All Forum Posts by: Shawn Clark

"I've thought of just looking for an investing property (not a primary residence), but obviously not enough money at the moment to invest in this area with a down payment of 20% without assistance from other investors."

Keep in mind you can buy a primary residence and then move out and rent it later, keeping the residential loan. Or house hack, as you know. As long as you use a regular FHA loan that doesn't have a 5 year requirement. No one usually cares if you move out later. Most lenders don't check, unless it's more of a long term requirement, like the VHDA, then I wouldn't do it. You can get one or two investment properties using primary residence loans that way (I know you can get one, the second can be trickier, and you may need the income to be approved for two loans at once). But at some point you will need to build up enough cash (or partners) to get away from that.

Seems like you can do it. It's a legit expense, assuming you actually bought a place that requires a boat. You just have to be prepared to answer if the IRS comes knocking, that's all. Worst case you have to retract it, after wasting the time dealing with them.

"Now we are here with tenant breaking yet another agreement and I don’t know what to do."

You probably know what to do, you just don't seem to have the stomach to do it.

It's an AGREEMENT. They broke it. Multiple times. Stop accepting that.

1) You have to learn that tenants are like children. They need boundaries and they need rules and you need to show strength when they try to take advantage of you. Hold them to the rules.

2) People with money troubles are like drowning victims. Never try to help without protecting yourself first, because they will drag you down with them. I've been through it.

I'm a nice guy and I maintain good relationships with all my tenants. Having said that, I've also been taken advantage of. I no longer accept excuses for very long.

If they are late in rent, I file at court and then wait to see what they do. If they make good, fine. But I've seen tenants promise all week long and the move out without paying a penny the day before eviction. DON'T TRUST THEM.

It's a business. You have to run it like one. When they break a rule, hit them with whatever the legal penalty is. You can always forgive it or give it back later if they prove to be decent people.

Depends on your tenant. If you think they are going to continue freaking out and give you problems then you might need to get an actual mold company in there, just for the legal protection.

That's a shame your plumber did that. He could have just told you about it, since you are the one he is working for.

If taxes are going up that much then usually so are property values and so are rents. Can you tell if that's the case?

As for the bad tenants, as long as they pay I would keep them as long as I could. Turnover costs are my biggest worry and expense, not to mention the lost rent. But if they are making you file every month, then yeah, maybe be done with them. Do you charge a late fee and do they pay it?

 Frank, did you ever buy any businesses? I've considered doing that myself but never did. I've started businesses, but never bought one.

(Crap, sorry, just finished reading your post and saw the sentence about the business you bought.) So I guess my next question would be, did you buy the business in order to improve it and resell it later, or just to run it for the profit? What was your approach? Thanks.

 I am an agent in Maryland. To your original question, and only your original question, NO, you do not need to follow the marketing "rules for realtors" when you are not marketing AS a realtor.

Realtors are AGENTS for the broker. When you work in their name, you need to follow those rules. If you have some other business, and you don't use their name, you can follow whatever rules are in place for THAT other business.

HOWEVER, as others have said, you are STILL a licensed real estate agent, and there are responsibilities that come with that. You must disclose that fact, for instance. Not in marketing, but it a real estate contract. You must still be ethical in real estate transactions, etc. Even when you are not acting AS an agent.

Back to your original question though, if you had a donut business, would you have to adhere to the real estate advertising rules for your donut business? Of course not.

Don't buy unless:

1) You can keep it for several years. Preferably at least 5. (or forever)

2) You can buy one that needs rehab you can do yourself for significantly less than the resulting equity increase.

3) It will cashflow without you living in it and you don't mind keeping it from a distance. Consider the cost of property management.

4) You just get a smoking deal of any kind, which always gives you equity, which itself always gives you an exit.

I'm actually just getting into mold remediation myself and have learned a ton about it recently. Get a moisture meter, like Sean mentioned. Look for signs of moisture or past moisture.

Mold needs three things. Oxygen, a food source, and moisture. The first two are everywhere, as well as the spores themselves. Moisture is the key.

 No. But foreclosed properties are usually winterized. Was it? You have to just plan on problems. Besides, foreclosures are AS IS.

The one we bought in 2015 was like a sieve when we turned on the water. Leaks all over the place. You have to plan on that kind of thing. It's not that big of a deal, actually, as long as you check for it right away and don't let the damage spread.