All Forum Posts by: Gerald K.

I agree with Will.

He's an author. Poetic license? - The freedom to depart from the facts of a matter or from the conventional rules of language when speaking or writing in order to create an effect.

It was the number 1 book recommended on BP podcasts:

http://www.biggerpockets.com/forums/311/topics/114495-every-book-ever-recommended-on-bp-and-times-recommended

@Patrick T. welcome to BP. I'm over on the W side of the state. This is the place to network and learn more. If you haven't done so, check out the "learn" tab up top. That should keep you busy for quite a while. You can also set up keywords alerts such as Spokane to be alerted to posts on Spokane. What's the market like out your way?

I like the idea of a manual. including photos would also be nice. Instructions on what you want your tenants to do is great. Simply telling them to take care of this or that without explaining details probably won't work out like you want.

There's a ton of really simple and good info on YouTube also that might work well if sending an email. If one of them was included showing how to do those things Mike is suggesting, that would seem better than just an email. I can see tenants screwing things up if you give them something to do they're not familiar with.

Congratulations guys. I've been listening since they began and it's become a part of my routine. You have quite the audience. They are very informative and entertaining. Keep up the good work!

OK, you mentioned she gave her 30-day notice to move out but she will be out by Feb 28th for sure and she wants to stay through February but she wants her last month's rent payment back. Someone seems confused.

The last month's rent would be applied to February if she stays through that month. In that case, she doesn't get it back, but she also doesn't pay rent February 1st, since it was paid in advance. Does she understand that?

Seems like too much drama. I agree with the others, if you could return her last month's rent if she agrees to move out the end of January if not sooner, seems like that would solve a lot of problems. If she physically attacked your other tenant, no one should have to live like that. Seems like a domestic dispute and if she feels threatened, she should have called the police. Check your states landlord-tenant laws and/or with an eviction attorney. Seems like cases like this need to be handled quickly.

Cool. This will be neat to follow. Will your rehab for the rental be much different than for a flip?

The Mom never learned the concept of tough love. Kid, well now the adult child, will never be able to take care of himself. Pity.

I Agree with Pam R. and Bryan L. - if you do end up with a personal check, you could go to his bank to cash it - no waiting - but this could end up a hassle if you have to drive across town to do it.

It's better to have it in writing. If it went to court, it becomes harder to prove a verbal agreement. You could write a letter confirming the verbal agreement you have with him - send it with certificate of mailing to show when it was mailed.

Also, what does your lease say? Does it say anything about landlord may, from time to time, make changes to the form and delivery of rent? Does it say anything about rent being paid by cashiers check or money order or by that method if personal check bounces?

Do you have late fees or any incentive for the tenant to pay on time? If so, you should be enforcing them right away. Train the tenant in the beginning that you mean business, otherwise they will train you. You should post the 3-day notice to pay or vacate quickly - preferably no later than 1 week late.

The tenant has to follow your rules. He can't tell you what he's going to do and expect you to do what he wants. Sounds like he doesn't have the money in time for a money order, so he's telling you he'll pay by check. Not the kind of tenant I would want. It's possible the due date for rent could be adjusted to accomodate his wage payment, but who knows.

This thread is about Rich Dad Poor Dad. That book defines an asset as anything that puts money in your pocket, whether you work or not, and a liability as anything that takes money out of your pocket. That's not the standard defintion. The book is trying to make a point.

@Samson Kay

The Rich Dad Poor Dad book resonated with a lot of people and got them started on the path to real estate. It doesn't tell you how to do it.

@Justin B.
I've heard the conspiracy theories since the book came out and to me, I don't care if he has a rich/poor dad, made up the story, or never invested in real estate. Story telling is an effective way to get a point across.

@Dev Horn says the secret, if you can call it that, is knowledge and motivation. I would agree.

Back when it was written especially, many Americans were buying tons of stuff (he calls them doo dads) and thought their house was their biggest asset. Reminds me of the bumper sticker "He who dies with the most toys wins" or George Carlin - The new American pass time is consumption - maxing out your credit card buying things you don't need with money you don't have.

So the book basically turns that way of thinking on it's head. An asset puts money in your pocket, whether you work or not, and a liability takes money away - therefore, if you're paying a big mortgage payment, it's a liability not an asset. It's a simple idea, but many people just don't seem to get it. If you're in the rat race paying for stuff, if you lose your job, money stops, and everything goes crashing down around you. It also tries to shatter the standard mantra - go to college, get a high paying job, invest for the long term, which hasn't worked out for a lot of people. He also points out the difference between net worth, good debt and bad debt, and financial wealth - the ability to stop working while money keeps coming in to support you. The whole idea is about positive cashflow, which is what buy and hold real estate investing is all about. It's not about flipping or speculating on appreciation.

So, the book advocates getting money working for you instead of you working for money. An asset feeds you, a liability eats you. It doesn't matter if you make a lot of money with a high paying job if you just end up spending more everytime you get a raise, which seems to be the pattern for a lot of people. It's not how much money you make but how much you keep that matters.

Like any book or guru, you have to take what is said with a grain of salt. All the advice may not be good for every situation. Use your brain! Ask for help here on BP. There are a lot of other books out there that give you the mechanics of real estate investing. The point is it inspired many people to look to real estate investing as a way to get out of the rat race and to get money coming in. It tries to provide encouragement and inspiration with sayings like, don't say "I can't afford it". Turn it into a question and say, "How can I afford it."