All Forum Posts by: Mike Hanneman

Are you talking about using a portfolio lender or as your whole RE portfolio? Have you done this?

For the first deal I would recommend a buy and hold to get your foot in the door. Wholesaling isn't as easy as the "gurus" make it out to be. Once you have a buy and hold collecting rent and earning $$$ then you can work on other aspects of REI.

I know the buy and hold strategy isn't the sexy way to go, but it's most passive and will still require you to learn more about the RE game/system. That doesn't mean it's easy still by any means.

Tell the tenant this is a freebie this time but it's up to her in the future to make sure the vent is free of debris. $275 isn't worth the headache of what could come from this tenant. 

If you don't understand the power of leveraging you should wait to invest in real estate. Leveraging is what makes real estate such an amazing investment! I would not buy a property until you can grasp the notion of how to use other people's (bank, private lender, etc...) cheap money, "leveraging" for an investment. This will allow you to make a better decision on how you want to go about buying a property, and not use all your hard earned money for just one property.

A loan on a property is good debt and the easiest way to build wealth.

I think as long as I'm at a good cash flow number I'd be more worried about getting a security deposit then increasing rent to market. When you do offer them a new lease, you need to make sure to get a deposit.

If the family was that worried about monthly cost wouldn't they be pushing to sign a lease? Month to month are easy to raise the rents with.

I'd present them an option to sign another lease at a slightly higher rent or month to month for the market rate.

Of course you need to implement your own lease now and get all their updated information.

With the list price at 3.2 and an offer coming in at 2.8 isn't that bad, it's 12.5% below list. Not sure about the area, how the market is, but if they are happy with making $1 mil, not including closing costs, take the deal.

How long has it been on the market?

They can always counter maybe meet in the middle at 3 mil.

I don't think this is a bad deal, I would just put some limits some of the items.

#2 I'd give them first right for the length of their lease.

#3 I'd say ok to repairs but all work has to be approved by me first and depending on your work quality, you'll be responsible for hiring a contractor to make it right.

Say this is to cover your investment.

Also I wouldn't recommend wholesaling for a beginning real estate investor. Get your knowledge of doing a buy and hold/rental. Then move on to wholesaling if it still appeals to you.

First off welcome.

Unfortunately only you can decide which strategy is best for you. You need to decide how much work you want to put in, nothing in REI is easy or "hands off"

If I could do it all over again and go back to college I would do "house hacking" to get started because not only am I getting my foot in the door with REI, but I most likely will get all of my housing paid for. Housing is a big expense and if you can get yours paid for that would be very beneficial at a young age.