All Forum Posts by: Steve Morris

Realize if the tenant wants to get nasty and call the local housing people, the govt will side with tenants 99% of the time.  Some places considering menacing and intimidation borderline behavior.

Get a good landlord rep atty and take plenty of notes for future reference.

I've seen a few RE degrees, but usually offered as post-graduate.  Lot of math and theoretical, not much on dealing with tenants.

Bigger question - What do you want to do with the degree?

I used to be an engineer and now an apt broker.  Experience is the quickest teacher, but can be expensive tuition.  You'd be better getting a job in the industry you want (prop mgmt, broker, developer) and learning every thing you ca.

Sorry, ex-engineer and I assume you understand the concept of NPV.  Simple way to look at it:

FLIP - Should be pretty obvious to figure out the immediate return on your income by selling.  However, for consistent income, you'd need to figure the NPV and return on the next (and next) flip(s).

RENT - You have an all-in house ready to rent.  You should know your current cash-in and then be able to calculate that return over time.  If you sell, for consistent income, you'd need to figure the return on a new and hopefully larger/better rental.

After that it becomes an IRR comparision, UNLESS, there are non-monetary considerations involved like sentimental value.

I paid off my primary residence.  So barring not paying property taxes, I can stay there.

The primary issue is - If I borrow $1 at 3% can I invest it and make more than 3%?  On rental housing, that should be easy.  Add in that each month (on an amortizing loan), you're increasing equity with price appreciation so there is long term growth plus operating income for return.

With a house, I guess you can say that paying 3% for no return beyond the use of your money spent paying the mortgage down is the argument you should answer.

However, I think for the being-able-to-sleep-well return, you'd beat 3% :)

Hard money lenders are all over the place.  But in the arrangement you want, expect to be paying top-end interest (>14%).

Also, don't expect high LTV. If you default, they want some equity to recoup their investment - Especially if you haven't repaid them $0.01

Good luck and keep us updated - It helps.

Call them and build a relationship.  Ask them questions about the property and what their issues/problems are AND LISTEN!!

You hear enough problems, you can usually hit them with the "have you thought about life without your rental"?  In most cases, the good deals take some time.  Sorry.

hang my license somewhere is that I'm independently acting as a landlord and PM.

Find a prop mgmt company and let them have a slice of the mgmt fee and do maint work as needed.  You may learn something, but it'll get you the time served.

"Expense/vacancies are actually at 15%"

Wow, is 15% vacancies usual in your area?  That's a problem for me - Maintaining empty units.

DM me.  I can send my 80 page PDF on Buying/Selling Apartments.  I wrote it since I get asked the same questions by investors all the time.

If they don't know you, you'll probably get a junior in the office.  I get these calls, so this is what I ask to qualify:

1) If we do a deal, are you willing to give proof of funds

2) Are you looking only in XXX?  If they give me 20 cities they're looking at, not a real high priority to me

3) Give them a rough envelope of what you want and see how responsive and if you like what they send

4) Make sure they are focused on the property types you want and know how they work

5) Tell them what is important to you.

6) Be careful if you're in a 1031, a lot of brokers exploit that.  i.e. They'll get you in a deal and then drag their feet until you get past the 45-day point, even if its a bad deal.

7) Alternatively, if you are looking all over the place, you may want to call the local office of a national chain of brokers.  They usually have co-op referral fees for the local guy so he stays motivated and you can work thru him.