All Forum Posts by: Peter M.

@Jorge Hernandez The 1% rule is a guideline, if it will cashflow 400/month, it seems like a no brainer. And finance it in your name then deed it over to your LLC. If you keep making the payments, the lender won't care that you put it in your own LLC.

@Tom Harkins Although I understand your sentiment because my day job also involves procedures (nuclear industry) I can't bring myself to do the same thing with my rentals. There are just too many variables that every step would be if/then statements and it would quickly spin out of control. Maybe when I get to the point of having lots of employees i will do it but for now there isn't any reason to. I do have standard forms I use though. Then I can just print them off and give them to tenants (or email them). When I start a new lease I give the tenants a folder with move in/out form, parking rules, pet policy, rent payment guide, troubleshooting tips etc. I update them as necessary, keep track of the rev and archive the old ones. Mostly its just little tweaks with the lease and I usually don't do it until turnover time.

@Sam Alkattan They are both good options but if your only income is as a realtor and you aren't established yet, (aka don't make enough moolah) you may not be able to get traditional financing. As for mentorship that can be tough, good luck

@Sam Alkattan Is your broker not a mentor to you? If not why did you choose to become a realtor with them? As for what to do, be a realtor, make connections, get experience, find off market deals and wait until you find the right one. 300k can go a long way even in an expensive market if you find the right deals. For example find a property that will owner finance to you, put a little bit down, fix it up then either sell it or refinance it

@Byal Thomas What is your goal is suing him/her? Are you still living there? Were you wrongfully evicted? What does the landlord tenant act you are referring to say the penalties are for violating it? Lawsuits should usually be looked at as an investment and if the return isn't worth the risk, why take it? There is obviously more to this story. If the landlord is doing something shady then there should be other easier avenues to pursue (health and safety violations) and you could tack this on to make your case. But if you are just looking to make a quick buck or stick it to them for something else they did then I would advise to just leave when your lease is up. Its not worth the hassle

@Saad Khan How long will you hold it? Loans are designed so you pay more interest up front so the interest paid after 10 years for a loan at 3% isn't that much less than one at 5%. Probably worth it to not get in trouble for mortgage fraud.

@Danni Green Congrats on your first deal! It sounds like you've got a great support network and if they are all telling you its a good deal, most likely it is. There's no doubt you will encounter problems and your fear will bubble to the surface but you just have to persevere through it. RE is a good investment and most likely in 5 years you will look back and laugh at how worried you were now that the property is worth 25-50% more.

@James Rodenberg I think everyone should self manage when they start out because 1) starting out you have much smaller margins and saving the PM fee will help you stay afloat as you grow. 2) you learn by doing and you will gain good experience from dealing with tenants and their problems, you'll also learn how the mechanicals of your properties work so you'll understand why problems are occurring. Then armed with this knowledge, when you do hire a PM, you will be able to spot any BS on their part. Same goes with contractors you hire later for similar issues you fixed yourself in the past.

@Mai Dao Like most tenant issues in RE, lawyers should be a last resort because once you get to that point you've already lost. First, try to resolve it with the housing administration. They know tenants lie but so do landlords so they are going to be skeptical. If you can provide solid proof they may not move forward with the case. Then, try resolving it with the tenant (if it is an existing tenant). If it is an applicant claiming discrimination there isn't much you can do. Also, depending on your state laws you may be able to go to court yourself, without a lawyer. Good luck

@Tony Carchietta Without knowing specifics of the area I would tend toward exchanging for the nicer property. Higher rental fees would ideally make up for the new incurred costs but you can utilize the 1031 for all of that as long as you plan it out right and hold back enough of the proceeds to use on upgrades/furnishings