All Forum Posts by: Val Csontos

Normally when the appliances  are getting old in a unit, AND our tenants have been with us for close to a year or more, and the request a new appliance, we let them buy one and we allow them deduct the price of the appliance from the rent anout  $100 each month.

We achive two things with this set up: 

1,we get a ZERO % interest loan financed by the tenant.

2,Tenant never leave while they deduct  from the rent (18 months in some case) because in their mind rent goes up over $100 or more if they move!

ps.:you must aprouve the exact appliace BEFORE they buy one. and put in writing the details about payments and ownership!!

Eve, 

This is our policy on the above:

     1, We will only consider wait a month or more if the rental market is weak and we have a very good candidate! 

     2, However we DO NOT STOP advertising, and showing the unit, until we have cashier's check, money order or cash IN OUR HANDS for the holding deposit. 

     3, And we will wait for example only 30 days, if we have enough holding deposit to cover that time period, because if they change their mind in the end we need to have rental coverage for the time period we had lost. In 18 years it happened to us once that some one put down $1000 and never came back that is why is important to make sure that the deposit covers your time period for rent.

I hope this helped to clear it up for you! 

Congratulation and Good Luck!

Val

@Sandy Spence What "cancels" a showing in our business is the following:

1, Run the credit check, and  verify employment on all the applicant who shows interest. (we charge a $30 per adult aps fee and this helps to get rid of the flakes right away)  

2, If the above verification is done to your satisfaction is done than, you request a Nonrefundable holding deposit in the form of cash, cashier's check, or money order.  The amount will depend on the amount of time is involved but generally not less than two weeks of rent and ofter is a month of rent. And usually if they give us 4 weeks of rent or more we give them a lease as a receipt, other wise a piece of paper saying it is nonrefundable holding deposit etc...

3, Finally we only cancel the advertising, showings etcc until AFTER you have the money in your hands. Until than business as usual.

If you follow these simple steps it will save you $1000s over just a few short year! I know we wasted a lot of rent waiting for someone for "just two days here" or "three days there"

until we realized to NEVER wait until money is in hand! 

Ps forget personal checks!

According to our local District Court Judge: "Personal checks are not money, just a promise to pay at a later time and as such promises can be broken"

Ben,

Sorry to hear what happened to you! My undestanding that there is a valve you can buy and put on your drain line to prevent back up from the city.  It only allowed one way flow to flow out!. Also when I buy properties we allways check (lenders makes us Anyway , to see if house is located In the 100 year flood zone, do you guys check for similar?

@Steve Babiak  You can NOT stop a payment on the certified check!  Only if you wait 90 to 120days after the date of issue, and only if it had not been cashed in yet by then, i know it sound stupid but that is the rule.  So here my story: 

I had one of our applicants gave us a "holding deposit" in certified check and changed her mind about the unit. So she had tried to "report lost" the Certified check, and guess what BOA told her? It turn out It is nearly impossible to cancel a Certified Check! She would have to wait 3-4 months AND only THAN she can cancel the check. 

So she ended up begging me for money back and since the market was hot I let it go minus the aps. fee obviously, and in return she filled me in on the details, and i also called BOA and what do you know you have to wait months to stop a payment on a Bank Certified Instrument. 

@Brandon Turner How about Annapolis? Maryland's capital city? It is one of the best spots to visit on the east cost..... My wife and I have some properties to show you as well and we are located pretty close to Baltimore and Washington. I Also run and Investment Club( I have founded last year) at University of Maryland Business School! It would be fun to show you a round in our area. 

Might be able to squeeze in a quick visit to Washington Dc  too :) 

Have fun and enjoy your trip!

@Account Closed Here is what a student (Member of our RE club at the business school) at U. of Maryland  did: 

    As a student he was renting a house 3br 2 ba I think for about $1500.  He checked with his landlord and started to sublet each of the rooms to fellow students. After renting out the second bed room he broke even. Than he rented out the basement (installed a door there as well) and he had $700/month cash flow than he rented out his own room and he than had $1400/mo cash-flow.  

     Than he repeated this process over and over i believe now after 2 years or hard work, he has 6 or 7 houses all sublet ed out. In each of the houses he has a "supervisor" who gets a cut of the rents collected etc.....   He lives rent and utility free and has income of close to $60k per year. He is getting ready to buy his first rental property for cash. 

    Is this easy to do? No! But this shows you are extremely organized and dedicated you can be financially independent even as a college student with no money or credit! He told us that he is no longer looking for a job, when he graduates next year! He is just starting to work on maximizing cash flow by purchasing subsequent rentals for cash so when he gets tired of his "boarding houses" in a few years he will convert all of his holding to "conventional" rentals.

Good luck to you!

Kind Regard

Val

@Brandt Green Welcome to the BP! I Live in Annapolis, I am thinking about having an informal "meetup" for Annapolis investors. May be a cup of cafe at the Double T diner perhaps on one Saturday morning towards the end of May say on 23rd may be?

Kind Regards

@Account ClosedForget financial planners, insurances, they will get you more overwhelmed not less, just get a book like the Weekend Millionaire, it is very cheap or free in the library. 

  It will get you energized and may be focus you a little bit towards RE investing, and it will enable you to start step by step if you would like to. Some of it might seems out dated but most of it is sound advise!

Once you read the above (and some other similar) books you won't feel overwhelmed and will be able to ask intelligent and relevant questions from other investors!

If i was in your situation i would recommend "house hacking" ie.: buy a house  for your self, and live in it for a year, than rent it out and buy again! Just make sure you buy no older than 20 years old ones if possible(lower maintenance issues) and make sure you have cash-flow from month one when you rent it out! Do this a few times over, and by than you will figure out what is next for your investment life.

Keep us post it and, Good luck to you!

Kind Regards

Val

@Brian Adams I understand that coming over to the University Campus might not be feasible, and I think a Webinar would sounds great too! I would like to pm you in the next few weeks. Thanks again! Kind regards

Val