All Forum Posts by: Shiela R.

@Austin Bright, try the NOD or Notice of Default list. These are the people headed to foreclosure. If your area is too hot aka a seller's market, try a neighboring county? You get the NOD list from the county clerk and recorder. Many counties are online these days.

Hi @Robert Malcolm, random. :)  I have looked into something similar.  I have not used them but looks interesting:

https://www.diamondbl.com/mari... 

Hi @Jim L. Good for you! You've identified what you are good at AND enjoy (buying and selling) and that is HUGE! You also identified a fear that you have (tenants not paying). In REI there are always risks but you can get very calculated about those risks and how to avoid them.

Personally, I don't look at anything under B class areas for long term hold investing (rentals).  Why? I've seen, first hand, how A class tenants pay their rent and/or take care of property. Whereas I've also seen how D class properties fair and how well this socio economic group pays.  Sure, B, C and D properties may be more affordable. So when I first started I invested in properties about an hour from where I live and stock piled much of the profits to then afford in the area where I really wanted to be.

Flipping seems like a good fit for you (and I truly believe one of the best ways to get started in REI). I'd suggest wholesaling or flipping contracts to get your feet wet and really learn your market. Also, go to local REIA groups and network with other flippers who will buy those contracts and who just may like to talk about what they do or don't do (as Tony Robbins says "If you want to be successful, find someone who has achieved the results you want and copy what they do and you'll achieve the same results.") Once you feel more confident, look at distressed properties so you can get a discount. Depending on your market, they may be harder to find but there are always deals. Best of luck!

Colorado has the third lowest property taxes in the US.  Boulder has a housing cap (limited supply) and steady demand.  So not unlike geographical limits to supply on the CA coast.  And as many have said, the state of CA has some issues regarding landlord tenant laws. I was recently speaking with two different people who live outside of CO. One an accountant in PA and the other a water law attorney in Utah and we  are astonished that there isn't more talk of the American Southwest running out of water. Is anyone else concerned about lack of water in CA and the rest of the Southwest?  Would this be a contributing factor to not invest in these areas? 

@Taylor Bennett - already tons of great insight and advice here. As an investor who is also licensed - and who built a 100% referral business for my brokering business, I would like to add that "investor friendly" means the willingness to do some leg work. Like show a lot of properties, pull comps from the MLS to share with your investor clients and submit A LOT of offers. Not sure how hot your market is? This strategy will work best in a declining market. When I first started out, I earned the business of 2 cash buying investors who would look at about 40-50 properties a month, offer low on 5-10 and get 1-2 offers accepted. I met these investors at a local REIA, so that's a good place to start networking. Also, look into HUD (your managing broker has to be registered with HUD) and REO (bank owned properties). And yes, as many have said, experience and success investing for your own portfolio is the best resume builder, in my experience.

Hi @Vincent Plant. Have you discussed if the seller can bring money to the closing table?  That would be the simplest way.  If he doesn't have the money (I suspect he doesn't), there are a couple different ways to buy on terms that would work for both of you.  Is he current on payments? How much are the monthly payments with all loans? Does he need money to find a one story or other place?  How much are estimated repairs?

Hi @Christopher Piazza. Welcome :) There are many ways to get started. What are you good at? What is interesting to you regarding REI? Answer those questions and then familiarize your self with the market you are going to invest in (not necessarily your own neighborhood). Becoming an expert on the market is an absolute must. And you can do that a few different ways. Once you learn the market, you will know what is a deal and you can do many things to earn money (short or long term) once you find a deal. Feel free to DM if you have specific questions.

@Zeb Walters,  yeah, depends on the property but +/-$3k.  It is a bit over the top, IMHO.  Plus since then we had a leak in the crawlspace at one of our homes. The water ruined the insulation and it had to be torn out. SMH.  Not sure what action, if any we'll take or need to take when our license needs to be renewed...

Anyway, to answer your question.  The city claims legal action if no license.  I've heard from other agents that there are fees and possible revocation of the license but I've not seen that first hand. The city also claims the license might be put on "probation" depending on complaints.  This seems to look like  more frequent inspections for the home in question.  Complaints are dependent on the neighbors, really.  We are a college town (CU) so there is a density issue, mostly pertaining to parking. We aren't supposed to have more than 3 unrelated people living at one address but more than a few homes look questionable on that front.  These landlords are busted when neighbors get frustrated with lack of street parking or general disarray of the appearance it seems. Along those lines, as @Bob Willis observed, we are owner occupied on every side of one of our properties and more than half of them (4) are a hot mess and look like fixer uppers with untamed grass, cars piled up along the driveways and/or weeds everywhere.  The city does fine for weeds, but still.

No,  I have never lost money bc I ALWAYS buy at a discount.  Sure, there have been times I didn't make quite as much as I had on my spreadsheet but never have I lost money on a flip.

@Zeb Walters, I live in a very regulated landlord city.  If it weren't for the appreciation and strong rental market, I don't know if I'd be as willing to comply.  We landlords have to have a license to rent and in order to get that license we have to pass an inspection that involves a checklist for energy efficiency.  We had to spend $3k per property for insulation in order to pass the inspection and get the license.  As an agent, I see other landlords who I know are not in compliance on the daily. I am not getting any benefit to these energy upgrades (other than feeling a little warm and fuzzy about doing our part for the planet).

That being said, I see both sides.  It's too bad when a few bad eggs ruin it for the rest of us.  Sounds like that landlord needs a smack down but it isn't fair to punish everyone. And life isn't fair, unfortunately. I like that you're following the City council. Staying informed and getting involved is an excellent way to influence the outcome. Maybe suggest something a little more reasonable? Like the registration is a one time fee but a required inspection (that meets health and safety regs) is every 2-3 years in order to maintain registration/licensure?