All Forum Posts by: Tevis Verrett

A bigtime ditto for what everyone has opined. . .

. . .and here is my further, 0.02:

It is a screening tool, and helps me to ball park what the property is really worth.

I use it as a benchmark against a bloated and ridiculous asking price, as well as lowball cap rates.

Also, I bump it to 55-65% when Im researching distressed and C-level properties, and 40-50% for AAA properties.

Remember we are buying real estate not for the view, or how pretty it is. We are buying for the pure math of passive revenue generation and CASHFLOW.

If you overpay for a property that you dig into your pocket each month to afford. . . it doesnt get better, even with appreciation.

Bottom line:

Use it as a benchmark to answer the question: ". . .will I make money when escrow closes?"

Tevis

Anl Gupta you have a potential and looming mess on your hands.

Start gearing up for warfare. Document EVERYTHING, and time to play hardball-Eviction is your trump card.

They are playing you man due your inexperience.

Consult an attorney, or go to NOLO for the further insight that you need. Listen to our BP brothers and sisters and TAKE ACTION.

Pennies are about to turn into dollars.

I would double dog dare a tenant to tell me to "write her" to communicate. . .

Tevis

Bravo that Scott, and also gleaned from Mike McLean's Section 8 Bible (so good Im tickled to parrot him) tell them you are the contractor and answering to the property owners.

Puts you in a position to be the good guy and the nameless/faceless owner the bad guy when you have to instill hardened discipline.

Also, gentle wisdom for the 20 somethings in this thread. . . I was a 23 year old CEO of my company, and felt the same thing-not being taken seriously.

I want to give a thoughtful word of encouragement, that it is YOUR RACE, the path is looong and in the end, only with yourself.

You DONT need validation from ANYONE, and find the folks who will support you and nurture you.

The cynics and naysayers. . . well they SUCK!

YMMV,

Tevis

Spencer I. I am right in the middle of this very looong and drawn out probate process. Yes you can informally be the driver. I have a legal coach that is MUCH more insightful and less expensive than a probate attorney.

He does California law, and can prolly stretch to assist you. Ping him with my name and I am sure he will give you a moment of his time to see if he can help, he is a VERY GOOD guy.

PM me for his name and number, as I don't want to be perceived by the mods as advertising. . .

Tevis

Hi Arjun K.,

This is the verbage in my lease:

INSURANCE
A) Landlord’s Insurance Policy does not cover any of Tenant’s personal property. Landlord
will carry no Insurance that covers any of the Tenant’s property.
B) If there is any loss or damage to tenants property due to water, fire, theft, burglary, act
of nature or other, tenant agrees to relieve Landlord from any and all responsibility.
C) Landlord recommends that the Tenant carry Renters Insurance or any other form of
insurance to protect their belongings as well as their guests belongings.
D) Landlord is not responsible for any damage or theft to any guest’s property.

My good luck all, YMMV!

Tevis

. . .buhrillant! Rob, that is JUICE!

Masterful training of tenants, you need to package this and sell it!

Tevis

Hi Tim:

Our market out here is bordering on ridiculous. I will be watching this thread, as I am virtually in the same boat as you. Even the buy and hold properties in Los Angeles are bloated.

Nick Richardson how is LV recovering?

Blessings,

Tevis

Dear Bao:

Oh so much spot on and wicked great advice above.

I want to add that cap rates and pricing in our market is being chased by stoopid money.

We currently have a mini bubble being driven by Hedge Fund buying, spring, and just plain inexperienced players.

A great many of my colleagues and I are stepping to the sidelines and waiting for the fallout.

I would key on the advice from the very wise Emily Dixon, Ned Carey, and Joel Owens and add to that overpriced valuations.

We are in this together, ping me and lets get you set up with our REI group up in Santa Clarita.

Blessings,

Tevis

Jerry Kisasonak I see your 1999 and raise you a "stuck in the 80's!"

Pager anyone?

I have a merchant account through Authorize.net and my processor. I am setting up the ability to take eChecks through them, stay tuned.

Also a booyah to Tanya S., I have a friend that is a PM and they direct ALL of their tenants through e Rent Payments. Thanks for the heads up.

Finally, thanks all for Docusign, I am PDFing my lease agreement now.

Blessings all, it's FRIDAY,

Tevis

Thanks Matt, THAT was insider advice.

. . . and I am about to smack one out of the park for you Adam Demchik. . .

. . .wait for it!

. . . wait for it!

Ask the seller for TAX RETURNS.

The tax payer will work to squeeze every deduction out of a property to reduce tax burden.

It is also the REAL income that is coming from the rent rolls.

. . . you cut through pro forma "pie in the sky" projections crap, as well as any capital improvements (or lack thereof) that have been done on the property in the past (how long do you want it) years.

. . . and don't be faint of heart when asking. You aren't combing through the guy's whole tax return, just the Schedule A for a sole proprietor or a Schedule E if any other type of corporate animal.

Go on with your bad self, and YMMV,

Tevis