Newbies, there is another side to RE - Posted by Chris

Posted by Chris on August 27, 2005 at 08:57:12:

I agree completely, we now have a rule that you can be on some sort of assistance but someone in the household has to be working FT. Now if I waited and did background checks and waited to find someone with no offenses that is exactly what would happen it would be vacant for six months. I can’t afford that. Not with the # of units I own and the turn over you get in this city. Trust me if it was a matter of screening then problem solved, it’s not it’s the caliber of people you find in a small economically depressed city in NY with a boatload of gov’t programs. People move here specifically because we have such great welfare, you literally don’t have to work EVER and can live quite nicely.

Newbies, there is another side to RE - Posted by Chris

Posted by Chris on August 26, 2005 at 12:54:50:

Don’t get me wrong RE is the best thing that ever happenned to me. I worked very hard to get to where I am and enjoy a nice life, but you have to be prepared, VERY prepared for what you are getting into, A lot of times I think RE is sugar coated whether it be on late night TV, or even on the reality TV shows they now have. No matter what you do Lease Options, rehabs, rentals you have to be a certain type of person to handle it. It doesn’t matter if you make 500K per year and work 10 hrs per week if you are miserable, overwhelmed, stressed, and depessed. So all the newbies who are desperate to get started spend as much time researching how to get started as you do searching your soul and getting to know who you really are, because a JOB doesn’t test you and reveal the things that RE will. So spend a fair amount of time really deciding whether or not this is for you, because of course you can, thousands make their living doing this that isn’t the question, it’s whether or not you really want to.

Now what brought me to this revelation. Well I have a house I lease optioned 2 years ago the tenant put 3K down, (the option to buy has since expired) had a business he had started and things were going well. Well he and his wife had since had 2 more children, one needing heart surgery, he was diagnosed with testicular cancer, things with the business aren’t going well and they are two months in arrears. And for the last several months have been paying their rent 3 weeks late. We called let them know we had to give them there 30 day notice husband was upset says he is doing the best he can, we said we understand unfortunately our bank doesn’t, he says he doesn’t think he can move, he has no family around here and no where to go. I think we are going to have to take this one to court.

We rent a house in the city, it was a rehab in a pretty OK area. We have two female college students downstairs, and not but a month ago rented the upstairs to a man on county assistance. Let me explain a little about the area we rent in. It is a very depressed, small city in upstate NY. We rent in the city, always OK areas. We get a lot of calls for our apartments they are always newly remodeled and I would say 96% are on some sort of county assistance. There is a lot of welfare and public assistance and if you own rental property and want to keep it rented you better be willing to accept it. While that is the negative the positive is you can buy a 4 unit building for 60K, in decent condition and the units rent for $450-550, pretty good return. Anyway guy upstairs received shelter plus care assistance which means he is in a rehab program, but in order to receive the assistance you have to stay in compliance with their program they check up on you every month, you have to stay in the program, attend your meeting etc. Well we received a call this morning last night he got high and broke into the downsatirs apartment and assaulted the girl downstairs and stole things. According to neighbors and our property managers who were able to get in their it was pretty bad. He had her tied up and their is blood all over the walls, he may have raped her, we aren’t sure. We alreay talked to our attorney we aren’t liable or even worried about that, and if there is any damage to the property, that is what insurance is for.

Anyway today is a bad day and in order to carry on and get on with your day, pick your kids up from school, make dinner, mow the lawn, etc. and put it behind you, you need a cretain type of personality and support system. Am I saying this will happen to you of course not but you can gurantee it will be something that is just as trying.

Soory post was so long and depressing but sometimes I feel newbies may go into this not fulling knowing all the sides of RE. While it has been great for me and my family I know of a lot of people trying to get into the business that couldn’t handle this.

Check These sites too - Posted by John

Posted by John on May 23, 2006 at 14:25:10:

Info on Flipping Properties, Real Estate Investing, Buying Investment Properties. and

Great info for starters.
Good Luck!

Thank you!!! - Posted by Cathleen(TX)

Posted by Cathleen(TX) on August 28, 2005 at 14:55:53:

To me this is EXACTLY what this website is for! I hope I can learn from those that are ahead of me on this path- you light the way for me so that even though I may also stumble that I might gain from your experiences. Thank you for laying it all out there. I am sorry that has brought some critizism, I wanted you to know that I appreciate you sharing.

An observation - Posted by Jack

Posted by Jack on August 27, 2005 at 17:07:52:

When things are going good you say “I”. As in: “I” started investing 4 years ago. “I” do 15-18 rehabs a year. “I” make $200,000 a year from real estate investment. “I” worked hard to get where I am.

But when things go bad you say “We”. As in: “we” are going to have to take this one to court. “we” recieved a call… “we” talked to our attorney. He may have raped her, “we” aren’t sure.

Re: Newbies, there is another side to RE - Posted by Eric T

Posted by Eric T on August 26, 2005 at 17:07:33:

Back in the early 90s, as the southern California R/E market was going through a difficult time, my Dad owned a small three unit apartment with a partner. One day, one of the tenants walks downstairs and murders the tenant in one of the other units. Well, overnight, the building goes from fully rented to fully vacant. Unit one: in jail; Unit two: murdered; Unit three: got as far away as possible.

It was very ugly, and scared me from wanted to be involved in R/E for a long time.

Re: Newbies, there is another side to RE - Posted by Jeff M

Posted by Jeff M on August 26, 2005 at 14:17:45:

Now that’s why you do a little background check. I’ve been advised by fellow investors as well as the Police Department to never accept anyone with a drug offense or is a registered sex offender for reasons just like the one you experienced. I would rather get six months vacancy before I found a quality tenant than just accept someone that the federal government is willing to pay the rent for their housing. I’d rather offer housing to working, self-competant people than the riff-raff that others are willing to accept.

That may offend some, but I’d rather protect myself against an abusive addict than be in your shoes. I like quality over quantity.

Re: Newbies, there is another side to RE - Posted by Brian (UT)

Posted by Brian (UT) on August 26, 2005 at 14:14:29:


Sorry to hear about your tenants problems. I know you can’t let things go on or else your finances will be damaged.

Your post states the child needed heart surgery. So I’m assuming it’s been performed. This is a costly procedure whether you have insurance or not. The purpose of my post is to advise anyone out there that if you know of a child needing such a surgery and the parents don’t have the money, to contact the Childrens Hospital in Salt Lake City, Utah, they do these amd tramsplants for whatever the parents can afford and they are a first rate facility.

The reason I’m in Utah is I came here for a heart transplant (yes I was lucky and got one, just like the Tin Man), and I’m totally familiar with their good deeds, and I’ve told my kids that everything I have left when I die is going to these folks, and they are fine with that.