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Hi, it’s Lou Brown and I am back with some more information. Having been a landlord now for over 40 years, I know what it’s like to buy and hold property and I know what it’s like to do everything you can do to be able to collect your money and to be able to use your money. You know, one of the challenges I learned early on is that most States have security deposits and most landlords collect the security deposit. Well, one of the things you got know about a security deposit is it’s not your money. It is the resident’s money and that money in many States, you have to put that into a separate bank account and you have to hold it there. And in some States you have to tell them what bank it’s in, what the account number is. And in some States you even have to pay interest on the money.
Hold on, I’m back with another of my 101 profit centers to help you build and sustain a wonderful real estate investing business. And one of the things I discovered over time was that when we connect with our residents, we want them to be responsible around what they’re doing with our property. Most of your residents have a lot of different bills due on the first of the month. So I rolled that back and I said, what if we got paid out of the middle of the month check instead of the first of the month check? So I rolled it back to the 25th not now. I’ve found out that there’s about 13 different benefits from collecting the rent early before the first of the month. One of them is that everybody else is falling there dispossessed surgeries later after the first of the month. They usually wait five days before they filed this possessors.
Welcome back to another amount, 101 passionate load generators. You know, I love this business. I’ve been buying, holding and selling property for over 40 years. I’ve learned some amazing things during this time and one of them is how we deal with collecting our money. You know, when someone doesn’t pay as agreed, what happens is that you have to take them to court and you have to create an eviction and unfortunately sometimes you have to actually set people out of your properties and when you get to court, sometimes the judges want to take your money and give it to the resident and they do that in a form of late charges. Even though late charges may be a part of your contract, and in fact they are a, what the judges will often do is strike through the late charges and not give them to you in the judgment.
I’m back with another of my 101 street smart cashflow accelerators and I’ve got one for your number 54 charge pet rant. Yeah baby. So not only, and I’ve been talking about in this series of managing your properties and additional profit centers that you can arm, we’ve identified over 25 different profit centers or additional income you can earn over and above what your regular mortgage versus the rent is. That little profit right there, but this is over and above money that you can make in your great real estate business. And we’ve developed these over 40 years of being in this business. It is great because people don’t resist you on these things. They love you. You’re giving them an opportunity. One of the things that we do is we offer our path to home ownership program to our potential buyers and it’s so exciting because they’re gearing towards ownership of a property and we want them to treat that property like it was theirs.
It’s Lou Brown with another one of my hundred and one street-smart cashflow accelerators. And in this one in this series I’ve been talking about when managing property and having the right agreement and in that agreement can be certain things that definitely will put you in a position of success. And this one is charged pet these. Listen, when people have animals, they love those animals in some cases more than they love their children. The animal comes to them, they wag their tail, they love that animal. The animal loves the person and everything is so cool and so people are willing to pay for these animals. Now imagine that when someone discloses on their application that they have animals, we will allow up to two. Now we’re mainly focused in the single family business. We do have multi-families. I’ve done many, many multi-families in the past and we definitely also want to attract people that want to stay.
I am back with another one of my 101 cashflow accelerators. And this is number 51. Always use the right rental agreement that will protect you. Well, I’ll tell you what, over the years I’ve definitely learned that paperwork matters. And if you’re serious about this business, you’ve got to understand that you are in a contract-related business, that you’re going to contract with sellers, you’ve got to contract with buyers, you’re going to contract with occupants of your property. Sometimes they’re renters, sometimes they’re buyers. And having the right paperwork is an absolutely critical step in the process. And by that I mean that you have to have paperwork that protects you, that negotiates for you, and that covers your assets. When things get a little wonky, as they sometimes do with crazy people, that might move into your property. So what happens is that we give you the tools to be able to do that.
I’ve been in this business for over 40 years buying, holding, and selling property and I’ve learned a lot of valuable things. And one of the things I talked about in number 51 was the use of profit centers and adding profit centers into your agreement because people are number one, willing to pay them if you’re willing to offer certain things. And now number 52 is charged extra person fees, extra charges when people move in. Now what this means is let’s say that somebody is applied for your property and there are two adults and two children and then you find out later that there are additional people living on the property. Now that only happens a lot. So, so I want you to be aware of that, uh, that in the agreement we actually have built into our standard rental agreement on amazing additional profit center for you that says if you’re going to move in additional people, then you’re going to pay $100 per person.
it’s Lou Brown back with another one of my hundred and one street smart cashflow accelerators. I love teaching these. It’s gotten a lot of great information. This segment we’re going to focus on managing. So number 50 buy right so you can keep some of your fines. The real wealth is in the holding of the property and I couldn’t emphasize that more. I couldn’t be a better testimony to that fact that we have bought right and held over many, many years and given people the opportunity to someday end up with home ownership. And as a result, we’ve got great cashflow and great residents that live in the homes. So one of the things that you’re looking for is when you purchase the property, you’re looking at financing because when you use hard money financing, it’s usually limited to three, six months, maybe a year, and then you’re done.
It is hard for others to collect judgments and liens with your assets in trust. Imagine this, somebody goes to court; they follow a lawsuit against you. You have a situation in court. Most attorneys will actually admit that many cases are won from technicalities, not even from the law, not even for what was right or what was wrong. They won on technicalities. So the system is so flawed in my opinion and I really don’t appreciate it and I don’t like it.
Avoid the due upon sale clause requirement legally using trusts. One of the most powerful things is wouldn’t you agree if you didn’t have to go to the bank and you didn’t have to qualify for a loan and you could actually buy real estate, wouldn’t that be awesome? And you don’t have to put up your credit report and you don’t have to pay a bunch of fees. The cost of the loan and all those things could be eliminated if you simply negotiate with the seller as I’ve shared with you and other tips and take over their existing financing on the property, take over the payments on the property.
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