All Forum Posts by: William Brown

@Mindy Jensen @Ben Leybovich

But it ends there.

@Curtis S.

Two notes…

1.) You should check if they have any previous evictions, what their job/income is, (rent should not make up 1/3 of it), and just simply google their name and see if anything interesting comes up.

2.) M2M Leases and Long term leases each have pros and cons. They both attract different types of tenants. 

a.) Long term leases could be for say families who want to settle down for a couple years and rebuild their credit. However, if you and the tenant develop a crappy relationship off the bat you are stuck with them.

b.) Short term leases (M2M) Seem like they have more con then they do pro to me. Much more turnover, higher vacancy rates. Also, your tenant knows they won't be living there for long so they have no incentive to take care of it and treat it well. On the flip side, if they are bad, you can flush them out within the month.

*Just a note: Because you are new and learning how to evaluate a deal posting the address is O.K, but I wouldn't recommend it. While there are great people her on BP someone with more experience could easily come take that and snatch it up before you could blink. Just as a future warning.

But assuming no one does, as a basic rule of thumb you can follow the 70% rule, which is purchasing it at 70% of the ARV (After Repair Value). What you want to do is become super active on here, if only for a couple days to start, and find another investor working in Melber who would be willing to work through the deal with you and you guys would split profits 50/50, pay him/her a fee, etc.

Because if you try and do this on your own, because you are new, you could lose big time even on the best deal in the world just because there is no one else to give you guidance and advice.

Good luck moving forward!

It sounds like what you have now is time. So I would say driving for dollars, as well as direct mail, as well as trying to purchase some lists. Every market is different, so you have to try different things until you find what works.

Best of Luck!

I see one huge red flag. 

"She not one to take big risks. With the two business I currently have, I pretty much took went ahead without her approval and done it. This force me to prove to her that it's possible."

This is not good. 

1.) If you are in this to "prove" that you can do it to her, it won't work. Why? When you hit hard times and maybe suffer a loss, how will you be able to justify yourself if she isn't on your side. What I see is that this will drive a wedge between you two. Do some education (listen to podcasts, read books recommended by guests on those podcasts, etc) then go back to her and pitch the idea. the REI world is not as nice as the gurus make it out to be.

2.) Become active on here, and learn as much as you can. But as far as going into this with the intent to PROVE to her that you can, that is the wrong approach. She needs to be on your side.

I believe this may be a a case-by-case issue, but not entirely sure. Contact your title company and they will tell you everything you need to know. Congratulations on your hopeful closing!

Prevention. 

Vet your tenants, vet vet vet. If any red flags are thrown up throw their application in the trash. While you might pay for having to be patient in a couple months of vacancy, you will be paying a lot more in the long run if you rushed someone in or inherited a tenant and they ruin your place.

To quote one of the guys off the podcast on how to find a good contractor:

"It's like dating: you have to kiss a lot of frogs"

But when building your team how do you attract the pretty and nice frogs? Well, you have to come off as a pretty and nice frog too. This means building a reputation of honesty, reliability and consistency as well as having the ability to work well with others. The good lawyers, brokers, title companies, contractors, etc will be drawn to YOU. 

YOU are the prize. Have them come to you.

And treat your team well. While you might make a few extra bucks on a single project if you stiff your contractor, how likely is it that he will want to come back and work for you again? and again?

Finally, don't be afraid to get into bed with some frogs. Do your due diligence on them as much as you can, but then test them for a deal. If it isn't a good relationship cut bait.

my 2c

@Thomas S. Great insight. I'll keep that in mind.

Hey Dan, I've gotta say you've got the right mindset. Doing favors and finding deals for investors will get your foot in the door faster than anything else. You are doing the right thing, to add onto it look up some local REIAs, attend a couple, and you will find some investors who are interested in your service. And continue your own education, no one wants to be a bird dog their whole life!