All Forum Posts by: David Moore

@Eli Sunderland

I have a four plex in Crystal, and four SFR in Southern, MN. We self manage them all. I tried a PM company last summer, and while I learned some stuff, I found their services way too expensive. If you find a good one, I'd like to hear, as I'm looking to move into larger MF.

@Tim Swierczek

Good comments.  Let's face it though, guys.  If you are before a judge on an eviction in Hennepin County, the judge is not reading your lease and commenting on the grace period.  Since most tenants don't show up, he/she is giving a summary judgement for the plaintiff.  

@John Woodrich

I have a different take.  First, you have to be careful what you use as an authoritative source.  The MN Bar association would not be as good a source as the opinion of a real estate attorney.  I've seen on websites, for instance, and from many other posters on BP that a security deposit cannot be used under any circumstance to cover unpaid rents.  Yet, I read the Minnesota statute, and it has a provision whereby you can retain damage deposits for unpaid rent.  It is actually quite landlord friendly.

I brought in a property management company for two months this past year, and canned them, but before I did, I learned some of their best practices.  One, is they have no grace period.  They've been doing this a long time.  Your lease is your legal document between you and the tenant.  If it says rent is due on the 1st of the month, then that's when it is due.  I assess the 8% penalty the morning of the 2nd, every time.  And no, I don't cap it at 50.00.  I don't want late fees.  I want tenants prioritizing rent over cable TV, or whatever else kind of stuff they want.  If the late fee is 8%, they likely won't want to pay it again.  

Just Google Minnesota statutes on grace periods.  You won't come up with anything in the search.  

I find Homeline in Minneapolis, which is a tenant advocacy group, a great resource of info.  They also train landlords, and  dispel common myths in their training.  I highly recommend to anyone to take their landlord training course (I did).  

@Seth B.

I've repaired a number of electrical outlets in my properties, and  the coax cables have zero at all to do with the electric.  Your cable guy is sadly misinformed.  

But there is a greater issue at work here.  How soon are you responding to angry emails from tenants?  If you set the expectation that you will respond to their email right away, you are making a mistake.  Set the expectation level to the level of the issue.  This is crucial to your sanity, and ability to manage your property.  

We are on a texting basis with all tenants we have.  We level set based on the issue.  One wanted a threshold covering fixed ASAP.  I set the expectation  that this is a low level issue, and we would resolve it at an appropriate time.  

Tenants should be demanding stuff only in real emergencies.  This is not an emergency.  They should be taking care of this.  

All,

I have a good flooring guy, carpets, pergo, etc.  Found him on Craigslist of all places.  Carpeted three of our apartments...good rate.  I hate carpeting.  

One large strike against Home Depot is the insane wait until they can schedule the install.  I don't have tons of confidence in Home Depot contractors.

Don't forget to include a copy of your property tax statements as well.  Also, guys and gals, make sure to send out your 1099-Misc statements by 01/31/18.  

@April S.

First of all, I want to congratulate you on sending our $400.00 of yellow letters.  I get them once in a while, and I file them away.  Someday in the future, guess whose card I will pull when I'm looking to sell something?

I advise most people I meet involved in real estate investing to read J Scott's book on Flipping Houses.  In your case, it is especially good, because you need to discover your 'backyard'.  

I send mailers to a select few properties that I have interest in.  I get response rates of about 20 to 25%, because I know who I'm targeting, and I try to make a compelling case that I'm not a tire kicker, that I close deals, and that I'm not going to waste their time.  I told one of my marketing targets that as I kid, I lived in their building (true story).  The guy called, and we had a really nice chat, and he didn't want to sell his building. 

You have to ask yourself....why should anyone buy wholesale from you?  I would advise your to try a different tact.  Market to properties you want to flip, that you want to own, where you would live.  And consider actually flipping or keeping one as a rental.   Then you will have a compelling reason when you wholesale.  

I don't think you have to spend massive bucks...just learn your backyard.  BTW, we have not yet wholesaled, but are planning to start next year...in our backyard (thanks J Scott)

@Amanda B.

I did read your entire post, and I think you own up to your mistakes.  That is good.   Renting to family is a mistake.  We made it as well.  My mother and father in law had a simple lease, really low rent, and a nice home.  This past year, my father in law became more belligerent, and the extended family was chiming in on what we should do for them.   Then they moved in someone, and their pets, and put him in a room that was not a legal bedroom.  When we confronted them with the options we thought would resolve it, they shut us down.  No communication.  They said they wanted 6 months to move.  I communicated through a relative that if they want to move, they have to move out now.  There is a lot more to the story that I won't share.  But they moved out, and didn't speak to us for months.  But, they do now.  It worked out better for all.

I think there is one obvious solution that makes the most sense for your family, and for your sanity.  You have to take care of your family first, and I mean, you, your husband, and child.  That family unit has to take priority in all possible outcomes.

Where you lay your head cannot be the solution to everyone else's need for housing.  Sell the house, and move somewhere that is just the three of you.  Solve your problem, not everyone else's problem.  I know it sounds heartless, but you've said it yourself...your own child can be affected.  Your mom is an enabler, as have you been.  You need to move, even if you take a loss, and not use your own family housing as an excuse to solve other family members problems.    

@Corey Robert Leet

We looked at Winona too...there may be attractive homes over in the Wisconsin side as well, and likely, less regulations.  We invest in southern, MN, but chose to not go with Winona.  

@Chinmay J.

You are right....I have to get my business cap back on.  Yes, they put it in the lease, and probably because of this very reason.