All Forum Posts by: Ryan Logsdon

Of my friends who have used B of A loans, not one has said a bad word. On the contrary, I've only heard great things.

I haven't taken the course, but How to Win Friends and Influence People is one of top three best books I've ever read. Also on that list is Winning the Loser's Game, Ellis (investment).

Forget screening tenants. Screen PMs and hire good one.

Bill Gulley is correct, you can't transfer all maintenance to the tenant. However, you can certainly transfer the day-to-day duties that your PM performs back to the tenant.

Don't worry, this is impossible. Entering an option contract is a private event. Plus, an option plainly isn't ownership.

Matt Devincenzo's correct, this is protected. However, you're not out should more people move in after your tenants are placed. So long as your contract contains a provision for it, you're allowed to increase the rent by a set amount if additional people stay longer than (usually) 30 days. This is to offset your increased utility costs.

Greg Fend, the lease approach mentioned by Wendell De Guzman sounds similar to my dad's approach.

In lieu of locking in a nominal % upfront (usually 2-5%) for the option, you increase the rent. So you'd go from your current $1400 to say $1600. The extra $200 is set aside in a trust that you create on the behalf of the tenant. This trust sits and grows for 3 years or however long your option date is in the future. Should the tenant wish to exercise the option to buy, this fund is theirs and can be counted towards their down payment. Should the option expire, the funds are yours.

The beauty is:

1. the funds are often massively larger than anyone would pay with an upfront fee,

2. the funds are always yours; if the option is exercised, it's paid to you; if the option isn't exercised, it's defaulted to you, and your contract must reflect this clearly and upfront (straight and narrow!),

3. you're creating a huge catalyst for the tenant to want to follow through with the agreement.

And as Tom mentioned, you'll save even more when you find a tenant who wants the buy-option because you transfer all maintenance costs to the tenant.

1st is good, simple. 2nd's too distracting to see it spells out a word at 1st glance.

Tom Goans

I couldn't agree more, my friend.

Some people don't even proof the numbers they send. Last week, an agent faked his numbers. Using his numbers, the properties were cash flowing 28%. Heck! Sign me up! ...Oh wait, fake numbers.