All Forum Posts by: Account Closed

@Chris Purcell

You don’t have to reduce below market rent. See above post of mine

@Mark Lira

I do it. But I do MINIMUM $100 and often $200. Ads say “rent price includes applicable discounts”. Why? Because it allows me (not me, my on site guy) to have the following conversation at lease signing:

T- “but the ad said $1,000 rent and this lease says $1200!!”

L- “yes, but this form over here that we’re going to sign says that as long as you pay by noon on the 1st you instantly get $200 off so you pay only $1,000. You will NEVER pay $1200 unless you pay late, and we can even set you upon automatic debit so you don’t have to remember anything just to be sure. Are you going to pay late?”

T- “....no... “

L- “perfect. Because if you were worried about paying late I couldn’t rent to you.”

Framing it this way helps me screen. It also brings the pain/ punishment if they screw up. And since the lease reads $1200 the banks like it also. I always send along ALL docs including the instant rental discount form at qualifying time but I suspect most lenders skim those docs at best.

@Kelley Prymych

Straight from the richdad operational playbook. You can do much better for much less. You’re in the best province overall to be investing in long term currently. At minimum, before you pop for something like this, join myreinspace and read through every single catalogued thread that is of interest to you in the public forum (public side is free). I was a member there for 12+ years and can tell you that only recently did they start sliding down the continuum into “guru” type programs (why I left). While you’re at it, go ahead and stop researching fortune builders and keyspire too. They’re all the same (although keyspire does give you the option to loan money to scott, whoopie!).

Fire me a dm if you need more info on any of the above

@Ed McIver

I’ve done 1/15th payments before for half of monthly rent (no upcharge). It did help, but it’s a bandaid solution. And bandaids have a finite lifespan. The only actual benefit is that you’ll only be out half a month the rent when they finally crash and can’t pay vs and entire month. Paycheck to paycheck people eventually hit a speed bump and you’re the one that gets the impact. If you play in that sandbox it’s a cost of doing business.

@Steven Wocknitz

Definitely read the Dube book listed above. Excellent resource.

The short answer (often) is “no” simply because you’re going to sign a personal guarantee for the mortgage anyway. From what you described I’m seeing sfh’s or possibly duplexes, that’s another check in the “no” column.

As a grossly generalized comment, doesn’t make sense unless you’re bringing in several partners, or else buying 5+ unit buildings right away. There are benefits, but there are drawbacks. Consult your real estate lawyer AND your real estate accountant then make a decision based of combining those two opinions and your personal situation.

I like the Toto ones. Can flush a loaf of bread and no plugs. That said, American Standard makes a good builder grade one that’s half the price.

@Raymond Hill

Makes sense, but here’s one thing you may not have thought of and something some folks would disagree with me on,...

If you’re renting a unit for say $900 currently and market is $1,000 you’re essentially running at 10% vacancy in uncollected rent. That’s why I don’t like under renting units. I’d never settle for higher than required vacancy so why settle for lower than possible rent? Yes, there’s a time when vacancy can suck (5 months of the year here I do my absolute best to avoid it) but that is all manageable with appropriate screening and lease terms.

@Raymond Hill

I would raise to market level and place near zero emphasis on tenant happiness in doing so. Why? You have zero history with them and know nothing of their pita factor. Additionally, they’ll pay market rent if they leave so... you’re not asking anything unreasonable. For the smoker, expect major push back, especially if this is a cold climate. I would likely give notice, remediate the unit of the leftover stink, and start fresh with no smoking on the property. The only way I would extend this process is if a couple vacancies are going to cause an issue on your end. But if that’s the case you’ve bitten off more than you should’ve anyway.

Good point was made about keeping a tenant who has just proved they’re capable of being extra stupid. While I wouldn’t let these folks off the hook without a penalty I certainly wouldn’t be forcing idiots to remain in then property. Find the best compromise of maintaining income vs maintaining your sanity.

@Jim K.

Yep, should’ve mentioned the scotch brite pads. They’re ~ 1000 grit or so and that combined with the alcohol will work. Gotta massage it a little to let the alcohol work on the paint.