Calling all successful landlords: Real estate investing questions

In Arizona, if a tenant doesn't pay rent when its due, its possible to have them evicted by the end of the month if you follow the law and timelines of the contract.

California is a different story, i've heard of people being able to delay eviction for 2 years. Not only did they not pay any rent, but the landlord ended up paying them a chunk of change to move out.

Quote from BargainSnatcher : In Arizona, if a tenant doesn't pay rent when its due, its possible to have them evicted by the end of the month if you follow the law and timelines of the contract. California is a different story, i've heard of people being able to delay eviction for 2 years. Not only did they not pay any rent, but the landlord ended up paying them a chunk of change to move out.

When you say by the end off the month do you mean literary with a unlawfu detainer? If so that is pretty fast in CA it varies it seems pretty straight forward from my experience I had. If the rent isn't paid you just proceed with a 3 days pay or quit which its pretty simple if they don't pay within the 72 hours after that you pretty much have a win. I know CA is considered a pro tenant state, but I think if you follow and read the laws and procedures it won't be that bad. Also OP I strongly recommend before you get into this really think twice this can be a headache and hard you need to know the laws because this in the long run can make you lose money as some pointI have seen there are some bad tenants that might pay there first month of rent seem sweet and kind and it can be a pain to kick them out in the long run.

Yes, if you didn't pay your January rent, you could be on the street before the month is out.

I use a Buyers Brokers Specialist, unless it's for sale by owner, who gives me a rebate. I don't tell him anything but the address of the houses I want to see. I use zillow.com, and an online MLS website that he gives me access to find prospective houses. I do all the searching as I'm picking about the houses I want.

Quote from drew2money : I use a Buyers Brokers Specialist, unless it's for sale by owner, who gives me a rebate. I don't tell him anything but the address of the houses I want to see. I use zillow.com, and an online MLS website that he gives me access to find prospective houses. I do all the searching as I'm picking about the houses I want.

Outside of the address what else would you tell your broker? Do you mean that you don't share your plans for the property with them?

Quote from GeTinThere007 : Outside of the address what else would you tell your broker? Do you mean that you don't share your plans for the property with them?

Well, they don't really need to know. Unless you tell him upfront, not to discuss with selling agent, as some agents can be very chatty. You really don't want the sellers to know you are an investor.

I just put a contract on a house and the selling agent was very chatty. Told my agent all kinds of good stuff, so I was informed to make a nice low offer that wasn't countered.

Think of the Realtor as competition. He could be shopping for a place for other clients. Unless you have a good relationship with them. I would keep things totally on a need to know basis.

Gotcha, makes sense.

Quote from drew2money : I just put a contract on a house and the selling agent was very chatty. Told my agent all kinds of good stuff, so I was informed to make a nice low offer that wasn't countered. Think of the Realtor as competition. He could be shopping for a place for other clients. Unless you have a good relationship with them. I would keep things totally on a need to know basis.

Indeed!

Assume 2 Re Agents: 3% Commission on Sell Price of $250k = 7,500
Assume 2 Re Agents: 3% Commission on Sell Price of $275k = 8,250

Of course the Re Agent will make the sale & tell you what you want 2 here.

Plus, the above assumes the agent is independent.

Quote from WindySummer : Indeed! Assume 2 Re Agents: 3% Commission on Sell Price of $250k = 7,500 Assume 2 Re Agents: 3% Commission on Sell Price of $275k = 8,250 Of course the Re Agent will make the sale & tell you what you want 2 here. Plus, the above assumes the agent is independent.

This is why you should shop around for one that gives a rebate. My agent, who is a Buyers Broker Specialist, charges 2% of the asking price, plus 10% of what he saves you up to his full commission. On a full price offer, I get 1% back.

So my agent gets paid more, for getting me a good deal.

Good grief! The thoughts people have on Realtors...........sheesh.

I'm reading lots of bad info here. Why wouldn't you want your Realtor to know you are an investor? Do you realize that you could be putting yourself in a stronger and better position in a shortsale if you tell them you are looking to buy their property to rent out?

Some of the stuff i am reading here looks like it was written by people who have never invested or who have purchased maybe 1 or 2 houses and think that they are in on some big secret on investing and don't want the word to get out.

@bargansnatcher, stop trying to protect your industry. We know you were or are a Realtor.

I've bought auction houses, short sales, the whole gamut. No one needs to know it's going to be a rental but you. Own more than 2 houses and been doing this since 2006.

Realtors are a necessary evil, but eventually I can see the need going away. So, don't go away mad, just go away.

Quote from drew2money : @bargansnatcher, stop trying to protect your industry. We know you were or are a Realtor. I've bought auction houses, short sales, the whole gamut. No one needs to know it's going to be a rental but you. Own more than 2 houses and been doing this since 2006. Realtors are a necessary evil, but eventually I can see the need going away. So, don't go away mad, just go away.

"We know"? Who nominated you spokesman for Slickdeal members?

I use to be a professional Realtor, keyword "use to". If you use a Realtor or not, if you tell them XYZ, it makes zero difference to me. It doesn't put any money in my pocket and Realtors are not some member of a secret cult who try to promote each other. I will be the first to say that many Realtors are idiots. Not all, but many. I always tell people you don't need a Realtor, you need a good Realtor.

But i still have a licence and am technically a Realtor, but i don't do it for other people, i do it because i am going to be buying real estate over the next few years (while the market is like it is) and being a Realtor gives me access to info and data not accessable to the average joe (as well as earn a commission on my own purchases, we don't have rebates in AZ).

I purchased my own home last year which was 200 miles from where i was located, i used a local Realtor even thou i had a license and could earn a commission on my own purchase, why? Because he had access to info and would be available to do things when i wouldn't. I didn't even refer myself out to get a 25% referral fee because i know what the profession is like and how much time is spent dealing with people that will not end in a sale.

Oh, and i'm glad you have been doing this since 2006 and are experienced. I have 10 more years on you plus i have done it as a full time career for about 13 of the past 16 years.

Fact is i have experience as a buyer, seller, Realtor and property manager. I have made my clients bucketloads of cash. But meh , what do i know?

Quote from BargainSnatcher : Good grief! The thoughts people have on Realtors...........sheesh. I'm reading lots of bad info here. Why wouldn't you want your Realtor to know you are an investor? Do you realize that you could be putting yourself in a stronger and better position in a shortsale if you tell them you are looking to buy their property to rent out?

I couldn't agree more. On my last purchase which was a shortsale the seller sent my offer to the bank not because I had the highest offer but because I WAS an Investor. My realtor assured them that I was fully aware of what the shortsale process was and how long it could take. He made it clear that I wouldn't be bothering them and that I would not back out as I didn't need it as a place to live.

IMO if you don't feel comfortable telling your realtor that you're an investor you should find a new realtor. You need to trust your realtor otherwise all the nay sayers on here are absolutely correct. If you trust your realtor they will deffinitely earn their commission and get you the best deal.

When it comes to owning rental property, there are some simple tips to understand. First, you need to research market rates for rents. Once you have your rent, you need to find out how much operating expenses/maintenance will be. Subtract expenses out, and you have a rough estimate towards your net income. Take that monthly number, and multiply by 12 to get your annual potential return. Now, determine what rate of return you want to make. Take your calcualted annual potential earnings, and divide by your required rate of return. That will be the starting point for negotiating your purchase price.

Of course, there are other factors to consider such as financing, but this is a quick way to see if a potential property could work before wasting time doing other calculations. After it passes this test, you can dig deeper and do more research. Hope this helps.