April 2010 Newsletter
ff
• National Speakers • Educational Workshops • Networking • An E-list for Sharing and Problem Solving • Professional Housing Provider Certification • Expert Info Shared by Industry Pros • Help with issues related to all aspects of real estate • Too much to mention
GENERAL MEETING THIS MONTH TUE., APR. 20TH • 6PM - 9:30PM Come to this special 2-part meeting: (1) Speed network with local experts and 2 special presentations.
OUR MEETING SPONSOR IS: Phil Hinman, Owner Inspections, Plus Full Service Residential & Commercial Real Estate Inspections Clementon, NJ 08021 (856)-784-2835 www.inspectionsplus.biz PHinman@InspectionsPlus.biz See their ad on page 17 of this newsletter
MEETING SCHEDULE: (2) Learn how to do SHORT SALES successfully in South Jersey! SPEED NETWORKING AND 2 SPECIAL PRESENTATIONS: Speed Networking - you get about 3 minutes to sit oneon-one w/experienced professionals who will answer your questions in their area of expertise. Presentation #1: NJ Tax Records Analysis - Improve personal performance of real estate investors and Realtors by creating mailing lists, performing market analysis and bringing objective data to support visits to sellers. PRESENTION BY Marc Halpern, Experienced p/t real estate investor, marc@nextphasehomes.com Presentation #2: Buying HUD houses and using HUD programs - Come find out how to purchase a HUD home and learn about HUD assistance programs. PRESENTATION BY David Cantera, Realtor at PatMurphy.com, 856428-2800, david.cantera@patmurphy.com SHORT SALE PANEL OF LOCAL EXPERTS WHO ARE DOING THESE KIND OF DEALS EVERYDAY WILL SHARE THEIR VAST KNOWLEDGE! Jason Sonstein, LLC – Attorney Michele Gorman, Buy This House - Realtor and investor Lou Pinto - Experienced investor Nick Tang, Investors Academy - Processing payoffs Duane Ortega, BestTransactionFunding.com Transactional funding John Starn, Brightman Title Agency Inc. - Title insurance (Panel event MC'd by Ronald Jablonski, iAbstract and Title Agency, LLC)
6:00-6:30 6:30-6:45 6:45-7:15 7:15-8:00
Pre-Meeting Workshop Break/Visit Vendors & Networking Announcements Vendor Speed Networking and 2 special presentations 8:00-8:15 - Break 8:15-9:30 - Short Sale Panel Discussions 9:30-10:15 - Networking, Room Clean-up
WHERE: Collingswood Grand Ballroom at the Scottish Rite Building, 315 White Horse Pk, Collingswood, NJ PRE-MEETING WORKSHOP: begin at 6:00 PM and are hosted by our Vendor Members. Topics and speakers vary each month. Come early and learn from our experts.
Topic #1 Can I be a “Successful” Wholesaler in Today’s Market??? Come learn how to market, present, estimate, offer, and close like a pro. We will also discuss the ever growing short sale leads and how to handle them. PRESENTER: Michele Gorman, Buy This House real estate agency,856-324-4488, Michele@buythishousenj.com ______________________________________ Topic #2 Good Faith Estimate and HUD1 We will be discussing the new Good Faith Estimate and HUD1 that came into effect in 2010. PRESENTER: Christian DelGozzo, North American Title Company,856-779-0099, cdelgozzo@nat.com
MAIN MEETINGS: No need to RSVP- we have a seat waiting for you! Just come!! Not a member yet? Join for just $125/yr.!
SJI Board of Directors 2010 You can contact the board by emailing us at Board@SouthJerseyInvestors.org ~ Executive Committee ~ President: Fred Ezell, Sr. โ ข Vice President: Tracy Bonnano Treasurer: John Starn โ ข Secretary: Jinny Hurley ~ Board of Directors ~ Joseph Gatto Jason Sonstein Fred Strauss Greg Davis
Courtland Beakley Ron Jablonski Jim Kennedy ~ Support Staff ~
Lynn Richman info@southjerseyinvestors.org Administration Assistant, Volunteer Coordinator and Events Coordination
Tammy King assistant@southjerseyinvestors.org Office Assistant & Events Coordination Marie Solano bookkeeper@southjerseyinvestors.org Bookkeeper
The information and news presented in SJI publications and at group meetings should not be construed as legal advice, which should be obtained through a qualified real estate attorney only. SJI does not exist to render and does not give legal, tax, economic, investment or financial advice and disclaims all liability for the actions or inaction taken or not as a result of communications from or to its members, officers, directors and employees. Each individual should consult his/her own counsel, accountant and other advisors as to legal, tax, economic, investment, financial and related matters concerning real estate and other investments. The opinions expressed by the members are not those of SJI. SJI does not endorse any person or organization. Its programs are designed to be educational, motivational and enjoyable. Remember, speakers primarily discuss techniques and methods that work for them but may not be appropriate for you. Whenever actions involving purchases, sales, or tenant relations are being considered, rely upon the advice of your real estate professionals.
