Why? Because it sucks big time. Call me Captain Obvious, but I just recently came to this conclusion. Let’s look at how it works. You hire a company to “manage” your rental house. They’re supposed to collect rent, pay expenses like insurance and property taxes, and make sure that the necessary repairs and maintenance, including preventative maintenance gets done. And for single family houses in my market, the going rate for this type of property…
“Personal Guarantees are STUPID!”
Wow. I just received another screeching email from a self-proclaimed guru bragging about how he just did another risky deal with private money from a new private lender in a crap-hole neighborhood that he would never buy in with his own money, and that he didn’t even have to offer a personal guarantee because the lender didn’t know enough to ask for it. Bravo Sparky. Bravo. You took advantage of someone that didn’t know any…
Step 6 To Buying Turnkey Rentals in Metro Detroit: Protect Yourself
There are three factors that you should be aware of when you look to buy rental houses here in the suburbs. Knowing these, and acting on them, will substantially reduce your risk as a rental house owner. The three factors are: 1. Never own a property in your name While I’m not an attorney, I recommend holding your rental properties in a Limited Liability Company, or LLC. If you and your property manager operate your…
Step 5 To Buying Turnkey Rentals in Metro Detroit: Property Management is KEY
Choosing the right property manager is critical. Think about it. You’re investing from a distance, and you’re buying rental houses here in the suburbs to generate consistent and predictable cash flow. Your your property manager, therefore, is the person who will have the greatest impact on it. The best solution is to manage the properties yourself, because no matter what any property manager tells you, they don’t and won’t care as much about your property…
Step 4 To Buying Turn Key Rentals in Metro Detroit: DON’T Deal With Section 8
I alluded to this earlier and I want to reiterate it so there’s no misunderstanding. DO NOT RENT TO SECTION 8 TENANTS! I’m sorry to have to say this, because when I got started I was a big fan of the program, and I routinely had around 10% of my tenants in the program. Over the last 18 months or so however, the program has changed. And not for the better. The problem is that…
Step 3 To Buying Turn Key Rentals in Metro Detroit: Buy The RIGHT HOUSES
Believe me when I tell you that all houses are not alike. And as crazy at it sounds, renters are picky, and are getting more so every year. So choosing the right types of houses to buy matters a lot to your long-term success and profitability. Thankfully though, picking the right types of houses is not rocket science either. Over the last seven years, through trial and error, and through exchanging notes with other rental…