All Forum Posts by: David Moore

@Taylor Jennings how did the meetup go?

Thanks everyone for the replies. I guess my real concern was somehow getting stuck with someone who I would not have rented to on their own to begin with. My qualifications say no evictions. I want my screening to be rock solid, but the thing I am still trying to wrap my head around is when you have 1 or 2 qualified people, you are really just making sure any additional occupants are not criminals or have other history which will negatively affect your property. Income/credit don't matter as much since they will not be paying the bills.

The idea to re-evaluate anytime there are changes to occupancy is a good one. In reality, since they leased together they must stick together and I am not legally obligated to continue the lease to the end of the term if one or two of them leave, right?

I've received an application from 3 individuals who live together. The first two are a couple with a baby and would qualify for the home individually (each income separately is more than 3x monthly rent, etc.). The third person is a friend and live-in babysitter, has a part time job that doesn't meet the income requirement and had an eviction filed 3 years ago. The story is a relationship was ended and this person was left with an un-affordable lease.

I like these folks, they have been forthright about everything and the screening otherwise checks out, but not sure how to best handle the situation? It's obvious the couple are helping support this individual, but also receive babysitting while they both work full time. Could I make a stipulation that this person does not qualify on their own and must vacate if they do? Have the third person sign the lease or no?

I just started doing the open house showings with some success. I had 8 no-shows in a row 2 units back and it was a real pain (lesson on a vacancy in December... don't do it...). The thing is, I don't tell people it's an open house, I just tell them they need to call or text me an hour before the showing to confirm they are on their way. At that point I will mention that others are looking at the place as well. This way they are not turned off when they show up to find this was not an exclusive showing. If they know it's an open house up front, I feel like they are less likely to show up or communicate at all. It does seem to add to the "competitive" feel, though it is a little harder to juggle everyone at once.

Hi Ed, welcome to the site! I am in Indy as well. It sounds like you're going about things pretty meticulously, which is a good thing. Just know that sometimes it takes baby steps, and one at a time. For example, I bought my first two properties before my LLC was formed. I am at 4 units now but won't worry about an umbrella insurance policy until I obtain a couple more units, etc, etc.

Kevin Perk is a well known author on this site and you heard him in episode 36. I know he has a good sized rental portfolio and even now debates whether setting up an LLC is even necessary. I think it is good for legal protection in the long term, but when you are just starting out your risk is pretty minimal (as long as you're screening right!) http://www.biggerpockets.com/renewsblog/2013/03/25/is-incorporating-worth-it/

See you around the site!

Hi Al,

I guess I got wrapped up in the "exit" survey and missed that you are doing ongoing surveys for existing tenants! That is also a great idea, I could see it being especially helpful in multi-unit buildings where you can measure satisfaction on a collective level.

I have also heard of landlords asking for the top 3 things tenants would like to see improved. I kind of like this idea because I want to continually improve my properties, but I would also be worried that something like this could backfire. For example, if tenants start naming things they want done that you can't or don't intend to provide, it could really make you look bad for not appearing to listen or care.

I enjoyed the read through your blog post, thanks for sharing the results of your survey!

Hi everyone,

I've noticed in several posts people saying something like "time to review and brush up your lease". I am wondering what is the most efficient process for actually making revisions to your lease document on an ongoing basis?

I have what I feel is a pretty solid lease I was given by someone who rents in my state. With only a few properties, this has worked fine, but as I add more units I would like to run it through an attorney to make sure I am adequately covered. Already, there have been many situations I have read on BP that I have found are not addressed in my current lease.

Do you typically make revisions yourself and then send to your attorney for review? Perhaps keep an ongoing list of changes and have the document reviewed once a year? Or don't touch the document at all and just tell your attorney what types of things you want added so they can write their own verbage?

Obviously I don't want to get dinged every time I want to add or revise a little something. Up to this point I have written in my own additions. I have heard it said that attorneys make great reviewers, not architects. I know a guy who spent many thousands of dollars to have a custom contract drafted up and when it was all said and done, he was totally dissatisfied with the outcome. He said it would have been better if he wrote it himself and let the attorney revise as needed to add the correct wording and meet state law.

What are your thoughts?

@Al Williamson

I was curious if you ever did create an exit survey for your tenants? If so, how has the feedback been? I am thinking of doing the same, though for now I was considering something simple like asking 3 questions at the bottom of my exit letter, perhaps:

1. What is the primary reason for your move?
2. Was there any situation you would have preferred was handled differently while you lived in our property?
   
3. What could be done to improve the experience for future tenants?

I guess I realized it sounds a little creepy saying I've been here for years and just now coming out of the shadows hehe. It's really been off and on, mainly gleaning lots of tips for getting my operation off the ground!

@Michael Pearcy @Brant Richardson, @Brandon Lindsay: are you guys familiar with any BP meetups or BPish REIA groups around town?

@Jerry W. I've heard that a lot, I am grateful to be in an area that makes getting started a little easier! Good luck on the next project.

Thanks everyone for the welcome!

Hi Everyone,

I've been around BiggerPockets mostly reading for a couple of years now, and although I do have a post or two, I thought I should take a step back and officially introduce myself!

I am currently 29 years old, I live in Indianapolis, IN and work full time in the commercial lighting industry. I’ve long known that Real Estate is one the best ways to grow wealth and have always had an interest in it, so after many years of research and saving, I jumped into it at the beginning of 2012. I was able to “put together” 4 units: Bought a 900sq ft turnkey single family home from my brother-in-law, bought & renovated a 2000sq ft duplex, moved and converted my former home into a rental (1,800sq ft).

Real Estate is really my long term plan for retirement, preferably sooner than later :) I am most interested in buy and holds as I like the idea of a more “passive” source of income over the long term. I have a growing family so the hardest thing for me right now is having enough time to do this on the side. I have a lot of respect for those of you that are able to work full time and run a medium/large scale real estate business besides!

I've recommended BP to many of my friends interested in Real Estate, great place to get and give info. Looking forward to getting to know more of you!