All Forum Posts by: Troy P.

Quote from @Eric McCusker:

@Bill Brandt

Problem is, I have a property manager…..

There is no emoji to do this emotion justice...

I'm with the others, raise the rent, but do it gradually, not 400 all at once, and explain it to the tenants however you see fit.  There are tons of valid reasons you could give.  If they leave, you get even more of an increase.  But first, find a better PM.

I was reading comments about some crowdfunding site.  Someone said they weren't attracted to a particular investment because it was a K-1 instead of a 1099.  I was a little confused since a K-1 allows you to claim paper losses and would, in my mind, be more beneficial.  There was no explanation and I can't seem to figure out why this would be a less desirable option in your analysis.  Am I missing something?

Hi all,

I was curious if anyone has used Regdee to gain their accredited status.  For those not familiar, they guide you down the path of taking the Series 65 Investment Advisor exam and handle all of the legalities, filings, and upkeep for maintaining an Active status within their own advisory firm.  It seems like a very complex process to do on your own but wanted others' advice/thoughts on whether this is worth 500/yr.  I'm tired of playing speed date with sponsors only to never be contacted with any deals as a non-accredited investor.  TIA

You only have to state that they were denied due to not meeting the requirements.  They can argue that they didn't know the requirements, and they can argue they want their application fee returned, but "credit score" is not a protected class under the fair housing laws, and you do not owe them any other explanation.  I am usually vague, because I do not draw a line on a specific number that is approved or declined.   It all depends on everything else.  Like you said, they have accounts in collections which is another huge red flag.  Having a low credit score because you're young and have very little credit but have plenty of income to pay the rent, could potentially be OK.  You don't owe them a story, just tell them they did not meet the requirements.  This is only my opinion, not legal advice.

I use TurboTenant and it's been great.

You never rely on appreciation.  Cash flow is king, appreciation is a bonus.

Something I came to realize recently is.. your primary residence is not an asset, it's a liability.  It costs you money (sometimes a lot) whereas a rental property makes you money (usually).  The more expensive your primary residence, the longer it will take you to build generational wealth.  I'm not suggesting you go live in a shipping container in the middle of the woods.  Although that sounds kinda cool, that's not the lifestyle I want for myself or my family.  If you are not comfortable with your current financial situation, it is better to get on a more preferred path sooner rather than later.  I would read a few more books and get a little more familiar with how it all works before making any drastic decisions.  Make sure your numbers are conservative.  Don't think just because something rents for 1,500 and the mortgage is 1,000 you are putting 500 in your pocket.  Read through the forums.  Look at all of the mistakes others are making and learn from them.  Make some goals, choose a strategy, and stick with it.

One option I first thought is, if you have an extra bedroom in your home, renting that out until you make a final decision on how you're going to move forward.  It would give you some landlording experience as well as making a little extra on the side.  There are many ways to get into the business, and it doesn't have to be exactly how you picture it in the books.

Let me know if you'd like any book recommendations.

Quote from @Alazar Wubet:

Quote from @Troy P.:

All of the terms are listed in the purchase agreement that you fill out, sign, and submit to the seller. If you (or your agent) describe a due diligence (inspection) period, and that the contract is dependent on inspection, then you can possibly back out of the deal after submitting your EMD to escrow. This is typical for a lot of investor deals or properties that are occupied by tenants so they only show the property to serious buyers and not window shoppers. I have only seen "as is with no inspections" a very small number of times.

Thank you. So does it mean i will be signing the purchase agreement before making the EMD and committing to anything? If so, can i request to edit the purchase aggreement so that i can withdraw from the deal? (sorry for my super rookie question)

It is literally a contract to purchase. By signing it, you are committing to purchase the home. BUT, I am not familiar with every state's laws and every state's pre-filled purchase agreements. You need to be very clear how the contract is worded so it gives you time to look at the home, inspect, and decide if you want to back out while receiving your EMD back. If you have an agent, tell them exactly what you want. If you don't, you can request anything you want via the contract.

"Name one thing in this world that is not negotiable" -Walter White

All of the terms are listed in the purchase agreement that you fill out, sign, and submit to the seller. If you (or your agent) describe a due diligence (inspection) period, and that the contract is dependent on inspection, then you can possibly back out of the deal after submitting your EMD to escrow. This is typical for a lot of investor deals or properties that are occupied by tenants so they only show the property to serious buyers and not window shoppers. I have only seen "as is with no inspections" a very small number of times.

It would be best to check state laws regarding how deposits and fees can be collected.  If you can charge "admin" or "application" fees, ask them to sign a lease starting April 1st with a security deposit and non-refundable admin fee collected at signing.  They get their spot reserved, and you have some insurance in case they back out last minute.  If they want it held for free while you're not allowed to advertise, I would decline.