Archive for the ‘book review real estate investing’ Category

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants

Friday, August 10th, 2012

The Arizona Network of Real Estate invited me to give a presentation to their group about my book “Fix em Up Rent em Out.”

I thought the video might be available to the general public but it looks as though that’s not going to happen.

However, so that no one feels left out, I am going to provide  a summary of the key points that I hit during the presentation. As someone who was regularly picked last for teams in gym class, I’m sensitive to people feeling left out. Casting modesty to the wind, I am also including exclusive photos of the event.

So here are:

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants (based on an article by Andrew Stefanczyk)

1. Choose the Worst Possible Area

Location will determine the kinds of tenants you will attract, and how much rent you can fairly charge.

Do you want these bearded wonders as tenants?

The best approach is to identify target areas in your city where you would like to focus your purchases. I like to focus on “transition zones” (where there is a mixture of housing types) which are good for investors because we can purchase properties at lower prices, and there is high demand to live in these areas.

2. Put in the very best of things when fixing up  an investment property

Use new and expensive sinks, doors, refrigerators, light fixtures, etc. Never shop at stores that recycle construction supplies. Spare no  expense.

Of course, the problem is that tenants will not take care of our properties as well as we would,

Habitat Store

so we end up with many broken or worn out items. The better alternative is to shop at used building supply stores, and to purchase good, inexpensive, supplies for our rental houses. One such store is the Habitat for Humanity store.

3. Make sure you have absolutely no experience in make basic repairs

Not knowing how to change electrical outlets, unclog drains & toilets, and replace broken windows will cost quite a bit down the road.

The better way is to:

A. Learn as you go, and comply with EPA regulations

B. Take construction classes at junior college

C. Learn from handymen and contractors

D. Take the Zen approach to  house repair learn to do everything yourself

5. Utilize fix-up books, investing books, & YouTube to find answers on how to make house repairs

4. Do not screen your tenants

Being as uninformed as possible about who you rent to may be the best way to lose money as a landlord. Do not ask for or check references. Do not call previous landlords and ask questions like, did they pay rent on time? How was the condition of the house or apartment when they left? Did they ever disturb neighbors with loud music or shouting matches? How often would you have to make special trips for repairs? Being as uninformed as possible about whom you rent to will make a huge difference and will increase the chances that you will get tenants that will trash your property and refuse to pay rent.

However, the better way is to:

A. Use a checklist for tenants. Decide what kind of tenant that you want ahead of time.

B. Look at their paycheck to verify income.

C. Check county records to see what illegal activities they’ve been up to.

D. Know the Fair Housing Act. Never select tenants based strictly on “race, color, national origin, religion, sex, familial status or handicap (disability).”

E. To find new tenants, use Craiglist, put up arrow signs, and host an “open house.”

5. Make sure you have not learned about your rights as a landlord

Be completely unfamiliar with the eviction process to guarantee long, drawn out disputes with tenants. Don’t keep up to date financial records or copies of correspondence with tenants. Most states provide online information about tenant and landlord rights so avoid reading these.

The better way is:

A. Get an authoritative legal guide like  “The Arizona Landlord Deskbook” by Carlton Cassler.

B.  Copy forms and letters from your legal book to send to tenants.

C. Comply with legal ways to deal with bad tenants.

D. Use memos to communicate with tenants so you have a record of correspondence.

E. Use a month to month lease instead of long-term lease to more easily scrape off bad tenants like barnacles.

F. Reward tenants for paying on time by discounting their rent $25.  

G. Send good tenants Target  gift cards for Xmas.

In Conclusion

Share Your Knowledge

“Each of us has cause to think with deep gratitude of those who have lighted the flame within us.”

–Albert Schweitzer

Carve Out Your Niche Update

My award-winning book on self-publishing, Carve Out Your Niche, is now available in Kindle format.

The Midwest Book Review called Carve Out Your Niche,

“Invaluable for anyone seeking to successfully write, publish, and market their own work.”

 Related Posts

Remove that Garbarge Disposal Now!

A Secret to Increase Rental Profits: Buy Properties in “Opportunity Zones” (Video)

Monday, September 20th, 2010

When looking for investment properties, don’t just find houses that meet your financial criteria. Rather,  find the house that meets your criteria in locations where people are extraordinarily inclined to rent.

