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Real Estate Investing; Will You Accept Section 8 Tenants?

You need to ask yourself; will I accept Section 8 Tenants in my rental units?

If you do decide to take Section 8 tenants; then you need to get yourself educated in Section 8 rules and regulations.

Remember:  Section 8 has certain guidelines these families need to meet however it’s your responsibility to do background checks on these tenants!  Screen, Screen and Screen (did I make I point to you?)  I am telling you this through my own experience. 

I will share a story with you listed below:

Last summer I had a Section 8 tenant who moved into my property.  The couple was separated.  The husband’s share of the rent was $175.00.  Section 8 paid the balance of $175.00.  The gas company called me up and started asking me questions about my tenant who lived at this property.  The name was an individual who did not reside in this unit or any of my units.  The tenant was attempting to put it under his brother-in-laws name!  The gas company would not put the gas or electric in my tenant’s name due to this tenant owing money.

Things went from bad to worse in this situation.

A couple of months later, his wife decided to move into the property with him.   Once his wife moved in he stopped paying his share of the rent.  I contacted Housing authority and explained the situation to them.  I had to put everything in writing.  The wife was breaking Section 8 guidelines since she had a place of her own they were paying on.  The husband broke section 8 rules since he was being evicted by not paying his share of the rent.

To make a long story short:  The tenant was evicted and both of them lost their housing assistance (remember Section 8 tenants have alot to lose!!!)  Make them follow the rules.

No wonder they had a heating bill out of control since they had the heat up to 80 degrees in the unit!

Do background checks on all of your tenants!  Screen, Screen, Screen!

Would you hand somebody you don’t know the keys to your $45,000 truck???

Section 8 confirms no illegal drug activity, no sex offenders.  They don’t screen the tenants.

Your concern is Will this family maintain and respect my real estate investment?  This is a concern of all landlords and you better make it a top priority concern of yours to protect your real estate investment.

Remember to order Zig Ziglar’s Goal Setting audio.  Its a small investment for you to learn how to write your GOALS for 2009 on real estate investing.  If you don’t have a path or direction for yourself then you will help someone else achieve their dreams and goals.  If this what you want?  listen to 3 FREE audio’s!

Without clearly defined goals, you simply can’t achieve the success you want! In Goals, world-renowned motivator Zig Ziglar guides you through a clear, beautifully organized ’success trip.’ Along the way, you’ll learn how to recognize and set your goals. You’ll learn techniques for finding extra time you didn’t think you had and for cutting down big goals to easy-to-handle size. Now you can take advantage of this all-important opportunity to write your ‘business plan for life.’

cashflow Cindy
P.S. Cashflow is the name of the game in rental units.   Section 8 can provide you with cashflow each and very month if you understand Section 8 rules and guidelines.

Real Estate Investing – Mobile Home Park Required a $1,500.00 Security Deposit

The mobile home park required us to give them a $1,500.00 security deposit prior to moving the mobile home out of the park.    This deposit covers any damages incurred to moving the mobile home off the lot and out of the park.

·         They required us to remove all garbage as insulation, stones and garbage once the mobile home was moved off the lot.  

·         The grass needs to be in the same shape as when the home was sitting on it prior to removal of the mobile home.

·         The grass underneath the shed has to be re-seeded and raked.  The shed was sitting on the grass for over two years so needs to be re-seeded.   If the grass is not re-seeded then they will take money out of the security deposit to pay their landscape crew to re-seed the grass.

When the mobile home park told me they required a $1,500.00 security deposit prior to removal of the mobile home I thought to myself they are being quit demanding and money hungry.   However, after talking with them and finding out the damages that people incur with removing the mobile home they are protecting their investment.

The park instructed me they have owners move mobile home out of the park in the middle of the night.  They take chain saws and cut trees down and damage signs and dig huge ruts in the grass.

Mobile Home Parks cost money to maintain as our rental units.   This was my first mobile home purchase and a huge learning experience with the purchase and moving it.

As with any of my other experiences, my next purchase will be done differently.  However with

real estate investing it is a daily learning experience.