PO Box 119 โ ข Marlton, NJ 08053 club phone: 856-663-1133 โ ข club fax: 609-482-8998 www.sjiclub.org โ ข email: info@southjerseyinvestors.org #FUUFS $IPJDF $POTUSVDUJPO --$ #FUUFS $IPJDF $POTUSVDUJPO 'VMM 4FSWJDF $POUSBDUPS 'VMM 4FSWJDF $POUSBDUPS 4FSWJOH /+ 1" %& /:$ 4FSWJOH /+ 1" %& /:$ -JDFOTFE *OTVSFE -JDFOTFE *OTVSFE
Page 2
8BMUFS 1PMMBSE 1SFTJEFOU
0รถDF $FMM 'BY 8BMUFS1PMMBSE!#FUUFS$IPJDF$POTUSVDUJPO--$ DPN XXX #FUUFS$IPJDF$POTUSVDUJPO--$ DPN
/ #BZBSE "WFOVF 8PPECVSZ /+
From the desk of the president… April 2010 Winter is over and spring is here. I am sitting at my dining room table looking out the window as I write this article noticing the Forsythia’s have started to bloom. We are in the poconos enjoying the warm weather. The real Estate market for investors is the best it has been in years. There are deals on every corner. Short Sales are the highest in history and present a great opportunity to investors. We are trying to meet the needs of our members and with the increasing number of foreclosures and short sale opportunities we are introducing a brand new Sub-Group on this topic. SJI has progressed to the point where we really need our own space. We have obtained an office /meeting place where we will be having lots of our meetings. You will notice in the future that many of meetings will be held in Westville. David Alzadeh of DJA properties has made us a good deal and we appreciate it. Help Help Help We need your help to make SJI better. If you are not volunteering it is a great opportunity to rub shoulders with some of the best in the Investment world and beside that it is a great way to pay for your membership and admission to some great seminars. See you at the Meeting Fredrick J. Ezell Sr. • President
"DEAL TABLE" AT OUR APRIL MAIN MEETING Bring about 20 or so copies of your real estate deals (criteria to participate must own equitable interest and be a current club member)
Christian Del Gozzo
Account Executive Main: 856-779-0099 Cell: 856-237-3108 Fax: 856-773-4153 cdelgozzo@nat.com
w w w. n a t . c o m
Page 3
1040 Kings Highway North | Suite 700 Cherry Hill, NJ 08034
INTRODUCING SJI'S NEWEST SUBGROUP!!!!!!!!!!!!! NEW Short Sale Subgroup * 2nd Monday of the Month at 6:00 PM KICKOFF MEETING - APRIL 12 The theme of the subgroup is ‘Everything Short Sale’. Subgroup leader Ron Odom promises to empower you with all the knowledge you will need to do short sales the proper way. Short sale opportunities are everywhere! Don’t know how to do a short sale? Been doing short sales and not getting good results? Don’t let it get you down – SJI has just formed a new Short Sale Subgroup, led by SJI’s very own Ron Odom. The meeting will be purely informational. No selling. Bring all your burning questions! This is the year of the short sale. Don’t let history past you by. All who attend this meeting will receive a FREE copy of ‘Navigating the Short Sale Jungle’ by Jeff Watson, short sale attorney. See page 21 of this newsletter for more details!
Wherever you go, no matter what the weather, always bring your own sunshine. ~Anthony J. D'Angelo
JASON R. SONSTEIN, L.L.C. Attorney at Law MEMBER OF NJ AND PA BARS
Page 4
1814 East Route 70 Cherry Hill, New Jersey 08003 www.newjerseylandtrust.com
Ph: 856.673.4121 Fax: 856.673.4041 Jason.Sonstein@Comcast.net
LEGAL CONTRACTS ON DISK Easy to use contracts for your creative real estate business! Forms available for: Wholesaling……………………………………………. $229.00 Landlording……………………………………………. $299.00 Lease Options………………………………………….. $699.00 Private Lending………………………………………... $799.00 Creative Transactions..………………………………… $999.00 ENTIRE LIBRARY…………………………………..$1,999.00 Credit Cards Accepted.
SJI VENDORS!
Many local businesses and retailers offer expert advice, services, discounts and priority treatment. SJI vendors support our club, so remember to support our vendors!! Come early to our main meetings to network at their vendor tables and/or locate their information on our website too -- they have a lot of great information to share with you! If you are interested in becoming a vendor, send an email to info@southjerseyinvestors.org for more information.
Members & Non-Members Contact us and we can assist you!!! SJI Hotline 856-663-1133 • Fax 609-482-8998
Our Email Address Is: Info@southjerseyinvestors.org
Page 5
On The Web: www.Southjerseyinvestors.org
Conquer Seller Objections When Buying "Subject to" by Wendy Patton [Editor's note: Buying a home "subject to" means "subject to the existing financing" already in place on the property. The terms of the original note with the lender stay the same, and the note remains in the seller's name. Typically, you would then sell the house to a tenant/buyer on a lease option.]
So what if you blow it once? You WILL do better the next time around, and trust me--there are plenty of deals out there. If you don't get this one, you'll get another.
Real estate investing is not a sprint race to the finish line to just get one deal; it's more like a Most people get nervous about dealing with marathon where you will continuously do deals objections from the sellers. They worry that if they over time. don't have the right answer, they will lose the deal. With that said, let's take a look Here's the thing with seller at the most frequent "subject objections, if a seller is raisto" objections you'll likely ing objections and asking encounter. questions it means they are #10 Can my attorney review seriously thinking about the giving you their home "subcontracts? "Absolutely! I recject to." ommend it." Most of the time, they won't do this anyway. But Over time, you will learn to by giving them that reassurLOVE to hear objections ance, it shows you have nothfrom the sellers because it ing to hide. means you are close to making the deal happen! #9 What happens if you die? You just need to give them "The contract has provisions a little more reassurance to that if either, you (the seller) or get the deal done. I die, the contract is still binding and our heirs would conIf a seller makes too many tinue our contract." objections they aren't really motivated, and they probably won't give you their #8 How long will it take you to get new financing? home "subject to." On the flip side, if a seller does- "What I can tell you is that I will work as quickly as n't raise any objections, it means they aren't really possible to do this. As soon as you sign this coninterested, and you aren't going to get the deal tract, I will go to work on finding a qualified teneither. ant/buyer for your home.
Page 6
The other great thing about handling "subject to" objections is that after you have handled one successfully it becomes that much easier to handle it the next time.
"Tenant/buyers usually need about a year to get their credit back in shape to qualify for a mortgage. However, sometimes tenant/buyers don't exercise their option to buy so we would need to get another one, which could mean it would take Each time a new objection comes up, it's a learn- longer." ing curve. As you get more and more experienced, your learning curve comes down, so you'll be able Sometimes the seller will want a "not more than" date, so no matter what happens, you agree to to get more deals done. refinance their "subject to" property no later than (continued on page 7)
(SUBJECT TO continued from page 6)
that time.
you time and money, as well.
For example, you may find an option buyer who closes on the property before this date, but if it doesn't work out after a certain length of time, say five years, then you agree to refinance the mortgage to get the mortgage out of the seller's name.
"If you add all of that up, plus all of the inconvenience of the months of showing your home, having to constantly keep it clean and presentable and having strangers going through your house, is it really going to be a better deal for you to list the house? It wouldn't be to me."
#7 Is this legal? "Yes, there is no law against this at all." If you need This objection of theirs is a stalling tactic. to explain anything further on the "Due on Sale" Sometimes they want to talk more before they make a decision to give you their home "subject clause, here is your explanation: to." "On your mortgage there is probably a "Due on Sale" clause, which gives the bank the right to call Sometimes they are testing you to see how eager the loan due if you transfer ownership. As long as you are. If you are over-eager to get the deed, they the payments are being made the bank almost will sense it and suspect you aren't being completely honest with them. never cares that the title has changed hands." This is especially true during a time when foreclosure rates are very high in the country, as they are now. Banks are less likely to want to exercise the "Due on Sale" clause because it increases the chance of them having to foreclose.
