All Forum Posts by: Tom Sylvester

Make sure you have everything laid out and each party knows what their part is, as well as what will happen if one party does not complete their part.

I agree with Wheatie. If you can just do a loan, that is the easiest way to go about things.

To succeed in real estate, or almost anything, you have to know why you want to succeed. This why will help motivate you and keep you on track.

You can succeed in real estate, but you need to change your attitude. Most people have been at the point where they don't have any credit or cash. The difference between the ones who succeeded and the ones who does not was their mindset. The people who succeeded decided they wanted to be successful, and began doing things to make that success a reality. This may include cutting dow what you spend and saving that money for investing. It may also involve getting a second or third job, offering to work for free to successful investors or moving into a less expensive place.

No one said it would be easy, but if this is what you really want, you can succeed, you just have to know your why, and start putting the pieces in place to get to where you want to be.

1. Instant Equity - We look for deals that have equity in them. Our first purchase was a duplex for $26k that we are refinancing for $55k. You would most likely never find a buyer for that price, but by owning you can use that equity.

2. Cashflow

3. Tax Benefits

4. Appreciation

5. Time vs Benefit - For the time I spend dealing with my rentals, I believe all of the benefits make it a great investment.

Thanks for your comment.

I know I am in the right here, I am just trying to find the exact law that says so. Security deposit is the tenants money. In NY, legally it has to be placed in an account with the tenants name on it, not the landlords. Additionally, the landlord does not claim this money on their taxes because it is not their money, it is the tenants. The landlord is just holding the money as security to make sure the property is returned in the same condition. If it is not, the landlord may use that money to repair anything above normal wear and tear. If there is not problems above normal wear and tear, then the tenant gets the security deposit back when they move out. So legally it should be transferred when the property is sold, since the new landlord has the responsibility to return it to the tenant.

I purchased a duplex two months ago in NY. We received a security deposit for the downstairs tenants, but nothing for the upstairs tenants. The people selling the property to us said that they never recieved one from the former owner when they purchased the property.

We have come to find out that the tenants gave the original owner (the person who sold it to the people wh purchased it from) and has a signed receipt from them of this.

From looking on this website, http://www.oag.state.ny.us/realestate/guide_intro.html#6 , I know that the security deposit was supposed to be transfered to me, regardless of whether the previous owners received it when they purchased the property.

" If the building is sold, the landlord must transfer all security deposits to the new owner within five days, or return the security deposits to the tenants. Landlords must notify the tenants, by registered or certified mail, of the name and address of the new owner. Purchasers of rent stabilized buildings are directly responsible to tenants for the return of security deposits and any interest. This responsibility exists whether or not the new owner received the security deposits from the former landlord."

I am planning on talking with the previous owners and asking for the security deposit first, and if they do not comply then file a claim in small claims court. MY question is, does anyone know the exact law that requires them to transfer the security deposit when they sell the property, even if they did not receive it when the purchased it? I would like to be able to point them to it.

Thanks.

I am in the middle of taking these courses now. My partner and I are splitting the cost ($15,000). Here is my take.

The first seminar, Learn to be Rich, cost $500, so $250 each. This "course" was 100% worth it. Beyond all of the sales they tried to push on you, it was a great overview of real estate and the opportunities. This was enough for me to end up getting started in real estate, but I thought I needed more. My partner and I signed up for 4 advanced courses.

The first course was an overview, just like what was learned in Learn to be Rich. They just got into a little more detail. This course did also give some motivation to get started.

Prior to taking this course, I had already begun looking around for properties, building my team, and all of the other things I needed to do. I had my eye on a fourplex as well. About 2 months after taking this course, my partner and I closed on a duplex. We have not even taken the other three courses yet.

I regret signing up for the advanced courses, and also do not regret it at the same time. I am not really impressed with how the Rich Dad company runs things. They constantly want more money, and obviously don't care about you once they get your money. The $15,000 that we spent on the advanced trainings, along with cost of travel and hotels is a lot of money. To put it in perspective, the duplex that we purchased cost $26,000. With the $8,000 that we used to purchased the property, we would've almost paid it in full. You can learn everything you need from your local reia group, books/courses off ebay and just by doing it.

The reason I am happy about the course is that they got me started in real estate. I regret spending the $7500, but if motivates me to be successful.

All in all, I would not recommend these courses, and would instead recommend local reia groups, books and hand-on experience.

Are you currently renting? The reason I suggested that is because you said that you do not own a home, so a great way to get started is to muy a multi-family property and livie in it for close to nothing, and when you eventually purchase a home for yourself, you can then rent out the unit you are living it.

1 property a year is very doable. Like Wheatie said, you will need to have some money coming in though, to cover expenses and expand your investing.

I would suggest seeking out people with money, whether it be private investors or hard money lenders. You may be able to partner with someone on a property if they bring the money and you take care of acquiring the property. Be creative!

Not much advice, but start out slow.

You say you do not own your own home. Why not purchase a duplex, live in half and rent the other half? Seems like a good way to start.

My partner and I just closed on our first property (a duplex). We are now looking into what type of entity we should create.

We would like to create an LLC to hold the property, but the fees on a multi-member LLC in NY are too high to justify the cost. It is a $500/year filing fee plus the cost of startup.

We were thinking of possibly creating a single member LLC in one of our names and quit-claiming the property into it. Then at a later time when we acquire more property, change our LLC into a multi-member with both of us.

What are people's thoughts on this, or any alternatives?

Thanks for all of your help. I talked to the seller and he confirmed that it was a complete tear off, and provided me with the receipt stating what work was done. So we wil be closing today.