Did you know that debt is one of the best kept secrets out there? Debt as leveraged property is one of the best kept secrets because it allows one to invest someone else's money while keeping your own money fluid. Now, don't get me wrong, there is good debt and bad debt (just like good cholesterol and bad cholesterol). The Difference Between Good & Bad Debt Bad Debt Consumer Debt (TV, computers, eating out) Vacations paid on … [Read more...]
Why the Southwest Airlines’ Business Model is my Real Estate Inspiration
You're probably thinking I am CRAZY for comparing Southwest, a low cost airline, to a Class A property investment and management firm. While I might be a little touched, the key I have learned from all the case studies I have read (yes I am a little nerdy) is to find a niche and exploit it. You won't find the niches, they will find you and bash you on top of the head. The question is how well did you grab ahold of this opportunity and run with … [Read more...]
How to Build Equity Through Roommates
Are you looking for a way to get your foot in the door in real estate without a lot of cash? Have you considered getting roommates for building equity? The best kept secret in real estate is buying a personal house and renting out all your spare rooms. This is a great way for those who have W2 income, qualification to FHA, VA, USDA loans, and a conventional 5% down payment to get started in real estate. For many of us, 2-4 units are not … [Read more...]
How to Keep Your Roommate Relationships on Track
Getting started off on the right foot with roommate relationships is the key to the rest of your success. Roommates are very similar to traditional rentals so treat them ACCORDINGLY! Keeping Your Roommate Relationships From Going Sour While roommates are a great source of extra income, make sure you start off right by having a written agreement of both of your expectations, especially yours, as the landlord. This is crucial if it is your … [Read more...]
The Down and Dirty on Short Sales
If you are anything like me, stories are great, but you want facts. Like everything else found on Reluctant Landlord, these facts, are based on my experiences, views, and markets. Use this knowledge to give you the power to know how to ask the right questions. What is a Short Sale? The Good No Haggling - Since there are no profit gains we had a lot more experience with the sellers taking "low" balls. Then it was up to the banks to … [Read more...]
Why We Buy Short Sales and Foreclosures
Short sales and foreclosures are great properties for everyone -- even the average investor. They can be a great investment platform even for a newbie. There are lots of stereotypes and "misinformation" from TV networks like HGTV to friends you admire and listen to. I know many people who will not even consider these types of sales due, in my opinion, to misinformation. The first thing people say when they find out our "type" is that we are … [Read more...]
How I Lost $2,000 and Learned the Lesson of a Lifetime
This blog is not just about sunshine and roses! Sometimes, it's about a lesson learned. You will not invest in real estate and make thousands of dollars tomorrow! Well, you might, but then you might as well consider yourself the equivalent of winning the lottery. One thing that I am a HUGE believer in is paying it forward and allowing others to learn from your mistakes. No need for the next newbie to make the same mistake. Let them make a … [Read more...]
How to Use a 1031 Exchange
Did you know that the 1031 Exchange helps everyone from the novice to the professional keep money out of Uncle Sam’s pocket legally? The 1031 Exchange is an integral part of our “retirement” plan. Unlike stocks, the IRS provides a method for you to move your houses around the country without having to pay capital gains or repay depreciation as long as it is a like kind real estate exchange. What is a 1031 Exchange? It is a program that … [Read more...]
How to Have a Good Landlord-Tenant Relationship
Your tenants are not your enemies. They are your assets, protectors of your property, and over all your customer. I often hear from different forums the tone "landlord versus tenants." That attitude and belief is guaranteeing the fact that you will have a horrible experience. Instead, you can have a good landlord-tenant relationship, and I can give you some tips on how to do that. Remember you catch more flies with honey than vinegar. … [Read more...]
How to Write an Incredible Lease
My entire success as a landlord has been through having an amazing lease that has allowed me to hold my tenant to their written word. The Quick and Dirty on Writing a Kick Booty Lease Legal Zoom Leases change depending on the state and local rules. Therefore, I always buy the local "real estate lease" from legal zoom. Then I add to and alter the lease based on my experience, keeping the local information. Tips: I keep the lease blank. … [Read more...]