All Forum Posts by: Jeff Filali

You have to understand though, the average homeowner only buys 2 homes in their lifetime. They are trusting the "cash buyers" to be legitimate and go through with their word and contract. I talk to homeowners all the time who say, bring me a check and a quitclaim deed. I have to explain what the title company is, and why we use it to protect both parties.

Seriously, I've been a sales guru most of my adult life, and if not for being honest and having integrity, I could get 99% of adults to sign a blank contract, then tear it up and tell them how stupid that was, and why they should never do that, then 15 minutes later I could get them to do it again... That's why there's so many people get away with scams, and Ponzi schemes.  The general public doesn't know better, and thinks it will never happen to them.  Most people trust people to be honest.

@Charlie MacPherson exactly.  I get so tired of hearing the gurus teaching "you can wholesale with none of your own money".  Sure you can, but that's not what wholesaling was meant to be, and in my opinion if you do not have the intent or ability to close, you're brokering without a license and breaking the law.  They teach people to use "escape clauses", those clauses were meant for situations to protect both parties, not so someone could try to broker without a license and just walk away if they can't find a buyer.  The average homeowner only buys or sales 2 homes in their lifetime total, they trust the person to be an ethical advisor as they're representing themselves as an expert in the business.  I would not have an issue if there were stricter laws put into place and enforced.  There's a place for wholesaling, but there's more and more dishonest people doing it, which is leaving a bad name to those who do it correctly.  The homeowners need to be protected from those situations similar to the one I described.

We do not charge a pet deposit, instead we charge additional monthly pet rent per pet.  For small pets under 10 lbs, its $25 mo per pet, and for any pet larger its $50 mo per pet.  Turns away some people with pets, but also we have never had an issue occupying our properties with great tenants who understand.    As for pit bulls, as long as there's no local law against them, we have no problem with them.  Have owned a few myself over the years, and were the best dogs I've ever had.  As long as they're raised right, they're no worse then any other dog.  Any dog can be raised to be a fighter and bite people.

Here's our pet language from our lease-

PETS

No animal, fowl, fish, reptile, and/or pet of any kind shall be kept on or about the premises, for any amount of time, without obtaining the prior written consent and meeting the requirements of the LESSOR/LANDLORD. Such consent, if granted, shall be revocable at LESSOR/LANDLORD’S option upon giving a 30-day written notice. In the event laws are passed or permission is granted to have a pet and/or animal of any kind, an additional deposit in the amount of $0.00 PER PET shall be required along with additional monthly rent of $50.00 (Dollars) PER PET along with the signing of LESSOR/LANDLORD’S Pet Agreement. LESSEE/TENANT also agrees to carry renter’s insurance deemed appropriate by LESSOR/LANDLORD to cover possible liability and damages that may be caused by such animals, and to list LESSOR/LANDLORD as additional insured. LESSEE/TENANT is responsible to notify LESSOR/LANDLORD immediately prior to any change to pet status, or additional pets being kept on or about the premises, for any amount of time, and sign additional updated pet agreement if approved by LESSOR/LANDLORD.  Failure to report any change in pet status, LESSOR/LANDLORD may declare this lease violated and re-enter, taking over rightful possession forthwith.

I use REIGuard out of Kansas City for all my investment properties.  They operate in all 50 states and are great to deal with for investors.  All your properties are on one portfolio and bill, even if owned under multiple entities.  It makes it so easy to manage when you buy or sell new properties, or need to make changes.

Its simple really... 

If you want to invest for appreciation, invest in Sacramento...  If you want to invest for cash-flow, invest in Little Rock or other Midwest communities.  The best cash-flow deals are in the Midwest in B/C and blue collar neighborhoods, not necessarily in the AA or A neighborhoods with the best schools.  I live in an AA neighborhood, but I hold zero other properties here.  All my cash-flow properties are in B/C & blue collar neighborhoods or communities.

If its not cash flowing or appreciating fast enough, and you can profit out of it now and have other better deals lined out, SELL SELL SELL!!  Never get attached to any investment property.

@Gerald Mamuric I started using Solo 401K two years ago that was set up by Nabers Group out of Denver, Colo.  They walk you through it.  

Primarily Oklahoma, but have purchased a few in bordering states. I never ever pay above 65% ARV minus repairs. 80% of my leads are free from SEO, and the other 20% comes from referrals, Bank REO's, or Auctions. I estimate the repairs on my own or based on my acquisitions manager's estimate, but after contracting have GC bid every property prior to close just to make sure we didn't overlook anything. Been mainly buying SFRs, but starting to expand into multis and commercial now. I hold most of my properties now though, or at least the ones with the best numbers between 2-3% or better rental to price ratios.

Contact others in your area who are doing well in the business, and offer to help them in some way in return for some mentoring and guidance.  Be willing to do anything they need help with: canvasing, phone calls, walking properties to take photos, etc.  I promise if someone calls me asking me to mentor, I say I don't have time really to commit to it.  But if they called me and asked what I need help with and can they help out in return for my mentoring them, I'd help for sure because they were obviously willing to put in the work.

Great job @Paul DeSilva and good luck with the next one!!