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All Forum Posts by: Account Closed

Account Closed has started 0 posts and replied 403 times.

Post: Are Professional Headshots Worth It?

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Anyone who has one done think it is worth it.  Why else would they spend the money for it? 

Before using the shot I have now, I used a more informal one of me shaking hands with a good-old-boy as an experiment on this site to see how well it played.  I've noticed since I switched to my professional head shot, I am taken more seriously.

You only get one chance to make a first impression - make it your best.

Post: Have possible deal.. Need help with next steps

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Banks sell through agents.  They don't want to mess around talking directly to mom-and-pop buyers.  You need to find out who the agent is and talk to that agent.

If there is no agent, yet, the bank is inventorying the house for now until it is ready to put it on the market.  That is the "shadow inventory" you may have read about.  Banks are holding stuff back and releasing it methodically to keep from flooding (and crashing) the market.

Post: Why most Wholesalers Fail

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

I am a big believer in getting professional training from a credible, on-site mentor from the get-go.  You'll save yourself all the "heartaches" described in this post not to mention wasting a lot of money learning by trial-and-error, and get your business up-and-running in a few days.

The key is finding a credible mentor.  Understand anyone that is any good won't come out an train you on-site for a just few hundred bucks.  Moreover, any one who is any good will be able to provide you proof his or her stuff works with RECENT (not ones two or three years old or more) copies of checks his or her students have gotten from deals done.

You can continue to wander in the wilderness for 40 years like Moses did or find someone who will show you the promised land.  It's up to you what you think your time is worth and how much tolerance you have for paying the price of failure and errors.

Post: advice on my first deal - Wholetail- maybe?

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

First, remember that no deal is better than a bad deal.  Bad deals only get worse over time.

I only write that because you stated, "I just want to get my first deal done."  I don't think you have a bad deal, I just want to caution you.  Better to walk away than force something.  (How do you think I know this?)

Second, since getting your first deal done is your objective.  Keep it simple, take the path that will appeal to the most people, and take the path of least resistance.

Trying to get fancy will only confuse people - a confused mind always says no.  Trying to milk the deal for the most you can get out of it will increase the odds of this not working out for you.  Plus, you are confusing selling a property with selling a deal.  In wholesaling, you are selling a deal...people buy the deal not the real estate.

Get this deal done since it will be your first with the simplest exit strategy.  Worry about getting fancy later when you have more experience.

Post: flipping houses

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Since you have no money and no credit, your best bet is to bird dog for an experienced investor in your market. Join the REIA in your area.

While Bigger Pockets is a great resource, it is no substitute for personal guidance.

Post: Annoying Tenant

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Sounds like Pacific Heights! No good deed goes unpunished, right?

These tenants sound like professional deadbeats who have the art of freeloading down to a science.  From what you wrote, they will keep finding faults and then at some point, use them for a reason not to pay or to offset against rent.

First, read your lease and suggest they do the same when they call with a demand.  You are bound by the terms of the lease, no more.  For example, you are not required to supply a new refrigerator unless the lease says you are.  In fact, if the lease does not obligate you to provide appliances, tell them you will remove the refrigerator (just put it in storage for the next tenant), and they are welcome to purchase and install a lease of their own.  

If it says you are, then unless you have a moron for a lawyer, the lease was drafted in your favor.  It probably says you provide appliances but states nothing more about them other than they are in working order.  Assuming that is the case, your answer can be similar - state you provided a refrigerator for them as provided in the lease, that they agreed it was satisfactory when they took occupancy of the premises (I trust you have a document they signed that said they did accept them and found them satisfactory - if you don't, create one and use it henceforth), but if they don't like it, you will remove it, and they may provide one of their own.

Another example, I don't have garbage disposals in my rentals because they are nothing but trouble.  Again, unless the lease obligates you, remove it and plumb it straight the next time they complain about it.  They can use the rubbish bin.

Everything they complain about, remove the source of the complaint as much as you can without breaching the lease with them.

Appeasement as a strategy never works - not in world diplomacy and not with tenants like yours.  If the demand they make is not in the lease, simply reply that you don't read where you are obligated to comply with their request in the lease.  Ask them where in the lease you are, and if you are wrong, you will address it.  You need to take a hard line and strict interpretation of the lease, and here is the reason:

If the demand(s) they make is(are) not written in the lease and you comply with them, they become part of the lease, anyway!  That's the way courts have ruled.  Once that happens, you are in a non-win situation.  That's the reason you should make the rent due date specific, accept only the full amount, and stick to it.

Don't be confrontational with them about it; just point out that you don't read where you are obligated in the lease, and if it is a "grey area", take the position that protects you. I am always very nice.  I say something like, "I'm not trying to be a stickler, but I have a business to run.  This is your standard practice that applies to everybody."  If they ask you to make an exception, just reply, "I wish I could, but I can't."

