All Forum Posts by: Christopher Leon

Originally posted by @Kimberly H.:

Originally posted by @Christopher Leon:

 In Illinois, it's a landlord-tenant law to replace locks. 

It does, but only in Cook County. The law says,"...changes concerning changing or rekeying a dwelling unit lock only apply in counties having a population of more than 3,000,000". Only Cook County meets that.

Thanks for clarifying, Kimberly. I was not aware of the specificity of the law. We just change them because its good business since it mitigates liability. :)

Tom Henderson I almost forgot, both the element and HHR are 4 cylinders! HHR gets much better gas mileage, but I prefer my element for the extra storage space.

Tom Henderson I drive a Honda Element. Great for all around use like what your needing. I haul my large RC planes inside, I can lift the rear seats and haul fridge's, stoves, etc. it has a tailgate too which helps. Another good vehicle is a Chevy HHR. Good luck

Chukwudi Motanya reserves are not an investment and shouldn't be even viewed in this light. It is insurance, if anything.

Chad S. Yes. Set up a DBA so you can create a business account with your choice bank and operate that way. If your just starting out with no assets (or even if you do have assets) LLCs are a waste of money in my opinion. If you run a tight ship and understand the product you own and how to manage it, you can minimize the chances of being sued.

Judi Smith nothing wrong with this as long as you think about who your prospective customer is on the tail end. If you know who your targeting and believe you can manage this person(s) then pull the trigger. If you have no experience managing property, are not hands on when it comes to managing or problem solving/repairs, I think this is a great way o lose money. Real estate investing is great, losing money on purpose isn't

Mike Palmer either rekey the cylinder or replace the lock set with a new one and use the "old" one on the next unit turnover. Keep rotating the locks so that you have at least two new keys before bringing back the original to same unit. In Illinois, it's a landlord-tenant law to replace locks. Even if it's not there, why open yourself up to the liability?

Paul B. #2 is what I would think to be the top reason. Engineers brains are wired in a way that allows them to see a system like an explosion diagram - they just see the angles on how to take **** apart and put it back together. Whether it's a repair on a furnace, or breaking down a prospectus. The most successful investors I know are also engineers. Just my opinion

Adam La Barr I would take the negative cash flow for two reasons (personally) 1. Because of the current market environment, the prospect of you gaining in appreciation is likely - hopefully if your in a good area, and 2) negative cash flow doesn't bother me as long as I have the "right" product, which is one that I can control and manage cost effectively, and at the same time be able to absorb the loss. Look at this way, if you pay into a 401K, this is like the same thing except your literally cutting the check and possibly "feeling" it. Just my thoughts.

Originally posted by @Steven McPherson:

Just a question for other BP members: who all on this board have started their RE business from nothing?  That means you had no money and no personal savings to put in to marketing, down payments, etc.

Follow-up question.  If you were in this situation, how did you specifically start out?

 Hi Steven- good question.

I personally started from nothing. I met the right people, got super excited, stayed enthusiastic, and listened to the people who were doing the business I wanted to do, too. So, how did I do it? 1.) DECIDED this is what I wanted to do with my life 2.) Took self inventory of where I was, where I wanted to be, and what I needed to do to get there 3.) I prioritized my finances by eliminating consumer debt 4.) determined I needed savings to get out on my own so that I could commit to my dream - I did anything and everything I could to save up at least 6 months worth of living expenses (I actually saved up 8) 5.) during saving time, I was told to become a real estate agent so I studied and got my license 6.) Once I got my license and had living reserves, I quit my job and went out on my own. 7.) learned the market I was in by learning about the rental market and was able to determine what was desirable and what wasn't 8.) I found people who could help me along the way, and thats when I met some private lenders. The rest is history. It took years to get started, it doesn't happen over night. Good luck.