If interested in learning more information on Mobile Homes and Mobile Home Parks this is a great web site for you to gain quality information.

http://www.mobilehomeparkstore.com/cmd.php?af=1002978

cashflow Cindy

I paid $3,000 to attend a real estate investing class on investing in mobile homes last year.  Needless to say; I came back home and was so involved with my other real estate as rentals, flips, retail flips that I did not have the time I needed to take action on my real estate education.

Until Now!

I wrote down a goal for me to own 10 mobile homes by September 30, 2009.  The first thing I asked myself is, What is my first step of action?

 I need to find some mobile homes for sale.

Since it was so nice out last Sunday, I drove into a town and discovered they had 3 mobile home parks in a little town.  I drove through all 3 mobile homes.  The first 2 the only homes I saw for sale were by Century 21. 

First lesson of education as a real estate investor is the best deals are found FSBO.  I kept on driving.  The last mobile home park was located out in the country.  Guess What??  I discovered 3 mobile homes for sale and all of them are FSBO. 

As soon as dinner was finished; I picked up the phone and contacted all 3 of the owners. 

Guess What?

They are all motivated sellers!!!

Now, creative real estate investing is needed to put these deals together and get them financed.

Real Estate Investing - What do you want out of real estate investing?

Before becoming a real estate investor you need to decide what you want out of real estate investing!

Are you looking for immediate Cash?

Are you looking for passive income?

Are you looking for Cash Flow?  If so, then you need to learn how to analyze the deals correctly.  In order to become a real estate investor you need to know what your WHY is before.

I see many investors get into real estate investing and have no clue what they want out of it.  The second mistake is they don’t know how to analyze the property. 

Will this property cash flow?  Did you calculate all of your expenses with holding cost for either selling or renting it out?

They forget about all the cost involved with owning investment properties.

Many on their way to becoming a real estate investor forget about the HOLDING COST!

Holding cost can either make or break or deal.  Holding cost is the cost involved with holding the property until it sells on a retail flip or wholesale flip.  You need to figure in How long it will take to sell this property.  The longer you hold the property the larger cost you have involved.

Taxes
Insurance
Heat (killer cost in winter months for cold states)

The other mistakes investors make is figuring they can get top dollar for their rehab house in today’s market.  The market decides what price the house will sell for NOT YOU!!

A great program to teach you how to put the numbers together properly is Making Millions in Multi Units.  This program teaches you how to buy the correct property. 

 It keeps you out of trouble!  for a small fee of $49.00 (cd’s and workbook)

John teaches his knowledge and experience.  He also teaches you ways to buy Multi-Units with No money down!

 Making Millions in Multi Units
Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing – The first of the month brings in a stash of Cash!

The first of each month brings in quit a chunk of cash depending upon how many rental units you own.  I started out in my investing career with a tri-plex and a duplex bringing in over $2K every month from 5 units.  I purchased these units within a 3 month time frame.   Each one of these units cash flow….Its amazing how quickly rental units add up. 

My sister called me today to call one of our tenants up in Green Bay to find out if the rent check was mailed out.  I called his place of employment and they told me he left last week.  He found a new job or profession.  So I called his cell phone that had no voice mail message on it.  He returned my phone call within a 5 minute period instructing me, the rent check is being mailed out tomorrow.

He was separated from his wife last November 2009.  However his lease expires in May and he is contracted to pay up to May, unless we find another tenant to move into the property.  He did inform me that the place is all cleaned out.  He is going back to vacuum and clean the unit this week.

When you manage your own rental units you need to stay on top of the tenants.  I instruct each tenant when they move into the property that the rent is due on the 1^st of each month.   No exceptions!  If the rent check is received on the 2^nd then a $50.00 late fee is attached.  Unless they call me and instruct me the rent check is going to be a couple of days late this month.  I will allow it! 

Real Estate Investing has its own challenges like any other business.  However, with real estate investing you need to decide if you own rentals are you going to manage the units yourself or hire a property management company.  I recommend managing your units for up to one year.  Its critical to for you to understand the skills needed to be a successful property manager.  If you don’t understand the skills that are needed then how will you hire a property manager?

