All Forum Posts by: Michael Hassell

I'm told there is a part two that involves a hard money loan from Batman and a tenant eviction.  Can't find it though... :)

I posted this yesterday and I can see the thread, but it seems to be lost and not populating???

My daughter (who is a grown student finishing college and shouldn't be watching this non-sense) sent this to me and said "this sounds like you Dad" I had to share because it's pretty much awesome and funny....https://www.youtube.com/watch?v=SFgs18qh1Yg

Well, I thought it was funny.

My daughter (who is a grown student finishing college and shouldn't be watching this non-sense) sent this to me and said "this sounds like you Dad"  I had to share because it's pretty much awesome and funny....

https://www.youtube.com/watch?v=SFgs18qh1Yg

Education would be a big priority in my opinion.  That certainly includes traditional school like earning your degree, but it also means just knowing about relevant things.  I think a degree is of great importance and strongly recommend you get one...but I'm even more strongly interested in getting that degree with absolutely no debt!  Do not shackle yourself to a bunch of school money that will have to be repaid.  It's like taking out a mortgage on your future.  School debt will be a factor that you will consider every time you make a move...not having this sort of debt is a huge financial boost.  PM me if you like, I can direct you to some site's that can help you set reasonable goals and teach some methods of keeping higher education costs down....some of those things you can probably start right now.

College is just one area you need to know about.  Study current events, see how things work and how markets function.  Did you know that every time gun control makes it big in the media that sales of guns and ammunition go through the roof?  No matter the side you take in the debate its interesting and relevant to understand how one thing affects another.

Read everything you can find on BP.  listen to every podcast.  No mater what vocation you take, real estate can be a foundation upon which to build your real fortune.  Maybe you only learn enough to parlay the homes you buy and live in well, so that it becomes a big nest egg as you age, maybe you learn to go full time and develop whole neighborhoods...point is the info you learn here can have a dramatic affect on the rest of your life.

I would recommend a few books for you:

Anything about business by Jefferey J. Fox, but especially "Rain" https://www.amazon.com/Rain-Paperboy-Learned-About... It might seem to be a little beneath your age level (though I was 40 first time I read it)...I assure you there are some profound tidbits in there.

On real estate, my favorite title is "The Millionaire Real Estate Investor" by Gary Keller, https://www.amazon.com/Millionaire-Real-Estate-Inv...The fundamentals are in this one book, since it touches on so many things I think it's a fantastic starting point for any would be investor.

"Think and Grow Rich" by Napoleon Hill https://www.amazon.com/Think-Grow-Start-Motivation... and "What Color is Your Parachute" https://www.amazon.com/What-Color-Your-Parachute-2... round out my recommendations for now, TAGR is about mindset, WCIYP will maybe help you focus on something.

Finally I will say that you have a lot of time and will probably "be" many things in your life.  A wrong decision just means you have a reason to start again...savor the ride as much as you can.

 Ok, ND then. :)

And I completely agree, the wise investor looks at where the trend is going or may go!

Ha, agreed, I actually don't have any rents collected in person, but this was an eviction process...there are times when you might need to be around your house.

What process or system do you use to collect rents?

I've had some success with FSBO. Know to that in many areas there are realtors who will list you in the MLS for a flat fee. I can get this locally for about $350. Yes I would hold open house and market to all the usual sites as mentioned above.

You talked about the 3.5% to a listing agent...but know that that is only half of the cost.  The listing agent AND the buyers agent will each be looking for 3-3.5% for a total of 6-7%....this is the reason I at least try to sell myself first.

I will list with a FSBO yard sign, the internet sites, and will advertise that the buyers agent/broker will be protected. In other words I will pay the buyers commission but save on the listing cost by doing it myself. In all honesty the vast majority of retail buyers need their hands held through a transaction so the buyers agent cost, while high, does help protect the deal. Most folks only buy one or two houses in a lifetime and the process is very intimidating. If you don't make it clear that the broker will be protected there is little incentive for them to show your house or walk a buyer through the process. Holding a special broker/agent only open house is another good idea, let them know there is free coffee/wine/food and it helps get a better turn out.

Also, have a mortgage broker ready to work with anyone that wanders in...a good mortgage broker in this case is worth their weight in gold.  Folks may well see your house and want to buy it....but have no idea how to go about that.  So make it easy for them...get a team in place to work through the process.  You need to have a title company ready to go as well.

Good luck!

Came across my BP FB page today

http://news10.com/2016/06/03/landlord-shot-killed-...

So what do you folks do to combat this sort of thing and protect yourself?

Being in Florida I have my concealed weapons permit and carry often, certainly when dealing with tenants.  but that's really just a tool of absolute last resort.  I feel these sort of things can be avoided.  For one I stay out of the worst neighborhoods as they will inevitably attract bad tenants.  I screen folks on the phone first and try to screen thoroughly before renting.  I trust my gut, if it feels bad don't do it. Some red flags include any sort of discount from my asking price, security deposit, or first/last month....I don't mind them asking, I mind them pestering or trying to badger me into it (I would ALWAYS ask for a discount too).  I have had occasions where I asked someone to go with me if I thought there might be any trouble, I'm blessed with a really great brother in law who is a cop, he's a good guy to have in a tight spot.  Finally, most of the local police/sheriff's deputies have no problem coming to "stand by" if you explain a potentially bad situation...of course, they are dependent on call volume and might not work on your schedule...and you have to have some idea the tenant isn't reliable or you might never think to call.

What else?  What do you do to keep your activities safe?

Jurisdiction dependent of course.  Generally though anything structural will require a permit.  So taking out walls or altering the foundation...permit almost for sure.  New floor covering or interior paint, new kitchen faucet...probably no permit.  I would venture that there won't be a problem with a toilette replacement or a sink.  I would do those without even thinking of a permit....but if you already have the inspectors stopping by for other things it would be best to check first.  The last thing you want is an unexpected fine or worse yet a stop work order!