All Forum Posts by: Levi T.

Don't do it man, it's always temping to do a deal because you want to do one, but it's better to wait for the right deal to come along than spend the next 10 years digging yourself out of a bad one. H'town is a lot like Fredericksburg, hot-hot and getting hotter. There are deals there, you just have to keep digging. I've been all over that town looking for that deal that's just right, it's there, you just have to find it.

Tenants pay for all clogged drains. Tenants pay for all pest services except wood eating. Tenants pay for HVAC repair if filter is not changed every 30 days, $250 fine if found unchanged. You will pay for these, but then bill the tenant, that way you know it got taken care of. Make sure your fines are priced so they hurt. $25 they won't care, $95 late fee, and a $35 notice fee, and they won't be late again. Pet fine of $250 if pet in found on property, no pet sitting. $250 each event/damage. 5 day cure. Tenant pays for erroneous service call fees, you also charge them $35 for taking bs calls. I have a 21 page lease that ready like the devil wrote it, but these are my top hits. We run a tight ship, and have zero problem tenants.

Don't sign a lease with them. Your two most powerful options to remove them is month-to-month and none payment. They are clearly trash. Go down to the court house and chat with the court clerk, see if she will let you issue a Writ of Possession, if not file another UD summons, and get them out.

Don't sweat it. I've had plenty of people die from natural causes over the years. people have to die somewhere, most do it in there sleep believe it or not. Just think if you owned a 55+ rental community. Sometime back, a guy hung himself in a string of units I was buying, the day before we closed. I though I was up the creek on that unit. PM handled it, and life went on, no big deal really.

I know not everyone will agree with this method, especially the SFH buyers, but what I do is a bit of quick math like so; take the yearly gross rents and divide it by your preferred gross return rate. I have a floor or 13% as I know that's going to put me around the 10% mark after expenses, normally. I target 15%, but always try for 17% or above. Keep in mind I'm looking for rents and value. I don't care about flipping or if the property is worth 10x more than I paid, I'm buying for rental income, so property values is always controlled by this. My property types are B-C properties, and I buy 7-70 units type deals normally, apartments or strings of townhouses. I'm starting to do a lot more C types now of days, because of experience in handling them, and I can clean house on the returns. If a unit rents for $900 mo, it earns $10,800 before expenses per year. $10,800/.15 = $72,000 offer price. This is what I use for the "on the spot" call to give general pricing, I'll then sit down with my excel and do the real numbers later. This will work on a single unit, but I also use it on multi units more than anything. Example; I just did a 7 unit deal with rents of $875 per unit.. $73,500/.175 = became the winning offer. Later on while doing my DD, I ran in through my excel, check taxes, called on insurance quotes, subtracted year 1 repairs, etc, to insure I had a great deal that I though I had. Another option is just to build an excel based on averages, then just plug the data in when chatting. I've got one of those for myself, but I like the above as it just keeps me in check when free styling on a call, and I can walk alway knowing the verbal offer I agreed to is good if the seller was truthful about property condition and rents. Hope that helps a little.

Everyone has their own system man. I get a lot of deals via bankers wanting to move loans, I also get a lot of deals via data targeting for regions, then look at rents in CL and contacting owners with low rents. I've also done flat mail runs at scale with little luck. I know my niche is the first two, doing lunch with bankers and mailing CL rentals gives me about 20% conversion, tho I keep trying the 3rd from time-to-time, which is starting to produce a 4%. It's really about refining your contact qualification. Most good deals I find are losing cash, but can take a haircut. Maybe that will help you.

Thanks for the feedback guys. I have an awesome law firm behind me (Hirschler Fleischer Law), I plan to tap them when the time is right. Solid points on the cost of raising capital. Thanks. That's a new area for myself, but I think it's time I branch out and quit flying solo.

Just counter at 160. They will except or counter another offer.

Part of the game man. Talked with 4 people in the last few days, I was 60k-90k below their asking. One old lady called me and told me her price before saying anything else, I told her with repairs and going market prices I could only do x, she sounded a little pissed but that's life, I attempted to give her some options, and told her think about it and call me later. She just hung up. Like I said, it's just part of the game. Something you will find that the agent will get fired shortly, and they will call you back one days. Just be candid, your helping them understand why their property is not worth what they want. Just think Pawn Stars or American Pickers.

Omitted, they should have listed them as not included. That's like saying the toilets are not included if we don't list them as part of the deal. There is a bunch of videos on YouTube on how to install sliding doors.