All Forum Posts by: Account Closed

BiggerPockets has an REO resource to check out:

https://www.biggerpockets.com/rei/bank-owned-reo/

Economist Richard Thaler was awarded the Nobel Prize last year for articulating what my kindergarten teacher knew instinctively -- to encourage people to behave in a certain way, you add gold stars after their name to reward their good behavior. BP wants to create the go-to platform for direct real estate investors and to encourage insightful posts and discussions, we get BP Rewards for our useful contributions.

I'm getting a lot out of the discussion threads. For example, I'm solidifying my belief I would make a terrible landlord and property manager based on these discussions, so I'm directing my efforts towards the financing side of the business. But I still want to have a working knowledge of landlording to serve as a context for note and tax lien investing in case I happen to end up owning income property someday. Stuff sometimes happens.

BP Rewards are applied nudge theory (I enjoy getting them also).

By looking at the rent comps in the area, I was able to tell what rent was reasonable for the apartment I was looking at. I was unemployed at the time (and still am) because I had just retired. The landlord wanted to see a savings account with a balance of at least a years worth of rent. The bank statement I provided actually had several years of rent because it had the cash proceeds of investments I had cashed out and were in the process of redeploying in different investments.

While some people dumb down their resumes so they don't look overqualified when searching for a job in a soft labor market, I'm up front when I do business. If someone doesn't like my numbers or credentials, they're doing me a favor by letting me know up front (which is easier for me to deal with) rather than after the fact.

I never offer something unless it's requested. But when I told the leasing agent I didn't have a job, the response I got was a savings account statement was an acceptable alternative. I happened to have the information with me in the car and the leasing agent made a copy of it. My application was approved (a credit check and presumably other background checks were run, which turned out OK).

Since I pay my rent on time and don't cause any trouble, I'm not worried the landlord will jack up my rent in the future (unless everyone's rent gets jacked up by a similar amount). I may end up buying a home eventually, but I'll also do rent comps regularly to make sure I'm paying a fair rent.

Ibrahim Hughes: how does this Tulsa real estate fund stack up against other investment funds? 

FYI -- RealtyMogul just filed for a Reg A+ blind pool REIT offering: "the Company is set up as a "blind pool" REIT, which means that we are not committed to acquiring any particular investments with the net proceeds of this offering."

https://www.crowdfundinsider.com/2018/06/135374-realtymogul-files-new-reg-a-for-blind-pool-reit/

This is a situation where investors are betting entirely on the jockey and not on the horse.

DISCLOSURE: I own shares of MogulREIT I. MogulREIT II is on my watch list.

My one-year lease will go month-to-month when it's up for renewal if I don't do anything. The M2M rent is much higher than the monthly rent for a one-year lease, which tells me the landlord wants to encourage its tenants to renew (or to give the required two-month notice of the intent not to renew, which means the tenant has to plan well ahead).

My previous lease with the prior landlord had no M2M provision. When the lease was up and if both sides didn't renew it, the tenant had to move out. The previous landlord had purchased the building at a bankruptcy sale many years before and spent a lot of money to renevate it. By not renewing a particular lease, they could get rid of problem tenants.

For example, some tenants had unruly dogs (which is a reflection of their owners). It's hard to evict someone because a dog barks too much even if other tenants non-renew because of a barking dog. But when the landlord has the option not to renew the lease, the terms of the lease contract have been met and the undesireable tenant has to move out.

When I was younger and deep in debt with little cash, I was forced to use my day job to build up my cash reserves and pay down my debt. Since I couldn't afford to go anywhere or do anything, I had plenty of time on my hands to study whatever field I wanted to pursue someday. How-to books are inexpensive and in today's world, there are plenty of online blogs and forums loaded with useful knowledge.

With preparation (focused self-study) and luck (random events), the right opportunity eventually presents itself. This approach taught me to be a perpetual student and never stop learning new things. After I learned how to turn $1 thousand into $2 thousand, for example, I then learned how to turn $10 thousand into $20 thousand, and so forth.

I agree. Isn't this what being in business is all about?

You look at the cost of providing the service versus the additional revenue you need to make a profit. Then you set your prices accordingly (which includes the "you couldn't afford to live here" answer).

I've had umbrella insurance since the 1990s with two different carriers. I've never had to file a claim.

The 6 Best Umbrella Insurances to Buy in 2018

https://www.thebalance.com/best-umbrella-insurance-4169759

Here is a good overview article about mobile home investing. The information may or may not apply to your area.

The Cold, Hard Lessons of Mobile Home U.

https://www.nytimes.com/2014/03/16/magazine/the-cold-hard-lessons-of-mobile-home-u.html