All Forum Posts by: Mike Hanneman

With that little equity in it you will hardly get anything after the sale once closing costs and the realtors commisions are taken out. You should run the numbers with your actual figures but from just looking at it you won't get to pocket or 1031 exchange more than a few thousand, that's not worth it in my eyes. Isn't that area appreciating like crazy? Might want to hold on to it a bit longer??

If you can manage your current debt levels at your current income and qualify for loans, refi's, then there is no reason not to get started in investing. People on this site all the time say to wait until you are out of personal debt, that could take years for some people. The most important thing to do is to get that first property under your belt as soon as you can.

One must be smart about investing, as you willo need reserves for repairs, vacancies, etc... If you have those then a little debt won't hurt you.

@Jeremy Chaser and @Francesco Barbati the issue with buying them for "cash flow only" is what would be your exit plan/s? If something happened and you would have to sell, if you didn't buy right then you'll be taking a loss.

Even to buy for cash flow you need to make sure you buy right. The most important thing about investing in real estate is to make sure you have allowed yourself multiple exit strategies i.e. renting it out, being able to sell and make a profit, (or at least not lose money), etc...

@Jon Peterson The only way to tell is to run the comps. How much does a similar duplex sell for with a garage as oppsed to one without? If you can get your money back out of it then it's a no brainer, if you can't get your money back, well then it's a no brainer too.

Dont offer them cash for keys until you have at least filed the correct papers so you at least have the ball rolling.

Wait till the 15th since you already give them that date. In the meantime be reading up on the eviction laws in your state. If they are not out on the 15th, then the 16th you should give/serve them with whatever paperwork your state requires. This is when you turn into the mean landlord because they lied to you and are taking advantage of you. You do this, like I said above to get the ball rolling, this will be your plan C, incase they don't take the cash for keys.

@Wen Guo first look at the lease, the tenants lease follows the property so you are stuck with whatever terms are in the lease for now.

Then as long as it says you can charge a late fee, you better charge the late fee on the first day it's late. This will set the tone for how you will be as a landlord. If you allow him to be late this first time with no fees you will have a tenant that always pays late.

Make sure to run this as a business not a hobby, don't try to be friends with the tenants.

You don't need any entity to start. You use entities for the advantages that they will bring you depending on you unique circumstances. The first thing to do is to just go get a property and then worry about setting that stuff up, if you even need to at all.

You see investors think all the time that they need to get an entity going, but then it takes them a year or so to get that first property, meanwhile they are still paying the fees associated with the entity that is just sitting there doing nothing.

@Jonathan B. this topic could literally take days to explain. You are going to need to dive into books about this topic to get a better understanding. I can't speak for everyone here but I would bet a months rent that most of us investors have read numerous books on multiple investing strategies for real estate. One has to know that they are playing with real life money not monopoly money, being that it's your dad's cash and he is retired he and you will want to make damn sure you know the ins and outs about what you guys are going to do. Don't just rely on an internet forum, even though it is good advise, to be your main source of knowledge.

Good luck 

First thing, is to look at your state's landlord and tenant laws, then you'll know how much time you have to give the tenant to vacate. You will NEED to know these anyways if you plan to be a landlord.

Once you find that out it's pretty simple since it's M2M, just tell them that you will not be renewing their lease terms this month and they will need to find another place to live. They have such and such time to be out and so fourth.

You'll be taken seriously when you deliver solid deals to your buyers. Everyone wants to be a wholesaler and not many ever find any deals for their buyers. If you find deals the buyers will be there. I would find deals first and get buyers second.

I have been contacted by numerous wholesalers, have given them my info and am willing to close, but I have never heard from them again.