If they do decide to list it with an agent, make sure they put your name down as an exclusion on the listing. This means that if they end up accepting your "subject to" offer down the road, no commission would be paid to the listing agent.
#5 I have to get my asking price, or I'm not selling "I understand that you feel your home is worth $X, but let me show you what is happening right here in your neighborhood. This house at 123 Main Street is 1,480 square feet with a pool and it sold "Based on the comparable sales that I've brought for $X. All the homes on this list are within a few you it takes X number of months to sell a home in blocks of your house. this area. That means you'll have to pay an additional $Y in total mortgage payments in that time. "Remember, these prices are what houses have Plus you'll have to pay a 6% to 7% Realtor commis- sold for, not what someone is trying to get for sion, transfer fees, and closing costs when it sells. their home. I know you may have seen houses for sale in your area with certain asking prices, but we "This is not to mention any repairs that need to be need to look at the actual sale prices. Based on done to bring the house up to the same standards these comparables we can see that your house is as the homes that are selling here. Those will cost worth $X.
#6 I'm thinking about just listing it with a Realtor "That is certainly your choice. Let's take a look at why I'm here today, though. You want to SELL your house, not just put it on the market.
(continued on page 8)
Page 7
(SUBJECT TO continued from page 7)
"I understand your concern. What would make "I could be generous and pay you the price you you more reassured and yet protect us both?" want, but in order for it to make sense for me, I or must get the following terms." "I understand your concern. I could make your Sellers commonly fix the price of their home in payments to the mortgage company and then mind based on the asking price of neighbors mail the receipt to you. This way I am protected homes, which in a hot market, can be to your and so are you. Would this work for you?" advantage if homes are selling for more than askWork out a solution with them. This is a valid coning price and appreciating rapidly. cern, but accommodations can easily be reached. However, in soft markets it's quite common for I don't recommend you sending the payment to homes to sell well below the asking price. You them for them to make to the bank. This leaves need to help them adjust their thinking and real- you very vulnerable. ize that their home isn't worth asking prices, it's Make sure a bank authorization is signed as part worth sale prices. of the "subject to" paperwork, allowing you to verRemind the seller of the risk you are taking in ify that payments are being made. Also include a assuming responsibility for their house when you signed agreement that says if they don't pay on take it "subject to," making payments and waiting time you have the right to switch your payments to make your profit at some future time. Make from the seller directly to the bank. sure that even with the terms the deal would still #2 This isn't enough money! work for you. A great way to handle this is first to get a full Just because someone is willing to sign the deed understanding of the question. Ask them what to their house Subject To doesn't mean you they mean or repeat, "This isn't enough money?" should accept it! If you can't find a way to make a Don't say anything else until they answer. fair profit on that house walk away. Next, sit down with them and do a cost analysis together. Get out a sheet of paper and give them #4 I don't want tenants in my home "I understand completely. Lots of tenants are not the calculator. Hand them the comps and ask very respectful of the homes they rent. But the what the average sales price of the house is. They people that will be staying in your home aren't will calculate it and give you the figure. tenants. They are home buyers. They don't have the tenant mentality. They will look at the house as Then ask them what commission a Realtor gets in their own and want to take care of it and keep it their area. Deduct the commission. Next, ask them what repairs need to be done to the house to nice." bring the property up to current market standards #3 What if you don't make my mortgage pay- and deduct those costs. ments?
Page 8
(continued on page 9)
(SUBJECT TO continued from page 8)
Ask them to calculate the average time to sell a house based on the comparable sales and total This saves you on the costs that would occur if you the mortgage payments for that time. Deduct all sold the house normally, like commissions, closing costs, repairs, and so on. The minute you okay this of the closing costs. paperwork I will be doing everything possible to Encourage them to put down anything else that sell this house as quickly as I can, using my expertwill reduce the value and help them be more real- ise. istic. For instance, what is their time worth? As they do this themselves on the calculator it I've spent thousands of dollars on training to do becomes hard for them to argue about the value this business legally and morally. It would be futile of their home and the price you are offering them. for me to let your home go back to the bank just because I didn't make the payments." You are now working together as partners, not This objection is both legitimate and important. adversaries. Put yourself in their shoes, wouldn't you be asking #1 Why should I give you the deed when the it too if someone asked you to give them your home "subject to"? mortgage stays in my name? "That's a good question. What I can tell you is that different people do it for different reasons. The It comes in as #1 because it is going to be the bank will not let me assume the mortgage on most frequently asked and sometimes the hardest your house. In order for me to make a fair return to overcome. Does that mean you should fear it? Not at all. Different people will sign the deed over on this deal, I can offer you $X right now. to their house "subject to" for different reasons. I'll be glad to buy the house immediately for that price, but how would you cover the difference As you build rapport with the seller their reason between what I can pay and what you owe? You will become more apparent, and you can tailor are actually being very savvy and getting top dol- your answer to best fit them. lar for your house by letting me take over your Remember if they are motivated sellers, and you payments.
(continued on page 10)
Page 9
(SUBJECT TO continued from page 9)
have built a relationship with them, they will trust About the author... you and be willing to sign over their house "sub- Wendy Patton is widely recognized as one of the most inspiring speakers on little or no money down real estate ject to" to get out of it.
investing. Wendy has experience in land development, property management, rehabs, and foreclosures, but lease options are her favorite. With 23 years of experience and hundred of lease options, she is excited to teach you to achieve the same level of success and future financial freedom.
You are doing them a service, and this happens regularly. If they understand that their options are limited, and that you are genuinely trying to help them, the idea of signing over their home "subject to" won't seem so outlandish. Wendy is a Licensed Real Estate Broker and Licensed Builder with her own real estate company in Southeast
What you'll find is that through building rapport Michigan. She is the past President and Board Member of and gaining their trust, this objection will be much D.O.L.L.A.R.S. She is the author of a comprehensive home less strenuous. If they are not truly motivated sell- study course: • Buying on Lease Options ers--just tire-kickers, this will likely be a very stren• Selling on Lease Options uous objection, and they aren't even considering • Working with Realtors signing over their home. • Getting the Deed Subject to • Real Estate Wealth Building Arsenal
Don't even worry about those sellers, they might "This article is reprinted here with permission become more motivated over time, but right now from Creative Real Estate Online at a "subject to" isn't right for them. http://www.creonline.com"
Make the most of our meetings by arriving early to network with others. Bring business cards and exchange experiences and ideas. Circulate around our vendor tables to find out what service each has to offer and how they can fit into your investing plan.
