All Forum Posts by: James G.

I received an LOI from this company and they are requesting $2,000 up front. Usually I am good at detecting if a company is legitimate or not, but this company doesn't seem to have any big red flags.. Until recently. I would like to know if anyone has worked with this company before?

@Julie J. This is really going to depend on your goals. Do you want to take on more risk and grow more quickly? Use the 60k to purchase another property (or two). Do you want to be more conservative and sleep better at night, but grow slowly? Use the 60k to pay down your mortgage. It all comes down to personal goals and risk tolerance.

@Sandy Switzer it's all going to come down to what your ultimate goals are. Do you want long term wealth? Look into buy and hold real estate. Do you want quick money? Look into wholesaling. Do you want a big pay check? Look into fix and flipping. There is no "best" strategy when it comes to REI. The vehicle that you choose is going to come down to what you want out of life. Make sure to constantly educate yourself in whatever vehicle you decide to pursue!

@Kole Moore syndication in real estate is as promising as.... Well as promising as you make it. Your job is to raise money, invest it in real estate, and execute on your business plan. You hedge against risk by educating yourself (the best way is through experience), underwriting deals conservatively, having reserves in the account for rainy days, and by getting good, long term debt. There is certainly risk, this is why it is an investment. What will make the difference for you is how well you execute your business plan.

@Ethan McRae Yes, Covid is certainly having an affect on vacancy rates. The key is going to be finding out how you can stand out during these times. Consider doing virtual tours, online applications, lower rental amounts, move in specials, etc. The worst thing you can do is sit around and hope that this all ends soon!

@Noah Howells During this pandemic could be actually be a really good time to wholesale deals. Many people could be looking to sell their properties due to various reasons - the perfect time for you to get the property under contract.

@Charlie Anne Looking at rental comps in your area, and seeing what kind of improvements they have done is going to be important to understand when deciding what kind of improvements to make to your property. Kitchens make a big difference, some paint and flooring can make a world of a difference, and people want to live in a safe, clean environment. Hope this helps.

@Dave Godfrey I'm personally focusing on working with my tenants as much as possible. Working with them, and making sure they pay their rent is what's going to ultimately keep my business alive. I'm also crunching down on my expenses/maintenance items. If I can do the repair myself, I do it - having as much money in my pocket during these times is going to be important.

@Ramiro Rodriguez I personally don't put as much emphasis on the credit score as I do some of the other factors. If the prospective tenant has no previous evictions, 3X the income, and the previous landlords have good things to say then I would say you're off to a good start. It's also important to check why the credit score is low. If they have unpaid medical bills, or the score is low because of not much credit history, then these are items that I think you can overlook. If however, they have a lot of unpaid bills, and a credit score that is significantly low, these would be red flags for me. 

@Ehab Habib The choice is completely yours and depends on your risk tolerance and your goals. If you want to take risk and grow quickly, refinance the property and use the cash for another property. If you want to grow slowly and not take risk, pay off the mortgage.