All Forum Posts by: Christopher Leon

Sounds like you need a broker that understands the market and KNOWS how to get an application. As a broker, it's my experience that most brokers do not know how to close and get apps; The incentive (commish) for most brokers is always lacking because they're so used to four figure checks for their work/ time. I'm not saying pay more, but brokers are typically not as motivated to move a rental compared to selling or buying a unit. If the unit shows as nice as it looks, you should be getting more leads, if not, it's because price, lack of marketing, agent performing poorly. Being December, a 3bd 1 bth typically draws in families; most families don't like to move in Dec as far as my experience has taught me, but I know they're still out there. Just wanted to drop in and give my opinion, good luck to you.

Ian Harris i would imagine a 3 bd / 2 bth would attract a family. Most families aren't moving during this time because school is in. Just my thought? I hate to hear you lower rent for this matter, but I guess you have to do what you have to do. Just make sure you don't lower it too much and jeopardize the reason you acquired it: cash flow! Good luck to you.

Hi JJ Bliss . I'm a board member of the Chicago Area Real Estate Investors Association. We are a Not For Profit Organization and specifically help educate local investors and offer networking events. We don't do the whole "let me tell you how successful I am and if you spend $10k you can do it too." We currently meet in Glendale Heights and are working on a contract with a venue in Oak Brook right now (a lot closer for you) but nothing set in stone yet. Check us out sometime, if you have questions about our organization just shoot me a message. For general info see: www.careia.org and www.meetup.com/CAREIA

Get a license or call a broker to set up specific searches that will email you daily, every other day, weekly, etc. I know exactly what I am shopping for so all my searches are bookmarked by street name, amount of bedrooms, etc. By the way, it's too my understanding that a lot of those other sites that use IDX for MLS aren't always up to date and you can't always tell if something is pending or what have you. Just my two sense as a broker, good luck.

@Mike B. knows what he is talking about!

Originally posted by Mike B.:
i'm a broker in Chicago and I can say with confidence that as long as you get a broker that has a desire to work, that will return calls and is honest with you about price then you're in good shape. Once we put you on the MLS it automatically kicks you out to over a hundred websites so everyone has that ability in regards to marketing. The price will sell your properties. Depending on how high it is will dictate how long it will be on the market.

hi Bruce, I am not from Maui, although I have vacationed there a handful full of times, but i saw your post and tried searching google to help you and here is what i came up with.

http://www.foreclosureuniversity.com/studycenter/investmentgroups/hawaii.php

don't know if its up to date or not, but at least its a lead. good luck to you.

absolutely right, everything @Jon K. said below is spot on! Never negotiate the rent. Biggest thing I would suggest is (if you can) create more value in the unit you are proposing. Sometimes people just need to hear the bennies of renting with you and your management company and they come around to understanding why the rent is what it is. good luck to you.

Originally posted by Jon K.:
I base rent on market rate and property condition/upgrades.

I never would negotiate rent with a potential tenant. They'll think you're desperate, and they'll think you're a pushover. Once they break your first "rule" (rent amount), they'll want to break rules right and left (smoker, pets, whatever). Credit score might be negotiable, pets might be negotiable.

I don't let tenants do anything to discount rent. They either won't do it at all or won't do it well-- or worse, will "try" to do it, get/fake an injury, and sue. Most likely they'll simply take the discount and not do the work at all.

If the tenant likes your property and wants to live there, they'll pay market rate rent. If they're not willing to pay or don't qualify, don't accept them.

Research comparable properties in the same condition as yours and find the real market rate. Or look at your rental criteria. No evictions, rental history, no smokers, and verifiable income should still be a must.

Try advertising in other places, getting better photos of the property, changing up your ad description. "Cute home" or "Great 2 bedroom in convenient location." Rotate the ads you post daily on Craigslist. Put a sign in the yard too.

It's slow season. Most people don't want to move over the holidays. A property sitting empty a month is better than a nightmare tenant who pays less than market rate rent and causes headaches all year or has to be evicted.

firstly, i have never read the book you referenced; secondly, I agree with eliminating garbage disposals because of what Giovanni said above. There are lot of dumb people out there who think that because it is a garbage disposal and it has blades that it gives them carte blanche to throw every and anything down there. Maybe this varies market to market? My thought is this, if you give the tenant the disposal they will grow accustomed to it and once they mess it up, guess who is getting an emergency call cause the darn thing is backed up, and you know how tenants can make a big deal out of almost anything, so now it costs you time on the phone, time to get there, fuel, vehicle wear/tear, labor, more time, parts, a headache, etc. You get the picture... So, Yes, i agree with the theory. We also eliminate microwaves depending on the unit and size (if its a built in microwave it stays for sure) but its those counter microwaves we eliminate because it just becomes a headache if it stops working like I mentioned above. We let the tenant provide their own and incur the costs. I do not agree with eliminating central air though. In my market, thats a HUGE plus, and people will pay or choose a unit with central air over a place with sleeve units. Maintenance costs can suck, but if you know how to take care of it,, you can keep costs down pretty decent. I think a lot of this depends on the market your in too. Im in a hot condo market that attracts a lot of business professionals so they can afford our units with ease and it is a huge benefit to them when they are paying almost the same or a little below going rates in the area to have central air and such. Its a no brainer for them and for us when we know we can maintain units and euipment cost effectively.

Do not concern yourself with your net worth, Dylan. Focus on your cash flow: money in and money out. Create a budget for yourself and STICK to it, it will help you become a better investor in the long haul. Once you get your expenses under control, you will find the stress of "how am i gonna pay my bills" alleviate because you'll be in control of your money instead of your money being in control of you. Once, or even while, you have reached this state of euphoria, join your local REIA and get involved! Do not be a taker, but be a giver. focus on serving your investment community and more people will want to help you and push you to the next level. It will take time, but those are the ropes, and you got to learn to be comfortable on the ropes in this game! When you can learn to control your expense and not worry about paying bills, it will free up so much extra mental energy you will be able to focus on how you can buy real estate. You can do it without your own money, so why not do it with someone else's positive net worth? It's not as simple as it sounds. Don't make the classic newbie mistake of mistaking simple for easy. Get involved build your network of people in the business who are successful and doing what you want to accomplish and try to get under their wing by any means necessary and they will show you the path to enlightenment, learn your market so you know how to spot a deal; once you combine all that in one pot, you'll be a dynamic force! Good luck.

great comments from everyone here! They pretty much covered it all. I like the 2% annual rebate on all purchases for my contractor acct, coupled with my Chase Ink business card I get an additional 5% in cash rewards, so that's 7% savings annually! Plus, the 11% rebates they offer most of the time, never had trouble receiving those; I'm thankful for that.

Your question was what do we purchase there? I buy everything except carpet, paint (although I do buy fast prime 2 by Zinnser: good stuff!), pre-hung doors ( I buy these at Lowes, much better quality than Masterforce. Masterforce doors are good, but the pre-hung construction not so good) vacuums, and that's about it. I buy some tools from Menards, usually middle of the road lower end stuff. I learned if you take care of your tools and equipment, they will last a long time.

Hope this helps!

"Spend Big Money at Menards!"