CONTACT US: info@southjerseyinvestors.org
Page 10
856-663-1133
MARKETPLACE ADDITIONAL BENEFITS of MEMBERSHIP WITH SJI! Promote Your Properties For Sale Or Rent for FREE.... (You must own equitable interest in the properties to promote them)
(a) Deal Table at main meetings - bring 20-30 copies of your real estate deals. (b) Post your properties on our member's only chat forum (aka the SJI List Serve) (c) Post your properties on our website for 90 days (d) List your properties in The Marketplace section of our monthly Newsletter. (e) List your rentals for free on REIArentals.com. If you are a current member and want to take advantage of these benefits, send an email to info@southjerseyinvestors.org. Put in the subject line Property Promotion. GLOUCESTER COUNTY, WENONAH NJ 08090. Up and Down Duplex , 2 bedrooms , 1 bath each unit. Income is $2300.00 per month. $235,000. This is not a fixer upper. Wenonah is a desirable Area with the highest Average Price Homes ($353,415) in all of Gloucester County. The second highest Average price community in Gloucester County is $231,704. RACC ENTERPRISES, rockracc@aol.com, 856-986-0911 KNOCK OUT CONTEMPORARY CAPE: 3 Bedroom/1 Bath, Only $174,900.00! Great open floor plan! Updated Kitchen and Breakfast Nook with Cathedral Ceiling & Palladium Window, Full Finished Basement with Brand New Carpet. MOVE RIGHT IN AND ENJOY THE HOLIDAYS! 102 E. Jefferson Ave., Magnolia, NJ 08049. Contact info: Leaenterprisesllc@verizon.net, 1-866-445-1777 Pat, 1-856-302-5624 Linda PEMBERTON TOWNSHIP: 60, 2 or 3 bedroom one story single family semi-detached properties situated on 50’ X 120’ lots. Approx. 750+ square feet. Frame construction built on a slab. Good to very good condition. Many recently renovated. I have broken down the 60 units into individual groupings of 10 units each. Rental range $750 to $1,100. Most at $850. $85,000 per unit. For complete details contact Richard Gober at richardgober@comcast.net or 609-822-8449. $250 REWARD: For referring the buyer of my condo. Tavistock, Little Egg Harbor, NJ. 1 bedroom, 1 bathroom, 1st floor. Owner financing available. Reward paid after successful closing. If the same buyer is referred, then first to refer them would get the reward. Early bird gets the worm. Call soon and leave your name and phone and your referral's name and phone: 800-264-6947 Ext 0
Missing your membership card? Email us ASAP at: assistant @ southjerseyinvestors.org
Patrick J. Murphy Sr. CRS, GRI Broker Realtor Emeritus 54 Years in South Jersey Real Estate
Page 11
A HUD Registered Broker HUD, REO, Short Sale, Res. & Comm. In all 9 South Jersey Counties Website updated every 48 Hours 1201 Rt 70 W. Cherry Hill NJ (856)428-2800 Ext 207 Pat@PatMurphy.com
Common Legal Mistakes of Real Estate Investors by William Bronchick, JD You can't expect to reduce your risk of getting sued to zero, but you can take steps to reduce your risk as much as possible. In any situation where your money is at risk, ask yourself, "Is there a better way?" Know the legal and financial risks of the situations in which you place yourself, your business, your family, and your assets. Without covering every issue involved, here are a few common mistakes that investors make--novice and experienced alike. Poor legal forms It's amazing how short-sighted novice investors can be when it comes to shelling out money for good legal contracts. They often buy contracts at discount office supply stores, from Internet websites, or borrow them from friends. However, a real estate deal is only worth the paper it's written on. Like the old expression, "Every tax strategy works until you get audited," it can be said that "Every contract works until you have a dispute."
Page 12
So invest in a good set of real estate forms that apply to your practice and ask a local real estate attorney to review them. A good real estate attorney will review contracts for just a few hundred dollars. Make certain you fill in the forms correctly. Too many people rely on real estate brokers to fill out contracts, which is fine for a "standard" deal. However, most brokers aren't trained in legal matters and often create long contract addendums that are insufficient to protect your interests. Illegal discrimination The Fair Housing Act of 1968, as amended, prohibits discrimination on the basis of race, color, religion, nationality, familial status, age, and gender. Many state and local laws also forbid discrimination on the basis of sexuality or source of income and the Americans with Disabilities Act makes it illegal to discriminate against disabled people.
If you harbor any such prejudices and would allow them to come into play when renting a housing unit, then you're probably not cut out to be a landlord. However, many sincere real estate investors make honest mistakes that result in discrimination lawsuits. The best way to avoid these lawsuits is to be informed. The Fair Housing Act may appear to be common sense, and most people would never think of discriminating against people of different races or religions or on the basis of gender. However, it's important to note that the Act extends beyond the screening process and into advertising as well, so watch the wording on your ads. This is where many landlords and property managers make critical mistakes. Some people scour the classifieds looking for inappropriately worded ads, so they can pounce on them and threaten a lawsuit. While someone must have standing to bring suit, these scoundrels often work in coalitions to ensure that all of their bases are covered. For example, if you own a rental property in a predominantly Jewish community, its proximity to the local synagogue could be a major feature. But if your ad says "within walking distance of the synagogue," you could be sending the message "gentiles need not apply" even though this wasn't your intent. And keep in mind that you may not discriminate on the basis of whether a couple is married and whether children are to live in the unit. You may also not discriminate on the basis of age. Often, novice landlords aren't aware of these areas of concern. And while it's good that citizens are more aware of their rights today, it can create a bad situation for well-meaning landlords who are out of step with the law. (continued on page 13)
(LEGAL MISTAKES continued from page 12)
Be aware of your local laws and use good business sense. State law and local ordinances can extend similar protections granted under the Fair Housing Act to other groups. For example, California, Minnesota, and North Dakota prohibit discrimination based on source of income. In other words, landlords can't discriminate against would-be tenants who rely on public assistance. Putting the political perspective of the landlord aside, such discrimination makes little business sense because people on welfare or social security are virtually assured of a fixed income. The Americans with Disabilities Act (ADA) prohibits discrimination against the disabled and also requires landlords to make "reasonable accommodations" to disabled tenants. Who decides what's reasonable? Typically, judges, if it comes to that. But while most landlords are aware of the ADA and would never stoop to discriminate against a person in a wheelchair, many are unaware that the ADA also protects mentally disabled tenants. A mental disability could also include recovering alcoholics and drug addicts. On the downside, these people can relapse. If they do, this can cause serious problems for you and other tenants. Everyone deserves a second chance, and many recovering addicts become productive members of society. Those unable to recover typically have other problems and, thus, if you decide to reject their rental applications, it's vitally important that you document additional reasons for rejecting their applications.
