All Forum Posts by: Paul Bowers

If your lease is written properly he is actually late on the rent and not on the late payment fees.  The money he is paying you should be applied to the previous late fees prior to being applied to the current rent so he is currently behind on the actual rent.

You've trained him that he doesn't need to pay you on time, you need to correct that immediately.  I would rather have my tenant pay me my rent than do repairs on my property.  If he pays me on time I can afford to hire a professional do the repairs.  If this were my property he would be getting a 5 day notice immediately.

How often do you inspect the property?  You assume he's doing repairs and maintenance but that may not be the case.  If you are inspecting the property on a regular basis then you could also be doing any needed repairs when you are there.

Not to sound harsh but you need to run your business like a business and not a hobby.

I find the local Business Journal to be very informative.  Shows a lot of information, business filings, etc that really help keep a finger on the pulse of who's doing what locally.

@Account Closed what is your exit strategy?  Who do you plan to wholesale the house to?  Do you already have a buyer lined up?  If she is an investor she may not be interested in letting you tie up her property while you're out trying to find another buyer.  How are you going to market the house differently than she is?  If the best offer she has been able to get is $35,000 what makes you think you'll be able to get $41,000?

Just a few things you should know the answers to before you proceed any further.

One of the first things that comes to mind for me as an added cost is company vehicle.  Are you expecting the people you hire to drive their own vehicles or will you be providing transportation?  Will you have to provide office space as well as storage space for equipment and supplies? 

Those are all valid reasons.  More importantly for me was the fact that the site provides me and thousands of others knowledge, contacts, inspiration, etc.. and I felt it was a way to support them and say thank you.  Even if you never took advantage of of the tools and webinars the interaction and knowledge far exceed the cost of the Pro membership. 

@Rachel N. from what I've read on here I believe @Account Closed is the resident Quickbooks Guru.

@Larissa Luna, welcome aboard.  Make sure you take the time to start listening to the podcasts.  There are some geared towards wholesaling but literally every one of them has some information that you can learn from regardless of what direction your investing takes you.

I think the second scenario can be a little dangerous. If you are hoping a first time buyer using FHA/USDA financing is your target market they typically have the least money available for rehab. If you can do the additional rehab for $23,000 that means at retail a consumer will have to figure closer to $30,000. That may scare off the exact customer you think is the target, low cash available first time buyers. I'd lean towards the higher end rehab personally.

Seems like your providing half the equation, capital, and he is providing the other half, labor/management.  Seems like a 50/50 split would make sense for both of you.

I don't have an answer on the tax question and don't want to sound too harsh but if you have the ability to buy the house why don't you just help them get current on their mortgage?