I'm going to be a slumlord !

[jerryskids 5,192]

We are finally breaking down and taking the plunge into real estate investment. 4-plex in a decent neighborhood in Phoenix; Paradise Valley school district which is where the richest people live. Around the corner from two nice schools.

 

Phoenix real estate overall has slowed/flattened, but this neighborhood has some upside IMO.

 

I have no idea what I'm doing, as usual, but you can't win if you don't sit at the table!

 

Any words of wisdom from you land barons? Other than I need to learn espanol pronto?

[Snuff 10]

Got a lawyer?

[jerryskids 5,192]

Got a lawyer?

Lawyers aren't used in real estate transactions in Phoenix typically. Specifically, 4 units or less is a residential transaction. I certainly would for commercial.

 

Also we may use a lawyer to set up the LLC. Or we may do it online. Prolly use a lawyer on the first one and see how involved it is, to be safe.

[hoytdwow 202]

Also we may use a lawyer to set up the LLC. Or we may do it online. Prolly use a lawyer on the first one and see how involved it is, to be safe.

You'll also need one when your tenants start suing you. HTH

[jerryskids 5,192]

You'll also need one when your tenants start suing you. HTH

Suing the LLC you mean.

 

I see no reason to retain a lawyer for such a thing tho.

[Snuff 10]

Good luck, hope all goes well.

[jerryskids 5,192]

Also we met most of the tenants yesterday during the inspection, I'd bet a lot of money that there ain't a lot of legal residents there. I'm thinking they won't be using the legal system anytime soon.

[CurlyNight 0]

Good luck! My fam did this once.... once. That was it. Hopefully all goes smooth for you.

[hoytdwow 202]

Suing the LLC you mean.

 

I see no reason to retain a lawyer for such a thing tho.

I have no idea. I was just trying to inject some negativity into this thread.

Is that so wrong?

[D_House 0]

http://www.fftodayforums.com/forum/index.p...howtopic=208591

 

HTH!

 

[shovelheadt 61]

Pets will fock up a house quicker than anything.

[hoytdwow 202]

My stepdad can take care of any Pets who fock up a house quicker than anything.

fixed

[swirvenirvin 25]

I have no idea. I was just trying to inject some negativity into this thread.

Is that so wrong?

 

 

I was going to say yeah jeery set up the llc and you should be set

[Dr. Octopus 0]

I did this with a few friends in Asbury Park, NJ hoping to get in before the city returns to its once glorious past of being a nice beach resort town (not sure if that is going to happen at this point.)

 

We bought a two family house that has Section 8 tenants (gov't pays their rent). It has turned out to be a good investmanet as we have positive cash flow each month and will see a nice profit when we decide to sell (unless the market takes a serious downturn).

 

It sound like you will have similar tenants, so just one word of caution. People that get gov't handouts are in that position for a reason. They are lazy focks. We get calls constantly for the most minor repairs, things like a kitchen cabinet door being loose, etc., things that could easily be taken care of by the tenant but they can't be bothered to do actual work. The upside is there is no need to worry about collecting rent.

 

We set the LLC up ourselves on line. Its pretty easy. After you buy the property just make a new deed transferring the property to the LLC and file it with the county clerk.

 

Good luck.

[jerryskids 5,192]

Pets will fock up a house quicker than anything.

Good point. I didn't see any except a fish tank, but I should check out what the tenant agreement says.

[swirvenirvin 25]

Good point. I didn't see any except a fish tank, but I should check out what the tenant agreement says.

oh yeah add at least $50 a month if cat or dog

[jerryskids 5,192]

I did this with a few friends in Asbury Park, NJ hoping to get in before the city returns to its once glorious past of being a nice beach resort town (not sure if that is going to happen at this point.)

 

We bought a two family house that has Section 8 tenants (gov't pays their rent). It has turned out to be a good investmanet as we have positive cash flow each month and will see a nice profit when we decide to sell (unless the market takes a serious downturn).

 

It sound like you will have similar tenants, so just one word of caution. People that get gov't handouts are in that position for a reason. They are lazy focks. We get calls constantly for the most minor repairs, things like a kitchen cabinet door being loose, etc., things that could easily be taken care of by the tenant but they can't be bothered to do actual work. The upside is there is no need to worry about collecting rent.

