All Forum Posts by: Michael Lewis Lee

Hello Stephanie! SFH's are OK if you can get a good discount and plan on buying many to pay all of your bills. I don't think a new home will be cheap enough unless the builder is very motivated and/or in trouble. Proceed with caution and go by your goals.

Good luck to you!

Hello Joel! You chose an interesting presentation of your questions. SFH's can be difficult as rental units. The more houses you own,usually the better . The fewer the addresses, usually the better. Your goals determine your positive cash call adequacy.

Your “lessons learned” are pretty good.  Try just to pay attention to those who have done this before.  Continual education should help you.  The weather happenings depends on where you invest and can effect your leasing but I live in Texas where the weather only effects you more than a couple of days.

Banks and credit companies tend to look at your ability to make the payments, not the property’s future hopes.  There are alternatives.  It depends what all you are ready to pay for.  With rentals, think long term. Try to use duplexes to four-plexus or apartmennt complexes.

Above all is location, location, location.  Good luck to you!

Hello Tony!  I hope I can answer all your questions effectively.  This message from a man who is 63 and crippled now but was licensed real estate brier in Texas and a construction manager for about 30 years.  Try to prepared for anything that can happen.

I was and wasn’t properly prepared for that brain aneurism and stroke that stroke that happened when I was 54 just two days before preventing surgery thanks to me taking a MRI and saw that problem but before that happened,I was told by my regular Doctor my condition was perfect.  

Even though I had paid off my house in 1996 and my wife was a computer programmer and making decent money it was not good enough for her not to die from cancer at 59.  I was going to say that you need 6 months of payment reserves on all rental units.

You need full insurance on all of your properties that will pay in case of natural disaster.  Maybe an umbrella policy can save you some money.  Natural disaster is kind of one of those “cross your fingers” things.

Being educated continually and being prepared for anything that could happen is almost impossible but you can try.  Do not try to do everything yourself.  Be able to hire others and delegate.  Remove as many distractions as you can.  

Don’t assume anything will not happen where you should be involved or you have any responsibilities.

Worst cases can happen from A to Z.  You can’t be prepared for anything that has to do towards the future is almost impossible to prevent but be prepared for anything that happens.  The more prepared you are, the better.  The more units you own, usually the better and the less vacancy will hurt you.

For rental properties, it is usually proper to have a separate bank account for deposits.  Strict  screening will usually help you in the long run.  Always think long term when renting and always know that people need to sleep at whenever.

Try to save as much as you can to be prepared for anything that happens.  My wife had been saving for about 35 years but it could not save her life or any insurance either. Stuff happens that you cannot control.

Good luck to you!

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Hello Stetson!  Every area is different.      Each area should be evuated to determine its population and employment growth, future business plans, and the overall demand that fits your plan/goals,  it’s proximity to major employers, it’s school district reputation, and any public transportation that has a nearby stop.  What it’s past look like and if you think the future will continue to do that, it’s exterior looks, and it’s parking.  That is not a complete list of what to look at but feel free to ask other questions on this site and you probably will get several answers from those who have traveled down this road and give you great advice.

Good luck to you!

Hello James!  Your assumption sounds good but I hope you hear from someone who knows your state laws, as you might know. I’m from Dallas, Texas and I am unfamiliar with your state laws.

Good luck to you!

Hello Michael!  The only request I have is what’s the easiest way to raise money?  Best wishes!

Hello Herbert!  All that I can think about is getting on the call list of several Attornies that specialize in that.

Hello Kent! Trust your guts and heart instead of your brain but the better/longer your evaluation and research, the less your risk.

Hello Mindy!  I don’t know if I can add to your answers but I’ll try.  This might be a common thought but I would try to buy at the optimum time that gives you the maximum time to get a 1031 done.  The hotter your targeted area is doing will effect your ability to do that.  Just try to locate in a hot/high demand/growth area.

Good luck to you!

Hello Lawrence!  A couple oof things that came into my head.  First of all, it’s a hot market for sellers right now.  All houses on my street sell in one day but it does depend on where you’re at.  Secondly, your loan sounds like it was from a bank and it matters if you can pay and not on the property.  Just remember that they are not the only one in town.  Location does matter also.  You must done a realistic evaluation which actually takes the risk down as opposed to how the stock market can end.

Continued good fortune!