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Real Estate Investing – YEAH, rents came in!

I received Rent Check, Called up my Friends and told them to meet me at the local Pub!

Real Estate investing requires you to be a responsible person by understanding rental income. The value of positive cash flow and be responsible to where the rent money needs to be allocated.

I met a handy man a couple years ago who invested in foreclosures 2 years ago. He was selling one of his investment properties, just happened to be a 4 plex. I immediately asked him one simple question. Can you guess what question I asked?

Here it is, What is your monthly cash flow?

Now, the cash flow number can change depending upon how much money the investor put down on the property and interest rate or how the investor’s loan is structured. It’s critical to dig deep into the answer.

Remember, Cash if King!

He told me he pockets $1,100.00 and uses this money to pay his mortgage payment. Well immediately, I started to probe him for other questions. He never did answer my other questions but all he did was small talk or walk around my questions. I recently found out he lost all of his properties in January to foreclosure.

You ask WHY, I will tell you why.

He never repaired his properties to a living standard. The work was completed but done beyond satisfactory. The city was fining him for violations and he never did complete the work to the cities requirements.

2^nd reason, This particular investor took his rental income and went down to the local Pub. Folks if you don’t pay your creditors they will come after you for your assets. Even though real estate prices have dropped dramatically, real estate is still worth a better price than your old furniture or rusty old car.

This particular investor was uneducated in Cash Flow and the banks took back all of his real estate assets.

Property Management is a critical skill investors are not willing to learn and invest and time or money. This area alone will either make you a millionaire or make you poorer than you already were prior to real estate investing. Which one do you choose?

Invest in John Dessauer’s Property Management course to keep your monthly cash flow coming in month after month. Without it, the banks will be calling you

Cashflow Cindy

P.S. Do it Now

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

Real Estate Investing - Selling Cash Flowing Properties

In today’s unstable real estate market with masses losing their jobs and their homes it’s important to remember WHY people invest in real estate.

The number 1 reason, Sandy and I invest in real estate is cash flow. If the single family house, duplex or tri-plex does not cash flow then we RUN. When I talk about cash flow, I am talking after ALL bills are paid you have money left over from the rental income! I will say this again, after ALL bills as taxes, insurance, water, heat and repairs on the property are paid for any money left is Positive Cash Flow!

If you are buying investment property with Positive Cash Flow then its important for you to SELL your investment property to other investors so the property cash flows. Everyday, people ask me, Cindy how do I sell my property to cash flow for the investor to buy my property and still make a profit on it?

Answer: If you purchased the property correctly in the first place then you will not have any issues selling the property to another investor with positive cash flow.

Remember, when you buy an investment property, someday you are going to sell it. If it’s larger than a single family house then chances are an investor is buying the property as an investment. Many first time investors will buy a duplex and live in one side while the tenant pays the mortgage. However, even in this situation, when you market the duplex, it needs to be marketed as fully rented with Positive Cash Flow in order for the property to sell.

My partner and I sold our cash flow duplex to another investor and made a nice profit plus the investor purchased a cash flowing duplex.

Cashflow Cindy

P.S. Most investors buy property without having a clue or understand money or cash flow.  These are the duplexes and single family houses I buy for pennies on the dollar because these investors were too cheap to invest in a property management program.   John Dessauer offers an excellent program to teach you the meaning and better yet how to calculate positive cash flow.   Invest in a Property Management Course before you invest in Real Estate otherwise, I can assure you will purchase the property Wrong!

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

Real Estate Investing – Housing (Section Annual Review

Real Estate investing is a lot easier when you don’t need to run around the first of each month collection rent checks. Housing (Section allows you the ease of either receiving you rental check on the first of each month or having your check electronically deposited into your bank account.  As I’m noted for as cashflow Cindy; Housing provides cashflow to my rental units.    I bought my rental units to cashflow and cashflow they do!

However, by no means is this easy. Taking on a Section 8 tenant does require work on your part or your property management company from a landlord perspective.

Each year Housing (Section does require the tenant to have an annual review. The following is a list of items the tenant must present to their Housing Specialist. If the tenant does not provide the following information by a specified date then Section 8 will STOP payment of Section 8 tenants rent check. They instruct the Section 8 tenant the rent responsibility falls back on them.

Being a landlord; it is your responsibility to stay in contact with the tenant to confirm and instruct them if the following information is not provided by a specified date then their Housing Stops paying rent!

Assets – Current bank or investments statement

Income – Earned income, six to eight weeks of current check stubs; other income – a benefit noticed, bank statement or other available proof.

Expenses – Day Care – Receipt or statement from provider

Medical – 12 month printout from pharmacy or other medical provider, insurance premium notice

Copy of Federal 1040 Tax Return and Schedules

Housing (Section is a government funded program to assist people with their rent. In order to be approved for the program they are required to show a NEED to be on the program.

Section 8 Housing is work for the tenant and the landlord. However, if both parties work together it is a good program to assist families while they improved their financial situation.