 

We set the LLC up ourselves on line. Its pretty easy. After you buy the property just make a new deed transferring the property to the LLC and file it with the county clerk.

 

Good luck.

Good stuff, thanks. I'm in sales and have money but my income is erratic. We're working thru the financing to put enough down to have a positive cash flow. My cousin is section 8, she's completely worthless. What's worse, her mom (my aunt) near as I can tell does nothing to try to help her get better. Since if she got better, they wouldn't get the gubment money. They live together in a condo in Sarasota off of the money.

 

Also the place had a property mgmt company. We may keep them on in the beginning to get the lay of the land, but we know some good fixit people we might just have on call.

 

You are convincing me to do the LLC online.

[swirvenirvin 25]

curious to the interest rate you got for this?

[jerryskids 5,192]

curious to the interest rate you got for this?

Still working on the financing. We have a broker we've used for lots of other personal real estate who gave the seller the OK, but we don't have a lender yet.

[swirvenirvin 25]

Still working on the financing. We have a broker we've used for lots of other personal real estate who gave the seller the OK, but we don't have a lender yet.

 

 

how do you know you will have a cash flow then?

[jerryskids 5,192]

how do you know you will have a cash flow then?

The cash flow will be determined by the amount we put down. But your point is taken, the rate might prove to be prohibitive.

[Cdub100 3,380]

Good luck I hope everything goes well and you make lots of money!

[SUXBNME 1,328]

I hope it all falls apart and you end up at the welfare line.

 

 

Other than that, good luck to you

[Brown Eyed Girl 1]

It's extremely difficult to get an unwanted tenant out... The eviction process is horrible here in California, not sure about Phoenix. The tenants have more rights than you'd think.

 

For this alone, be very choosy with who you rent to.

 

Also: Congrats on the investment! I hope it all goes well and is profitable for you.

[dolfan06 1]

I'd be really curious to see what kind of documents you get when you "do an LLC online"--if you go that route let me know and I'll be glad to look it over.

[mmmmm...beer 691]

I've a really good buddy doing this in Bullhead City, AZ... he, his brother, and sister started a LLC and bought a condo. I think they paid 75 Grrrr for it... that was last year.... the condo's all around it are selling for 140's now.. so he's happy.

 

I think they're getting an equity loan from the first and have already bought a second... or they're in the process of doing it. He's always harping in me that I need to do the same thing.

 

He's very happy with how it's turned out so far. Said he wants to keep building his empire for the next 20 years... having all the other rentals subsequently pay off each new one.

 

Makes sense... the wife and I have thought about this as well. We're going to get on our feet a bit more and I can see doing it.

 

Good luck Jerry.

[swirvenirvin 25]

Also your current insurance should be able to cover your first few rentals

[jerryskids 5,192]

I'd be really curious to see what kind of documents you get when you "do an LLC online"--if you go that route let me know and I'll be glad to look it over.

Thanks, I appreciate it. There is a site that advertise all of the time on our news radio, drawing a blank on the name, I'll ask my wife when she gets home, she listens to it a lot more than me (I'm a sports radio guy, go figure on a FF site).

 

To everyone else, thanks for the comments and well wishes, keep both coming. I know that rates are high and real estate is flattening, etc. But there is always an excuse to not do it, time to take the plunge. I'll never forget an old boss of mine's story: he lives in LA, and knows a lawyer who in the mid 70s owned a bunch of property in downtown LA. He sold it all because "it has gone up so much it can't possibly go higher." Imagine if he still owned it...

 

I'm gonna be Lex Luthor baby.

[dolfan06 1]

Thanks, I appreciate it. There is a site that advertise all of the time on our news radio, drawing a blank on the name, I'll ask my wife when she gets home, she listens to it a lot more than me (I'm a sports radio guy, go figure on a FF site).

 

I've heard some ads on Sirius NFL radio-- "Do you know the benefits of an LLC? Did you know you can get a business credit line of up to $50,000 just by forming one?" and so on.... They make it sound really shady.

