The speaker has 20/30 min with interaction, unless they request Q/A at the end. Most of us investors can't sit 5 minutes quietly.

The speaker is typically someone who provides a real estate related service.

Each group encourages attendee introductions & sharing of 'deals.' Of course, networking is encouraged before & after the meeting.

CHALLENGE - I'm sure all meetings run into this: controlling the stories, personalized questions & unending "what if" scenarios - or, that introduction that goes back to the Korean War. The many rabbit holes can quickly eat the time. If you're reading this, & you are the host of a meeting YOU ARE THE ONE who maintains the control. Reel attendees in who monopolize the speaker, encouraging them to contact the speaker later.

Also, BEWARE of potential disagreements in opinions. Keep them under control & NEVER allow an attendee to be bullied. Nip it in the bud, reminding everyone, "We don't have to agree."

IDEA - Lately, I've thought I'd like the speaker to be one of our local investors, sharing like the BP podcasts do. We have a wealth of knowledge sitting in the room & I can't gather it all while networking. Yes, I could take them to lunch, but I love the mastermind effect of more people. @Richard McCray, one of my favorite meetings. . .

( Something funky is going on with my computer. Paw Paw are you trying to come through while I'm on the computer?)

One of my favorite meeting was when Richard shared one of his rehab projects. Maybe I'll set up a separate time for  this. . .Simply Stories. . .

Brett, thanks for starting this thread. I'd like to see more ideas.

Tami (not Chad)

@Richard McCray & @Robert

@Account Closed shared some A+ ideas. Definitely find out where your local investors gather. If you have a good deal, they'll recognize it.

Please, take this as simple insight & not a personal evaluation. Many new wholesalers miss some details in their numbers that an experienced investor recognizes.

The experienced investors with whom I network are super generous with their insight & will help a newbie evaluate a deal. Have you made enough contacts to ask for help? Reach out.

Treating an experience investor to a cup of coffee will be your biggest ROI.

Even better, there must be other investors, right here on BP, FROM THE AREA YOU HAVE YOUR GREAT DEALS. Reach out & ask them to review your deals.

You can't worry about them 'stealing' the deal, if you have it under contract. 

Good luck. I look forward to the day you're the investor sharing your wisdom with the newbie.

Tami (not Chad)

Our 1st "deal" ever was a 6K trailer, move in ready, that I lease optioned within 3 days. The whole transaction was complete in 8 months when he owned the trailer Free/Clear for a total of $9800.

Before the trailer was paid out, we purchased a 10k house, 3BR/2B, in an area that Chad swore we'd never hold property. I loved the house, the area & the potential ROI. Technically, we wholesaled that house for $15k (we paid closing costs. So, netted around $4100) - did a double close. The purchaser rehabbed a bathroom & rented it out.

When Chad saw how simple it was, he started rethinking the area.

A few months later we purchased another 10k house 3 BR/1B - fenced in yard, cleaned it up, put paint on the walls & it rents for $650. Love our current tenant. He never calls & $ is deposited every month like clock work.

I loved @Dell Schlabach story.

STORIES: We call this the Billops house.

When our friend was doing the initial work on this house, he called Chad in a panic, "Dude, there's a crazy guy in the street screaming & waving an AK47."

Chad, "Call 911" - "I did" Chad stayed on the phone with him until the cops 'took him down.' When all was said & done, the guy was jacked up on drugs, angry with his lady & we think it was a pellet or shot gun.

A year later, the SWAT team was called out to the Billops house. Yes, that's a picture in front of the Billops house.

My sweet, OCD, super clean, super polite, formerly incarcerated tenant had a melt down & kidnapped his girlfriend, making her drive the parish school bus to the Billops house. All ended well.

Call me crazy - I would rent to him again - clean, never late. . .BUT he's going to be 'away' for a while.

Yes, there are risks when investing in lower income areas. Still, there are good people with typical jobs who are worthy of a nice place at a reasonable rent. & the ROI is excellent.

No, we don't count on appreciation or even the potential of raising rent, but the ROI is a super trade off.

Tami (not Chad - he's sitting on the other computer sending offers to our realtor to submit tomorrow.)

Yes, it's important to 'call out' the bad guys, spread the word & hopefully a few less people are hurt. Still, we need to beware of wanting 'big brother' (ie. FTC @Joshua Dorkin ) to babysit for us.

The BAD GUYS are everywhere. The consumer needs to take some responsibility (I'm not referring to the article - just generalizing.)

My background is in mortgage lending where some of the biggest BAD GUYS have made their mark. Today, I am happy to be out of the industry due to all the regulation, including compensation limitations. Where does it stop? Will I have a limit on how much I can sell my Christmas decorations on Craiglist?

@Joel Owens makes an excellent point. Some of us are gifted with the ability to teach & all of us have knowledge worth sharing. Still, not all of us have the time or energy to give it away for free. 

The Consumer - shame on the consumer who does not do his due diligence. Shame on the consumer who does a little due diligence, doesn't find the answers they want & moves forward with a bad investment. I saw this all the time in the mortgage industry.

I would advise someone that the home they wanted might be bigger than their budget, DESPITE THE FACT: THEY QUALIFIED. I've even told some I would not do their loan because I felt wrong about it. (ie. on a fixed income & wanted an I/O loan, and/or ARM - What do you do in 3 years when your mortgage goes up & your income doesn't? Oh, yeah - you let it go & I buy it later.) Sadly, most are offended that I have the audacity to tell them what they can afford. They go to a lender who will give them what they want.

I am a seminar, books, tapes (yes, tapes), education junkie. I have spent 10s of thousands of dollars investing in myself for the last 20+ years. 

People are going to pay a price one way or another. I simply don't want 'big brother' having his hand in everything. I want to make my own mistakes.

FINAL NOTE: Yes, there are BAD PEOPLE who need to be wearing orange jump suits & in no way am I defending them. Articles like @Justin Pierce 's need to be part of a consumer's due diligence.

Tami (not Chad)

Joe, you're definitely being super generous & considerate. I inherited a similar situation 2 years ago. Unit C kept bringing up "the last landlord promised us new cabinets." Honestly, they needed to be replaced. 

Challenge #1 - they wouldn't let 2 of the 3 contractors in to bid on the cabinets. I let them see another unit. Not opening the door is common for this Unit. They think I don't know they indulge in extra-curricular mind altering activities. 

Challenge #2 - After choosing a contractor they actually let in to see the kitchen, they wouldn't let him back in to do the work.

Challenge #3 - They had a new baby which was my biggest "We need to hold off" reason. Momma insisted, "We can stay in a hotel. I really want new cabinets." She worked for a hotel & supposedly could stay the week for next to nothing. 

Let's look back at #2 where they wouldn't let him in. This contractor was kind enough to work out a schedule with the tenants so they could stay in the apt. MISTAKE, but he brought it on himself trying to be considerate. 

I'm with @Shayla Fletcher , if it ain't broke don't fix it - HOWEVER, you do have that construction loan.

Stick with your original plan & listen to @Mike M. and have clarity in writing.

Unit C did NOT receive new cabinets until AFTER those tenants moved into one of my houses. Honestly, they are wonderful tenants & I hope to keep them forever. 

Tami

P.S. Hope to see you at the RING next Tues.