Posted by Sheridan on July 22, 2002 at 08:29:27:
Oh, Ron you flatter me. No I’m not a guru – YET! I’m just starting to read books on this topic and read through the info on this site. Keep telling myself to wait to post questions until AFTER I have read the books sitting on my table in case my questions get answered within the books. But sometimes I get too excited and must post.
I’m sure once I get through these books I’ll be posting more questions.
Repo’s in Sunday paper - Posted by Sheridan
Posted by Sheridan on July 21, 2002 at 17:47:47:
Noticed a real estate agent had a big 2-column-wide square in her ad today (big real estate section of Sunday paper). It listed the bare minimum info for each property – just the address and price.
Is this a good way to find property? I was thinking that, since they are in the paper for all to see, they would be jumped on by everyone else out there interested in REI.
Is it easier to “find” properties on your own rather than pursuing the same ones everyone else is pursuing?
I also found a duplex in a fairly good neighborhood (not trashy, but not ritzy) with a reasonable asking price and both sides are currently rented.
What do you do if you purchase a property that is already rented? Are you obligated to leave the renters in there? Seems like you would WANT to leave them in there and not do anything that might make them feel apprehensive or want to move. If they’re good renters, pay on time, and take care of the place, that is. But if you buy a place, do you hold off on doing any rehab or even simple stuff like painting?
Seems like finding a place that already has renters would be great.
Re: Repo’s in Sunday paper - Posted by GL(ON)
Posted by GL(ON) on July 21, 2002 at 22:29:35:
Tenants have rights protected under your state’s laws. If they have a lease you must honor it. If it is month to month (no lease) then your state’s laws cover it.
If the tenants are bums and the previous owner started eviction, or if they owe him money, you inherit that too.
If they are good tenants why would you want to evict them? If they are bums put your foot down right away and they will smarten up or you evict them.
You do not need to do a thing to occupied units (except necessary repairs). Do the renovations when you get a vacancy.
Right off the bat you should do any work necessary to fix up the outside and the common areas (halls laundry room etc.) especially the outside.
This will give you and your building a good name, make it easier to attract good tenants when you get a vacancy, and it will please the good tenants you have.
When doing renovations you should always start with what people see (the front and outside) and the vacant apartments.
A good deal is where you find it. I wouldn’t turn one down because it came from a realtor.
The problem is, they tend to stymie creative deals. In other words it’s harder to make a deal when an agent is involved than when you deal direct, for various reasons.
The wheeler-dealers seem to think they can do more good deals by themselves.
If you are a long term investor and have cash for a down payment they probably won’t hurt you much.
Re: Repo’s in Sunday paper - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 21, 2002 at 20:27:11:
Sheridan------------------
Are you sure you are not one of the well-known gurus coming on here in disguise just to see what response you will get? After all, everything you say makes so much sense. So, are you sure you’re just starting out? What proof do you have?
Some people occasionally find a good deal in the open market place–the MLS listings and the newspaper listings. But, you will have to consider a whole lot of offerings to find something worth buying, in my opinion. Although it may be different where you live. I don’t know where that is.
If the renters have a lease agreement, you will have to honor it, should you buy the property. Thus, you would not be able to move them out even if you wanted to do so. Why do any work on a place unless you have to do so? You might ask the renters what they would like to see done, before you close on a purchase. But, then consult with us here or some experienced investors before agreeing to do anything they request. Sometimes renters ask for things which are not reasonable.
Now, just in case you really are a beginner, let me give some advice I read in Bill Green’s “Think like a Tycoon.” Look at one hundred of the type of properties you are thinking of buying, without putting in a single offer. After you have looked at 100 houses, start offering real low purchase prices on everything you look at. I recommend not paying more than 80% of fair market rent when you buy. I know that that is not easy to do. But it is profitable.
Good Investing**********Ron Starr***********