All Forum Posts by: Mike F.

If you have it in your 401k there is no better retirement investment than this transaction. Just take it out a loan, this amount is so small in the scheme of things and a 401k loan is so easy to do I would not be wasting any time letting this deal get away from you over this and all these mechanics for such a small amount.

cats have made real estate investors hundreds and millions of dollars by destroying houses that are sold at a discount to an investor. 

Let your competition rent to cats, buy their rentals from them at a discount after they get tired of dealing with the damages

Your tenants have you trained like Pavlov's dogs, you need to break the cycle and turn the tables back around and the training comes from you not them. 

First off you need to limit their method of contact. Establish a method of contact to you. It can be email, a form filled out on your website, a phone call or text. But not all of the above. Train your tenants. You should segregate your contacts methods to you one for routine issues (the door is squeeking) (email, form filled out) one for emergencies (the toilet is flooding the house) (phone call/text)

Secondly you must delay gratification except in the case of an emergency.  You should have training in your lease or at the very least explain to them now that non-emergency requests are responded to with 72 hours of submittal. Respond does not me addressed, only acknowledge. Once your tenants figure out there is not instant gratification that when they submit something to you it takes 3 days for a response and then it may take 2-4 weeks to address the non emergency item they will automatically start self-limiting their contacts with you, their personal 'emergencies' will get second thoughts and ultimately likely not be contacting you about them because you have stopped the instant gratifications.

The tenant isn't losing track of making the payment, she was planning in advance to be late.

>>"One of my tenants ask to pay her rent late because of a death in her family."

>>> "Now if someone is coming up with excuses month after month after month.. That's a different issue. But one time thing.. Really? I mean really.....?"

Nobody knows the real circumstances they have never been posted. Nobody knows if this is a one time thing or not, or whether she's been living there for 5 years with all on time payments, whether she has just moved in 2 months ago, whether she's been late 4 or 5 times over the last year... as I said, I'd need to know some history, I take each matter one at a time and based on past history of the tenant, universal 'slack' is not granted, slack is granted when it's warranted as this request being the exception.

I base everything on past history. How long has she been a tenant and how long has she been making payments on time, how many times has she been late. If she's a long term tenant with a long track record of on time payments I'd make a one time exception. If she's only been renting a short time or has been spotty meaning been late once or twice per year then I'd not give her any accord at all.

By the way - I suspect, but correct me if I'm wrong, this car loan doesn't show up on a credit report and is doing nothing to build your credit. 24% interest smells like a buy-here/pay-here lot, not a traditionally financed automobile loan.

 Why would you sell it for a loss, then buy something else for another loss plus more losses for endless repairs on the next crap car?

Just pay it down, pay it off before you do anything. Over time you will dollar cost average your bad purchase into a good one. In a couple of years you'll be driving a paid off Civic with relatively low miles and lots of life left in it for years to come and have only minor repair bills. In other words you'll have (1) reliable, (2) low cost (3) paid for transportation.  Then stay out of debt and save that payment for your first real estate investment.

Selling it is the last thing you should do. Refinancing is the last thing you should do, you don't want to extend the debt, you just want to pay it off and be debt free and own a vehicle that is low to maintain and reliable.

Well in my opinion if you're doing it yourself you're working a job, if you're able to hire it out, you've created a business.

Very nice insight, that's how developers look for where to develop, but anyone in real estate should try to understand what you wrote and to think like it at all times, it's like having a crystal ball to the future.

I'd get entry to her apartment ASAP, especially given the short conversation you had with her and her remarks. 

Don't fall into a lackadaisical landlord mentality. You've got your hard earned money invested in this INVESTMENT, the last thing I would be worried about is intruding on her. That's an approach that will bite you in the butt sooner or later as a landlord. Unless you want to get some really nasty, and expensive wake up calls someday I get over the idea of not 'intruding' on tenants. Give no tenant the benefit of the doubt, trust but verify everything. Assume your tenants are up to no good (especially with this wacko's attitude) until they prove otherwise, it costs you nothing but will save you tens of thousands of dollars, you need to realize that not everyone in this world acts and treats things like you do. And anyone telling you you're disturbing her needs to get out of this business. It's your property, renting from you is a privilege not a right. She's too wacky, I'd want to get in there and see what is going on. Don't be surprised to find her growing pot in her place, or she's painted the entire apartment, walls, ceilings wood work black or something else, nothing would surprise me anymore.