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Welcome back to MOR Financial’s REI Blog where we cover all things Real Estate Investing. As I write this, I am on vacation. I’m taking a week off of my day job and visiting family and having some fun. That doesn’t mean that I’m not working, though. I’m up at my daughter’s college and looking for the next investment opportunity. Maybe it’s because I love this business so much that I never really feel like I’m at work. They say that if you love what you do, you don’t actually work a day in your life. It’s the truth.
What this vacation gives me is the opportunity to look in markets that I haven’t looked in before. I’m starting to move into the buy and hold realm and need to find some properties to put into my portfolio. Several friends of mine love the “college town” type of investment. Parents co-sign with the students which helps them build credit, but they have the parents to guarantee the rent and the property. Win/win. I really like creating a situation where everyone can put a market in the win column.
I remember when I was in college and was having a difficult time finding a place to live. Dormitories were great the first year, but after that I wanted to be less attached to the school. I ended up sharing a place with a few other guys who also wanted the same thing, but all of us had trouble qualifying to sign the lease.
Today, with the ability to sign contracts remotely and all of the digital wizardry that we use to work remotely, it is easier to have these win/win situations. So, the only thing stopping us from doing our business remotely is setting up the teams and going to work.
For me to buy a property where my daughter resides for college, I need a few things in place. I would need to do that for any remote property that I own but at least I have part of the team in place here. I have someone who could take care of any issues in the house as well as be a tenant, if I buy a triplex or a quad. The other parts of the team are just as clear.
I need an Agent to help me find the property, if I am not able to find a property while I am here. So, part of my trip is talking to Agents in town and finding one who understands my business model. This is similar to what I do for local Agents, but the communication between us is essential. Part of interviewing people for your team is assessing their strengths and weaknesses. Make sure that you find an Agent who has good communication skills.
Part of the team that you need for remote buy-and-holds that you may not need if you have them locally is a good Property Manager. In some states they are required to have a real estate license and other states, they don’t. Just make sure that you know the local laws and hire accordingly. The cheapest property manager is not always the one that you want. In the end, you want the one that costs you least amount of time, money and problems. If your time is money – and mine certainly is – then one that takes care of issues so that they never really become issues, and keeps tenants in the houses, is the least expensive one.
Lastly, you need a good attorney and knowledge of tenant rights. I’ve suggested LegalShield for a very long time. I’m a member and I love the service that they provide me. I’ve also taken the time to read the California Tenants’ Rights handbook that is published by the state. Most states have them. Familiarize yourself with your rights and your tenant’s rights. I guarantee you that eventually you will need to know. Plus, it is always best if you do not unknowingly violate their rights! It will save you a great deal of time and money just to get some expert advice and learn the laws.
I’m looking forward to finding a property to purchase up here. Right now it is research time and I’m going to view a couple of them tomorrow. I’m expanding my network and having fun doing so. Join in on the fun by working towards being a landlord.
If anyone has more questions or wants more one-on-one coaching, don’t hesitate to contact me. This is a passion for me and I truly enjoy sharing what I know with others. Thanks for coming by and getting a bit of the education. Until then, remember that you, too, have that inner warrior that it takes to achieve greatness and success. Feel free to drop me a line at AShotOfBaile [at] gmail.com.
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