All Forum Posts by: Leslie A.

Hope all goes well for you, Mark! 

@Account Closed 

I buy travel trailers, so it's a bit different than real estate, but I think the negotiation principles are the same.

It depends on the property.  If it's a property that is already priced fairly, and you know (you'll know this after you gain some experience) that it will go fast at that price, and it's a price that works for your investment objectives, you can make a low offer, but be ready to raise it immediately if they don't go for it.  This works best in face-to-face negotiations when you're ready to buy right now. 

If you don't care whether or not you get it, because there are plenty of other deals around, offer way low.  If it's rejected, leave your card with the seller and tell them to let you know if they change their mind (always do that anyway!).

If it's a property that is in such bad shape that few other buyers are likely to want it, and you aren't worried about losing it, maybe offer half of their asking price. 

I recently bought one for half of asking price for this reason.  It wasn't quite that simple, but was the final outcome.  When I went out to see it, I offered 60% of asking because of the horrible condition.  They said no and I told them to call me if they found that they weren't able to get more.  About a week later, they let me know that they'd accept my offer.  I told them I'd be out the next day.  Shortly after that, they texted me that someone else was coming to look at it.   I asked them later that day if they sold it and they said yes.

After about another week, they texted me that I could have it, because the sale fell through.  I was aggravated with them by that point, and waited til the next day to reply.  I said I'd like to have it, but my offer is now X (half of the original asking price).  I was nervous to send that thinking they'd reject it, but they immediately texted back that they'd take it.  I was happy, but of course, I was then thinking that I should have offered even less!

Anyway, I think the quote about being embarrassed by your offers is a good one.  Just be aware that you'll lose some good ones if you always go by that.

Mark,

I'm no tax expert, but have done small business accounting for years.  I would say the repairs you do getting them ready to rent out go to the basis. 

I would consider the costs of getting a renter and expenses going forward would be expenses, unless they were major capital improvements. 

I'm trying to figure out what to use for accounting myself right now.  I have QuickBooks, but haven't had the time to figure out how I want to lay everything out, so am using Excel an even doing some things manually.  You know, if you have a small enterprise, manual is probably adequate. 

I've run into exactly the issues Belinda describes in trying to open an RV park on my own land.  Maybe things are different where you are.  Hope so!  Good luck!

I got started with $10,000 that I gathered by saving our $4,000 income tax refund along with putting $250 a week into savings.  The $250 a week came from my husband's raise at work.  

You could start with just a few thousand if you have the time and willingness to drive and look and negotiate hard. 

Ian,

One of the guys who has a course and mentors MH investors says that often you can get about the same amount of money for a 3 bedroom MH as the local 2 bedroom apartments are renting for.   That might give you a starting number to work from. 

I rent travel trailers in a park and it works out nicely, so far.  My rent is $650 to $780 and lot rent is $260, so they have a nice margin.

The park itself is also a good source of potential renters for me. 

Hi Mark,

Use as strict a tenant screening process as you feel you need to.  You may have to see what kind of people are responding to your ads.  It may be that you don't have anyone with good credit applying, so you may have to relax your criteria to get it filled.  However, you may be able to be very strict if it turns our your home is in big demand.

I rent travel trailers and my applicants aren't the cream of the crop.  But they're not awful either.  I require adequate income proven by paystubs, plus I check the sex offender registry and run a criminal background check.  I haven't been in business long enough to know if my lack of checking credit is going to bite me.

Yes, you need a good lease no matter what you're renting, I think.  I have a six month lease and require a deposit.  If they move before the lease is up, they lose their deposit.  I'm also quite strict on late payments.  Basically, I have a zero tolerance.  Rent is due on the due date, period.  Even if they call with a reason.   If not paid on due date, they incur a late fee, and 3 days later an eviction notice will be posted.  I haven't had anyone force me to take these steps so far, and I'm a very new landlord, so can't say how they work out in the long term.

A couple weeks ago one of my renters called to tell me he was going to be $60 short on his rent.  I told him I don't accept partial rent and if not paid on the due date, he would owe a late fee and 3 days later he would receive a notice to vacate.  I felt a little mean, but he paid the entire rent on the due date.

Anyway, good luck with your rentals!  I hope they're very successful!

Try Vanderbilt Mortgage or 21st Mortgage.

@Bill S. 

Which of his books would you recommend - especially for this issue?  His material online is where I got my pet and smoker fee ideas, and I had already planned to collect rent weekly, but read a lot of good stuff on his site about it, too.  I do mark my rent up more for weekly collection than he advises, though.    I just had a hard time figuring out which book would be best.