youcanbuycashflowrealestate.com

Real Estate Investing – Never Allow Sub-Lease

Our rent to own person decided to sub-lease the house after one year without contacting us. He decided to sub-lease the single family house to 4 young boys in their 20’s. Not that I have anything against 20 year old boys.

He never contacted my partner to ask permission or tell her until he had issues with these boys. He was attempting to keep his money down to buy the house however after issues with the boys. He contacted my partner and told her he wanted to walk away from the rent to own.

However, he had another issue and this issue was with the tenants he decided to move into the single family house. The young boys decided to have a Black and White party. The party would have been ok however under age drinking was involved. He contacted my partner after the black and white party and told her to take over the property with these kids. He had enough.

Our mistake was not having a clause on your rent to own agreement stating, NO Sub-leasing! My partner went over and talked to the kids and checked the house out and it was immaculate. The kids had the party in the basement. However, she mentioned one of the kids seemed like bad news.

Remember, we did not put these kids in our single family house. Nor did we want the house used as a rental unit. Why; we rehabbed it and put $15 into it.  This is not a rental unit it is a house for a family to move into and do nothing to the property.

My partner went over to the house and instructed each boy they needed to fill out a rental application and we would have to qualify them before we would rent to them. Plus, my partner raised the rent hoping these young boys would move out of the house.  Remember, this house is a rent-to-own not a rental unit.  The boys instructed my partner they would be out of the house by Sept 7^th.

The last weekend before they were suppose to move out of the house; one of the boys decided to have a party since his other roommates were out of town.

Guess What!

This was the boy my partner had a bad feeling on. This boy decided to dump bleach on a girls head while holding her down. The girl’s friend removed the boy off of her and took her to emergency. The cops came back looking for this boy and he didn’t answer the door so they broke the door down.

Now, we are talking damage to our property. All 3 boys split after I handed them an eviction notice. Only one boy is left being responsible for paying September rent and covering the damages done to the house. This boy is looking at around $1,200.

It’s critical to get educated in the area of Property Management. This is an area that takes different skills than finding deals. And to be truthful this is the area where real estate investors become Motivate Sellers.

Get educated in this area and face your issues head on. My partner freaked out when this happened. I stepped up to the plate and am now managing this property. I have the tenant paying all of the damages and we are having a 5 day sale next Saturday and Sunday.

John Dessauer has an excellent Property Management Course

Find Your Life’s Freedom’s! Take Action Now!! John made his fortune in buying Multi-Units.  Learning the skills to manage multi units, single family house, duplexes and tri-plexes will assist you in growing your real estate empire.

cashflow Cindy

P.S. I am constantly getting educated in this area of property management skills.   All of our property located within a 2 1/2 hour drive gets managed by my partner and I.   Out of state properties are managed by Management Companies.   Dealing with management companies take a different skill set then managing tenants.    Its a learning process that you need to take seriously  if not YOU will become a MOTIVATED Seller.

I don’t want this to happen to you since you worked too hard.

Get educated http://www.thedessauergroup.com/index.php?freedom_store

Real Estate Investing – Section 8 Inspection Deadline

The housing authority inspected our duplex in January 2009.  A few items were considered weather deferred item due to winter months. 

We have a due date of June 15, 2009 to correct the list below:

Repair defective paint for front door threshold

Repair defective paint for rear door threshold

Since the family residing in this unit includes a family member (s) under age 6, correction of the paint deficiencies requires the landlord to adhere to HUD’s Lead Safe Housing Rule.  The Self Certification form must be completed by the landlord and returned to the housing authority confirming deteriorated paint was stabilized and safe work practice requirement were adhered to.

You can find the complete guidance found on HUD’s website  www.hud.gov/offices/lead

All deferred conditions must be corrected by June 15, 2009.  If conditions are not corrected by this date, the Housing Authority will abate (pro-rate-daily reduce) their part of the rent assistance payment check to the landlord/owner.  If the repairs are not made within 30 days of July 1, 2009, the Housing Authority has the right to terminate the Housing Assistance Payment Contract with the landlord.

The other items on the list were repaired and passed by the Housing Authority in January, 2009.   This gives you an idea of the expectations from the Housing Authority to bring in Section 8 tenants.

They have rules and guidelines that need to be followed to their specifications.   If you don’t, they will discontinue the program with you.

