Posted by Doug Pretorius on October 17, 2003 at 11:03:57:
Apologies, when I say “wrap” I’m referring to any form of ‘wraparound’ financing, be it wraparound mortgage/AITD, land contract or lease/option.
Personally I use land contracts because of the favorable legal status here in Ontario, they do not require foreclosure. While they give my occupants more of a sense of ownership because of the wording (i.e. “Purchaser” instead of “Tenant/Buyer”.)
Being a landlord… A different mindset. - Posted by Sus
Posted by Sus on October 16, 2003 at 23:27:17:
When I first tried to rent out my townhouse…
after about a month not finding a tenant,
I became so frustrated and even ended up with a heartburn because I just couldn’t stand losing my money paying the mortgage and seeing my savings go down the drain
as the house sits vacant…
So out of frustration, I had decided to sell it
and then contracts fell through twice due to some strange reason.
So then I decided to rent it out again…
Total, it sat vacant for about 7 months due to my inexperience and about 13000 down the drain from fixing/repairs/and mortgages/utilities…
Expensive lesson learned is that one needs to have the reserve funds and some balls to tolerate a certain level of vacancy
and also needs to offer competitive rent rates so that he can be picky in choosing a better tenant…
Re: Being a landlord… A different mindset. - Posted by ed
Posted by ed on October 17, 2003 at 21:43:53:
In our area a 2 b/r condo would have gone up that much in value in 7-10 months…be happy!!!
Re: Being a landlord… A different mindset. - Posted by Antoine (GA)
Posted by Antoine (GA) on October 17, 2003 at 10:32:08:
Did you try lowering the amount of rent you were asking for? The Section 8 program is always looking for landlords with good housing, at least in my area. Don’t give up on landlording.
Re: Being a landlord… A different mindset. - Posted by Doug Pretorius
Posted by Doug Pretorius on October 17, 2003 at 09:08:22:
I fail to see the benefit of renting when you can wrap. With a wrap you eliminate most of the problems associated with landlording, but since most buyers fall through, you still collect the appreciation in the end. So, why rent?
Welcome to RE… - Posted by Ben (NJ)
Posted by Ben (NJ) on October 17, 2003 at 08:55:12:
I acquired a house through foreclosure where the tenants just stopped paying rent after a few months. I held off on evicting them because I found a buyer who would buy it subject to their tenancy. After four months of games, the buyer killed the deal.I now have found another buyer who will buy it with them in it so I am back on track. Look at the bright side though, by the time we close I will have owned this for more than a year so I will now have long-term capital gains instead of short term. I can also close in early Jan 2004 and further push that taxable income into 2005 so I will have use of the funds the entire year 2004. Every cloud has a silver lining. Will you at least have any tax benefits?
Re: Being a landlord… A different mindset. - Posted by RichV(FL)
Posted by RichV(FL) on October 17, 2003 at 05:52:44:
Sus,
Its not an easy business. But with the proper education and the drive to hold out one can build a significant net worth for themselves buying and holding Real estate.
Sus, a good way to start in this business in my humble opinion is to quick turn/rehab properties and build a reserve fund for rentals.
Just a few thoughts,
RichV(FL)
Question for you - Posted by randyOH
Posted by randyOH on October 17, 2003 at 10:50:42:
Doug,
I agree with your thinking in general, but I do lease/options. Why do you do wraps as opposed to land contracts or lease/options? Just curious.
Thanks,
Randy