/biz/ - Business & Finance

>>719367
Realty is like anything else anymore. They're only out to make the most money possible in the quickest amount of time, and their customers don't mean anything to them.

For them, they can rent with section 8, are guaranteed to collect so much rent a month from government money, even more if they rent to a minority, and they always get their cut. Your house gets wrecked by the kinds of people that move in, but you have no choice but to fix it and re-rent again to recoup losses. You barely break even on the next family, and the cycle goes on and on. The realty company always wins, all you get is a little bit of extra income and a lot of extra hassle.

Not to mention, when you rent section 8, you're reducing the property value of neighbors, which ultimately reduces your own property value. But again, for reality companies, it's not about later, it's about how much you can make right now. And fast turnover with guarnateed money is the ticket.

>>719367

I've got a nice older ex-cop named Willis managing my rentals. He and his son beat this basketball american who didn't pay up (and who I vetted thinking I knew what I was doing) to a pulp, I got my rent, and had a new tenant in the next week.

Gotta rent to the right people and have the right person managing your shit.

>>719367
Things ain't as pretty as the lies and dreams spouted on /biz/ huh? Who would've guessed?

>>719406
>ex-cop
>physically brutalizes someone over money

This is either NYC or the south.

So what are the penalties for all this lack of rent? Do their credit scores get destroyed, is a warrant sent out for their arrest, do they get disqualified for welfare or something?

To put thing in another light, say I don't mind moving often. Why should I pay rent?

>>719538
None the above, except maybe more welfare cause clearly they didn't get enough.

Why should I pay rent? If you want to be a dirty nigger, then you don't. If you want to not be a dirty nigger then you should pay rent.

>>719543
That's a shame. I always figured not paying rent was illegal, or at least it had long term consequences. Time to run for President and fix that.

>>719367
Yeh. Google "bigger pockets"

Basically this early on you should be screening ypur own tenants

>>719538
Well you have a renters history that will show evictions and shit so in the future nocer places will refuse to rent to you and itll be own your own or live in a shithole

OP is a retard because he didnt check out his own tenants. A property manager that only gets paid if the place is rented has no incentive not to put a shitty tenant in a unit

>>719538
> So what are the penalties for all this lack of rent?

Depends on the state and landlord/tenant law in that state.

Generally speaking, if the person is late beyond a specified time in law (which could be anywhere from a week to 90 days), you go to small claims court and get a court order to evict. Depending on the state, the eviction notice can require anywhere from 3 to 90 days to allow the tenant to move.

You then also get a court order for the late rent. If the person doesn't pay, the court can garnish their paycheck.

The wrinkle in all this is that you can't squeeze blood from a stone. Usually people who don't pay rent are broke, unemployed, and have shit credit already, and all the court orders in the world won't make the lowlifes actually make money.

tl;dr: OP is retarded for not properly screening his tenants and doing a credit check.

>>719559
It does have long-term consequences. The President can't do shit about it as the Congress doesn't have the right to regulate landlord/tenant law in Article 1.

>>719367
As soon as they fill out the application to when they sign the lease be on point and legit with everything. As soon as they break the lease and not pay. Don't wait for them to pay, take the proper measures right away. In california i give a 3 day notice after 3 days. This one lady tried always paying within the 3 days, the moment she didn't two days later i filed the eviction! This is a business not a damn charity. I gave her multiple chances, told the court i didn't want money i just want her out as soon as possible.

I own investment properties but thankfully I live in an area where the rules heavily favor the landlord, if I had to deal with the shit that a lot of other landlords deal with I would never have gotten into this business. It's very easy for me to evict a problematic tenant. They can be late with the rent up to 15 days ONCE per 12 month period. Any more than that and I can give them 10 days to move out, if they aren't out by then I can get a cop to remove them.

Credit check, landlord references, employment reference. Never, ever let a tenant into your property unless these things check out. And do not fuck around with third party property managers, they are incompetent and don't give a shit about your investment, if you want something done right do it yourself.

>>719741
>I live in an area where the rules heavily favor the landlord
How do I locate these areas? Just tons and tons of research, or are there resources for landlords already out there?

>>719847
Every province, and I assume state, has it's own landlord/tenant laws which cover things like evictions, who is responsible for what, rent control, things like that. I learned the regulations long ago when I was still a renter, and now I'm actually obligated to give a copy to any new tenants. They are probably all fairly similar, although in my province it is easier to evict bad tenants and there are no serious rent controls.

>>719406
Details? I've always wanted to hire goons.
It's half the reason I want to get rich.

etf - instant deductions from the bank account. if it overdraws it fucks the clients, not you. All the pro's with large amounts of properties got renters on etf - like a gym membership dude. don't fuck around with collections, you don't have time for that.

