Rental Income Podcast With Dan Lane: Landlord l Rental Property Owner l l Real Estate Investor l Passive Income l Find Good Tenants (business)

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Managing rental properties doesn't have to be a nightmare.  My guest today has set up systems to make managing his rentals really easy.

Jonathan also has a really inspiring story.  He wasn't happy at his job, so he quit and got into real estate.  He got his real estate license and started selling real estate to generate income, he also quickly started building his rental portfolio.  Today he generates $20,000 in passive rental income.

Finding Deals:
Jonathan found his first deal at a barber shop talking to somebody that was getting his hair cut.  He ended up buying three properties from this investor.

Tool To Manage Tenants
High Rise and Base Camp by 37 Signals


Favorite Real Estate Book:
E-Myth by Michael Gerber

Reach Jonathan
http://www.MakingAgentsRich.com


Direct download: Rental013.mp3
Category:Business -- posted at: 3:00am EDT

Carl figured out one day how many rentals he would need to own to leave his job, and live off his rental income.  On this episode he tells us how he did it, and what he has learned.

Keys To Success:

* Leverage relations with others to find deals.
* Having good income and credit history and lenders will want to, "throw you money".
* Don't be afraid to invest outside of your market.  Look at your available capital to determine available markets you can afford to invest in.

Carl's Magic number - Make a minimum of $350 per month per unit (including vacancy, loss, repairs, etc)

Now Is A Good Time To Invest:

* Because People will always need a place to live
* Money can be borrowed cheaply

Favorite Real Estate Book:

Rich Dad's Guide To Investing by Robert Kiyosaki

Contact Carl:
eastcoastreia@optonline.net
631-750-1563

Direct download: Rental012b.mp3
Category:Business -- posted at: 3:00am EDT

Sometimes life changes, and you need to move.  This is what happened to Nicole Ratner, she bought a condo that worked great when she was single, but when she got married the condo didn't work so great anymore.

On this episode, Nicole talks about the good luck that she had with having a long-term tenant, and the bad luck she had finding out that the property had toxic mold, after the tenant moved out.

Resources for finding renters:
Craigslist
Military By Owner
Zillow

Documents, Forms, Tenant Screening Resources
LandlordStation
erenter.com

Favorite Real Estate Book:
Automatic Millionaire Homeowner by David Bach

Direct download: Rental011.mp3
Category:Business -- posted at: 3:00am EDT

Q&A show.  I ask listener questions to Steve Elliff, a successful rental property owner.

If you have a question to ask on a future show, email me: dan@rentalincomepodcast.com

Direct download: qashow1.mp3
Category:Business -- posted at: 3:00am EDT

It is possible to buy houses for as little as $400, just ask David Sexauer  He got his start buying properties from The Surplus list, where properties are sold for as little as $1.  His first batch of homes he paid $400 for each one.  Most of there properties are in rough neighborhoods, and in very poor condition.  But, David is able to fix these houses up, for $10,000 or less and make a big social impact in neighborhoods by providing affordable housing.

Key To Dealing With Tenants:

David has had a lot of problems with tenants, and with bad things happening to his properties.  He overcame this by working with local people that have a personal connection with the tenants and the community.  This is a real win-win.  It provides jobs in the neighborhood for the managers,  good low-income for the residents, and less hassle for the owner.

What David Looks For In A Good Deal:

How much cash he has available?

What is the interest rate?

What is the return?

He looks for a 2% monthly return (Pays $50,000 expects to make $1,000 a month)

Favorite Real Estate or Business Book:

E-Myth by Michael Gerber

Advice For New Landlords:

Stay engaged. Know wh

Direct download: Rental010.mp3
Category:Business -- posted at: 3:00am EDT

Every real estate investing story doesn't have a good ending.  Jim Adams is proof of that.  Jim built an empire overnight.  He found an estate sale that included 70 rentals for his first purchase.  He than purchased another 30 properties on his own.

In a short period of time, he built an empire of 100 houses, and had a staff of 20 people.  When the market crashed, Jim lost all of his rentals, plus his personal house, and his cars.

A lot of people would find it difficult to move on after a loss this big.  But, not Jim Adams!  Today, Jim has re-built his life and is doing great.  On this episode, Jim shares what he would do differently today, and shares how he has moved on with his life.

What he would do differently:

He would buy houses subject to
He would buy nicer, higher end houses
He would buy fewer houses

Favorite Real Estate Book
Secrets Of A Millionaire Landlord by Robert Shemin
Other Advice:
Don't let people know you are the owner of the property.  Have your LLC own your property, and present youself to tenants as the lowly landlord.

Jim's Podcast:

Family Matters First

Direct download: Rental009.mp3
Category:Business -- posted at: 3:00am EDT

Moving up to a new home, and turning your old home into a rental can be a great way to get started owning rental properties.  That is exactly how Chris Colgan got his start owning rental properties.

