All Forum Posts by: Steve K.

@Toben B. Don’t paint the brick! Brick is such a nice low maintenance exterior surface, with a natural and neutral color by itself. Once you paint it, which is hard to do with a professional finish anyway, now you’re committing to repainting every few years. Plus the paint traps moisture in the bricks causing them to decompose faster and causing paint to peel easily. Most brick is not meant to be painted. As far as the other colors I would only paint if it really needs it. Probably I would touch up what you have as needed, as it’s an inoffensive neutral color scheme which is what you want, and paint all the trim white. It’s not your primary residence so who cares what color it is, paint won’t get you any more rent unless it’s peeling or needs it due to being an obnoxious color like purple. Even then, probably won’t get you more rent. But whatever you do, don’t paint the brick!

@Collin Nieman Getting your license and interning/ working for free for a brokerage office is a good option, although the main negative is you won’t make any money. You won’t have time to actually work as an agent as the sales cycle is too long so it’s unlikely you’ll close any deals, and then when things just get going for you it will be time to go back to school. Another avenue to consider that I would recommend is working as a carpenter or similar tradesperson. Gaining knowledge of the trades will be an invaluable asset for a career in RE, whether your goal is to become an investor or agent or even just as a home owner, you will use this knowledge your whole life. Plus you can sock away some decent cash doing it. Carpenters are in high demand. Get yourself in with a high end crew, you’ll learn a ton while making good money and having fun. Plus you’ll get in shape. That’s what I did in my early twenties and now I have an advantage of knowing what I’m talking about with contractors, being able to estimate repairs more accurately, avoiding money pits, advising other investors, or just being able to do the work myself when it makes sense.

@Akeen Felder It seems like wholesaling as a realtor fits the definition of both a net listing and dual agency. Many veteran agents steer clear of these type of transactions whether they’re legal in their state or not, mainly to avoid being sued. It’s hard to juggle and blend good faith duties, fiduciary duties, best practices all while trying to carve out as much profit as possible for #1. Real estate commissions were created specifically for the purpose of protecting the public from situations like this.

@Charlie MacPherson Love it Charlie. Not super fun for plinking, but can't be beat for CCW. .357 version is great too: load up .38's for human predators, .357 buffalo bore in the wild. The new(ish) +P .38 ammo is really pretty awesome too, every bit as powerful as standard .9mm. 

Regarding bear: there was a case last summer of a fishing guide in AK who got charged in dense brush by a Grizz and was able to stop it with a few rounds from a pocket 9 using +P, point blank so its possible although not recommended (12 gauge with slugs, 30.06, .454 etc would be better obviously, but a .9 in the pocket is better than a bazooka in the truck). 

My good buddy from college wasn't so lucky, he got jumped by a Grizz out fishing one day on the Russian River, didn't have time to draw and the bear chewed his face off (he survived just barely but lost his eyesight, sense of smell, entire face and part of skull, spent a year in the hospital undergoing many surgeries, etc.).  Grizz are incredibly fast, all my friend saw was a blur of brown and then he was being eaten, hands and face first thats how they do it. Wouldn't have mattered what kind of gun he was carrying, no time to react. He wrote a book about it called Beyond the Bear and was on Oprah and everything. 

Sorry folks, didn't mean to derail the thread, this is actually a serious thread. 

@Nathan G. There’s a saying in Alaska about which hand gun is best for personal defense against Grizzlies. They say a small caliber, short barreled one like a .38 snubby, with the front sight filed completely off is ideal... because it hurts the least when the bear jams it up your rear end!

@Alec Weissgerber It really depends on a lot of things: age, income/career, investment horizon, skill set, lifestyle goals, interest level and qualifications in starting an REI business, what form the inheritance is in currently (unlikely that it's sitting in cash), etc. etc. etc... she should have a certified financial planner look at the whole picture and offer sound advice. For example if the inheritance is in the form of a diversified stock portfolio consisting of blue chip stocks being managed by a trusted brokerage, she should leave it there and if anything divert dividend payments only to other investment vehicles she prefers or to pay off high interest debt, but not touch the principle. Cashing out to invest in other ways may result in a huge capital gains tax hit plus risk of losing it due to inexperience. We really don't know enough to give any quality advice based on your post. Except that a newbie with a $500k inheritance entering into what is likely the tippy toppy point of the RE market cycle is a dangerous thing. Unless she brings something to the table in terms of REI expertise like a background as an agent, property manager, rehabber, or has the ability to find discounted off market deals or is at least super sharp and really passionate about a starting a new career in REI or something, I don't see any reason why RE would be a better option than speaking to Vanguard and parking it in a high yield dividend index fund, if it isn't already in something similar. Again, not enough info to give sound advice, she should speak to a CERTIFIED financial planner. Certified being the operative word because they are held to a higher standard, whereas "financial advisor" can be a synonym for investment product salesperson.

