All Forum Posts by: Trent Kruessel

BP, 

 I've got a signed contract on a duplex in a nice neighborhood...nice except for one house.  The house next door is heavily distressed and a lady lives there with her daughter.  While I was viewing the house with the seller, the neighbor lady walked right in the front door and started yelling about people parking in "her" driveway and said she wasn't happy with us (the seller and I) talking rudely to her daughter.  The seller walked outside with the neighbor and showed her the survey markings but the neighbor still contested.  After she dropped some expletives and the seller said she should leave, she left.  The seller apologized and showed me the survey markings and property line that clearly shows that the driveway is completely on the seller's property, the neighbors just use is to exit the street and park half on the driveway and half in their yard.  I worked that into my offer.

My first thought was to get a fresh survey done and put up a privacy fence.

The seller also told me the neighbor had previously asked to buy the property to move her mother into.  When the seller told her their asking price, she complained that it was too expensive and they should lower the price because they couldn't afford it.

Now we are closing next week and the appraiser and my loan officer visited the house this morning and called me saying the neighbor approached them and started asking questions about what they were doing and telling them there were terrible foundation issues with the house.  They said she wasn't mean but that's still not cool.

The seller said that the tenants haven't reported any trouble with the neighbor in the 7 years they have owned the property but the neighbor seems to badger the seller when she comes to visit the property.

I'm asking for suggestions on how to fix this problem (hopefully passively) or if this is something that is a deal breaker.  Maybe those are questions I need to answer but I'm open to any help or helpful tips.

Thanks,

Trent

@Jevon Murrey

This probably isn't the answer you are wanting but it's the best advice I've received -- RESEARCH!

Listen to every podcast you can about real estate:  BiggerPockets Podcast, AskBP Podcast, Michael Quarles Real Estate Show, Rich Dad Radio, and the million others.

Use this website:  You've already started by writing this post.  There are so many people on BiggerPockets that have so many deals, lessons, tips, and stories about every aspect of real estate you can think of.  My first stop for any advice or question about real estate is always BiggerPockets.

Read books about real estate, finance, and business (here are some of my favorites):

• The Ultimate Beginner's Guide to Real Estate Investing by Josh Dorkin & Brandon Turner (just what it says it is and it's free)
• The ABCs of Real Estate Investing by Ken McElroy (good for learning about analysis and multi-family properties)
• Trump Strategies for Real Estate Investing by George Ross (negotiating and strategic relationship building)
• What Every Real Estate Investor Needs to Know about Cash Flow by Frank Gallinelli (great for analysis)
• Cashflow Quadrant by Robert Kiyosaki (investor mindset)

A more interactive step, after starting your research of course, is to drive or walk in the area you want to invest in (your niche, which the Ultimate Beginner's Guide can help you define).  You will learn a lot from just talking to the neighbors or businessmen in the area.

Another interactive step is to just tell everyone you know that you are buying houses (or commercial properties, or whatever it is that you decide you want to invest in).  Word of mouth is still the most powerful marketing tool in my opinion.

Good luck,

Trent

@Jason Woodard

Great shout-out for RDPD!  If I can add a few I wish I would have read right after it, here they are (in order):

• Cashflow Quadrant - Kiyosaki
• The ABCs of Real Estate Investing - McElroy
• Trump Strategies for Real Estate - Ross

Has anyone read Midas Touch or any other Kiyosaki books that were helpful?

Best of luck.

@Account Closed

I have used the county assessor's website to find the owner's name and address (if absentee).  One county I'm looking at doesn't have a website so I just call the assessor's office and request the info from them.  It's old school and takes longer but hey it's free and accurate info.

@Quincy Knighten,

I'm in the same boat as you (full-time job, married, father) and I just want to say, you are doing yourself a huge favor by participating on this site.  In the last 2 months, I've realized (while asking myself where to start) that the more I posted and asked questions on BiggerPockets, the quicker I learned and the more I learned.

Shorter version of advice:  I cut out TV and sleeping in from my daily routine and replaced that time with real estate books & podcasts.  The few hours every week help A LOT. 

Longer version of advice:

The only advice I can offer you is what I've been doing lately.  I started by mapping out every hour of my week (and still do every Sunday evening) and I looked for empty space where I'm not at work, sleeping, or commuting.  This "empty space" consists of watching TV, listening to the radio on my ride to work, lunch break, sleeping in, etc.  I took that space and filled it with "Family Time" or "Real Estate".  It sounds corny but it has worked for me.   

Here's my typical weekday:

I get up before my wife and son do (~4:30 AM), crank out a 30-minute Miracle Morning, skim the newspaper, and check emails before leaving for work at 6 AM. 

I'm getting about 5-6 hours of sleep but it's been more than enough, and I've actually been sleeping sounder than before (I think it's because I know I'm actively pursuing REI and getting the most out of my day; I'm not laying there trying to sleep but thinking "I should be looking more into this investing thing"). And after about 2 weeks of doing it everyday, just like any other habit, you get used to it.

