All Forum Posts by: Greg Shaw

46. REI is not a "get rich quick scheme". Be prepared to work hard.

My excuse "was" I am waiting for the right property that I will feel comfortable enough with to take that first giant step.
It finally happened and in the end I am glad I waited because failure is not an option.

I am being forced to retire in 4 years, due to pension claw backs by the company, and because my company provides such a poor pension already I needed a way to supliment my income. I have no desire to be rich I am only interested in maintaining my present standard and my rental investments will do that.

all cash

If your offers are rejected and no deal is made what happens with your earnest money. I am not familiar with your system.

greg

The differance is as an investor if the deal goes bad and you lose money he dosn't owe his mother anything.
You should ask yourself how you would feel if you lost it all in a bad deal.
The answer to that should help to answer your question. If losing her money is a problem maybe you should just take it as a straight loan and pay her a fixed interest regardless of the outcome of the investment..

I doubt I am sitting on a gold mine I just haven't broken into the RE community yet.
I am in kingston Ontario Canada, population of approx 120000 with surrounding area. This is the largest city in eastern Ontario outside of Toronto and Ottawa.
This is a university town also having a extensive prison system, government and some industry. Student rental buildings are over priced (cannot come close to cash flow with 2% rule) and under maintained. At this time I am looking beyond the city limits although rent levels will be lower. I don't think this city is unique I just think I need the contacts to find the real deals. My goal is in the next five years to purchase and hold with a positive cash flow of approx. $2000/ month.
I know if I maintain the momentum I will suceed and as it is early in my learning curve I know also that I may not be ready for or able to identify the right deal. Patience is to my advantage right now.

Being in the very first stage of REI my biggest problem has been networking. Setting up contacts is very slow and complicated. We do not have a REIA in this area, closest one is 2 hrs away that I have found, although we do have a rental property owners group. However they do not let you join unless you already own property.
I have contacted several RE agents but none have "clicked" for me yet.
Although I have called on many properties none have yet been priced to
cash flow.
I feel like I am circling the airport in a heavy fog without a radio.

Why don't you ask the landlord if you can switch to one of his units that does allow pets as soon as one comes available.
That to me would be a win/win situation. Assuming she has not had a pet up to this point in her life I don't see this situation having to be a panic just because of the doctors suggestion.

When considering placing a offer on rental property (single family) what conditions should be included in the offer to cover all bases.
I have considered ;

conditional on financing
last months rent/deposit
inspection
?

What should be asked to be seen prior to making a offer:

rental agreements
past repair costs
insurance costs
last rent increase (amount and date)
?

What all do you include?

thanks

Greg

That is the current rent. I don't know when they were last increased but the rent per house is in line with the market in that area.
A investment of approx. 10K would see a increase of 140/month.
Total 2145/month.

greg