Sept 25th – Why I carry a gun

This afternoon I got a call from a Community Action Agency but I deal with quite regularly in town.


They were requesting information on whether I had sold one of my apartment complex  because  a tenant of mine and a client of theirs called and said that somebody showed up, cussed out their client, and told him that they were the new landlord  of the building.


I told them that this definitely was not true and that I would investigate it. So I visited my apartment complex and talk to a man who’s generally been very reliable and honest with me. Not only did he tell me that this was true but then he identified the man that threatened him as one of my tenants that I’ve been having problems with. So in short one of my tenants claim to buy the property off me and threaten this guy. To make matters worse the tenant then told me that he was scared for his life because this man, my tenant, also broke into his unit, choked him and stole his house key.


This all has coincided with other damage issues on the property since this man got out of a mental health facility. So now I’m in charge of trying to figure out what kind of liability I have, who should I should make phone calls to and if there’s anything that I should do. The one thing I would say this is definitely doing is speeding up getting some security cameras up.

The Molotov Cocktail house

The Molotov Cocktail house

Long story short, I purchased a new property that had been on fire in the past. According to the neighbors and local landlords the deal was….

Remember the whole “Confederate flag controversy?” About 2-3 years ago when it was a hot button topic, I’m TOLD the person living in this unit put up a confederate flag with some ‘Choice words’ concerning people of a certain race. The result of this person putting up signs with quite incendiary remarks was a physical incendiary device (A Molotov cocktail) thrown through the window in the bedroom. Of course it could have been just for insurance money.

The results in my mind were pretty interesting – Not tons of damage to the unit once we got it all stripped out and have finally started work on it.


20171020_130734 20171020_130743 20171020_130820 20171020_130843

I found someone living in my office

Kept smelling coffee and couldn’t figure out what it was.  Opened up a door next to my storage unit and there was a guy sitting on a couch watching Netflix.

(#15) – Best neighborhood yet!

(#15) – Best neighborhood yet!

A stone’s throw away from a few $200k+ homes, overlooking the entire city as long as trees aren’t full of leaves.

Purchase – $21,000
Renovations – <$16,500
Income/yr – $9,000
Insurance – $750/yr
Taxes – $1250/yr
R&M Escrow – $1000/yr

NOI – $6000/yr or 16.4%
ARV – $65,000-$75,000

2016-03-11 17.41.26


2016-03-11 17.30.20 2016-03-11 17.31.55 2016-03-11 17.32.12 2016-03-11 17.27.58 2016-03-11 17.29.46


Other than people asking me how to find good cash flowing properties, how to get money to finance a property is likely the second most often asked question that I get.


So, I will be going over in the various methods used to purchase and hold rental real estate. Some of these I use almost exclusively, other ones I do not and in those cases I will differentiate between the two.

The old fashioned way

None of the gurus will tell you, but simply having regular employment, a decent credit score and a surplus of cash each month is by far the best and easiest way to get into rental real estate. If this is something you sorely lack, it may simply be best to start off by going to the local library and getting a few Dave Ramsey books and read about how to get your personal finances in check.

The simple fact is that creative financing is rarely easy and requires education in various deal structures among other things. This isn’t to say the other ways are impossible, however do realize that most real estate gurus selling courses have a desire to sell you on a dream, not on reality. Virtually all of them make money to sell you dreams, not on deals you close or whether they come through on their promises.

Seller financing.


Seller financing is most likely the easiest way for someone with minimum cash outlays to go out and buy a rental property or some sort of real estate investment. The same with seller financing most of the time though, is the fact that you typically will get a property at a crummy return rate because the seller is some sort of investor and realizes that if you were in a good position to purchase it you would go with a bank that offers a very low interest rate and purchase the property out right. That is it to say you can’t make money on them it however is just the fact that you may have to the ladies that cash flow for a while under seller financing.


Most of the seller financing situations that I have seen the seller will for a period of anywhere from 3 to 20 years as a loan into the buyer, these are typically also very high interest rates. He’s basically do not exceed that hard money lenders especially since you can negotiate with Nick so ur face to face an attempt to get a better rate. Most of the deal that I have seen or in the 6%-9% range for seller financing. The absolute truth is would be to purchase getting them running well and then cash out through a local bank. You may still have more money in it then a good cash deal, but at least you have a property in something to show for it. Come on over to an article that I will be writing about the ways to find property this and realize in order to find seller financing deals you after market yourself and what you were doing in order to find me two kinds of things.