[Jeff Garcia 8]

fixed

[jerryskids 5,192]

I've heard some ads on Sirius NFL radio-- "Do you know the benefits of an LLC? Did you know you can get a business credit line of up to $50,000 just by forming one?" and so on.... They make it sound really shady.

This isn't like that I think, although I can't check it out until I get the name.

 

Also I have legal coverage thru work with ARAG, which I've used for trust work. I need to look into if this would be covered. I doubt it, but it doesn't hurt to ask.

[fatsean 0]

Go to a lawyer to get good, tight leases drawn up. It won't be expensive and is certainly worth the cost. go to www.freeadvice.com and check out the section titled "landlord/tenant issues". You'd be amazed at some of the crap that people have to put up with.

I've owned a duplex for 7 years now. It's been a great investment. Good luck to you.

[D_House 0]

this thread sucks!

[Grace Under Pressure 9]

Thanks, I appreciate it. There is a site that advertise all of the time on our news radio, drawing a blank on the name, I'll ask my wife when she gets home, she listens to it a lot more than me (I'm a sports radio guy, go figure on a FF site).

 

To everyone else, thanks for the comments and well wishes, keep both coming. I know that rates are high and real estate is flattening, etc. But there is always an excuse to not do it, time to take the plunge. I'll never forget an old boss of mine's story: he lives in LA, and knows a lawyer who in the mid 70s owned a bunch of property in downtown LA. He sold it all because "it has gone up so much it can't possibly go higher." Imagine if he still owned it...

 

I'm gonna be Lex Luthor baby.

 

I think it's called The Corporation Commision.

 

Cross streets on the complex? PV Schoold Distrcit is right around my way.

[jerryskids 5,192]

I think it's called The Corporation Commision.

 

Cross streets on the complex? PV Schoold Distrcit is right around my way.

The website I was referring to is called legalzoom.com

 

Also, 29th St. and Greenway

[SouthGeorgia 2]

Only rent to Mexicans to avoid not getting your rent.

[Voltaire 4,557]

I wish you the best too, but I'm shaking my head. I think you're getting in at a really bad time. I told somebody that same thing about five months ago, maybe you, I don't remember.

 

Interest rates are going up. Just three or four years ago made better sense. And then sell now. Now is the time to get out of the market, not in it.

 

You gotta make sure that your income from renting is greater than your mortgage and also hope that the bottom doesn't fall out of the market, it's already swollen so much especially in Arizona.

 

Hopefully the deflation is gradual, not sudden. Hopefully the ballooning twin deficts of trade and budget don't trigger a recession too. So many things point to a big glowing neon: No, You're a couple years too late!!

 

At least it's not blind, you already did your homework enough to know that prices are flattening. But if you're investing the money and not expecting it to go up anymore... it'll stay flat or go down.

 

Anyways cam across this today and thought of this thread. More national trends than local AZ ones...

 

http://www.nytimes.com/2006/05/09/business/09home.html

[swirvenirvin 25]

I wish you the best too, but I'm shaking my head. I think you're getting in at a really bad time. I told somebody that same thing about five months ago, maybe you, I don't remember.

 

Interest rates are going up. Just three or four years ago made better sense. And then sell now. Now is the time to get out of the market, not in it.

 

You gotta make sure that your income from renting is greater than your mortgage and also hope that the bottom doesn't fall out of the market, it's already swollen so much especially in Arizona.

 

Hopefully the deflation is gradual, not sudden. Hopefully the ballooning twin deficts of trade and budget don't trigger a recession too. So many things point to a big glowing neon: No, You're a couple years too late!!

 

At least it's not blind, you already did your homework enough to know that prices are flattening. But if you're investing the money and not expecting it to go up anymore... it'll stay flat or go down.

 

Anyways cam across this today and thought of this thread. More national trends than local AZ ones...

 

http://www.nytimes.com/2006/05/09/business/09home.html

 

 

all more the reason to own some rentals, people are not going ot be able to afford houses or condo's anymore and will have to rent. I think he realizes he is not going to make a lot of money sellling it, just building some equity and maybe making $100 a month