@Blair Colsey I’m with @Derek Stewart in sticking to CO. We picked up an off market west wash park triplex last year, measly 0.75%, but rents went up 16% so we’ll be at 1% before too long, and appreciation in less than a year has been very substantial. I don’t even want to say the number on here so let’s just say we’d have to buy the whole city of Detroit and hold onto it for 20 lifetimes to get comparable appreciation, plus a few Cleveland’s and Indy’s too. It was our only transaction last year which set us back from our cash flow goals, so that’s the downside. It’s hard to find deals but being an out of state owner isn’t exactly a walk in the park either. After watching friends get burned trying to invest out of state, or just tying up their money and time, dealing with all the hassles and using vacation time to go to the Midwest for zero appreciation, I wouldn’t even consider it. Local market knowledge and connections are key in my book.

@Val Jaz just FYI you can change your name in your profile settings to just show your last initial as a lot of us have done, and I believe it will retroactively convert all your old posts including this one to the initial version, less likely to pop up on top of a google search that way, might not be a bad idea. Admin can help if you have trouble. Good luck!

@Val J. I agree with everyone on the approach of just issuing the notice to quit based on non-payment of rent, and do not interact with these people or get involved in any more drama. Do not accept partial rent or negotiate. If you're unfamiliar with the eviction process in your state, it may be worth the money to hire an attorney. Luckily Texas is often referred to as the #1 most landlord friendly state, so you've got that going for you. It shouldn't be too hard to look up the eviction process and follow it to the letter. This case is very cut and dry in your favor as they are behind on rent. Focus on that and cut out all the James Bond stuff the meeting on the park bench, the internet sleuthing and secretly recording conversations. I believe recording people without their consent is illegal in most states, not sure about Texas, so you might not want to mention that to the authorities. You don't need to, they haven't paid rent to stick to that and don't let things get sideways. 

I've come across this situation too many times: good tenant, single woman often mother of children, deadbeat baby daddy get's out of prison moves in and ruins everything. I wonder if we should add "Do you have an imprisoned ex who plans to move in when he get's out?" to the list of interview questions. That would probably violate anti discrimination laws though, I believe single women are a protected class. I've also had this happen with grown children who get out of prison and move in with their mothers, causing problems. It's pretty sad for the women. Often times they've been living a clean life and the presence of the ex-con causes them to fall off the wagon and just derails their life. Don't get too worked up emotionally. Stick to the unpaid rent issue and the eviction will be over before you know it. Try to be as civil and understanding as possible while following the eviction procedure perfectly in hopes they won't damage the place, that's all you can do. If you have to go to court, and they actually show up (unlikely as they don't have a case), the judge might ask you guys to see a mediator and come to a resolution before he makes a ruling. Again, keep it simple: "They haven't paid rent. I'd like to replace them with a responsible tenant that pays rent." That's it. The judge will tell them to get out immediately or a sheriff will come move them out for you. 

@Luke Carl You can use a digital lockbox that you can reset the code for after they leave. Combine that with heavy upfront screening on the phone, have them fill out an app beforehand, text you a picture of their driver's license then text you when they leave so you can reset the code. Combined with ring/security cameras it's a reasonable way to go, I guess. However there are a lot people who would love to rent a room by the hour (for free) to turn a trick or make a drug deal, or steal all your appliances and fixtures. So even with taking these precautions remote showings come with a certain amount of risk (they could send you bunk info, text somebody else's ID, wear a ski mask, spray paint your cameras, leave a window open to come in later, etc). 

I prefer getting there 20 minutes early to set the thermostat to a comfortable temp, turn all the lights on, pick up any trash in the yard, sweep the front step, kill the spider on the counter, fix the running toilet, take care of any strange odors, ask the neighbor to stop smoking weed/shut their dogs/kids up/ stop screaming at each other, etc. 

Perhaps the most important thing you'll miss by not being there is getting a good read on the potential tenant. Qualifying them over the phone and on paper is not nearly as good as meeting them, shaking their hand, looking them in the eye and interviewing them in person. It's also a great time to lay down the ground rules and make sure they are on board and just establish rapport in general, which to me is important. For properties far away I just schedule as many showings as possible for a 3 hour window on a Saturday and drive my butt out there. Even if it takes a week or two of incoming interest, wait until you have 5 showings absolute minimum lined up before driving out because at least half of them don't show up. This is also a hard time of year to place tenants but it will get easier now that the holidays are over. Good luck!