Document everything you do in that unit and keep good records.  When you correct something that the lease does require of you, prepare a fill-in-the-blank form that you have them sign each time that shows the date that they brought the matter to your attention, briefly describes the matter, shows the date it was fixed, and states that their signature (make sure it states one party signing is sufficient) shows their full satisfaction with the action you took.  Have two copies and leave them with one.

Sometimes, if I have a good tenant, I give them a break or do something for them that is not in the lease.  However, when I do, I still document it in writing and state specifically that it was a one time exception as a courtesy and does not change the terms in lease in any manner whatsoever and that they acknowledge that fact.  I have a line for them to sign at the bottom acknowledging the letter so it is in writing.

Documenting everything is just good business regardless of the kind of tenants.  As indicated earlier, I am always very nice about it.  I simply explain, I am a nice guy; I just have a business to run and have to follow the procedure as a practical business matter.  Only a tenant with an evil agenda will object to that.

The probability is high that at some point, you are going to end up in court with these tenants.  However, if you adopt the practice I have described herein, you 1) reduce the odds because you remove any grounds they may have, (deadbeats know the system, believe me) and 2) if you do end up in court, you have a paper trail that demonstrates you complied with the lease, addressed any concern they had in a timely fashion to the extent the lease obligated you, and that they were fully satisfied with everything you did.  

Above all else, you want to set yourself up as the reasonable party.  Despite what any laws state, unless the judge involved is a jackass, and that rarely happens, they rule with the party that impresses them as the most reasonable and the ones that make it easy for them.  Paper trails and rational conduct make it easy for them.  They hate it when it is is "he said, she said" situation, and they have to be subjective.

If they quite paying rent or don't pay on the date specified, serve them with notice regardless of what excuse they give you.  They will try to make it your fault with some complaint or another saying they will not pay rent until you fix whatever it is.  Your response is always, "I am addressing that as we speak, and you are still obligated to pay rent regardless.  The lease does not let you off the hook for rent" (unless like I said earlier, the attorney who wrote it for you was a moron).

When their lease term is up, do not renew (hopefully, they have no renewal option) and given them written notice to vacate strictly in compliance with the terms in the lease.  Do not let them hold over no matter what.

Finally, in the future, screen your tenants better.  Use a screening service and check references.  Go two landlords back and/or more.  The most recent landlord will make them sound great no matter what because he/she wants rid of them.

Stick to your principles for leasing.  If they flunk one of your criteria, move on to the next applicant.  If you rationalize, you are setting yourself up for trouble.  The demand for rentals is high across the nation so no reason exists to compromise.

Post: Should we use a different term for professional wholesalers?

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Seasoned wholesaler

Post: Postcards or mailing failure?

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Let me phrase it differently...

Hang in there. You send out 1,000 cards, about 3 will turn into actual deals, not just responses, deals. Up your numbers.

That comes from 10 years of experience working the market not working my calculator and reading blogs thinking of ways to embarrass or make fun of people.

Post: Should we use a different term for professional wholesalers?

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Just tell them you are a real estate investor who buys property in bulk mainly for immediate resale.

Post: Seller's Agent at my Open house... Problem?

Account ClosedPosted
  • Real Estate Professional
  • Dayton, OH
  • Posts 423
  • Votes 187

Seems like a hot mess.  I'm not sure you set the deal up right if your thought was to wholesale, at all.

First question:  who says the Seller's agent has to be at the open house?  The Seller?  Is that in your contract somewhere with the Seller?  If not, you are not bound by what the Seller wants.  More importantly, why does the Seller want that?  The Seller obviously is uncomfortable with you and the whole arrangement which goes back to my initial comment above.

Second question:  is the Seller living in the property?  If not, what you do is none of the Seller's business. 

Third question:  Why are you holding an open house?

Fourth question: You said you have a lot of money tied up in the deal, how? For what? Usually, all you have at stake is your EMD in a wholesale deal.

Fifth question: Are you prepared to close on this property yourself if you don't find a new buyer?

Sixth question:  If the answer to the fifth is no, then why not?  Is it not a good enough deal that you would do it yourself?  If not, then what makes you think it is a good deal to wholesale?

You are the Buyer.  However, you are coming across as an agent, and from what I read, acting like an agent.  If a complaint is filed about what you are doing with the Commonwealth Division of Real Estate that you are acting as an unlicensed agent, the way you have this set-up, you would have a hard time defending yourself.

Reading books and listening to podcasts about wholesaling is not training.  If you were professionally mentored or trained, which I doubt because I can't imagine even the worst trainer setting up a situation like this, you need to go to your trainer/mentor for the solution to this.

If you just decided to go out and "try wholesaling" and this is where you ended up on your first deal, then seek a seasoned professional wholesaler active in your area, bring him or her in on your deal, and have them bail you out.  The destination of your current path is a train wreck.

Next, invest in professional training so you know the right way to conduct a wholesaling business.  Despite what you read or hear, you can't learn how to wholesale in those books or podcasts.  You only learn what wholesaling is.