All Forum Posts by: Tom Goans

@Hannah Shields,

Please Seek Legal Professional Advice

Legally, legal advice can only be provided by a licensed attorney in the state where the property is located. You should only consider legal advice that is provided by an attorney you hire. Any other legal advice is ILLEGAL.

Seeking advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. Every state has unique laws. The attorney will also provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

It is also wise to seek advice from a licensed professional tax and financial planner to make sure the agreement structure best fits your present status, strategy, and future plans.

Legal advice from an attorney and a financial planner you hire will be the cheapest and wisest investment you will ever make.

Every investment, partnership, and individual is unique. There is no one correct answer. But, there are numerous options that must be considered. Dissolution is one many forget. Every investment, partnership, and individual is unique. There is no one correct answer. But, there are numerous options that must be considered. Dissolution is one many forget. Death, incapacitation, spouses, and children are others.

Best of luck with your future endeavors.

@Carrie Pledger,

In my viewpoint, this is not my rental property, it is the tenant's home.

I would recommend learning the desires and trends of your target market. Be the best value of all your competitors for the same tenant.

I have always put a premium on curb appeal and then focused on the interior. I always keep the interior of my properties spotless - every inch down to the toilet bowls. The walls are spotless and fresh. I paint at least one wall between tenants to give the place a fresh smell.

I seek the WOW comment when the tenant walks in. And it is not because of a shinny new appliance, it is because many places they see are dull and mine are bright and inviting.

A ceiling fan can be very economical. If you have good tenants in place, ask them if they would like a ceiling fan. You can suggest it is your way of thanking them for being such great folks. Such an economical jester can reap great rewards.

My good tenants receive restaurant gift certificates during December with a thank you letter. This simple thank you greatly improved the January payment timeliness.

What goes around, comes around.

There is no general guideline. Search what works best for you and your tenants. Every situation and every individual is unique.

@Mun Kee,

One additional thought, you must learn when to work with people and when to cut your losses and move on.

How good of a poker player are you? Knowing how to read a person is critical to success.

Two separate times I had to tell a tenant they had to move out in December. One family back down from their stance and paid the rent.

The other was what my father always called a "professional tenant". This is a person who knows the law as well as an attorney or judge and knows how to manipulate the law to their advantage. These people are the most problem of all. I did evict her 2 weeks before Christmas and the Sheriff moved her property to the curb the week before Christmas. She had a job, just did not want to pay.

@Mun Kee,

First priority, lean the many, many laws. Know them as well as an attorney. There are federal laws to know and state laws you must know. Sometimes, there are local laws you must know.

Second, you must learn how to work with people with the goal of a positive outcome for everyone.

Third, if you worked for me, you must learn how to collect money. This is a fine art that is not taught in books or the classroom. It is taught by the masters in the business. I will share that if you demand a payment or send a nasty late letter, your chances of collecting money dropped like a rock.

One additional consideration, learn marketing skills. This will be useful in many, many ways.

Your daily challenges will be great. Many times you will walk away shaking your head, rolling your eyes, and saying to your self "THEY ARE NUTS!" You will be called names and it will get personal. There will be threats - legal and physical. There will be fights between spouses and kids out of control. But you must learn how to deal with this with a smile on your face, an up beat tone in your voice, and the goal of a positive resolution.

80 percent occupancy is a possible red flag revealing some type of problems. Big challenges for a new manager to find and resolve the problems. Have good people around you for support.

@Dennis Estenson,

I left out two very important segments of education that will be very valuable in many ways.

1. numerous classes on marketing

2. numerous classes on negotiating

Marketing is far more than advertising. You will learn how to find a target market and then understand the target market. This is very valuable when considering to purchase a property, how to rent the property, and how to sell the property.

You will find negotiation is already part of your everyday life and will be very important to the success to any business endeavor.

@Dennis Estenson,

Be the Best Informed and Prepared Person in the Room

That is my motto. Education is critical to enduring success. It also makes the journey easier and more enjoyable.

To directly answer your question, real estate is extremely complex. To add, there are many segments that overlap. A broad knowledge of the segments of real estate is important. Knowing the laws is critical. How many classroom hours of real estate law have you taken? How many hours of tax law have you taken? Both will be a part of every transaction you make.

You should also have formal business education in order to successfully manage your business.

I also recommend classes in property management and several classes of finance.

No matter what you do in life, I recommend follow this philosophy: End Each Day a Little Smarter Than You Began The Day.

What is comes down to, are you just seeking quick money, or do you want to make the real estate business a career? Do you have the passion to work with people or only a desire to find a way to make some money right now?

The answer to your question actually depends upon you and your goals. There is no one simple or correct answer. Every person is unique with unique goals.

@Jon K.,

They live in my properties or buy properties from me.

I eagerly welcome all comers. Bad things happen to good people. Moreover, everyone one deserves a second chance. I have never know one person who has never had a speed bump in their life.

In fact, in my almost 50 years of experience, people with bad credit, but with good intentions, make the very best payers in the investment portfolio.

I can give a very long list of success stories and happy people. Some who now own the home they bought from me free and clear.

Hello @Steven J.,

From what you posted, I still do not have a full understanding of the situation.

I would think undisclosed fees are not legal.

It is not a requirement for your friend to hire an attorney to file a small claims lawsuit. To learn how and the filing fees, go to this website:

http://www.gofourth.org/how-file-small-claims.htm

Your friend may also want to thoroughly read the statutes covering Colorado tenant rights.

http://www.michie.com/colorado/lpext.dll?f=templates&fn=main-h.htm&cp=

One rule I have, never threaten someone unless you are prepared to back it up. They may be a better poker player than you. Plus, they most likely know the small claims process very well. In El Paso County, it is the same court that conducts eviction trials.

Good luck.

@Derek Johnson,

Your initial offer apparently exposed a serious problem(s) that you are unaware of or not willing to accept the seriousness of the problem.

Probably the seller is now aware of the seriousness of the problem and is unwilling to correct the problem so that the property will pass inspections and finance requirements. Therefore, all cash is the term.

There is a reason(s) why the seller is making the property so difficult to buy. You can spend time investigating or seek another opportunity. Time is money.

@Maria Laty,

I have bought and sold many properties over the years in Texas. Most of my purchases have been all cash transactions.

I have never had a transaction close in Texas or any other state in less than about 10-14 days. The title company is usually the bottleneck.

My second thought is something my father would tell me; never get in a hurry to buy something, especially real estate. Mistakes will be made.

I would always recommend to never assume or guess at costs.

I would recommend against putting much value in comparables. Personally, I never consider comparables. Every property is unique. Each has unique problems, assets, and target market.