All Forum Posts by: Rick Stevens

I'm seeing an acute spike in evictions this year.  I've always used the same criteria- 3x household income, # of residents, pets excluded.  Seldom had any problems with needing to evict tenants.  I run a background and a credit report.  No history of evictions is a requirement.   Curious if it's time to change criteria in the screen to find the right tenants?   

What are you seeing out there? 

I have a property under an LOI from a wholesaler. It's been 8 days and I have not received an assignment or a formal buy sell.

LOI is expired now. Both of us want to close the deal, but at what point does a wholesaler have a responsibility to perform?

What penalties should be in place if it doesn’t happen?  

I do believe he’s waiting on a slow seller to do paperwork, but getting really anxious. 

@Jason Martin

Please don’t take this the wrong way. Only a first time investor would do that. Simply because the rest of us already did (our first time) and learned it nearly never ends well. Lots of excess baggage you don’t need. Goodness, my high school best friend and I don’t even talk because I rented to him. Very bad decision.

If u have a nice house, it’ll rent fine to someone you don’t know.

Best wishes

@Jonathan S.

If it’s under contract you have the power. I wouldn’t cut the deal if it’s already locked up. Why treat them special? Doesn’t make any sense to me.

Best wishes

Rick

@Ray Reed.

I’d start getting the other tents corrected immediately as you planned and talk to her about the fact that rents need to increase. There is help out there, section 8, etc.

I wouldn’t jump $500 on an existing tenant, but gradually get rent moving in the right direction.

Nick, I'd listen to Scott Meyers.  Knows what he's talking about!

Best wishes. 

Rick

Thanks John.  I put an offer in tonight.  We’ll see what happens

Rick

When did you know to go bigger?

In 1.5 yrs I’ve went from 0 rentals to 13 doors. All small mf and a couple single family. I’ve hustled, bought off mls and had deals given to me.

Now looking at a 9 unit, but for some reason I’ve got those first purchase gitters again. My next largest purchase was a 4 unit.

I’ve got the means to make a deal and the numbers work. When did you know it was time to take the next step?

@Nick Mess

I bought a truck when I transitioned from fix and flip to rentals because I wanted a truck and didn’t really understand all the differences between long term rentals and fix flip because I planned to grow fast.

That said, Ive needed the truck many times since then. However to be honest, I could have gotten by if my former suv had a hitch for a trailer. But I like my truck, it has come in very handy.

My advice to your question is let your assets pay for the liability. When you’re cash flowing enough for it to pay for itself then go for it if you still need it.

Best wishes

Justin, I like the loan idea.  I've done that, pay yourself back w\ interest.  

I'd also think about reducing your 401 contribution, and then tuck that $ away for your first REI. House hacking is a great investment (not flipping). If you don't have experience w\ flipping, stay away from that model (my opinion).

I plan to siphon from my 401 to accelerate my REI's, but that's 1 persons plan. It's your money at the end of the day. So do your research so you know the penalties, and what you're going to get out of the transaction. No one will take care of your money like you will!

Best wishes

Rick