All Forum Posts by: Neil Schoepp

Welcome @Ryan Chase  I am by far not an expert on seller financing. You should know that there is a due on sales clause in your mortgage. This simply means that the lender  can demand payment in full when the property is sold. Will they is anyone's guess but they may.  The post titled The Definitive Guide to Using Seller Financing to Buy Real Estate by Brandon Turner explains it much better.  I'm not saying you shouldn't sell using seller financing. I am saying you should have as many of the facts before making a decision.

@Terrell Way I agree with Bill. Home and business are two different things. Though right now you will be working from home. I would either leave it off or use a P.O box. But I would not use my Home Address.  

With that being said I personally would use the P.O Box. A card with no address to says your not serious about your endeavor. I always found it strange when I saw a card with no or limited contact information.           

Welcome! @Steven Shotts 

                  The short answer is No. Consider that the type of property you run and the area it is in will attract a certain type of personality. Is this property and this area going to attract tenants with the personality that you would like to do business with. Only you can answer that question. Don't just take a deal to take it. Decide what type of deal you want and then go make that deal happen. If that takes you a little bit longer so be. Better you get YOUR deal then find out the deal you got........ well wasn't a deal. 

              You can repair a dilapidated house, not so much for a dilapidated area.  With a wife a family and a full time job I tend to lean towards properties that will almost run themselves after you get them up and running. Good solid properties in a solid market will attract solid tenants. Solid tenants will cause less problems. Or at least that is the philosophy.

             I do like the idea of buying a duplex of triplex. Some here will differ on this but I feel that starting this way will get you moving towards the larger 5+ units and that's where the magic can really happen. 

Ben Leybovich has been doing this much longer than I and has written some really good stuff on it. I have pulled some of them below. 

No go read :)

“It’s Not My Fault They Keep Trashing My Unit” – Actually It Is…

Newbies Take Note: Why You Shouldn’t Buy Houses for $30,000

Why I Don’t Buy Houses for $30,000 or Apartments in D-Class Areas

Newbies Take Note: You STILL Shouldn’t Buy Houses for $30,000

I was reading a blog page and the advice given was, to paraphrase, if you can't create a budget and statement of financial condition (balance sheet) for yourself you shouldn't be investing in real estate.........Yet.

So my question to you is: For someone who is completely new to all of this, what is the best first skills they should acquire?

I will start it off with:

A. Create a balance sheet for themselves

B. Create a budget for themselves

C. Learn some of the real estate lingo Glossary ,  Abbreviations

D. Understand the time value of money

E. Understand why leverage isn't a bad word

What say you? What are the first skills one should obtain to get started?

I was reading a blog page and the advice given was, to paraphrase, if you can't create a budget and statement of financial condition (balance sheet) for yourself you shouldn't be investing in real estate.........Yet.

So my question to you is: For someone who is completely new to all of this, what is the best first skills they should acquire?

I will start it off with:

A. Create a balance sheet for themselves

B. Create a budget for themselves

C. Learn some of the real estate lingo Glossary ,  Abbreviations

D. Understand the time value of money

E. Understand why leverage isn't a bad word

What say you? What are the first skills one should obtain to get started?

Greg,

         Don't let the whole I don't want the lease to end in November keep you from signing someone new. First you will be able to find someone next November, people are always looking. With that said you could sign a longer lease for 18 months or have the new tenant assume the payments on the present lease if the "new tenants" are hesitate at signing for a year and a half. This will keep you on the same timeline you already have.  Just make sure you tell the new tenants that after the 18 month lease is up you will be going to either an annual or monthly lease. Either of these scenarios work and can be a win-win for you and the tenant. 

         Some have cautioned on here about having tenants advertise your property. That they (the tenant) are not aware of all the discrimination rules. That they could say something that starts a time bomb ticking. I think if it was me I would re rent it for them but charge a fee for my time. Explain to your present tenant that it's not as easy as just throwing an ad up on craigslist. That there are federal and state laws that need to be followed. Nobody can pre-screen like we can. So why waste your time on folks that the tenant sends you only to take one quick look and be like nope they won't do. 

            Lastly, depending upon the reason the tenant in leaving I may even just cut them loose. Did the tenant change their mind? Or is there a family emergency, like parents having a stroke and now they must move across the state to take care of them. 

        When sitting down to discuss this with them remember to always act in a fair and consistent manner. 

Each person 18 years and older get a full background check. Credit, criminal, rental history etc. you can either collect two separate checks one from each occupant or make one in charge. I've seen it done both ways. I have never come across this situation yet so I'm not sure what I would prefer. 

@Jon Huber  I'm in a small neighborhood. Only about 1100 houses. The three properties I looked up I have owned since '01, '03 & '14. But the actual address didn't even come up?I'm not complaining. If I can do a couple of clicks and get some contact info it's a lot better than a trip to the admin. building to look up the owner.  This is going to make an easy first step.  I, like you, will take what I can get. The more tools I have the better prepared I am.  I can now do a search from my phone and call them while I'm standing in front of their property looking it over. This way I can't procrastinate. 

Hey Jon thanks for the link. when I went I had to click on the other tab which is all the way to the right of basic info. Then the streets tab on the drop down again all the way to the right. Nice link though it didn't have any of my properties in it. I will be using this often. 

I also use craigslist. If I am looking to go new i have a local appliance store I use.