Improper disclosures Improper disclosures are a common mistake for real estate investors. It's critical to be aware of the federal and state requirements for disclosures. For example, federal law requires a lead-based paint disclosure on the sale or rental of properties that were built before 1978. State laws may have additional regulations. It's become common practice for real estate brokers to use a property disclosure form as a general-purpose sell disclosure for all aspects of the house. Even if you're selling your house on your own, be sure to use one of these forms. Whenever in doubt, disclose what you know, especially something the buyer or tenant may not know about, such as dangerous conditions, water damage, electrical issues, or plumbing problems. Illegal solicitation of money Many novice investors try to solicit money for investing via public advertising or mailings. This is commonly referred to as syndication. You may inadvertently cross over a variety of federal and state securities regulations when trying to raise capital. Chatting with friends over the dinner table about a real estate deal is one thing, but advertising to the public in mass may be considered a public offering. Before soliciting money from strangers, review your marketing, paperwork, and solicitation strategies with a local attorney well versed in this area of law. You may be able to get away with a good set of written disclosures if you solicit money on a limited basis, but it's better to be safe than sorry. Independent contractor liability The IRS and your state department of labor are on the lookout for employers who don't collect and pay (continued on page 15)
Page 13
2010 New Year’s Resolution Volunteer at SJI Meetings
VOLUNTEERS NOW EARN 5 SJI BUCKS PER HOUR! As always, your help enables us to run our meetings better!! To volunteer for the main meeting, send an email to volunteers@southjerseyinvestors.org To volunteer at a subgroup meeting, contact the subgroup leader directly. Go to www.sjiclub.org and locate the subgroup leader information from our calendar of events.
Contact Us To Learn More About SJI
email: info@southjerseryinvestors.org call: 856 663 1133
Page 14
SJI provides MANY membership benefits. Go to our website www.sjiclub.org and click on MEMBERSHIP BENEFITS button for a complete list of details!
(LEGAL MISTAKES continued from page 14) withholding taxes, unemployment, and workers' compensation insurance. If you have employees that are "off the books" you're looking for trouble.
If you get caught, you'll have to pay withholding taxes and as much as a 25% penalty. Intentionally failing to file W-2 forms will subject you to a $100 fine per form. The fine for failing to complete the Immigration and Naturalization Service (INS) Form I9 varies from $100 to $1,000 per form. Your corporation or LLC won't shield you from liability in these cases, either. All officers, directors, and responsible parties are personally liable for the taxes. If you hire people to do contract work for you on a per-diem basis, they may be considered employees by the IRS. If any workers fail to pay their estimated taxes, you may still be liable for withholding. If these workers are under your control and supervision and work only for you, the IRS may consider them employees, even if you don't. If this happens, you may be liable for back taxes and penalties. To protect yourself, you should: • Hire only contract workers who own their own corporation. Or get the business card and letterhead of any unincorporated contractors you may use, so
you can prove these workers aren't your employees. • Require proof of insurance (liability, unemployment, and workers' compensation) in writing. • Get written contracts or estimates on workers' letterhead that states they'll work their own hours and you don't have direct supervision over the details of the work. • Have letters of reference from other people for whom the contractors worked to show that the contractors didn't work solely for you. Keep these in your files. • File IRS Form 1099 for every worker to whom you pay more than $600 per year. In addition to possible tax implications, an independent contractor can create liability for you if a court determines the contractor is your employee. For example, if your independent contractor is negligent and injures another person, the injured party can sue you directly. If facts show that you exercised enough control over your contractor, a court may rule that this contractor is your employee for liability purposes. As you may know, an employer is "vicariously liable" for the acts of his or her employees. The employer is liable as a matter of law without proof of fault on the part of the employer. Make certain you follow these guidelines when hiring contractors and pay particular attention to the issue of control. (continued on page 16)
Page 15
(LEGAL MISTAKES continued from page 15)
Finally, under your state's law be aware which duties are considered inherently dangerous, such as providing adequate security for tenants in a multi-unit building. These duties can't be delegated to an independent contractor without liability on your part, regardless of whether the person you hire is considered an independent contractor or an employee. About the author... William Bronchick, J.D. is an author and attorney who regularly presents workshops and do-it-yourself seminars at real estate and landlord associations around the country. He is the president and co-founder of the Colorado Association of Real Estate Investors.
Bill specializes in all forms of asset protection and is the author of several great home study courses: • The Ultimate Guide to Wholesaling • The Ultimate Guide to Fix & Flip • The Ultimate Guide to Owner Financing • The S.O.L.D. System • Power Real Estate Negotiating • Secrets of a Real Estate Attorney • How to Create a Bulletproof Corporation • Your Step-By-Step Guide to Land Trusts • How to Form Your Limited Liability Companies • Wealth Protection Strategies • Complete Wealth Protection Library "This article is reprinted here with permission from Creative Real Estate Online at http://www.creonline.com"
Page 16
Our greatest glory is not in never falling, but in getting up every time we do. ~ Confucius
SJI HAS BENEFITS FOR YOU!!!!! Membership Benefits Club members are entitled to participate in the SJI List Serve, take advantage of a customized health insurance solution, retail paint store discounts, Home Depot rebate and discount programs, access NationalREIA benefits and SO MUCH MORE. • FREE admission to main meeting; discounted admission to subgroup meetings and special seminars • View our monthly newsletter which is filled with meeting info and articles of interest on various aspects of Real Estate investing • Unlimited networking with new and/or seasoned investors willing to share experiences and ideas • For a full list of member benefits, click on our Membership Benefits link on the SJI home page (www.sjiclub.org)
New Jersey Department of Community Affairs Division of Codes and Standards Landlord-Tenant Information Service ORDER FORM TRUTH-IN-RENTING BOOKLET (Revised July 2008) The Truth-in-Renting Act (N.J.S.A. 46:8-43 et seq.) requires the Department of Community Affairs to prepare and publish a statement of the rights and responsibilities of residential tenants and landlords. The Act also requires residential landlords of dwellings with more than two units (or more than three units if the landlord occupies one of the units) to distribute the Truth-in-Renting Statement now in Booklet format to each of their tenants at or prior to the tenant’s occupancy. Violators of the Act shall be liable for a penalty of up to $100.00 for each violation. The Truth-in-Renting Booklet is a summary of existing laws, regulations, and court cases. It is neither exhaustive nor detailed and is intended only to serve as a guide to landlords and tenants. The booklet is available in English and Spanish at a cost $2.00 per booklet. You may download or print the Truth in Renting publication from this website free of charge, by logging on to: http://www.nj.gov/dca/codes/lt/table_of_contents.shtml.