Find Your Life’s Freedom’s! Take Action Now!!

My partner and I have worked with Section 8 tenants for the last three years.  We do enjoy stress free rent collecting.

John D offers a great Property Management Program for a minimal fee.

Find Your Life’s Freedom’s! Take Action Now!!

Cashflow Cindy

Real Estate Investing – Do you want to save yourself $3,000 worth of damage?

You need to get educated in Property Management skills immediately!

As real estate investors nobody talks about the importance of Property Management training.  Or the importance of getting education in the area of screening tenants, background checks.    All the real estate seminars talk about making millions in real estate but nobody ever touches on the subject of how important Property Management skills are to the success of your real estate business.

Even if you decide to hire a property management company, you still need to know the proper questions to screen your management company.  As a Real Estate Mogul told me last summer; if you don’t have a good property management company then you are sunk! (exact words)

If you are a new real estate investor and are thinking of renting out your real estate investment as a single family house, duplex or larger commercial unit.  You need to enroll in a property management class to learn the laws and skills to keep your investment safe!

As somebody once asks me, “Would you hand the keys to a stranger on your brand new Car or Truck?”

This same question applies to your real estate investment.  If you don’t educated yourself you are going to find yourself with thousands and thousands of dollars of damage.

I am stressing to you the importance of ordering John Dessauer’s Property Management program.  He is charging a small fee of $49.00.  This $49.00 will save you thousands of dollars in damage plus loss of rental income due to tenants not paying. 

Protect your investment by investing in John Dessaur’s Property management program.  Take it from my own experience!

Find Your Life’s Freedom’s! Take Action Now!!

 For a small investment of $49.00 you can purchase John Dessauer’s Property Management Program. Comes with CD’s and a work book. John made his money investing in multi units so he knows the in’s and out’s of property management.
Find Your Life’s Freedom’s! Take Action Now!!

cashflow Cindy

Real Estate investing involves learning the skills of Property Management when you start to build your real estate portfolio.  Sometimes it’s not fun managing rental units as I encountered today.  However, you have to run your real estate investing as a business.  If you don’t your property value will go down due to poor upkeep and you will have difficulty finding quality tenants.

Find Your Life’s Freedom’s! Take Action Now!!

I wanted to share my experience with you that I had today with a tenant in one of my upper duplexes.

The tenant residing in the upper duplex was instructed two weeks ago to clean up the laundry room in the basement.  She had piles of clothes on the basement floor.  Along with stacks of empty laundry containers (she was instructed to put in her garbage bin a couple of weeks ago).   She also decided to move parts to a bedroom set in the basement that her brother had picked up for her a while back.

Find Your Life’s Freedom’s! Take Action Now!!

This morning I went to check out the laundry room to see if she had cleaned it up.   She had not nor did it look like she even attempted to clean. 

Now, I have a tenant moving into the lower unit on the 15^th of May who will be using this laundry room.   (embarrassing walking on piles of dirty clothes).

The basement goes with the lower unit.  The upper unit was allowed access about one year ago under the pretense she keeps the laundry room clean.

She failed to keep her end of the bargain so today she was instructed to remove all of her personal belongings from the basement.  She did not have authority to put parts of a bedroom set and store it in the basement.

She was instructed two weeks ago to clean up the laundry room or she would lose access to it.  As the room looked today, she did not clean up her piles of clothes.  She was instructed this morning since she left the laundry room in complete disarray she is losing her privileges to it. 

Managing your rental units is always a learning experience.  I advise each one you to learn the laws in your areas of investing and invest in education classes on Property Management.  This will be the best money spent to protect yourself and your investment.

 For a small investment of $49.00 you can purchase John Dessauer’s Property Management Program.  Comes with CD’s and a work book.  John made his money investing in multi units so he knows the in’s and out’s of property management.
Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing – HUD & Section 8 Inspection Checklist

 Landlords or tenants can use the following list as a checklist to assess whether a unit will pass the HUD-established Housing Quality Standards inspection for the Housing Choice Voucher Program or called Section 8.  This list is NOT all –inclusive, but is intended to be used as a general guide.  It will help you determine any necessary repairs before the ICS inspector conducts the inspection on your unit.  Doing so will speed up the processing of the case for Housing Choice Voucher Assistance by eliminating the need for re-inspection.  (this list was taken from the Wisconsin HUD Housing Inspection Checklist (Section 8))

Contact your housing authority in your investment area and request them to email or mail you a check list for free.  The housing authority is greatful for the landlords whom are willing to work with Section 8 tenants.  Many landlords prefer to stay away from this program for various reasons.

