Frequently Asked Questions
Most simple or basic questions are answered below. More detailed questions that require a more lengthy reply are noted to the right.
Are Rental Properties a giant hassle?
That has not been my experience. That said, yes you do have to deal with problems from time to time. The sink may be clogged and you may need to call a plumber. You may have to call and have someone repair the roof or paint some trim. Any way you look at it, real estate is not a purely passive investment. But I have found the hassles to be minimal and the rewards to far outweigh the risks.
How hard is collecting the rent?
The terms of the rental lease agreement specify that rent is due on the 1st of the month and late if not paid by the 10th. I have tenants mail rent checks directly to my house and that works well. Most tenants do not wish to incur the late fees and they pay on time. Late payments do happen and I do enforce the late fees. In general however, collecting rent payments is no big deal.
What if I have to evict a tenant for not paying?
Georgia is among the most landlord friendly states. If a tenant does not pay rent, there is a very simple and quick process for having them evicted and this is usually accomplished within 30 - 45 days even with a completely non-compliant tenant. There are also companies that will handle the entire process for a very modest fee.
It has been my experience however that a non-paying tenant can be removed quickly from the property voluntarily in most cases. I usually tell a tenant that I want out of a home quickly that if they will agree to leave within 2 weeks I will not pursue a legal judgment for past due rent. This is usually a successful tactic.
What if I decide to sell the home later?
I view this not as IF you will eventually sell the home, but when. Everyone eventually wants to take a nice capital gain. Selling is not big deal. You can either sell the home with the tenant in place to another investor, you can sell the home to the tenant (this usually works very well particularly if the sale is planned well in advance so the tenant has plenty of time to build a down payment and have their credit repaired) or you can choose to not renew the lease when it comes due and sell the home when the tenant has vacated the property.
I have heard about people buying foreclosed homes in bulk from lenders at crazy low prices. Can you help with this?
No. I want nothing to do with these strategies and I think most who attempt this are going to be financially ruined. The banks ARE selling many homes in package deals consisting of up to 100 homes in a single sale. Buyers are usually buying these homes without viewing them and many of the homes are nothing more than tear downs. You are often buying a lot with a $5000 garbage removal problem attached. This market is far too complicated and good deals are not so easy to be had that they can be bought in bulk.
I want to do what your doing; buy cheap homes from the banks and then renovate them myself. Can you help?
Yes. I cannot broker a sale as I am not a real estate agent or broker. But I am more than happy to assist you on a consulting basis. I will show you neighborhoods and homes, put you in touch sellers, help you structure any offers and in general share with you everything I know about this market and business. Call to discuss my fee's for this service.