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Real Estate Investing – Raising Section 8 Rents

I started in Real Estate Investing about three years ago.  The first duplex my partner and I purchased together was a foreclosed property in Green Bay, WI. 

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It was in the middle of December.  Yes, it was cold here in Wisconsin.

The place needed quit a bit of work, however, the major work was in the kitchen ceiling.  The owner people thought duck tape would hold a ceiling together.  Well, he was wrong…….

 Through many counter offers we did get the offer accepted.

We did a home inspection and found out the upstairs unit had a fire.  The fire department had punched a hole in the roof in order to come in with their water hoses.   We went back and did get a lower price due to the fire that had occurred earlier.

After months, we finally had the place rent ready.  A Section 8 tenant approached me on renting the upstairs.  At this time: I know little about Section 8; who they were or there rules and regulations.

We filled out the paper work and the upstairs unit did pass the Section 8 inspection after a few minor repairs were needed.  The tenant moved into the property. 

Before long the one year lease was coming up; and Section 8 came back out to inspect the unit.  Again, a few minor repairs was needed in order to get the unit to pass again.  However, this time I requested a rent increase since the rents were low.

I found out; in order to get a rent increase to pass; the request needs to be submitted two months before the lease expires.

This year, I was prepared; the new lease with the rent increase was submitted two months prior to the lease expiration date.

A great product to purchase is John Dessauer’s Property Management course.  Without excellent property management skills you will have a difficult time building wealth with your rental units.

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Keep reading my blog on real estate investing this is free real estate education from a professional real estate investor.   Post any questions or comments.

Cashflow  Cindy

Real Estate Investing – Call Small Local Banks

Follow along with me every day and do the same steps that I do and you will earn $100K with me.  This is FREE education in real estate investing.  Real estate investing takes time, drive and motivation.  I am writing a daily blog to instruct you on the steps that I take every day, its up to you to follow and take action.  Go back down and read the first blog on Challenge Prep Course with all of the beginning assignments.  We are going to start looking for deals tommorrow so get moving!!!

Are you taking action with me to earn $100K within the next 6 months?  How devoted are you?  You can either read about it or follow along with me.  We are going to make $100K by flipping real estate or holding the property equity.

The moral of the story for those of you who watched the movie Rocky is you are going to have challenges along the way; the secret is how you deal with the challenges by getting back up again!

1st step:   Download my FREE e-book:  You are going to use these strategies to finance your deals.  These are the same strategies I use on a daily basis.  Go ahead and take action now!

I paid Big Bucks for my real estate education and am giving this knowledge to you for FREE, WHY, because, I want you to live your life stress free and enjoy your family.  Working all the time causes stress on relationships and God only put us on earth for a small time.  Let’s enjoy our time together and share our wealth!  Now, download my FREE e-book.  I used these stratgies daily and you will too.

Back to Real Estate Investing; I purchased a fixer upper in Indianapolis, IN to buy, rehab, rent, refi.  I am currently on the rent and refi step.  Many people are told me the banks in Indiana will not refi a property to out of state real estate investors. This is far from the truth. 

I have a small local bank who is refi by duplex at a 60% LTV to an out of state investor. (I am the out of state investor!)

 Meaning:  The appraisal comes in at $120K, then the bank takes 60%  X $120K.    This situation they will give me a loan for $72K.

In this market or I will say any market.  When you are buying cash flow properties, DON’T pull out as much equity as you can.  If you stay 60% or lower; you will not have an issue with refinancing your deals.

I’ve seen too many real estate investors pull out as much equity as they can to live on or just to pull it out.  Now there mortgages are too high to sell the properties in this market.  DON’T do this; its poor business planning.  Whenever you purchase a cash flowing real estate investment; always ask yourself, if the rental market has a downturn can I lower my rents to be competitive and pay my mortgage, taxes and insurance?

Assignment:  Start calling local banks in your area.  You may need to spend 8 hours on the phone to accomplish this task.  As Rocky did in the movie, did he quit?

Listen to Bob Proctor’s Think and Grow Rich Video on Six Minutes to Success:  Listen to this video for the next 5 days.

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Real Estate Investing – Are You Managing Your Own Property?

This is an interesting question?  If you answered YES, then you are learning and growing as a Landlord and also a Real Estate Investor.

Managing your own rental property has many advantages and disadvantages.  The disadvantage is your wasting quit a bite of time managing vs. out making money!  However, I recommend managing properties for one year.  This year experience is more valuable than any book you can read or any seminar you attend on Managing Rental Property.

This program can be purchased for $49.00.  (This program is Worth More than $49.00) 

If your interested click on the link below to view:

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I started to have all of my tenants sign a drug disclosure stating NO drugs allowed on premises.  If they do drugs or anybody on the premises is doing drugs then we have the authority to evict immediately!

I currently have an odd situation on a side by side duplex.  Both tenants are single moms on Section 8 Housing.  They both have many similarities and putting the two together we thought they would get along wonderful since they have much in common.

The one tenant is complaining about the other tenant smoking pot.  I contacted the tenant and instructed her we are getting complaints on smelling pot.  This tenant instructed me she does not do any type of drugs.  We had along discussion on drugs prior to moving into the property. 

She instructed me her and the tenant went out to the bar last night together.  She comes over to her apartment and they drink coffee and chat.

Interesting enough, this same tenant who is complaining about the other tenant doing drugs complained about the previous tenant.  The previous tenants were a husband and wife with a high school student.  Very Nice Family who were well respected in the neighborhood!

When you own multi-units the challenge is getting tenants to get along together. 

Our job as landlords is to be private investigators to figure how who is telling the truth and who is not.

More to follow on who is telling the Truth and who is Lying……..

