OfflineThis is one of our recent real estate deals.
In December, I saw a new REO listing online in a great neighborhood in our town, asking $49,900. Drove by, thought "too good to be true!", but called the listing realtor from my car, set up a viewing for the next day. Met her at the house, walked through and told her "I'll take it for $50,000!" She said, "Don't you think your husband should see it?" This house was a 3-bedroom, 1-bath, with a brand new kitchen, new knock-down on walls throughout main floor, new appliances, and a giant brand-new oversized 2-stall garage, all on a nice corner lot. BUT, it was the dead of winter, -20 degrees, and the furnace didn't work. Also, the condition of the floor in the main entry was such that the back door could not be opened. We saw the huge potential and ended up offering the bank $50,200 cash. They accepted. We refinanced another property, paid cash for this one. Over the next few weeks, spent less than $10,000. My husband tore out the old floor, poured new concrete, and laid vinyl tile. The kids and I put a fresh coat of paint throughout the house. We hired a local plumbing/heating outfit to replace the furnace and check all the pipes. Updated the electrical, had the carpets cleaned. I put an ad in the paper for rent $795 mo+ all utilities, knowing we would be done with it in a couple of days. The ad was mistakenly run the day before I intended it to be, and we were bombarded with calls. I let people come the next day. We got 5 applications, and many more interested. I did my reference calling within the next day or two while we scrambled to finish the work, chose the best candidate, signed a lease,and cancelled the ad on the fourth day. Two months later, we had this house appraised at $98,000 (profit of $38,000!!), refinanced and are in the process of buying two more with the money. Man, this is fun!! Anyway, one thing I have learned about rentals over the years, it pays not to scrimp on the advertising. Advertising everything you want to say about a place and enticing people to "WANT IT NOW!" is cheaper than putting in a short two-line, abbreviated ad and having people overlook it for lack of interest.
That's one of our stories in a nutshell.
Happy house hunting!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
What did your ad say???
Here's our ad. Nothing too special, just a few more adjectives & info than the typical ad in our area. (See the examples below)
Very nice updated 3 bdrm home in quiet South Superior neighborhood. Newer kitchen & appliances, huge 2-car garage w/storage, nice yard, patio, raised garden.
$795 mo + utilities. Deposit, references. (our phone number)
Typical:
GARY 1 bdrm, OSP, N/S, dep, $495 inclds all (phone#)
NEW 1-level duplex Superior 2 bdrm $875, 3 bdrm $999 lndry, gar., (phone#)
PARK Point 1 bdrm, w/main flr lndry, frplc, formal din. rm, incl. heat, refs, dep., $820/mo. (phone#)
Just make it sound like a home instead of a rental unit.
I don't know if that's how it is everywhere, but around here almost every ad is trying to save pennies, seems silly. We have 8 rental units with a very, very low turnaround in tenants and have never had a horror story. People stay for years, and when they do move they usually have someone they know wanting to take their place. Any new units we get are usually filled within a few days of running the ad. I'm not saying its totally because of what the ad says, it also has to do with the relationship you create when meeting the people. I also never put a sign in the yard, because I don't want the house to be "labeled" as a rental by the neighbors. I want it to be the new family's "home" in the middle of other nice "homes" owner-occupied. I go by the rule "Treat others well and they'll treat you well(for the most part)".Of course, my favorite properties to own are single-family in good neighborhoods. That helps you out right there. The renters are responsible for everything except the major issues.
We've been "landlords" for 15 years and I love being able to provide this service to people.
Thanks for listening.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Agreeing 100% with everything Rina said.
Sounds like you are a very successful landlord/investor. If you don't mind me asking (I don't mean to be offensive at all either) how do you keep your business/investing so organized; or what ways do you keep your business structured???
Rina,
YOU ROCKKKKK!!!!!!!!!
Prosperity comes to those who are of service.
Great going.
Hey, everybody!
I just wanted to remind everyone and tell the newbies that you can earn a deal-maker badge by posting a REI deal that you have made. I wanted to put this in under dgadmin's "Get Your Deal Maker Badge" topic where I first posted this deal and earned my badge, but it doesn't allow any new comment. Click on this link to get there.
http://deangraziosi.com/node/2346
Anyway, if you have already posted a deal and have NOT received your badge, please post a link here! If you've got a deal you'd like to share (or brag about!), put it in!! That helps inspire everyone.
Good luck,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249