Page 17
Subgroups SUBGROUPS
Atlantic County Subgroup • First Tuesday of the Month at 6 PM Fee is $15 for members, $25 for non-members • Super Buffet & Grill, Cardiff Circle *2010: Apr 6, May 4, Jun 1, Jul and Aug (no meeting), Sep 7, Oct 5, Nov 9, Dec (meeting is tentative) This group focuses on opportunities, ordinances and issues in the Atlantic County and shore area. We invite speakers who are successful local investors with valuable experiences to share, government officials sharing their plans for growth and periodically plan Cash Flow Games. We meet at the Super Buffet & Grill, 6718 Rt. 322, Egg Harbor Twp, 08234. Directions are on the SJI website. (Don't use Mapware, it is out of date!) Dinner starts at 6 PM. Speakers are normally present for dinner (for additional networking). RSVP so we can give the restaurant a head count. Send an e-mail to atlantic-subgroup@southjerseyinvestors.org with RSVP in the subject line.. Entrance fees include the buffet (without crab legs), beverage, tax, tip, speakers and great networking.Members: bring your SJI membership card. SJI accepts cash, checks, Visa, MasterCard, Discover and AMEX. Apr. 6 - Topic: Title Agency Answers for All Types of Deals. John Starn: The Brightman Agency Inc.; SJI Board Member. John Starn will answer all your Title questions and talk about closing the latest complicated deals like A-B-BC back-to- back transactions, round robin sales, assignment of wholesale contracts, etc. • Learn about all the services available to you as an investor.• John has a reputation for salvaging deals and getting them closed. • Although his main location is in Millville, Brightman Agency can meet your needs and close your deal anywhere in the USA. • Take advantage of this Q&A time with a pro. May 4 - Topic: Lewis Schweller, Real Estate and Contract Attorney will help you avoid the dangers of using a "generic" contract here in New Jersey. Learn to use contractor contracts that protect you from unscrupulous contractors! June 1 - Topic: Jason Sonstein, Esquire. Would someone bother to sue you? Who needs an LLC? How do you take a property directly into a trust?
Camden County Subgroup • First time meeting at this NEW location -- Surety Title office, #1 East Stow Rd, Marlton, NJ. Directions; From Rt 70 Cherry Hill Rt, Greentree road 1 /2 Mile east of Rt 73. Left at Stow Rd traffic light, 1st building on the right New Fee is $5 for members, $15 for guests (dinner not provided) 6:30 to 9 PM
*2010: Apr 22, May 20, Jun 17, Jul 22, Aug 19, Sep 23, Oct 21, Nov 18, Dec 23 (No meeting) This group focuses on local ordinances and issues that affect Camden County investors. Held the Thursday after the main meeting. Entrance fee for this meeting is $5 for members and $15 for guests. Food will not be served (so please have your dinner first). Meeting time - 6:30 to 9 PM. RVSP to let us know you are coming! Email Cathy Ambrose-Stone (cathy@patmurphy.com) and put CCSG as the subject. We are working on getting mayors and bankers but are also asking for your suggestions as to towns and banks you would like to hear from. This is a nice night out with networking and education. Apr. 22: Three experienced investors will describe 2-3 recent transactions from A to Z (1) William Becker, teacher, author, commercial & residential real estate investor, President of American Real Estate Investors of Cherry Hill - How to find opportunities at Auctions, REO, etc. (2) Chip Seeger, SJI member, Investor - 30 transactions in 3 states, Where I found them, How to network for profit (3) Chris Robert - 1st deal - how I found it and how I decided to do it (because I expect to make 50K)
Page 18
Delaware Subgroup • Second Tuesday of the Month at 7 PM NEW FEE- FREE for members; Non-Members: $10. NEW LOCATION: ReMax Sunvest Office, Wilmington, DE *2010: April 13, May 11, June 8, July 13, Aug 10, Sept 14, Oct 12, Nov 9, Dec 14 NEW MEETING LOCATION: ReMax Sunvest office located at 5560 Kirkwood Hwy, Wilmington, DE 19809. The office sits back behind an Allstate Insurance and an Eye Doctor building. The entrance is in the rear end of the building. (continued on page 19)
From NJ: DELAWARE/DEL MEM BR (Crossing into DELAWARE). Take the I-95 S exit on the LEFT toward
(SUBGROUPS continued from page 18)
Delaware Subgroup Continued
NEWARK/BALTIMORE. Merge onto DE-141 N via EXIT 5 on the LEFT toward NEWPORT/LANCASTER. Take the SR2/SR-41 exit, EXIT 6A-B, toward ELSMERE/NEWARK/LANCASTER. Merge onto ROBERT W KIRKWOOD HWY/DE-2 W via EXIT 6B on the LEFT toward NEWARK/LANCASTER.Make a U-TURN at MILLTOWN RD onto ROBERT W KIRKWOOD HWY/DE-2 E. End at 5560 Kirkwood Hwy Wilmington, DE 19808-5002 . NEW SUBGROUP LEADER CONTACT INFO: Margarita Resto, Please RSVP if you plan to attend so we know to expect you. Send an email to delaware-subgroup@southjerseyinvestors.org and put in the subject line, DELAWARE SUBGROUP Apr. 13 - Topic: Sheriff Sale cycle - success strategies and potential pitfalls. Speaker: Brian O'Neil of One-Pie Investments and One-Pie Holdings. Since 1991, I have bought and sold in some manner, including assignments, over 1000 properties. One-Pie¹s strengths seems to focus on the Sheriff Sale market. We attend the New Castle County sales each month and are probably one of the biggest if not the biggest purchaser of Sheriff Sale properties. We put our money out there with all the associated risks and by doing so, provide a safety net for our buyers. We¹ve seen our share of the court rooms (Superior and Bankruptcy) in defending our purchases and have developed, what we consider, a superior legal team.
