All Forum Posts by: Richard Gray

@Gunes Ko. I have struggled with RE agents for twenty years. They really don’t comprehend the investors and consider us to be another fool off the street who expects the agent to do several contracts, show several properties, pull comps and all the other stuff included in the sale a home and to top that all that, this investor refuses to pay the listing price which cuts the agents commission.

I buy two houses per year, generally for cash. I make it as quick and easy as the seller wants. The only thing t require is a clear title and title insurance. No survey, no subject to inspection, no home warranty. No finance, Can be in seven days, but generally ends up being two weeks.

In almost 30 years of investing not one agent has brought me a deal. Not one agent has called me

Saying they found a property which meet my criteria and might make a good investment. I am on a couple agents e-Mail list. I ask for 90k to 100k houses, they send me $160k to 180k listing. I keep hearing about these agents “Pocket List”, but I have yet to experience one. I buy with agent to assure everything is legal and up to date with current laws. They don’t sell me anything.

If I was a agent, which I an not, nor do I desire to be, I believe I would sell at every opportunity, but would also have a place in my heart for “investors”. We’re are the ones who provides affordable homes to the mass’s. And I think, if an agent acquired say twenty investors who bought one of two properties per year that agent would be doing well.

@Casey Sbrana I think your investor did not like your deal and was looking for a way out. I have wholesalers that i work with some and I may bite on a “deal” or not. What they consider a deal may not appear a such a deal to me, and just because they are offering me a deal they should feel upset if the answer is no.

As far as all this recession talk goes, bring it on. The passed two recessions I did not lose one tenant. Several fellow investors in within our market reported the same. I just closed on a property and have great hopes on it. I am going build resources in case this recession hits so I may be able to buy some properties with great discounts, but as opportunities become available along the way I will pluck them like fruit from the tree.

Investment Info:

Single-family residence buy & hold investment in Copperas Cove.

Purchase price: $85,000
Cash invested: $83,698

3 bd 2 ba 2car garage, 1483 sq ft, 4 side brick
Large lot, good neighborhood, nice house

What made you interested in investing in this type of deal?

Numbers worked for me, appears to be a good rental property

How did you find this deal and how did you negotiate it?

Zillow

How did you finance this deal?

Cash purchase

How did you add value to the deal?

Not much

@Embert Madison jr. it all sounds good to me, much inline with the practices I use to rent my properties, but I don’ t need the government getting into my business anymore than it already is.They pass a simple law that everyone thinks is reasonable and a few years later they amend the law and a few years later the amend it again, maybe add a few more restrictions and maybe taxes etc. ect. ect. Next thing you know they are forcing sec.8’s on you and telling you how much profit you are allowed to make. I can think of only a few things that the government can run better than the private sector, probably the military for one. Rent control is very popular in some areas but when it comes to my market I will probably quietly sell my rentals and move on.

@Robert Lei

You might want to decide if you are a Landlord or a social worker. You may also establish some firm rules and procedures in your rental agreement for clear understandings by all as to what will happen if rent is not collected on time and so every tenant is treated the same. Rent not being paid or being late is not a negotiable issue. The tenant either performs or the leave, and what ever the land lords situation does not change anything. Tenants come and go and maybe the next one will be better. I personally will not negotiate and item on my rental agreement after the tenant has agreed and signed. Good luck, Rick

@Martin Neal

It is in my Rental Agreement: Rent is due on or before the first day of the month. If not payed, on second day of the month,, the door is posted with a 3 day notice. At this time a late charge is accessed of at 10% of rent due. On the 5th of the month If I have not received rent and late fee I file for eviction.

My tenants sign this and agree to policy in the rental agreement. I have only had to exercise this maybe six times in the past 20 years, I have lost some tenants because of this provision. It has been my experience to expect what ever you allow.

Rick

Welcome to BP John. To me the market is high right now in Killeen and Cove but is coming down some now. In Killeen be careful of school dist, otherwise some fair deals.

no modifications except those approved by the landlord in writing and then only done by qualified contractors/ handymen approved by the landlord and then at the cost of the tenant. all modifications/ additions will become the property of the landlord when the tenant vacates the property. No exceptions.

I require my tenants to have and maintain a telephone as a condition of occupying the property. If phone communication is not avalible I post notices on the front door. In this a noncompliance of the rental agreement and a notice to vacate the property should solve the problem.

Rick 

Thanks for the comments.

That property has some title issues and a couple other problems which were more than I wanted to deal with  for the money so I walked on that deal and am again looking again. I believe I was about to get more education than I wanted.

Thanks for the advice it was very helpful.

Rick 

Copperas Cove Tx