John Dessauer has an excellent Property Management Program for minimal Cost.  In my eyes; its FREE for the valuable information you learn from his program.

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

Real Estate Investing – 99%  Starts in Your Mind!

With all of the negative news media and people around us it seems we are circled in negativity.  Today I pulled out some old CD’s I had on flipping properties.  And to my amazement, he had 3 sections dedicated to Mind Power. 

FREE Gift listen to Marshal Sylver’s Seminar for free, he is an amazing teacher.  The challenge is telling yourself Don’t ask Questions, just listen to the Master.  Enjoy!

 http://prosperityalliance.com/cindyconradt

The successful real estate investors believe first you need to visualize your success in your mind.  As Marshal Sylver teaches us your unconscious mind does not know if it is real or not.  Start telling yourself positive affirmations each day, examples:

I am a Millionaire

I am unstoppable

I love money and money loves me!

I am a money magnet!

People love me and love being around me.

It was funny because I listened to this group of cd ’s one year ago and totally ignored cd 1.  The reason I did not listen to this cd was because it’s mainly on Mind Power.  I felt listening to cd 1 was waste of time.  Tonight I felt alive and warm all over knowing he too believes in whatever the mind can conceive you can achieve.

 After attending Marshal Sylver’s ‘Turning Point’ a couple of months ago, I understand and discovered he also attended Marshal Sylver’s Seminar.  This was a totally different experience for me than attending Real Estate Bootcamps.  You need to attend with an Open Mind.

FREE Gift listen to Marshal Sylver’s Seminar for free, he is an amazing teacher.  The challenge is telling yourself Don’t ask Questions, just listen to the Master.  Enjoy!

 http://prosperityalliance.com/cindyconradt

Real Estate Investing - Property Management is always an experience when you own rental property.  My experience with Property Management has been both positive and negative.  However, the longer I own rentals the better experiences I have.  Probably due to the learning curve involved and what NOT to do again helps improve my property management skills.

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

Key ingredient to Property Management is getting yourself educated in the laws and regulations where your properties are located.

Education:  Education is critical to your success if you are managing your own units.  You need to know the Laws and regulations in your areas of investing.

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

Apartment Associations:  Join the Apartment Associations in the area of your investing.  The Association is a great place to keep abreast of the laws in your rental areas.  We all need to follow the laws and know the laws well.  Your tenants will know their rights and the laws so you better be more knowledgeable in this area than your tenants. 

Landlord Classes:  Attend Landlord classes.  Many times your apartment association will sponsor or even offer you landlord classes.  These classes usually run you around $30.00 for an 8 hour class.  This $30.00 is well worth the cost and time for you to become a better educated landlord.  Landlording is a serious business and needs to be treated as a separate business.  This means attending classes to learn about the screening process, background checks, eviction process.  You are putting families into your investments and need to know your rights as an owner.

Networking:  Networking is important in this area.  If you have an issue you need to resolve and have a network of people who are experienced in this area.  Generally they can offer you great advice on resolving this issue or refer you to somebody else who can assist you with resolution.

I recommend managing your rental units for up to one year.  This years of experience will enable to you a more intelligent questions screening Property Management Companies.

John Dessauer offers a Property Management System for $199.00 on audio tapes.  This may be the route of your choosing if your time is limited and would like to learn Property Management skills via audio versus classroom style.  His prices are 1/3 of the cost compared with other real estate programs.

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

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

Section 8 and How it Benefits You

Are you looking to broaden your rental real estate horizons? The real estate market is currently prime for investors to purchase income generating properties. With the falling real estate prices and increasing foreclosure rates, real estate investors are not only considering building their property portfolio, but they are also looking specifically toward rental real estate opportunities. Properties are available at significantly reduced pricing and interest rates are among the lowest in a decade, making now a great time to invest.

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

The Rental Property Opportunity

Many individuals are unable to purchase their own homes at the moment or are being forced to move out of their current properties and into smaller, less expensive properties. Increased foreclosure rates across the country are forcing individuals and families to rent, and many would prefer to rent a home as opposed to an apartment unit.