Gloucester County Subgroup • Second Wednesday of the Month at 6:00 PM NEW ENTRANCE FEES: $5 for members/$15 for non-members • Dinner is now extra • The Five Points Diner- Restaurant
*2010: April 14, May 12, June 9, July & Aug (No Meeting), Sept 8, Oct 13, Nov 10, Dec 8 LOCATION ---The FIVE POINTS DINER, Deptford Twp., N.J. between Route #47 and #41. (see website for more directions). We are offering a variety of speakers for your Real Estate needs. The speakers are many local Gloucester County Agents, and also a variety of speakers that topics will support the investor in his/her business. Gloucester County has many opportunities in development and growth in all areas of Real Estate. To Keep informed and learn to increase your Real Estate potential, come join us and learn!!! Please RSVP to provide a count for the restaurant. The Sub-Group Leader is Agnes Musick, Agmusick@aol.com Apr. 14 - Topic: Home Ownership and Housing Counseling Services that AHOME Provides. This includes (1) first time homebuyer programs for lower income first time home buyers (2) Home buyer education and counseling services and (3) Foreclosure prevention assistance. Speaker bios: Donna W. Turner - is the Executive Director of AHOME, Inc. of Millville, a non-profit agency that builds affordable houses for lower income first time home buyers and provides pre-purchase housing education and foreclosure prevention counseling. Donna is a graduate of Temple University and served as a Public Affairs Officer in the US Naval Reserves for 18 years. She is the Treasurer of the Housing and Community Development Network of New Jersey. Ms. Turner has also worked for several public housing agencies, including the Philadelphia Housing Authority. Sonya ("Dee") Ivanovs - Is a Foreclosure Prevention Mediation Specialist with AHOME. She is a recent graduate of Thomas Edison State College with a Bachelor's Degree in Social Science and is a graduate of Cumberland County College. Ms. Ivanov's professional experience includes working with at-risk children and families, and children with special needs.
Landlording SubGroup • First Wednesday of the Month at 6:30 PM Fee is $5 for members, $15 for non-members * Collingswood Senior Community Center
(continued on page 20)
Page 19
*2010: April 7, May 5, June 2, July 7, Aug 4, Sept 1, Oct 6, Nov 3, Dec 1 This new subgroup will focus on many different topics of interest to potential and existing landlords. Some possible topics will include: Lease Prep, Tenant Retention Management, Tenant Selection, Tenant Credit and Criminal Check, Section 8 Landlording, 1031 Exchanges, Proper Accounting Procedures and Documentation, Tax Prep, Successful Advertising Techniques, Sales Contract Prep (Buying and Selling) and Eviction. In addition to cash and checks (payable to SJI), this subgroup now accepts credit cards (MC, Visa, AMEX and Discover). April 7 - Topic #1: Summary of last month's meeting Topic #2: Les Major of the Major Group, Inc. Public Insurance Adjusters. The Major Group provides adjustment services for Commercial as well as Residential properties.
(SUBGROUPS continued from page 19)
Landlording Subgroup Continued
Les will explain to us the basics of insuring our properties properly, what kind of policy to have in place, some of the ramification of having co-insurance and whether or not to have sump pump insurance, among many other things. The Major Group - When Disaster Strikes, We Navigate the Insurance Maze on your Behalf At The Major Group, our team of experienced, professional public adjusters improves the lives and outcomes of people who have suffered property losses by navigating the insurance claims process, ensuring that they receive an equitable and prompt settlement. If you are a residential or commercial property owner who has suffered a loss, The Major Group will meet with you at no charge to review your specific situation, inform you of your options and help you determine the best way to proceed. Our recommendations will range from insightful advice on how to process your own claim to our handling every detail of the claim on your behalf. The Major Group, Inc., Email: info@youradjusters.com, Phone: 856-231-8000, http://youradjusters.com LANDLORDING SUBGROUP - beginning next month with our MAY meeting, we are moving to a new meeting location. Alliance Building, 217 Broadway, Westville, NJ 08093 ....as soon as details are finalized (entrance fees, meeting start time), we will post on our website and eblast.
Mercer County Subgroup • Fourth Thursday of the Month at 6:30 PM MEETING LOCATION: Same location, but Restaurant is now called Asia Fusion Buffet 368 Route 33, Hamilton, NJ 08619. It is located in the Mercerville Shopping Center. Meeting Cost Reduced - $15 for members and $25 for visitors. Dinner is included! *2010: April 22, May 27, Jun 24, Jul 22, Aug 26, Sep 23, Oct 28, Nov and Dec (No Meeting) This new group is for Mercer County investors. This group will focus on the opportunities, growth, and issues in the Mercer County area, including Trenton. Networking begins at 6:30 pm & games will be played from 7:00 to 8:30 pm. April 22 - Topic: A Dialogue on Trenton’s Economic Development Present to Future. The presentation will focus on the economic development projects that have recently impacted the City; the financial assistance programs that make Trenton an appealing location for light industrial, commercial and mix use projects; and the future development items that will shape Trenton’s future. Speaker: Anthony P. Carabelli, Jr., Economic Development Specialist, City of Trenton.
New Investor Subgroup • First Monday of the Month at 6 PM NEW COST: Members pay $15 AND Guests pay $20. Dinner is included in entrance fee. • MEETING LOCATION: The Golden Corral, 130 Black Horse Pike, Audubon, NJ 08106. Restaurant located in front of Walmart.
Page 20
*2010: April 5, May 3, June 7, July 5, Aug 2, Sept (No meeting), Oct 4, Nov 1, Dec 6 This group, which is also called the Newbie Sub Group was created to educate our new investors, but offers a variety of topics in a round-table discussion format. It is held the first Monday of the month and covers a wide variety of topics that even a seasoned investor will find interesting. Subgroup Leader is seasoned real estate investor Fred Ezell, Sr.. You can contact him at Fred@ezhomes4rent.com. The speaker begins at 7 PM. Apr. 5 - Topic: Calling all INVESTORS. If you are or are planning to be a landlord in the near future, you need to come and learn of these government assistance programs. This presentation is focused on Camden County but most counties have similar programs. Speaker Stephanie Bittner of Center for Family Services will be presenting lots of great information on how to use these programs. Remember, Knowledge is our best weapon to help us all be successful. There are lots of government programs designed to help Landlords keep tenants in their homes. Vacancies destroy any and all profits we hope to make, and lost MONIES we can never recoup. They also offer and teach Credit repair, and teach prospective homeowners how to purchase their homes and how to maintain them. If you are a flipper this should be on your calendar to attend as you can learn how to use these programs to put families into your homes. You will be receiving all the contact info for several of the Camden County and Camden City programs. Representatives from each of these programs will be there to answer all your questions.
NEWBIES SUBGROUP - beginning next month with our MAY meeting, we are moving to a new meeting location. Alliance Building, 217 Broadway, Westville, NJ 08093 ....as soon as details are finalized (entrance fees, meeting start time), we will post on our website and eblast.
