All Forum Posts by: Kelly Lynch

This is definitely a dead deal. A short sale would probably be the most feasible option, but this can be alot of work and "hand holding". Like Joel said, go for the low hanging fruit.

Service Magic is awesome. I have used them on numerous occasions. One thing to consider is that Service Magic charges contractors a monthly advertising fee, generally $300+ a month. Because of this additional marketing expense, I have noticed that contractors that I have hired off of Service Magic tend to charge higher prices than independent contractors.

If you have a large job, then Service Magic is a good choice. If you have some basic "handyman" type of work to be completed, I would suggest using Craigslist or local directories.

Just my 2 cents.

The 'big thumb' rule is to use professionally made
signs for buying and handwritten signs for selling.
Obviously, the sign that goes in front of the house
you're selling should be professionally made but
depending on your exit strategy you can write on
your professionally made signs.

When attraching sellers, I like to focus on their pain
and problem. Something like:

Just got orders?
Need To Move Now?
Call XXX-XXXX

This works great when targeting a particular segment of
your customer base. Most investors use a global approach when marketing, but I think that just waste your valuable marketing dollars.

Think of it like books that target women like, "Real Estate Investing Strategies For Women". Truthfully, there's no
real difference in the material verses a book titled,
"Real Estate Investing Strategies"....just the perception
in the buyers mind. :cool:

Take care....

Ahhh, the classic arguement! Both real estate and paper assets offer cash flow and capital gains. It comes down to what you know most about and which you feel better about spending your time doing. I do both! I like stocks because they're illiquid but they carry a higher tax burden in the short run. I like real estate because of taxes and the ability to leverage my money.
But at the end of the day...it's the investor not the investment!

Let me start off by saying I'm a Texan too, operating out of San Antonio! As for state laws, it comes down to what your rental agreement states. Most are pretty common in that it list out what damages you cover and they cover.

In order to protect myself from those type of emergencies I use a home warrany company like American Home Shield. The monthly premium and copay are both borne by the tenant!

In lieu of not having one, I'd do exactly as Brian suggested except, I'd bring that issue back up when it's time to renew their rental agreement. I'd specifically mention the plumbing issue again in your notification letter. Hope this helps! :lol:

It's always better to focus on the aspects of your business that you have the most control over. I can only control where my bandit signs are to be placed and the frequency of placement, not how often or who takes them down. To that end, my strategy is to have my bandit signs placed consistenly within my marketing area. This is accomplished by outsourcing the task to an independent contracort. The contractor is given the signs and a map of exactly where to place the signs and is paid on a per signs basis. For instance...for 30 signs to be placed I pay approx. $60.00!
My assistants will drive the areas where we have signs in order to determine where the contractor needs to go next. :cool:

If you're a "one-man" operation you never tell tenants or frankly anyone you're the owner of the property. Some investors have too much pride and go off running their mouth to everyone, but in life that causes more trouble than necessary. The only people that know what I own/control are my banker, accountant, and CFA.
But honestly, I never allow a tenant to ask how many properties I own, why the property is held in a LLC, or frankly anything not directly related to them renting the property.

When I first started out I talked too much and opened the door to inquisitive questions! Remember, you're "Boss Hogg"! You own the property! Simply throw it back at them, "Why are you asking?" or "Frankly, it's none of your business!" You set the tempo...not the tenant! If you flinch now they'll be punking you over the entire length of the rental agreement!
Look forward to the following questions:
1. Why is the rent increasing?
2. Can my nephew and his family move in?
3. Can we pay on the 3rd and not the 1st because...

My assistants know to keep it professional and are masters of the third person excuse! I am "the ghost in the machine"! I prefer not to know about tenants other than, did they pay on time with certified funds...that's it!
I almost once fell for the, "You look too young to be owning property!" problem! Maybe that's why I developed this tough, No B.S. exterior!

I agree with Jeff! Your primary concern needs to be your rental. To hell with the tenant that has to squabble with you over $25 bucks a month. If you have a tenant that's sketchy on the finances, your best bet is drop them. You may even give them a little extra money back on top of their deposit! Give them so third party excuse like, "After showing your application to my partner, he doesn't feel you'll be a good fit for this rental."

In the world of business, verbally contracts are worthless. The Statue of Frauds states all real estate contracts have to be in writing. Use verbal contracts when negoitiating with your wife over where to go for dinner! :cool:
I work primarily out of Texas and I know the clerks and judges in the precincts where I have properties. I have been sued before by a tenant on a L/O deal for return of their option money and the judge only asked me one question, "Did I have a Purchase and Sale Agreement?" That was it! From there he tore into them and I just stood there trying not to laugh. I think judges realize that landlords and investors like us "vote" and most renters don't!
Most tenants aren't sophisticated enough to go to court and battle anything out. If they did all it would amount to would be a civil judgment that they can't collect on.
Next time no matter how desperate you feel about covering a payment, it's ALWAYS 10x worse dealing with a loser tenant. We've all been there and anyone up here who's been in this business long enough has "gone to a seminar" when trying to help someone who can barely scrape together the rent.

The best way to beat the wind is to have the flutes of your bandit sign (assuming you're using coroplast) horizontal instead of vertical. Then punch 4 holes in the center of the sign approx. the same width the pole you're placing your bandit sign against and thread two zip ties through. For additional reinforcement use either roofing nails or heavy duty "Arrow" staples from Lowes!
This should hold your signs in place against the elements extremely well. :lol:

Spending more money to buy aluminum signs is cost prohibitize since bandit signs don't usually have a long lifespan.

Newspaper advertising is dead for sure! You're right on about trying to use passive (what I call Permission Lead Generation) but your media (newspaper) is not going to give you the leads you want. Sounds like you're on track with the website to build your credibility. To that I'd add a presentation kit that basically repeats exactly what you have on the website. I would use bandit signs to lead your prospects into your marketing funnel.
For attracting sellers your marketing must reference their pain and the solutions to their problems. Common problems are:
1. Loss their job
2. In the process of divorce
3. Job Tranfer (military PSCing)
4. Vacant House

Buyers can be rooted out with these:
1. Bad Credit?
2. Need To Move Now?
3. Need a Biiger Place?
4. Rent To Own
4-2.5-2
XXX-XXXX

I hope this helps! :D Email me if you have any more questions!