All Forum Posts by: Earl McFarland

I'm a real estate investor in Northern Colorado.   This is very tight market when 2-4 unit multi family, townhomes, condos do not stay on the market for more than a few days.   A lot of these properties already have an existing tenant.  Although the due dilgence period allows review of the existing lease and application, it's only as out clause and generally you have to either pass or accept the existing tenant and lease until the renewal.   

My question to my fellow network of RE investors, how do handle an existing lease?  Especially if it doesn't come up for renewal 6 or more months after purchase.   Appreciate your comments and reposes.  

Great way to get started and you have shown it can be done!! You did not allow your circumstances, I.e. Not a lot of money, to stop you from your desired goals! Congratulations

What is the rental demand and amount you expect? Other costs associated with property?

In general would not 'buy down' the interest rate. Use your cash flow to pay off mortgage or number of years needed to pay-off.

Earl

Wasn't there a recent post about "Leverage being a two sided sword" as ' Rich Dad / Poor Dad' wrote in his book. You can't pull out funds that don't exist.

I would look at properties that don't require you borrowing the down payment, even if it takes some time to build up working capital. Even consider a 2nd job to get the working capital you need. Only a suggestion.

I don't like the 'For Rent' signs for precisely the reasons that Brad mentions, although I am sure they can be effective. Bedside CL, I use a local rental website,northerncoloradorental.com, a site for landlords and renters.

Recommend calling your local larger RE Brokers in your area for what they use to advertise their own rentals.

Mark,

Agree that rentals are achieving less than1% currently in the Northern Colorado market. Although I'm still finding opportunities because of the strong demand and still very limited supply of available properties to buy. It's my buy and hold properties for more than 5 yrs. that approach 1.2%. I'm still out there looking and finding opportunities because of the strong demand for rental properties.

I listened to your Podcast last week and very impressed with your knowledge, common sense approach, and fellow buy & hold investor. Let me introduce myself. Long time investor but still relatively new as a RE investor and Landlord. Currently retired (20+ years owing Ins. Agency, specializing in emergency service org, public entities), who is looking to create a stream of rental properties income. Currently have 3 rentals and looking for another 3-5 by 2015. Do see REO and Fannie Mae properties in MLS recently, but have stayed clear, precisely for the reasons you reference. Are there any criteria or types of property you look for? Conversely, as a buy/hold strategy, REO or foreclosure property you stay away from? Thank you.

Earl

I am almost glad to hear that not everyone is getting 2%. My rentals a closer to 1.0 - 1.2%

• I am new to BP.com but have been impressed by everyone and their willingness to help our fellow "real estate investors". Real Estate, including nearly all aspects as shown on Bigger pockets, is one of the last remaining areas of freedom and where nearly anyone can still create real wealth. As Napaleon Hill notes, money is the one of the last steps of wealth. Wealth can mean different aspects but most agree it is freedom and choices that attract us toward it's pursuit.
• Once I was advised, if you want to attain something, make it a defined purpose with a plan and set your mind to work! In addition, act as if you already own or have obtained your goal. What will do now?