(continued on page 21)
(SUBGROUPS continued from page 20)
NEW Short Sale Subgroup • 2nd Monday of the Month at 6:00 PM COST: Members pay $5 AND Guests pay $15 * MEETING LOCATION (for April's meeting only): Collingswood Fire Department, 20 W. Collings Ave., Collingswood, NJ 08108, 856-854-1043
INTRODUCING SJI's NEWEST SUBGROUP!!!!!!!!!!!!!
*2010: Apr 12, May 10, Jun 14, Jul 12, Aug 9, Sep 13, Oct 11, November 8, Dec 13 The theme of the subgroup is ‘Everything Short Sale’. Subgroup leader Ron Odom promises to empower you with all the knowledge you will need to do short sales the proper way. The media reported last week that there are 15 million homes underwater in the United States, and more are facing foreclosure everyday! This is an investing bonanza! Short sale opportunities are everywhere! Don’t know how to do a short sale? Been doing short sales and not getting good results? Don’t let it get you down – SJI has just formed a new Short Sale Subgroup, led by SJI’s very own Ron Odom. All levels of investors welcome! The meeting will be purely informational. No selling. Bring all your burning questions! Apr. 12 - Our Kick Off Meeting will be an open, round table discussion -- so bring your questions! This will be a good exchange of general information -- everything Short Sale!
********SPECIAL GIFT!!! All who attend this meeting will receive a free copy of ‘Navigating the Short Sale Jungle’ by Jeff Watson, short sale attorney. This is the year of the short sale. Don’t let history past you by.
Ocean County Subgroup • Fourth Wednesday of the Month at 6:30 PM NEW Cost: Members are now FREE, Visitors pay $10; Bring dinner/snack: cookies/coffee provided • Summerville Assisted Living at Stafford (new location) *2010: Apr 28, May 26, Jun 23, Jul 28, Aug 25, Sep 22, Oct 27, Nov 17 (3rd Wed.), Dec (No Mtg) For those planning on investing in Ocean County, this meeting is for you! Meeting from 6:30 to 8:30. We meet at the Summerville Assisted Living at Stafford (in the sun room), 1275 Rt. 72 West, Manahawkin, NJ 08050. Apr. 28 - Topic and Speaker: To be determined. Visit our website for updates.
Page 21
April 2010 APRIL 2010 Sunday
Monday
Tuesday
Wednesday Thursday
5
6
New Investors Subgroup 6PM-9PM
Atlantic County Subgroup 6PM - 9PM
12
13
4
11
NEW! Short Sale Subgroup 6PM - 9PM
18
19
Delaware REI 7pm-9PM
20
7
26 Board Meeting 7PM-9PM
27
1
Saturday 3 2
8
9
10
15
16
17
22
23
24
29
30
31
Landlording NEW!!! 6:30PM - 9PM
14 Gloucester County Subgroup 6PM-9PM
21
Main Meeting 6PM-9PM
25
Friday
28
Mercer County 6:30PM-8:30PM ___________ Camden County 6PM-9PM
Ocean County Subgroup 6:30PM-8:30PM
Page 22
All details of each meeting can be reviewed on our website, www.sjiclub.org or call our club phone 856-663-1133.
May 2010 MAY 2010 Sunday
Monday
2
Tuesday
3 New Investors Subgroup 6PM-9PM
9
10
Wednesday Thursday
16
17
6
7
8
12
13
14
15
20
21
22
28
29
Landlording NEW!!! 6:30PM - 9PM
11
NEW! Short Sale Subgroup 6PM - 9PM
Delaware REI 7pm-9PM
Gloucester County Subgroup 6PM-9PM
19
18
Camden County Subgroup 6PM-9PM
Main Meeting 6PM-9PM
24
23
30
26
25
Board Meeting 7PM-9PM
Saturday 1
5
4 Atlantic County Subgroup 6PM - 9PM
Friday
Ocean County Subgroup 6:30PM-8:30PM
27 Mercer County Subgroup 6:30PM-8:30PM
31
All details of each meeting can be reviewed on our website, www.sjiclub.org or call our club phone 856-663-1133.
MAC INVESTMENT COMPANY, LLC 626 N 19TH Street, Allentown, PA., 18104 Phone: 610.351.9927 Fax: 610.351-0903 Toll Free – 877-263-4881 joemacinvest@yahoo.com Page 23
9. Enforce your rules consistently and immediately. 10. Keep good records and document everything. 11. Utilize both craigslist.com and postlets.com to advertise your rentals. Both are free services. 12. Look for ways to reward your long-term residents even if in only small ways.
by Jeffrey E. Taylor "Mr. Landlord"
17 BEST WORDS OF ADVICE FOR NEW LANDLORDS (shared by rental owners with up to 50 years of landlording experience)
13. Join and participate in your local landlord association and visit MrLandlord.com to get continued support, education and encouragement from other landlords. Also seek out one or two mentors. 14. Become extremely familiar with the state landlord tenant laws where your own rental property.
15. Learn as much as you can about your local rental market and what other landlords and managers are 1. Treat landlording as a business and develop a charging, offering and doing. system and set of written procedures for all steps in your rental process. 16. Always look to expand your business network with other landlords, contractors, suppliers, profes2. Get a good state-specific lease and be sure your sionals and community contacts. Network with indilease is clear regarding all expectations you have for viduals who are growing, progressive and honest. your residents' responsibilities. (Many leases make too many assumptions of what is to be expected). 17. Seek further training and education. Read landlording books like Landlording and the Landlord's Kit 3 Believe in yourself, but do not believe anything put and go on a landlord cruise conference. on the rental application. Verify it all. 18. Don't give up! Don't let the small percentage of 4. Thoroughly screen your applicants. Along with runrental challenges take your focus off your big goals. ning credit checks, be sure to check eviction records Landlording is not a get rich quick scheme, but can and possible criminal background on all applicants. generate long-term wealth when done correctly. 5. Get the cooperation of your residents and start advertising and showing rentals BEFORE the lease is These ideas, words of advice and tips were shared by up. rental owners who attended our recent MrLandlord.com Cruise Conference. To receive a free 6. Fill vacancies faster by reaching out and serving a sample of the Mr. Landlord newsletter, call "niche" target market. 1-800-950-2250 or visit their informative website at MrLandlord.com, where you can ask landlording 7. Keep your relationship between you and your resiquestions and seek the advice of other rental owners dents in a business-like manner and treat all residents 24 hours a day. with respect. 8. Conduct regular inspections of your properties.
Newsletter designed by Studio One22