All Forum Posts by: Patricia Steiner

Real Estate Investing isn't what most people think it is...there's nothing passive about it and more people lose money in it than make it.  In our market here in Tampa Bay, prices are high and inventory is vulgarly low. Insurance cost alone went up 40% this year and it's doubtful that it will go down in the years to come; taxes are some of the highest in the nation especially for non-homestead properties.  I recommend NOT starting with where to get the money. First find out what part of real estate investing - including the industry at large - would be interesting/exciting to you and that could involve your sons (build that family legacy!).  Recently, a local roofing company sold for $11 MILLION dollars to a man living in England. That investor saw that roofing was a recession-proof business and that the demand was never-ending here in Florida.  Handymen are hauling in six-figures and the ones I use have a six-week backlog. A new AC owner is begging for people who want to learn the business and possibly partner.  And, then there's dirt:  do you want to be a landlord?  If you think you might, pull up the Landlord/Tenant Laws online for Florida and KNOW these.  Flipping/Rehabbing more your preference?  What skills do you have that can put into a project?  You might want to take a class or more at Home Depot/Lowe's - because the more you can do on your own, the further your money will go. Look up what requires a building permit and what the filing process in...it's all online. 

And, there's this...it's not about getting out of hospital life, I bet, as much as it is about getting exciting about life again.  Take the time to find out what skills you have that apply to the real estate industry, what segment would allow you to make the biggest/fastest entry from rookie to leaving skid marks, and LEARN.  What you don't know will hurt you.  This is not a business for the meek because what it really is - well, it's this:  Creating, building, running, growing your own business.  

Review the leases - and KNOW what is in there. As you know, you're required to honor those leases.  I/my clients send a letter/email too advising of the ownership change, where to report maintenance issues, and where to remit rent payment on the 1st of each month (always throw in that '1st of each month').  I would avoid being anything but business-focused as it's amazing how many tenants perceive friendliness as weakness and will attempt to push the boundaries with 'the new guy.'  Don't share the 'I'm a new landlord' because you ARE the landlord.  And, manage to the lease.  Whatever it says is how you should respond. Per the American Apartment Owners' Association, the #1 reason why landlords fail is because they did not manage to the lease. 

And, congrats.  It's a great business - both rewarding and challenging.  Be sure to know the Landlord/Tenant Laws for your state. They're posted online...

Best.

Find a CPA who specializes in real estate transactions and who also has a CFP/CFA designation. More people doesn't mean more/better results; it often times means more billable hours and intellectual disputes. I actually prefer to keep my circle very small on those who know my financials.

And, KNOW what a CPA does; the person responsible for building wealth is you. The CPA can organize and file financial records and recommend tax saving measures/more but the CPA (and I mean this with all due respect and more) is not running or managing your business.  Again, be clear on what you want and need from your professional resources and realize that you will never be their only or biggest client (although I sure hope you will be the later one day).

Best.

You cannot evict someone from using your mailing address. Eviction is 'the action of expelling someone, especially a tenant, from a property; expulsion.' If your brother isn't occupying the property, then eviction is not an option.  And, since you gave him permission to use your address, it isn't an illegal act in itself.  It appears you want to be paid for 'this service' versus having concern over him doing illegal activity. As you can see from an internet search, your option would be to return any mail received at your house:  https://www.avvo.com/legal-ans...

If you know where he is, send him a letter/email/text letting  him know that you will no longer be able to allow him to use your address and that all mail addressed to him will be returned to the sender as 'addressee unknown."  Not sure you'll receive a warm response from him but at least he will know that he has to make other arrangements.

Best.

You've paid the interest up until the payment date already (at closing). If you want to pay something in the interim, don't make a payment - make a principal reduction.  If you were to make a payment, the amount would be applied as principal and interest versus having the whole amount applied directly to reducing what you owe which is done with a principal reduction.  Your lender will have instructions online how to make a that principal payment.

Hope this helps...

Take a look at this article on LLC versus Umbrella Insurance - or both; the scenarios near the end of the article are great for figuring out the coverage you may or may not need:

https://www.apartments.com/ren...

Hope this helps...

I would rent it and then list if for sale with the property cash flowing with a long-term quality tenant. It is unrealistic to think that you can buy a good condition property at market value and then flip it for a profit. Add value - so you can expect a ROI. I would also encourage you to consider holding it and look at what return you would want to acquire from it after year 1, year 3, and year 5. Most of us don't want a small quick return...we're in it for much more.

Lots of this siding remains in the market...I wouldn't hestitate to buy a property with it but I recommend the following:

It is safer to keep the siding than replace it. As long as the shingles are unbroken, the asbestos will not deteroriate and become a health hazard.  Having said this, do not allow your handyman/tenant/anyone, to alter/remove the siding. Don't drill into it - leave it alone.

Seal it.  There are paints specifically made to seal asbestos.  We paint the siding immediately following closing and document the fact that we did along with the sealant used. It helps with any insurance pushback as well as assures tenants who may learn of the siding that you have sealed it.  

There's a lot on this topic online and I encourage you to look at it. An internet search on 'absestos siding sealant' results in a lot of great articles on the topic.

Hope this helps...

I would charge them - but only after having a second party (contractor) bid for the work so that the charge is independently determined.  I find that 'smoking violators' are the ones who will challenge you on security deposit offsets and claim that 'they tolerated the smell since moving in.'  Take photos of everything before correcting. When you send your security deposit offset letter, pile on all your evidence including the contractor bid which should state 'removal of smoke stains and strong smoke odor throughout property.'  It's best to show them that they have no where to go on contesting the charge - and that the charge is non-negotiable.

Hope this helps...glad they're gone.

The bigger issue may be:  what will be involved with installing it and who will do the work?  A tenant is asking to alter your property. It's only an improvement if it is done well and will pose no liability to you going forward.  Engaging the contractor will need to be your responsibility as the landlord - and ensuring the work is permitted and paid to avoid having a lien against your property.  My recommendation would be to do the vetting first: the cost, the process, the installation time, more. Then decide whether raising the rent is a more viable option rather than having the tenant pay for a tangible investment on your property. Do everything to ensure that the tenants/contractor cannot lien your property - and that means you will need to be leading the effort.  I think it's a reasonable request and one that not only appreciates the value of your property but the rent price as well.

Congrats on having such a great tenant...it's a big deal.