Investors can purchase a home prior to foreclosure from a home owner and rent it back to them, a strategy which is beneficial to both parties involves. Investors can also purchase a variety of lower value properties to rent to individuals who are losing their properties to foreclosure or to target the lower income rental market. All of these strategies offer financial opportunities to investors ready to enter into the real estate marketplace.

As a rental property owner, learning how to capture the individuals within the marketplace will enable you to capitalize on the current market conditions. One important program that fits within the overall rental real estate strategy is the Section 8 Rental Voucher Program.

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

Real Estate Investing:  Short $10,000 for Rehab Money?  (part 1)

My partner and I purchased a duplex in Indianapolis, IN.  I received quotes from 3-4 different contactors on the duplex. 

The duplex needs quit a bit of work.  For those real estate investors whom have purchased foreclosed properties in Kansas City, Detroit, IN and Iowa.  You already know; when these properties are left abandoned the items inside the house tends to disappear.  As the furnace, copper plumbing, and air conditioning.  This particular duplex all of the windows are bad in shape.

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My quote to repair the windows was $2K on each side for a total bid of $4K.  As a professional real estate investing we need to remember rehabbing a duplex is different than a single family in the sense everything is doubled by two’s:  two furnaces (unless the landlord wants to pay the heat), two air conditioners, two kitchens, two bathroom, and two living rooms.

Great Cash Flowing Real Estate:  http://serene.ewimultiplestreams.com/index.php?base=featured

I requested a quote on replacing ALL the windows and it came in at $6,500.  Let’s take a look at the two different quotes.  $4k will repair the broken windows, screens, locks (still OLD windows) or $6,500 the duplex has completely new windows. 

My partner and I decided to change ALL the windows for an additional cost of $2,500.  We are adding value to the property so when real estate prices go back up again.  This duplex will sell for $120,000.

Check out these excellent opportunities to purchase real estate at rock bottom prices and earn passive income:  http://serene.ewimultiplestreams.com/index.php?base=featured

Real Estate Investing: Abatement Program – Drug Activity

Yesterday I attended a seminar at the Appleton Police Department.  This seminar was put on in conjunction with the Appleton Apartment Association.  The Appleton Police Department is involved with educating the Landlords in the Outagamie County on Drug Activity. The Police Department has the right to seize our Real Estate Properties if Drug Activity occurs and the owner’s are unwilling to cooperate to remove this kind of bad behavior.  You need to ask yourself this question, Is your Real Estate Investments Crime Free?

Does this mean they will take your Apartment Building on the first time Drug Activity occurs and they get called to your building?  No, however if the owners are unwilling to evict or cooperate with the Police Department.  Then they do have the legal right to seize your building through this abatement program.  The Appleton Police Department has never seized any properties in Outagamie County.

However, the officer did inform us yesterday this situation did occur in the Milwaukee area.  The manager or owner of the building did not cooperate with the Police Department on the drug activity occurring.  The Huge Apartment Complex was seized by the Milwaukee Police Department and bull dozed the building to the ground! 

They had a situation here in Outagamie County where a 64 unit building was under major drug activity.  The Police Department was called to the building over 200 times a year.  They finally contacted the owner of the commercial building who was an out of state real estate investor.  The out of state real estate investor flew into the Appleton area and met with the Police Department.  Through Working with the Police Department and renovating the building through major upgrades.   This commercial apartment complex is now crime free!

You need to invest in yourself by attending Seminars in your local area on Real Estate Investing.  Keep abreast on the laws regarding Real Estate to protect your assets.  Otherwise your Apartment Building could be seized and your asset removed from you portfolio.  It’s critical to your real estate success to keep yourself educated!

Without clearly defined goals, you simply can’t achieve the success you want! In Goals, world-renowned motivator Zig Ziglar guides you through a clear, beautifully organized ’success trip.’ Along the way, you’ll learn how to recognize and set your goals. You’ll learn techniques for finding extra time you didn’t think you had and for cutting down big goals to easy-to-handle size. Now you can take advantage of this all-important opportunity to write your ‘business plan for life.’