All Forum Posts by: Patricia Steiner

Yes...and if not a full inspection, at least get a 4-Point and Wind Mit that covers the major components and is often required for insurance engagement.  Never skip the inspection...it's a cheap date and can be exactly what is needed to force the seller to make repairs/concessions should anything major be found to be an issue.  Gotta have or don't play...

That isn't the way it works...when you retain an attorney (pay him upfront), you have a retainer agreement stating the scope of work and each parties obligation to perform.  So from enjuris.com:

"If you think your attorney is ignoring you, send a certified letter to his office questioning the silence and that you are prepared to find a new lawyer if necessary. This will jolt him into action."  (End)  Request a face-to-face meeting within five days of receipt.  Be sure to keep a copy of the letter for your records.  

And, read this article and more before any meeting:  https://beersandgordonlaw.com/...

Plus this one on legal fees paid upfront:  https://www.legalvoice.org/working-with-a-lawyer#:~:text=Most%20lawyers%20require%20advance%20fee,that%20money%20is%20used%20up.
It states:  Most lawyers require advance fee deposits for most kinds of cases. It is important to know that the advance fee deposit may not cover the entire cost of the case. If you are asked to pay an advanced fee deposit, ask your lawyer what that money will pay for and what will happen once that money is used up.  (End)

The attorney represents you. He/she is required by the American Bar Association to communicate with you as the client.  Send the letter.  Remember: what starts out crazy, ends crazier...don't let this continue on as is.

You have one opportunity in your real estate investment life to take advantage of 'free money' in the form of down payment dollars, loan cost payment, and/or pretty close to nothing down financing - all available to FIRST time homebuyers only. Whether you need it or not is not the point. Being an educated/informed investor - you know, the stuff of being 'the real deal' - means taking every advantage available to better your deal, improve your ROI.

Bottom line:  Take the assistance or I'm calling your mother!  

(And, congrats on moving forward on owning a piece of the planet...it's a very big deal!)

Just a recommendation:  "Eager" isn't a quality that makes for a great investor-focused realtor.  I hope you'll take the time to review who in that market has represented and sold properties similar to the ones you want to acquire.  Having a seasoned and experienced, investment specialist as a trusted adviser will get you further and faster than a realtor who is 'eager.'  There are a lot of realtors who are social media specialists but don't know anything about real estate investing.  Take the time to find the one who is a deal maker - rather than someone who is good at promoting themself.  

Love your acquisition plan...hope you leave skid marks all over that market.

Start here:  what is the highest and best use of the property.  Why calculate a deal based on a usage that would not bring the greatest return?  You can build in safeguards without 'dumbing down' the property.  A quick/high level process I use for my investments is something like:

What is the highest and best use?  Is it currently zoned for that use? What could the future use be (because every owner should take a property to the next level, right?)

How could I get out of this property - clean/no loss to profit - if I needed to in 1 year, 3 years, 5 years?  

Crunch the numbers: what's the carry? What's the market demand and rent price? What is current valuation and what is year-over-year valuation and rent price increase? ROI. More... I don't build in excessive vacancy numbers or maintenance - that's rookie stuff; you can gauge it fairly accurately without betting against yourself.

There's more to it before I actually invest but a quick 'why bother' review enables me to move on when a deal really isn't.

Hope this helps...

What does your lease say?  Is he technically in default?  Rent paid?  If the rent is not paid, handle this as any other non-payment of rent scenario.  State laws are specific as to disposition of personal items and storage requirements.  The best things you can do are review your lease and then do an online search for your state's landlord/tenant law on 'abandoned property of tenant.'  Be careful to document every item, photograph it, and follow the law to the nth degree because this is the stuff of tenant lawsuits.

Best...

This isn't going to go well for you on the course it is on.  What you 'need' for rent is one thing; what the market rent is - is quite another.  How does your 'needed rent' compare to that for a comparable property in your market?  If you want to keep your tenants, then price to the market.  It maybe that the rent would be even greater than the 16% you referenced.  Then you simply advised that effective whenever, the rent will go to $xxxx which is reflective of current rents in the market.  If they decide to move, they move - but you'll be priced right for acquring quality tenants.  

And, remember: you're running a business.  Customers don't set prices - the market does.  Don't negotiate rent - it is what it is and it is what you're entitled to for the goods/services provided.  If you don't position the rent increase in a confident and market driven manner, why should your tenants respond in kind.  Take the time to understand the market rent and demand and then price/communicate accordingly.  This is everyday stuff in the business world.  Best...

What starts out crazy, ends crazier.  

The right response is always:  we're moving forward with a more qualified candidate.  The realtor wants/needs a payday...you need a quality tenant.  Move on and don't look back.  Block the realtor if you have to do so...it's your business and you're running it just fine.

It sounds like you don't have a 50/50 partnership but a partnership with a compensated managing partner.  And, yes, you need to manage your projects and that means managing contractors.  What it doesn't mean is getting in the way of a contractor who is doing a job that you and your partner are not qualified/knowledgeable to do.  Micromanage a contractor and expect to see him in your rearview mirror.  What your 'partner' is proposing isn't realistic nor professional - nor warrants 20%.  If it's that large a project to warrant that kind of expense, you should hire an experienced property manager.  There are a lot of ways to be involved/oversee a project - and the first are mandatory:  get an estimate/contract with your trades, have a scope of work completed, have photos of work completed texted to you, and never pay for a job upfront.  Real estate investing is a business - a complex one.  I recommend that you and your 'partner' spend some time online researching project management and hire quality trades.  Know more to get more...