All Forum Posts by: Shannon Robnett

@Frank Agyeman-Duah Well that is a major bummer.  Remember this and always put all terms and conditions you could possibly think of in your first offer.  By the time you have been in real estate as long as I have you will be able to pay cash for the property you have in contract with the $3-750 lessons you will learn along the way unless you get really really specific with your offers and written communication.

The tenant isnt worth the hastle its time to cut bait and move on the the next deal!  Sorry Frank

@Frank Agyeman-Duah You are not the one at fault as your contract says that you are to be given free and clear title without a tenant so if the seller cna not deliver then THEY are in default not you.  I agree with @Dave Ryan and @Bjorn Ahlblad but I do not think your costs are unrecoverable.  You may have to put pressure on the seller but you do not have to release the seller from his obligation and can be a real pain in his process until he pays you for your costs.

Don't accept the tenant in the home because that is written into your deal.  So offer to extend the contract as long as it is necessary for the seller to make good on their end of the bargain, or for the fee of your costs  be willing to terminate the contract.  The seller needs to make good on your costs at a minimum, it wont cover your wasted time but its better than being out time AND money!!!

As will I @Taylor L. save me a virtual seat!  

@Justin LaJoie You are going to want to make sure you are working with people who have done this before for sure.  References and some due diligence into the marketing materials they provide you with.  But there is no replacement for your own education that you HAVE to have to really understand what you are doing with your money. 

Joe Fareless' Best Apartment Syndication Book Ever is worth the read also.  It will show you how to think like a syndicator and you  will be able to under write your prospective deals and make sure they check out.  I know you will be able to get a really good handle on how the process works and what you need to do in a lot shorter time than it took you to earn the money you are getting ready to invest, so spend the time to educate your self don't just trust that what is being told to you is accurate.  It also helps if you start close to home so you can take the time to go meet the syndicators and look at the actual market .

@Kris Wong I agree and like others have posted in this thread, invest where you may see your self living one day. If the last 9 months have taught us one thing it's to look out side of our immediate area if you suddenly find your job allows you to be mobile.

Also if you are truly looking for passive income you may want to drill down into that desire a bit deeper to determine if you are wanting to maximize cashflow, or if you want appreciation. Most people think there is only one way to play the game, but trying to live off the passive income generated off of $50-100k wont get you very far if that money Is not appreciating.

Typically the highest cashflow markets don't appreciate and the highest appreciation markets dont cashflow. So know what you really want your money to do before you di e in.

@Changseok Kim. Another way to expand on what @John Warren had to say is to contact the property management company for rentals in the area and act like a client to see if you like how they operate.  As John said sometimes slim margins on PM leads to skinny or even down right poor service.  Always make sure the people that represent you don't well and if that cost a bit more I can promise you your reputation and how your property is represented is definitely worth the money.

@Matthew McNeil First of all Nice Work! We have all had an experience with a bad debt servicer. Just be careful and follow up with something in writing while, because while this may look and sound good at first glance , you are going to want to get everything in writing. The reality is your loan docs stipulate that you will pay these things through escrow and if you do not you would be in default of the documents you signed. And as we all know it stated many times in the hundreds of pages of documents that you signed that failure to pay will result in default. We also know that while you are very keenlyaware of what is happening with all your properties, most servicers are not. Communication from one department to another could break down and you could find yourself in a world of hurt!

I am wanting to hear how this resolves its self so keep me posted, just document everything.

@Jonathan Levi NNN properties are fantastic RE play when you look at eh commercial grade tenant for payment and as we have seen a real lack of government interference in this market right now, the future is bright for these properties. More specifically small to mid size multi tenant properties, or incubator spaces that offer the opportunity for small business to operate out of are one of the most resilient classes out there.

When I look across our broad spectrum of tenants I see a slice of Americana from window tinters to cabinet shops, welders to ice cream makers, we have them all.  And with over 60% of new jobs created in America every year by small business we have always had a great tenant base looking to put down roots and grow a business.  Personal and business Guarantees along with 3-5 year leases scream stability.  and even in the Great Recession of 2008 we did not see notable increase in vacancies.

It is a great space to be in past, present and future

@Garrett Ranous  Why not do both?  I mean really if you had a W-2 job it will allow you to qualify for a loan to buy on your own much sooner, especially if you are in the same line of work as you were doing before.  And if you have your RE license it will help you not only in your future pursuits for real estate and your financial freedom but it will let you build up a side hustle that can break you free of the 9-5 while still having the security of the W-2 until you have a client base built up. 

Remember a side hustle takes additional time and RE will not just fall in your lap but with hard work you can totally make it you main gig but keep your lending eligibility by keeping the W-2 job!  One other benefit would be to see if you really like selling RE before you make it your main source of income only to hate it.

@Marlen Weber also has a great point about joining a syndication but it sounds like you are wanting to be much more hands on than what a syndication typically is.  Syndication are very passive unless you are the GP and that doesn't happen right away.  Keeping your options open is always brilliant!

Congratulations! You have now done something that most people won't ever do!!!