Chris thinks that the first purchase anybody should make if they want to own real estate is a primary house.  When you are ready to move out, keep your old house and buy a new house.

Chris said that location is an important consideration when buying a property.  His first property is within walking distance to a hospital.  Hospital employees give him a steady stream of potential renters.

Chris agreed with Skip and Mary Saylor, on episode 7 of the Rental Income Podcast, that owning a condo is not always the best idea.  The condo fees can be high, but on the upside they are easy to rent out.

Best Places to find renters

Craigslist
MLS
Military By Owner
Word of Mouth

Tenant Screening

Check Credit
Are they paying utility bills?
Reference from previous landlord

Budget

Make sure you budget to paint between tenants
Watch out for little things like getting keys and parking stickers back from tenants

Other Advice

Check on the property every quarter to twice a year

Books
Millionaire Real Estate Investor by Gary Keller
Rich Dad Poor Dad by Robert Kiyosaki

Source to Find Good Contractors
AngiesList

Contact Chris Colgan
ColganRealEstate.com

Direct download: Rental08B.mp3
Category:Business -- posted at: 7:21am EDT

How to pick the right tenants, to minimize evictions.  Skip and Mary Saylor talk about the lessons they have learned from 40 years of owning rental properties.  They have rented a lot of properties, to a lot of different people over the years, but they have had very few evictions.  On this episode they reveal, in detail, exactly how they screen tenants

Screening Process:
1.) Fill out application
2.) Pay application fee
3.) Show photo ID
4.) Credit Check
5.) Check civil court records to see if they have been sued by a prior landlord for not paying rent or property damage
6.) Verify employment (min income 3x rent)
7.) Verify current and past landlords

 

Rental Criteria (they show this to tenants before taking application fee)
1.) No unpaid landords
2.) No utilities in collection (electric, water)
3.) No crimes against persons or drug convictions in the last 5 years
4.) Other negative credit information can be overlooked

Favorite Real Estate Book:

Landlording by Lee Robinson

Direct download: skip_and_mary_saylor_edits_revised.mp3
Category:Business -- posted at: 3:00am EDT

How to manager 20 properties on the side without a property manager.  Sheila Konecke's main business is flipping houses.  She flips about 3 houses a month.  But, she manages to find time to manage 20 rentals on the side without a property manager.  This episode will show you how she does it.

Keys To Sheila's Success:

Sheila has had luck selling rentals to tenants, by telling tenants if they are interested in buying the house to let her know if they want to buy and she will give them a price

Sheila is fair to her renters.  They see this, and they don't want to leave her

Finding Renters
Sign in the Yard
Craigslist
MLS
Trulia
She usually finds tenants in 2 - 4 weeks

Screening Process:

Checks Credit - But, she warns credit doesn't really predict how the person will be as a renter
She charges a small fee mainly to make sure they are serious
References
Mainly she checks to see they do what they are going to do.
She likes people that take action.  "They need to get from A to B quickly"

The 3 Things Sheila Wants In A Tenant:
Pays the rent on time
Keeps the house nice
Doesn't call you for every little thing

It's hard to find all 3 things in a tenant.  She warns you are lucky to get 2 out of the 3

Budget To Fix Up Property Between Tenants:
$4,000 - $6,000

Favorite Real Estate Books:
Rich Dad Poor Dad by Robert Kiyosaki
Think And Grow Rich by Napolean Hill

Direct download: Rental06.mp3
Category:Business -- posted at: 3:00am EDT

It is possible to own rental properties in a different city than you live in, and not have a property manager.  Tim Hennessey is proof of that.  Tim owns 7 rental properties.  He owns 4 in Florida, and 3 in Illinois (where he lives).  He manages the Florida properties from Illinois and he does it all without a property manager.

They Keys To Managing A Property From Out Of Town:

1.) Make it easy for tenants to make their rental payments.  (Tim gives them addressed, and stamped envelopes with deposit slips, so the tenants can mail the rent checks directly to his bank)

2.) Build a network of contractors that you trust that can deal with repair issues

3.) Be careful to pick long term renters to reduce turnover

4.) Schedule a time to visit the properties, and schedule a fairly intense schedule of showings to try to rent it yourself.  If it can't be rented before he leaves town, he hires a local Realtor to rent it out.

5.) Buy houses in nicer areas

6.) Take care of tenants....If carpet is worn, replace it.  If the house needs to be painted, paint it.

7.) Try to sign multiple year leases

8.) Raise the rent on a regular basis.  Not a lot.  Use 3% a year.

9.) It's better to take less money and get a higher quality tenant, than to get more money, and a lower quality tenant.

Tim's Criteria To Find Long-Term Tenants:

1.) Decent credit history

2.) Good prior rental history

3.) Decent job and income

 

Favorite Real Estate Book:

Rich Dad Poor Dad by Robert Kiyosaki

Other Advice:

Buy properties right.  What you make on a property is determined by what you pay for it.

Direct download: rental05.mp3
Category:Business -- posted at: 3:00am EDT