Find Your Life’s Freedom’s! Take Action Now!!

Exterior Checklist

Is every exterior door substantially weather tight and rodent proof, with proper hardware and maintained in sound working condition?

Is the roof free of sagging, buckling, leaking or holes?

Are the gutters and down spouts (if present) sound and free from hazards?

Is the exterior of the building free of missing or large areas of broken siding?

Is the exterior of the building free of broken or loose bricks and mortar?

Are all exterior surfaces free from cracking, peeling, chipping, or loose paint?

Are all windows free of signs of severe deterioration or broken glass panes?

Are there screens on all windows?  (all screens must be free of any tears)

Is the yard free of trash and debris?

Are there address numbers on the house that can be read from the street?

Join your local apartment association to learn the tenant and landlord laws in your state.  They also offer courses you can take to learn the proper procedures and legal forms needed to use for managing your investment properties as single family homes, duplexes or large multi-units.

John Dessauer made his millions in Multi-Units and offers a Property Management course for a small fee of $49.00.  Property Management education is critical to your real estate success in owning investment properties.  John also goes over the cash flow regarding your units.  Many investors miss the understanding of cash flow relating to property management. 

I will tell you from experience; property management skills and education are different than wholesaling or retail flips.  It’s a skill that needs to be learned; so get educated.

Find Your Life’s Freedom’s! Take Action Now!!

 cashflow Cindy

Real Estate Investing – Homeless Shelter Starter Rental Program

The homeless shelter contacted me yesterday to request information on my unit for rent.  We have a lower duplex for rent in front of the homeless shelter. 

The director of the homeless shelter drove around the neighborhood looking for real estate rental properties available for rent to fit in their low income housing program.   They are starting a New Program where they pay the rent for low income housing.  She asked me how many bedrooms, baths, size of the unit, what is all included and monthly rent.

They have noticed a pattern with many of the people staying at the homeless shelter.   It seems many of them are repeat customers who leave and come back again and they leave and come back again.  Evidently this process repeats itself over and over again.  This is a new area for me.

Due to many of them repeating this process, they are stating a new program where they will pay their rent and Utilities.  Will this program be the same as Section 8?  I have many questions to ask them.  However, if the money is paid for the rent each and every month by The Homeless Shelter then in my eyes it is secret real estate cash.  Meaning:  I don’t have to contact they tenant by phone, email, text message or letter requesting the rent be paid on time.  With the Section 8 or Homeless Shelter Program once the contracts are signed, they mail us the check by the 1st of each month.  Would you call this Secret Real Estate Cash?

The homeless shelter is contacting me sometime within the next couple of days for a walk through of the inside of the unit.  This particular unit is Section 8 ready!  All screens are on windows, windows are all new and operable.  Section 8 does not require the windows to be new, however, they do require them to be operable.  Meaning:  if the window is pushed up; it must stay up!  It can’t fall down because many of the Section 8 families are single moms with small children.  No child needs to have their hand smashed in a window!  Section 8 is secret real estate cash.

Multi-Millionaire John Dessauer offers a fabulous Property Management Program for $49.00 (unbelievable price for the quality of content you are receiving)

Find Your Life’s Freedom’s! Take Action Now!!

 I will mention; due to this unit being so close to the homeless shelter, it has affected renting this unit out.  Many of the people who call ask if I have an issue being so close to the homeless shelter with break-ins.  My answer is NO! I have never had an issue with somebody attempting or beaking into the upper or lower unit due this property being so close to the homeless shelter.

 The unit upstairs is rented by a Section 8 tenant and currently somebody is renting the lower unit however he is requesting to break his lease since his wife and he are back together.

The rental market is growing stronger each day.  My suggestion to you is to buy rentals when the market is down so they cash flow substantially.  When the rental market gets saturated, you can compete because you purchased the property at a .50 on the dollar discount.