Cashflow Cindy

P.S. John Dessauer has excellent program to purchase for you to learn Property Management Skills.

Find Your Life’s Freedom’s! Take Action Now!! to learn NEW essential skills to be a successful real estate investor.  If you don’t learn property management skills you will become or maybe you already are a DON’T WANTER!  If you are a don’t wanter; please contact me and I will take your property off your hands.

knowhowknowhow@gmail.com

Real Estate Investing – 24 hours to Section 8 Inspection

My contractor called me last Tuesday Night to inform me the Section 8 inspection will not pass due to a broken window.  The tenants son throw a toy and broke the window!

Talk about last minute, this meant I had 24 hours to get this window fixed.    The worst part it was a double pane window!  Plus my tenant attempted to take the window out and did more damage to the frame (wonderful news!).

All I could think of, “I have to get this window fixed and in a hurry”.   If the window was not fixed the inspection will fail and cost more money. 

Cost is High

·         Loss of Income

·         Section 8 charges landlord if 2^nd inspection fails!

·         Receive bad reputation from Section 8 Inspectors

I have never had a 2^nd Section 8 inspection fail in the 3 years of my real estate investing and this one will pass.  I just need to think positive and get creative.

What would you do in this situation?

I went home and looked through my rolodex of past contractors in the Green Bay area to find Duane.   Duane has done work for me in the past however he was more expensive than my normal contractor.   Would Duane fit the bill to get this job done for me?

I started thinking about Duane’s traits:

·         Past experience told me he does excellent work

·         Duane is reliable

·         Duane calls me every once in a while to see if I have any work for him

I called Duane at 9:00pm; yes it was late however this was an emergency. Duane was happy to hear from me and understood the issue facing us.

 We need to get the window fixed to pass Section 8 inspection in 24 hours.   Duane put in a brand new window, since it was cheaper to buy new than fix the old window.

Section 8 inspected the property 24 hours later!

Last Saturday we received a letter in the mail from Section 8 (HUD housing) informing us the inspection PASSED!!!

We all have hurdles to overcome; it’s how you handle the hurdles that will determine your success!

cashflow Cindy

P.S.  I am looking for people exactly like me to join my Winner’s Circle.   If you fit the criteria, then email me at cindee@dishmail.net for more information.

You have to want to WIN!

Real Estate Investing – List of Items Must Be Repaired To Meet Section 8 Guidelines

On June 24, 2009, housing inspected our upper 2 bedroom duplex located in Green Bay, Wisconsin.  Housing notified us indicating the inspection failed.   The next day we receivd a letter indicating a list of items that need to be repaired in order to be in compliance with the Federal Quality Standards.

All items listed must be repaired and re-inspected or current payments to the landlord will be abated effective August 31, 2009.  We are scheduled for re-spection on July 24, 2009.   If the Section 8 inspection fails on July 24 then we will lose our rental payments from housing plus we will have to pay for the re-inspection.  (this has never nor will happen to us!)

All items listed must be repaired and re-inspected or current payments to the landlord will be abated effective August 31, 2009.

1.       Living Room:  Repair window so they hold/stay up without aid of prop.  Repair window so it functions as designed and is not a hazard.

2.       Living Room:  Repair window so it opens with ease function as designed.   Window must open for egress ventilation.

3.       Living Room:  Replace Missing Screen

4.       Living Room:  Replace non-working light bulbs to insure fixtures are functional for inspection.

5.       Kitchen:  Repair/replace fridge shelf retention bar(s) which are broken or missing.

6.       Bedroom:  (Right-Rear) Replace missing screen.

7.       Bedroom:  (Right-Rear) Replace cracked/broken window

8.       Bedroom (deck): (Right-Rear) all exterior doors must be weather tight.  Install proper weather sealant or replace/repair door so it is properly installed. 

9.       Bedroom:  (Right-Rear) Repair/replace damaged screen so screen fits in frame as intended.  Also screen is torn.

10.   Side entrance:  Storm door must have a working self closing device.  Repair or replace.

11.   Basement:  Remove standing water from basement.  Take steps to correct water seepage problem in basement.

12.   Basement:  Smoke detector must be in working order.   Install a batter or replace battery and test for proper operation.   Non-working smoke detectors must be replaced.   If battery is beeping, detector is indicating dead battery and needs to be replaced.

13.   Front entrance:  Paint door to match existing woodwork.  Remove all loose, chipping and peeling paint chips in lead safe manner.

14.   Front Entrance:  Replace/repair missing or broken trim.  Replacement or repairs must be painted/stained to match walls.

15.   Entrance staircase:  Repair hole (s) or missing sections of wall.  Repairs must be finished and painted to match walls.

16.   Neighborhood:  Site and Neighborhood Conditions = Remove debris/junk/trash and clean up exterior property area.

cashflow Cindy

P.S.   You need to attend Marshal Sylver’s Prosperity Alliance Training to learn how to keep you focused on your goals.  As Miley Cyrus says “It’s All About The Climb“

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http://prosperityalliance.com/cindyconradt