There are nice areas in my town and there are not- so-nice areas in my town. However, neither of those two areas is where most people like to rent properties. The largest majority of people like to rent in what I call “opportunity zones” (also known as “transition zones”).

A great way to maximize rental profits is to buy rental properties in “opportunity zones.”

Radio Interview on WPBR in Florida – Is now a good time to invest?

Friday, April 24th, 2009

.
I was interviewed by Dick Farrel, of WPBR 1340 am, in Lake Worth, Florida this morning. He asked me if I thought this was a good time to invest in real estate.

I said that even though the economy is as flat as Bill Clinton’s trampoline, now is a time that real estate investors dream of. Interest rates are hitting rock bottom and prices are low and squishy as a sponge. If you have a steady job, good credit, and patience to jump through all the hoops to get a loan, you can take advantage of this rare opportunity.

I don’t have any problem jumping through the hoops since I jump to conlcusions all the time.

The entire interview will run at 6:45 pm eastern time tonight.

Coming up:
Next Thursday, April 30, I have an interview Corinda Herton at 610 am DKAL in NE Wisconsin/NW Minnesota, at 11:35 central.

Info on Terry’s Book

Press and Media

Add to Technorati Favorites

 Subscribe in a reader

Share this: del.icio.us | Digg | Ma.gnolia | Reddit | Stumble Upon |

Fixer Jay Webpage Worth a Look

Friday, June 20th, 2008

Fixer Jay

.
One of my favorite real estate investing authors, and someone who has inspired me in my own  fixer upper house business, is Fixer Jay DeCima. He has a very informative webpage at www.fixerjay.com. I regularly check out his blog posts located on the website.

As I have mentioned before, I think Jay’s books are exceptionally good guides to learn about the fixer-upper business.

Here is a review I wrote about Jay’s latest book:

Start small, profit big in real estate

The Quickest Way to Lose Money

What is the quickest way to lose money in real estate?

Find out in my latest ezinearticles.com article.

Add to Technorati Favorites

Subscribe in a reader

Share this: del.icio.us | Digg | Ma.gnolia | Reddit | Stumble Upon |

4th Installment of "Fix em Up, Rent em Out" Review

Sunday, May 25th, 2008


The Fourth installment in the review series on my book “Fix em Up, Rent ’em Out” is now up at the locomono rei blog. This installment is entitled “Know Your Nuts and Bolts First.” The article also provides details on how to win a free copy of the book!

Some other good blog articles to check out:

In Which the Author Talks About Everything In the World, Including Real Estate at flipthyhousel.com
1031 Exchange at retalsrus.blogspot.com
How Passive is Your Passive Income? at livingoffdividends.com

Add to Technorati Favorites

Subscribe in a reader

Share this: del.icio.us | Digg | Ma.gnolia | Reddit | Stumble Upon |

Book Review of "Fix ’em Up, Rent ’em Out" at LocoMono REI Bolg

Monday, May 5th, 2008

,
There is an excellent chapter-by-chapter review of my book Fix ’em Up, Rent ’em Out: How to Start Your Own House Fix-up and Rental Business in Your Spare Time at the ever-insightful LocoMono REI Blog.

The first chapter of the book is reviewed under the title Energy and Life Focus. More chapter reviews are set to follow.

Other recommended recent blog articles:

Personal Finance for the Real Estate Investor–A Primer
at TwoWiseAcres.com.
Buyers Opt for Less-Than-Conventional Selling Tactics at FSBOJane.com
Tax Advantages of My Rental Property at theworldofwealth.
Mother’s Day Gift Ideas at moolanomy.com.

Info on Terry’s Book

Add to Technorati Favorites

Subscribe in a reader

Share this: del.icio.us | Digg | Ma.gnolia | Reddit | Stumble Upon |

Best new books list, new review of "Fix em Up," and chance to win FREE book

Sunday, December 23rd, 2007

For your holiday reading enjoyment, here is a link the the Best New Real Estate Books list that I posted on Amazon.com.

Also, many thanks to Connie on conniebrz.com for her review of my new book on her blog.

For any one interested in winning a free copy of “Fix em Up, Rent em Out,” ChristianPF is having a drawing, but you must enter before midnight, Dec. 24th. You can register to win and get more details here.

Best wishes for a happy holiday!

Info on Terry’s Book

Add to Technorati Favorites

Subscribe in a reader

Share this: del.icio.us | Digg | Ma.gnolia | Reddit | Stumble Upon |