If you are looking for Safe Investing Cash Flowing Real Estate go to my web site to view.  These are all Cash flowing properties, currently one of them is listed for $35K and bringing in $500.00 rent.  To be honest this is low rent.  Once the lease expires you can raise the rent or if you want to keep the tenant in place; raise the rent $25-$50 without losing one month of rent.

http://serene.ewimultiplestreams.com/index.php?base=featured

Real Estate Investing – Tenants are always interesting or should I say its interesting being a landlord!

This particular tenant turned into a different person after I handed over the keys to the house.   She would only communicate with me via mail.  She would not return my phone calls nor would she talk to me in person if I was standing in the driveway.  She would have her son come over and talk to me.

Her lease ran out and to be honest, I’m tired of her crap.  Well, I thought if she signs the lease for one year then I will have a tenant in place without losing rent for a month to find a replacement tenant. 

Since mail was our only form of communication I mailed her the rental lease to be signed for one year.  I have her name in the spot for Tenants Name.  She was supposed to sign the signature for the lease at the bottom of the one year lease agreement.

I received her lease agreement in the mail today.  To my surprise somebody else signed the lease agreement.  This particular person is not on the lease nor do they have permission to reside in the property.

A letter was typed up to inform this tenant that this person was not on the lease agreement and will not be allowed to rent this house.  I also included a 28 day eviction notice to inform the tenant the lease will not be renewed by the landlord.  After the tenant attempted to put somebody else in the house without asking for permission and having them sign the lease agreement without their name on it.

I don’t care to have a tenant in my property that is attempted to be untruthful.

To be a landlord it takes different skills and training to learn the laws and how to deal with the tenants.  If you are interested in learning Property Management Skills I would recommend John Dessauer’s Property Management Program for $49.00! (Unbelievable price)  Education is critical to gain the skills to be a successful landlord.

John is a Multi-Millionaire who made is fortune in Multi-Unit Apartment Buildings.  He is the only guru I know who sells his programs with a super low price and provides us with quality learning.

Find Your Life’s Freedom’s! Take Action Now!!

Time and Time again and I hear the same from bankers.  Real Estate Investors have no idea what skills it takes to be a successful landlord.  This is your investment so you need to invest in education to learn the skills neccessary on Property Management.

Real Estate Investing - The Power of Section 8 Housing

How would you like to own rental property where all or most of the monthly rent comes to you by check from the government? If that idea appeals to you, welcome to Section 8 housing!

 Section 8 is a program setup by the U.S. Department of Housing and Urban Development (HUD) to provide safe and sanitary housing to low-income individuals or families, the elderly, disabled, or disadvantaged in the private market. By issuing Section 8 housing vouchers, HUD assists tenants by paying the majority of their rent to you (the landlord). In other words, you get a guaranteed check form HUD by the third of each month.

He teaches you the formulas to use when your buying multi-units to keep you out of trouble! $49.00
Find Your Life’s Freedom’s! Take Action Now!!

 Residential or Commercial

You can take advantage of Section 8 whether you prefer to invest in residential or commercial real estate. In fact, Section 8 housing can be single-family houses, apartments, condominiums, or duplexes. Many property owners elect to become Section 8 landlords because it provides them with dependable cash flow. And the city already has a list of approved tenants, so you don’t even need to advertise your unit(s).

 Better Quality Tenants

Research indicates that Section 8 tenants tend to:

Be better than average

Often remain in their unit(s) for several years, and

Are motivated to pay you their portion of the rent each month.

Sounds unusual, doesn’t it? Why is this?

 Well, in order to receive Section 8 benefits, individuals must undergo an application process through their local Public Housing Authority (PHA) office. There is generally a lengthy waiting process and in some cases it can take up to one year or more to receive Section 8 approval. Once approval is obtained, PHA places applicants on a waiting list–a list of people just waiting for a property like yours! (It’s important to note that you never have to get involved in the process of establishing the eligibility of tenants. This has already been determined before the tenant calls you!)

 Participants in HUD’s Section 8 program must be re-certified each year. And no tenant wants to lose their Section 8 status. This benefits you as the landlord. Not only will you have fewer hassles, but your tenant(s) has a motivation to pay you the rent on time or risk losing his/her eligibility!

