All Forum Posts by: Karl B.

Hello. You can always 1031 exchange the property into something larger with better cash flow. 

Hello. I wasn't nervous. I was excited! The numbers were great. 

Though if this is your first deal definitely ask your lawyer and/or realtor if there's anything that needs considered prior to closing. If they have no clue what you're asking....

For example... if the seller has promised to do some repairs prior to closing MAKE CERTAIN you walk the property after the repairs are supposedly done so you can make certain they were done. 

On my first deal noone told me this and a few jobs weren't done (windows needed caulked, front rail needed secured, and the two vacant units were not 'broom ready'). 

After closing when I realized there was work that wasn't done I was out of luck according to my RE lawyer. 

And so I tell people: walk the property prior to closing! 

Another time, we're at the closing and it becomes apparent my lawyer (a different RE attorney this time) failed to check and see if there was a security deposit. 

The seller's attorney didn't know (the seller wasn't at the closing). Turns out there was no security deposit. Argh. 

People might think I'm exaggerating but since you're in the same market - would you say half the Erie apartment rental applicants have either drugs or bad habits (being broke, anger issues, etc.) on their social media page?

I get a background check (credit and criminal) and make certain I get a copy of a driver's license of all adults on the lease. I also look at the PA docket list (most of my properties are in PA) to make certain nothing was omitted on the criminal background check. 

I also check their social media - it's amazing how much you can see about a person. Half the applicants I look up either have illegal drug use mentioned on their page or talk about how broke they are. 

Do your best to leave no stone unturned.

My first deal ever (which I was mainly hands-off on - the only reason I consider it a deal I was involved in is because my ex-business partner used half my money and half his money to buy the trailer) was a rent-to-own house trailer.

It was a bit of a unique situation in that the guy who we had moved into the trailer worked for my dad and so we took his monthly payment out of his pay so we knew we'd get our money. 

My ex-business partner (we owned a wholesaling business together) had found the trailer in a park, bought it and set up the deal. I remember the return was pretty good. 

Point is, there are numerous ways to make money with trailers - whether it's buying and renting, rent-to-own, etc. Just make certain the numbers work for you.

But there's definitely money in it. 

It's not as expensive as people think and if you can piggy-back on a tenant's wi-fi so you can view the cameras (using an app like Hikvision) that's a big bonus as well (though if you are local you can access the hard drive - it just seems like a pain - I just use the app).

I have a 4-camera system that was installed at my primary residence roughly 18 months ago. It's great to have. 

I haven't had any issues at any of my multi-family properties but if I did I wouldn't hesitate to have a few cameras installed.

I know Brandon Turner touts Simplisafe. You don't need wi-fi to use Simplisafe. It runs on a cellular network. Though it can be used on wi-fi as well.

First make certain neither of them wants to live in the property. 

I had a couple break up in December. Luckily, it was toward the end of the lease. The guy stayed and a family member moved in with him. So far, so good. 

Just make certain if one of them stays they have the income to pay you/they get another roommate (and do a criminal/credit on the new roommate(s)).

Well... I reckon the higher a market goes the more likely it will drop from that level. When and to what degree are the million-dollar questions. 

I keep hearing (from a few realtors, the news, investors) 2020 is when we'll see a drop. 

Is it true? 

Heck if I know.

We'll see! 

Only buy good deals. I see so many foolish deals now - especially in Los Angeles. Crazy deals that not only negative cash flow but seem to be a hope of continued appreciation. 

My dad has around a dozen commercial properties of varying sizes for sale on the East Coast. For 2+ years we really didn't have any legitimate buyers - mainly people who didn't know what they were doing or people who couldn't find financing. Now since roughly October we've been approached by buyers and almost half of the properties are closing in the coming months.

It's like money is coming out of the woodwork. 

Again... just buy good deals. Ignore the market talk because it's very hard to correctly target.

90% of realtors aren't awfully successful. I believe 10% of realtors sell 90% of properties. 

The realtors I've worked with whom I were impressed by (to varying degrees) do a lot of sales - one had a team - an assistant who is also a realtor and would show properties as well as her own secretary which made getting in contact with her easier as I could simply check in, ask for updates and info and the secretary would make certain no ball was dropped. And since then (I still get her newsletter) she's grown her team three-fold the past six or so years. 

Every realtor I speak with in the L.A. market is familiar with her because she hustles an amazing amount and is great at what she does. But I'm getting off subject!

But as you mentioned, 'agents who are making good money'... some probably figure they'd rather spend their time showing and marketing properties - especially now with hot markets and larger commissions. 

I assume more realtors get into rentals when the market is tanked and deals are too good to pass up. 2008 would be a prime example - I'm sure some realtors can confirm or deny my thought. 

Plus perhaps realtors see  trashed homes and figure a renter could have done it could scare a realtor from investing. Who knows. Total assumption here.

But I know a few realtors who invest - one guy (he was a dual agent in a duplex I bought) told me he was getting out of landlording; perhaps Brandon Turner has it right - most people aren't cut out for being a landlord and that includes a large amount of realtors. 

As David Green said recently - realtors must like people. Perhaps that's why they're realtors - they enjoy the social aspect of it and the open houses, meeting new people, etc. and perhaps a lot of them don't like the idea of having to deal with the bad side of landlording: chasing rent, evicting, etc.