All Forum Posts by: Shawn Gwaltney

The market is always cyclical and there will be a correction.  In my opinion were already seeing the signs, but the consumers are slow to get the memo.  There are so many factors and moving levers that of course it's difficult to predict the intensity of a correction.  It is however inevitable, but I do not believe we will see the extent of 2008 as others have mentioned based on the new lending laws.

The corrections are the greatest opportunity for wealth, question is, are you prepared?

 A deal falling through is often a great learning experience that you will carry as you step into your next deal.   It can be frustrating, but it's just part of the game.  I had a mind-shift years ago that I focused only on closing as the win, but soon realized the process and growth along the way was quite rewarding.

My first probably 15+ offers failed in my beginning days of investing.  Had I quit, the freedom I experience today would not exist.

Stay at it...you started your first deal, that's more than most ever do!

Now go find another!

Do it.  Best thing you can do is get started.  It's amazing how other properties seem to follow once you do your first deal.  Basically your earning $78 a month for a fantastic education that is worth so much more!  Jump in.

Always work to keep a quality tenant in place if able.  At the end of the day it's all about the numbers, but the numbers should be considered carefully with regard to the risk of losing the tenant in comparison to turnover cost.  

As an investor or property manager you will be greatly served to "know" your tenant, know their situation and know the market rents.  I always look for a win-win that shows the tenant we want to keep them and what the top scale rent should be, then find a meeting place in the 60% range that allows the tenant to feel as if they got a deal and you also made the increase needed.

The majority of our long term tenants who swore they would have to move, stayed.  Why, because they felt we were looking out for their best interest, gave them a fair increase in comparison to the competition and realized that they would have all the stress and expense of moving, in addition to a higher rent price....the latter is always easier.  

For an acquisition decision, it really comes down to  the market rent the property can generate.  It would be great to buy a property with a long term tenant, but that would never determine the acquisition cost on a single family home...buy the home based on the numbers and if the tenant can't pay to make the numbers work, find a new tenant!