John Dessaurer has an excellent Management Program on cd’s.  John is a Millionaire who made his fortune buying large Multi-Units.  He is an excellent teacher who sells his information way below other real estate gurus.  He is selling this program at a ridiculous low price.  I took his Multi-Unit Class and own his programs.  His fee is extremely low compared to the other real estate programs on the market.  Don’t equate his low price with quality.  His programs are Quality at a ridiculous low price.

This program can be purchased for $49.00.  (This program is Worth More than $49.00) 

If your interested click on the link below to view:

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This is where a private investor may step in. The investor may have no knowledge of the management of the proposed real estate investment. But he has faith in the professional promoter and is willing to invest money without any further involvement. When the profits come in, he will get his returns at the predetermined rates and be happy with that. If the profits are not there, the silent real estate investor gets nothing. Additionally, depending on how the investment is structured, the silent investor could also be held liable, in proportion with his investment in the property, for any losses incurred or debts.

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While this may not, on the surface seem like a desirable form of real estate investing, the advantages are that the investor does not have to devote any time or energy towards the management of the property. Presuming that his faith in the professional who is the manager is well founded, all the silent property investor needs to do is collect his dividends.

Another reason that people opt for silent real estate investing is because of a desire to avoid unwanted publicity – say a businessman undergoing financial problems who has other legitimate secure funds to invest but fears the investment would be misunderstood. Often the reason behind the silent investment is a fear of a conflict of interest situation arising – for example a close relation of a leading chef who has independent means may want to invest in another restaurant but does not want any issues of conflict of interest to arise.

Due to the quiet nature of this kind of real estate investing, the number of silent real estate investors is impossible to estimate, but because of the benefits this form of property investment offers, it is safe to assume that the number is large.

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3 Stages of Buying Foreclosures

By Jarad Severe

The strategy of buying pre-foreclosures is to create a situation where everyone wins. This type of strategy involves just you, the homeowner, and in some cases the lender. Because the homeowner has been delinquent on his or her mortgage payments, they are now in a position to entertain offers made by investors. Keep in mind, you may not be the only investor looking at this property. However, when buying pre-foreclosures, you can expect very little competition.

When buying pre-foreclosures like this and in turn make a profit, you must do some research on these types of properties. The following are some basic guidelines:

1. locate loans in default,

2. evaluate each property by comparing and contrasting location, price, and property condition

3. narrow your selections to a few

4. inspect the properties

5. determine the property owner’s needs, his motivation and flexibility

6. determine the market value of the property, fix-up costs, potential sales price and profits

7. arrange default work out by negotiating with the owner and the lender

8. close on the property, fix it up, and flip it quickly

Check out these Cash Flowing Deals:

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Buying Foreclosures at The Auction

Buying foreclosures at the auction is a great way to purchase a property under market value. Most properties are auctioned on the courthouse steps. The property is auctioned off to the public and the highest bidder walks away with the property. This can be very rewarding to those who are in a position to buy the property within a short amount of time and can be devastating to those who bid without proper financing in place. Most auctions require a small deposit down of the purchase price on the spot and the remaining balance usually within 1-30 days. So make sure You have you deposit ready and your financing is in order before you bid. If you are unable to get financing within the allotted time, you will most likely lose your down payment, and they will auction the property off again. Buying foreclosures at the auction is also the riskiest place to pick up a foreclosure. You are buying the property in “As Is” condition so it’s very important to do your homework before you just go to an auction and bid on a property.

When buying foreclosures at the auction, we recommend you:

1. first visit a local auction to get a feel for the bidding procedure, find out how much is required as a down payment and when the rest is due

2. get proper financing in order

3. research properties and do your homework prior to the auction date

4. calculate potential profits

5. determine the most you will bid for the property

6. follow the property to the auction and participate

Check out these Cash Flowing Deals:

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Buying Foreclosures that are Real Estate Owned (REO)

Buying foreclosures that are REO primarily involves the lender. REO just means the lender reclaims the property and establishes control over it to minimize its losses. Buying foreclosures that are REO is by far the easiest way to pick up a distressed property. Lender’s are always listing properties that come back from the auction, because they don’t like excess inventory. They are in the lending business, therefore it is quite easy to find these types of properties. Most of the time they will hire a broker or real estate agent to handle the REO’s just because there are so many of them. Lender’s in this situation are very motivated, especially if they have a large number of them. These properties are considered to be a huge expense which need to be eliminated. This gives the investor numerous ways to creatively negotiate with the lender on a purchase price. One disadvantage when buying foreclosures that are REO, is that you will pay close to market value for these properties because the lenders will have paid off any outstanding liens, taxes, and other expenses. This is good for you though, because most of the time you will find these types of foreclosures with clear titles.

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Real Estate Investing – Section 8

Real Estate Investing:  Section 8 is an assistance program through the government to assist low income families with housing.  In many areas there is a long waiting list to get on housing.  In Outagamie County area there is a waiting list of over 1,200 families!

The families have to meet Section 8 guidelines in order to be approved for the program.  Once they are approved then they are given a voucher for a certain dollar amount.  At this time is it there responsibility to find suitable housing that meets housing guidelines as the voucher dollar amount and number of bedrooms.

Each family’s monetary guidelines are structured differently.  Some vouchers pay for the full month’s rent.  Other vouchers pay a percentage toward the rent.  If the family has income as a W-2, Social Security or Disability then they are required to pay a percentage of the rent themselves.

If the tenants are evicted for any reason then they lose their housing for 3-5 years.  It’s in their best interest to follow the rules and guidelines of housing and the landlord’s.

Housing requires children who are the opposite sex to have their own bedrooms.  Example) A family has 2 children.  The boy is 5 years old and the girl is 7 years old.  Each child needs to have their own bedroom.  In this situation their voucher would require them to find a 3 bedroom to meet housing guidelines.

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