All Forum Posts by: Richard Balsam

Two years ago, I had an insurance company threaten to not renew a homeowner policy due to rotten wood near the front door. We owner finance a number of houses - and this was the owner's own policy - we were just the Mortgagor on the policy only. I had them immediately replace - which they did - sort of. The reason the insurance company gave me on the phone- which I agree - was if the home was not taken care of outside, they have to assume the home is not cared for inside - and they did not want to take the risk. Turns out- not only were they negligent in taking care of the outside...they also stopped paying us soon after. We had to foreclose to take the house back. Inside - was a disaster. Took two months of throwing out, and replacing so much of the home - after they lived there for six years (of a ten year old home). Hopefully your crumbling concrete is a small localized area and can be fixed easily. There are a few companies around  that can fix that problem. Many are in the monthly coupons mailed out to homeowners. 

If your home is close to Georgia Southern Univ, and it's configured with multiple bedrooms for students, I would think you would have to really "sell" the idea to students why to choose your home over another on hte same street, if all the homes around you are already rented without car ports or garages. You have to be careful about over improving. If you want the carport for yourself, and see the value added for long term appreciation down the road- then I would consider it. Both my daughters are in state schools (UGA) and just park outside without any thought of a garage. Perhaps improving items in the home would add more value in your area? Just suggesting... look into new appliances, maybe granite countertops when the other rentals do not have it? That sort of thing might appeal to students - and it may cost less.

I can answer from experience that when I am in Magistrate Court for an eviction of a tenant, the judge always mentions to everyone there that if any tenant in the courtroom is there because he/she is being evicted even though their rent payments are current, due to the house being foreclosed on, that "Magistrate court" is not the proper venue. The judge does say that the tenant can bring suit against the owner who did not perform according to the contract - "in another court".  Every time I am in court, there are a number of tenants in this situation, and I always see them leave - and they're not too happy. I'm not sure that a tenant can research if the owner is making payments, unless the owner provides the mortgagor name and account number to the tenant. I have met with tenants that were in that situation before - and they have said they no longer will deal with an individual for a lease option again- only a company that has multiple houses (like our company), to try and avoid that situation again. Not saying that this is always safe - but that was their impression after being taken advantage of by an unscrupulous landlord.

Welcome to BP! I started on this site only a month ago - and have learned a lot...and I've been investing for over 13 years now! Stick around and you'll read about so many aspects to this industry - eventually you will find your interest is in one or two areas to start. These are the areas to concentrate on and build your knowledge. Real estate is a huge industry as you are aware -I would recommend reading a few books from others that are successful, and ask questions to fill in the gaps as needed. You have a lot of years remaining- build a solid base first, so it leads to your successful future!

My advice would be to try and locate a GOOD mortgage broker. One that does not work for a typical bank, but one that locates either private money, or other sources of funds. Sometimes, the right broker can have the right contacts to be able to sell some of your properties to the tenants using their sources. The units that cannot be sold to them - perhaps advertise them with existing tenants in place at your local REIA, CL, maybe even on MLS - it can't hurt. You might want to try to locate property where you want to move ahead of time so you can do 1031 exchanges to save on the taxes for those properties with no mortgages. Just my two cents...

I agree with everyone else- let the check either expire- or she will cash it. If she threatens to take you to court - do not be worried. I have been to court many times and never lost - ever. You have nothing at risk in court - if your contract spells this out, and most likely, the judge will agree with you if your paperwork shows no changes to the house without prior landlord approval ( mine says "written approval").  That being said, I have another answer - depending on your reason for holding the property. I only use lease-options, never rent - for this reason. Security deposits are to be refunded less excess wear and tear- which is subject to interpretation by the tenants, landlord and courts. An option deposit is: 1. Non refundable - as written in my option agreement. It is listed three separate times as "non-refundable option consideration", and they must initial the paragraph each time. 2. Much higher in cost to the tenant. My lowest option amount is $3500. Why? Since I found 75% I evict due to non payment of rent, this amount covers what they destroy in my houses- namely, the carpet and paint. The appliances were new or almost new condition when they signed the lease- and look like garbage when they move out - but my cleaning crew does a great job removing what the tenant should have. I have homes on their 3rd new carpet in 10 years - the carpet cleaner could not clean the stains - it's rediculous. But- it cost them $3500 anyway which gets the house ready for the next tenant. Good luck with this tenant...

I've had other appliances stop working (hot water heater, air cond),  etc. Even though we replaced the item the next day ( hot water heater) and fixed the air cond, I offer them a gift card of $25 to their favorite restaurant - for their "inconvenience". When I tell them I am mailing the card and they'll get it two days - they are extremely happy - and it cost me only $25. When someone asks for a rent discount- it usually has "00's" in it - such as $100 off, etc. I get more mileage with a happy tenant, going out to eat, than a reduction of $100 off the rent that they never really appreciate. 

Hi Deryk:

I recently joined here too. There's a ton of great information here that will help you on the investment side. I'm also from Alpharetta, and have my agents license, but I use my license for research purposes on FMLS and to list my own properties. If you have any questions- feel free to contact me.

Hi Jack - I'm also in the suburbs - Alpharetta. What areas of investing are you interested in? The field is so large, you may find it easier to learn by trying to specialize in one area first, and then branch out. I've been investing for 13 years now, and there is so much more I can learn to make my investing even more efficient and profitable - it never really ends! Welcome aboard...

Having a current agent license here in my state (and had both and agent and broker's license in Florida years ago) I can tell you it's worth it if you use it. That sounds like an easy statement - but many people get their license and don't really pursue the different aspects that the license can provide. For example, most people enter the residential marketplace - since that is what they know. A few rise to the top- as in any industry, while most struggle to pay bills, or use real estate as a part time activity. Yes- there are literally millionaires selling residential properties. But the more you research the field, the broader the field becomes with your license. You can work as a listing agent ( officially called a selling agent), represent buyers ( buyers agent), work with corporate transfers only, (corporate relocation specialist), work in commercial (adding tenants to large commercial sites), work with land developers/residential home builders selling homes for them exclusively on site, etc. There are so many areas, each with their own strengths and weaknesses - depending on your goals. Next - this is important...what type of broker do you want to work for? A full time broker like Keller Williams, C21, Remax, etc or small mom and pop near you? The big guys expect bigger volumes, and have higher costs subtracted from your commissions. many smaller ones negotiate - or only have a small fee per month to keep your license active with them. This is where I keep my license, since I work for myself, and will never show another person's home again...been there, done that as they say! But...you might love it - everyone's different. I use my license to research comps and tax data, and list my own homes for sale on MLS. Starting out- I would see who has a better training program and stick with them first. You can always switch down the road. Good luck!