All Forum Posts by: Tom Ott

 Hello David,

First off, I'd like to say welcome to the world of REI. It seems like you are on the right path in terms of ideas. You sound like you know what you want, just unsure of where to start.

I am wondering if you have ever considered investing in turnkey properties? It sounds like with the way you travel you will not be able to manage the properties too much yourself. Also, flipping homes will be difficult while traveling so much.

One of the best options for someone like you is investing in turnkey properties. For example, our company rehabs homes and sells them to investors. We also manage them so you do not have to worry about it. It becomes just like any other investment for you. It is a better way of buying and holding. 

In terms of markets, I can tell you right now the Midwest is booming. Many people moved out to the costs and Texas a few years ago and real estate took off. It really took off in prices. Homes are very expensive out there. The Midwest is now starting to see a similar boom, but the real estate is still very affordable!

We have been seeing a large influx of investors in Cleveland. Many people from out of state are buying and holding in the area. 

We are in Cleveland and things are really booming!

Message me if you have any questions.

 Hello Federico!

Welcome to BP! This is a great place to start if you are interested in REI. This is a great time to get into REI. But then again, it always is. People always need a roof over their heads and people are always looking to buy!

What kind of investing have you been thinking about? Flip? Buy and hold? BandH is probably one of the best strategies in real estate. It is not for everyone. Are you looking to buy & hold in your immediate area or are you seeking outside of your area. If you are looking outside of your area you need to know you are working with a reliable and experienced operator, consider looking at turnkey homes.

Message me if you need any additional advice.

Hello!

Welcome to BP! This is my type of talk, love buy & hold, this is a personal strategy of mine, it is not for everyone, what I have learned in my short time is that there is always rental demand, good times or bad everyone still needs a roof over them. 

Are you looking to buy & hold in your immediate area or are you seeking in different areas? If you are looking outside of your area you need to know you are working with a reliable and experienced operator, consider looking at turnkey homes.

Message me if you need any additional advice.

Hello Justin,

First off, I would like to say congratulations on joining the REI world! Have you been looking for only properties in your immediate are, or have you been looking into other markets? Also, if you are very busy, what are your plans for management?

If you are looking outside of your area you need to know you are working with a reliable and experienced operator, consider looking at turnkey homes. Turnkey properties are ready and set for you. You do not have to do any more worrying after purchase. 

If you have any questions, pleas let me know.

Hello Alain,

That is a great question! We have seen that many times with our company. As long as they are up to date on their rent payments, and have a written lease, then you must honor it.

Sometimes it can be a rough situation when you have to follow someone else's lease on a property you own! Those tenants sign a legal document that expires on a specific end date. After the lease expires you may offer the tenants you own lease have them sign it.

After that they are fully yours and must follow your lease. Hopefully their lease is near the end of its term when you acquired them.

Please let me know if you have any questions.

Hello Kyle,

Your applicant is correct. This is a though situation, and one that I see a lot. Service animals, or any kind, cannot be treated as a "pet." Even if it is a dog, you cannot treat it like a normal pet and charge more. 

Charging more for a service dog is like charging someone for their wheelchair, it just can't be done.

However, you should ALWAYS ask for proper documentation. For a dog  to be a service/support dog, there will be some documentation of it. Service dogs are licensed, and doctors write letters for support dogs. Sometimes applicants trey to lie to get the dog in the home for free. Always do your research and try to get documentation/letters for the animal. Make sure they are authentic, of course.

Please let me know if you have any questions.

Hi Vitaliy,

That sounds like some kind of property management fantasy! Imagine a universal database that has all of these names of bad eggs on it! Sadly, I do not think that really exists. 

Think about it, who would determine who gets on it? Some people have different criteria for their units. Some people only rent to applicants who has a credit score of 680 or higher, while others have a base of 560. Sometimes you never know what their criteria is.

At this time, we must press on and do the research ourselves. Maybe one day we on BP could form a giant database.

Hello Vitality,

This is a great question! When screening for potential tenants, I always try to get a LL reference. When it comes to the most important information, it has to be the credit report/employment verification.

Clearly, you want to make sure your applicant is currently making enough money to pay the bills and has a good history of paying off their accounts. If they don't make enough money or never pay their bills, clearly they are going to be problematic for you.

LL references are EXTREMELY helpful when you are on the fence about an applicant. I always do them for every applicant, even if their credit score is 750! Just because someone pays their bills doesn't mean they won't trash the place. 

Sometimes you might get an applicant whose score is just below you limit, and maybe have a few bad accounts. It is really helpful to call the former LL and find out if they paid on time, or if they were ever late. Many times I have receive praises from former LLs and it helped me make a decision on a tenant that I might have passed on based on the numbers.

That has led to many great tenants! Of course, you always need make sure you are verifying that the LL actually is the LL. There are people out there who will give their friend's phone numbers and try to claim it is their LL. You'll have to look online and see who owns the property, etc.

With all of that being said, LL references are great and important. but NOT a deal breaker. They simply add to the whole picture you are trying to paint of an applicant.

Please let me know if you have any questions.

I'm sure you will do well! I, also, am wondering why is the market difficult to rent in? Is there just a lot of people looking for rentals, or the other way around?

20 years!? that's great! I wonder what made the move. Hopefully their credit/criminal report check out! That is a good track record. 20 years renting from you would be great I'm sure!