Many Types of Neighborhoods

Ill-informed landlords believe that Section 8 property must be located in subsidized housing projects. Although some investors do go this route, this is simply not true. Remember: The program is geared toward low income people, but the participants can choose ANY housing that meets the requirements of the program. So if you own properties in middle-low to low income areas (not war zones!), the Section 8 program just might be your ticket to wealth!

 Section 8 Housing can provide landlords with guaranteed rental income and long-term, quality tenants.

John Dessauer has an awesome Multi-Unit CD Program to teach you the proper way to buy Multi-Units.  John is a multi millionaire and made his fortune off of residential commercial real estate.  His program sells way below other real estate guru programs and is an excellent program.  It is part of my library.  And it can be part of your library for $49.00

He teaches you the formulas to use when your buying multi-units to keep you out of trouble!
Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing - It’s funny when I got into this business; I didn’t have a clue about being a landlord nor being a real estate investor.  Last year, I ended up holding in my portfolio two properties that I purchased to flip immediately.  However, was not able to sell them. 

However, as my blog states, I always buy with a backup plan when I buy real estate.  My backup plan was to rent them out if they did not sell. And I Did!

The single family house after rehab, all cost is $40K.  I put a Section 8 Tenant in this unit for $800.00 per month, we are paying the water. Talk about Cash Flow!!!!

(I had a young couple who looked at this property to buy for cash flow several times, each time they looked at it the price moved up higher and higher.  I chuckle to myself because, on the first showing I was willing to sell this property to them for $35K) 

I’ve telling you, if your a serious real estate investor you have to take Action and BUY NOW!  So many people look at a deal and walk away, they just don’t see the value in the deal. 

Here are two excellent cash flowing properties for under $40K.  The best part is they are fully rented and management in place.  NO loss of rents due to vacancies. NO stress with vacant properties as vandalism since a family resides in them. 

Rents are low; one year from now you can raise the rents very easily.  These properties are cash flowing properties and you need to buy one of them.

 http://serene.ewimultiplestreams.com/index.php?base=featured

Duplex that will be completed this week, have property management all lined up since it is an out of state duplex.  They are listed each side for $650.00; all into property for $60K. (Excellent Cash Flow!)

I had an inquiry regarding renting my out of state duplex as I was writting this blog.  This duplex will be rented out within 30-60 days. 

This property was a complete gut out.  I would not recommend you buy a large project rehab project like this one until you have several successful rehabs under your ability. 

If you are interested in learning more on Property Management Skills, I would recommend you purchased John Dessauer’s Property Management Program for $49.00.  (What a steal!) I truly don’t understand Why John is selling this program so inexpensive.  He is a great teacher and offers a wealth of information for $49.00.  If you learn one technique for $49.00 that saved you Thousands in lost rents or tenant destruction then your $49.00 was worth the purchase.

Find Your Life’s Freedom’s! Take Action Now!!

Otherwise, join your local Apartment Association to learn the in’s and out’s of Property Management.  This is an area that you need to learn new skills otherwise your looking into having issues with your investments. 

 Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing – As we are finally winding down from the long winter months, its time to pull up our For Rent Signs.  For those of you who are familiar with the cold winters in the Midwest, you know once the sign are in the ground before freezing the sign is staying until the ground thaws.

Anyway, its always interesting attempting to put up For Rent Signs in the middle of winter when the ground is froze.  With Wisconsin having so much snow this last winter I used the huge snow files to my advantage of holding up my For Rent Signs!

I’ve discovered the snow wipes off my phone number on my For Rent Signs.  Today, I am re-writing my phone number so I can place it in front of my last vacant unit.  I had a prospect who wanted to move into the unit however after checking her references out; I denied her. 

Her last landlord, whom I know well, instructed me she was a trouble maker for the other tenants.  She used to live in a apartment building with over 16 units.  She would be living in a side by side duplex.  I also contracted her aunt who had kicked her out of her house.  Her aunt would not give me a good reference for her, her only answer was, Yia, ya, ya, ya …….   Huge Clue! 

You guessed it, Don’t Rent to this person, if you do, you are looking for trouble!

Find Your Life’s Freedom’s! Take Action Now!!

Otherwise, join your local Apartment Association to learn the in’s and out’s of Property Management.  This is an area that you need to learn new skills otherwise your looking into having issues with your investments. 

Find Your Life’s Freedom’s! Take Action Now!!