Then, I listen to the BP podcast or other negotiation/real estate/finance/business podcasts during my commute.  I have cut my lunch break to about 15 minutes so I can make a few phone calls (to banks, courthouse, a few friends that are investors, etc.) during that time.  I hang out/play with my son and wife from the time I get home from work (~5:30 PM) until they go to sleep (~9 PM).  Then, I spend 1-2 hours, before going to bed, reading real estate books, reading BP threads, and working on marketing to leads.  

Also, I've realized I'm getting to spend more time with my family by planning my week out like this.  Which is the whole reason I'm investing in the first place.

The weekends are a balancing act. I still get up and go to sleep around the same time but as you know, there are family activities, visits with friends, ball games, church, and other things that crowd up the weekends pretty quickly. I use the 1-2 hours in the evening (I talked about before) and 1-2 hours in the early morning for REI learning and business development. My wife and I agreed that I should go Driving-for-Dollars during Saturday mornings so I'm gone from 6 AM until about 9 AM looking for properties in my target areas. Other than that, the weekends are predominantly for Family Time.

Good luck, 

Trent

Cool Resources:

Read "Rhinocerous Success" by Scott Alexander

Listen to Hal Elrod's philosophy about not needing sleep.

Read The Ultimate Beginner's Guide to Real Estate Investing by Dorkin & Turner  -- I read this twice and it really helped to guide me into the niche and strategy that fit my goals. 

Hey @Sam Hager,

I'm right there with you man. I went to my first REIA meeting last month and was very nervous. I'll try to answer your questions as best I can but keep in mind I'm new too.

1) In my opinion, 

Mentor (someone who is where you are trying to get in the next 12 months) and meet 3 or 4 mentors if you can.

Lawyer who will answer as many questions as you can come up with and has the heart of a teacher...also has to focus on real estate law

Tax Advisor who, again, will answer as many questions as you can come up with and has the heart of a teacher...has to focus on preparing investment properties' tax returns

2)  I've been talking to a lot of people (friends, acquaintances, strangers) lately and I'm just making sure they are currently investing in real estate and they are 1 or 2 steps ahead of me on the journey (own 5-20 units and self-manage).  I also look for my red flags:  a) they mention a guru or b) they ask to partner up quickly (like suspiciously quickly) or c) their first question is "how much capital do you have lined up?".

Wish you the best, man.

Trent

Thank you BP and thank you @Derrick Watkins for asking this question.  

I was just asked by a colleague, if I wanted to go to an FB seminar in a few months.  I had no clue what she was talking about and almost said, "Sure, why not?"  I'm glad I hopped on here and did a quick search.  Because of BP, and more specifically this forum post, I received instant advice and feedback on the seminar.  

I also won't need to waste thousands of dollars and hours or days of my time attending the seminar.  This is a great thing.

@Cassio De almeida

I sent out 15 letters.  Just typed out in professional format.  I only talked to the one person but that's a 6-7% hit rate lol.  I'd qualify that statistic with the fact that I'm living and investing in small towns where the normal process of buying/selling homes are with real estate agents.  I could possibly be the only independent investor in the tri-county area.

@Cassio De almeida

I had the same thing happen to me last week and I am very new at this so take my advice at newbie-worth.  I got a call from my first round of direct mail.  I called back without a script and got the address, reason why they were selling (moved to different neighborhood), and scheduled a walk-through.

While at the walk-through, they said they have a mortgage on the property but didn't want to disclose any information and were not interested in Subject To or any creative financing techniques (which was a bummer because they could have made more money that way).  They said they just wanted the mortgage to go away.  They want $115,000 and I followed up a few days later with my offer (after analysis and preliminary due diligence).  I offered $53,000.  The house is worth ~$76,000.  I knew before I made the offer that they would not be fond of it, they were not motivated, but it would be good exposure and practice for me to get over the nerves of offering over the phone, doing the whole walk-through, asking questions about the property, their motivation to sell, what they think its worth, pitching/explaining Subject To, and all that.  

Rambling aside, I agree with @Gino Barbaro about having a script and being prepared.  Try not to be affected by the sellers emotions and don't be afraid to offer the number that makes sense for you because you never know -- the sellers may have motivation they just aren't showing or talking about.

Trent

If I were in this position, I would do all 3.  I would send a formal letter but before the letter arrived, I would call and try to speak to the decision-maker (manager, director, etc.).  This way when the letter arrives, they may recognize the name and conversation; moreover, it shows you are serious and professional.  Lastly, it's old school, but I would drop by and just ask for 3 minutes of his/her time to make sure he/she received your letter and to know you are still interested.  If you have business cards, bring them!  This may seem like overkill (and if they seem annoyed, obviously use your own judgment) but the more they see your name &/or face, the more they think about your offer.

Good luck, @Jason Cobb.