>>719880
What kind of goons do you want to hire? It's not hard to find goons to intimidate poor people who can't afford good lawyers.

>>719886
The pay your rent / hotel room money kind.
For a start, do they live on the premises?

Maybe also a valet that doubles as a security guard for a house. But that's way down the line.

>>719889
You can pay them less if they live on the premises, free rent for the job of watching the place/collecting rent is a fair trade if they pull their weight. Ex infantry or physical security guys who had trouble reintegrating into society make ideal candidates, and you can recruit from bouncers at places where they actually have to get physical, like strip clubs with open bars.

>>719867
Yeh protip. Avoid illinois like the plague. Its like 800 laws on the books and 2 of them favor the landlord

>>719510

commiefornia detected

>leverage all your cash 5 to 1
>buy a non liquid high transaction cost asset
>stick scumbag renters in there to trash it

residential investing 101

you guys should have your head examined for trying to hold real estate as an investment.

>When the boomers die, what will happen to all those 5,000 sqft houses in the suburbs?

I've done rentals for many years now, including Section8 housing. I think the best advice is to do good screening and buy in very good areas.

My Sec8 properties were an exception and if I had to do it all over again, I should have actually bought in better areas. But, I had great tenants and sold them for a good profit, so it worked out ok.

REI is a very good wealth builder, IMHO. But, like anything, you need to put some time into learning about it. But, also don't wait too long to act either.

I buy houses in the neighborhoods around the university. There will never be a shortage of students who are willing to pay top dollar for a place to live near campus. They don't even need to be great houses, the location makes them real cash cows and I expect to make a lot of money when I sell.

>>719741
Dude, it has nothing to do with the rules and everything to do with the fact that your friends are probably really stupid. They expect that buying a property and filling it with a tenant is all they have to do to make money.

> Did your friends have a lawyer draft the lease agreement with the provisions that they wanted and in accordance with state law?

> Did your friends fork over the dough to do a thorough background and credit check, complete with written references and verification of employment?

> Did your friends actively manage the property and make repairs in a timely manner?

> Did your friends contact the tenants 24-48 hours after the rent was late (whatever 'late' means depending on the state) and immediately move to pursue eviction if the check didn't arrive within 48 hours after contact?

My guess is that they did not do those things, because most landlords are lazy assholes who just want to collect a paycheck for doing nothing.

>>719984
Nah, MA

Our police are owned by lawyers and congressmen, so they're rarely ever involved in physical brutality outside of their job since that reflects badly on their owners.

>>720206
They get inherited by their kids or grandkids who have debt up to their eyeballs. Boomers were a huge population boost, sure, but the average boomer had more than 2 kids, so the generation after them is bigger, not smaller.

>>719867
Which province are you in?
I'm here in BC getting fucked by tenants

>>720351
>I'm here in BC getting fucked by tenants
>"Anon, I don't have enough money for rent this month. Is there another way to... satisfy the lease?"

>>719367
How about you stop renting to niggers. Also, avoid states like California that make it a pain in the ass to chuck dead beats to the curb.

>>720206
Real estate is an excellent investment if you aren't retarded. Just ask my uncle, the real estate investor, and his mansion in Beverly Hills. Stay pleb.

>>720260
This. The places can be pieces of shit and college students will pay a lot of their parents money to live there.

>>720351
I have some knowledge of BC housing. In general, it's a fucked area to be a landlord. My advice is to buy in the US instead, where the rule of thumb is that the rent is 1% of the purchase price.

Never, ever buy for appreciation.

>>720665
>the rule of thumb is that the rent is 1% of the purchase price
So, it takes over 8 years to cover your initial investment?

>>720669
Nobody tries to cover their initial investment by renting.

And if you do manage to do so in 8 years that'd be amazing, considering for the most part its borrowed money your making these gains on.

>>720206
We outnumber the boomers dumbass. Plenty more people to move in.

>>720669
Dude what?

If your iniyial down payment is 3.5% it doesnt take 8 years to get what you put in back.

>>720700
Here's a list of the things I know about buying real estate:
>

>>720739
Google "bigger pockets"

You're welcome

>>720749
Thanks!

>>720297
but they will be forced to sell the homes to pay off debt. or the home will be resold when they go bankrupt. more supply with the same demand means lower prices.

>>720770
People in debt can afford minimum payments, that's their whole shpiel. If they're given a house with no mortgage or rent payments, they're never getting rid of it.

>>719406
The fuck? Sounds like you hired Mike from breaking bad

>>719980

I actually live in IL, and I can say, I had some tough times in the past. If you get a decent pro bono lawyer in Cook County, you can live rent free for 26 months after your last rent payment. If the landlord accidently accepts a payment, the 26 months starts again. I made it 3.5 years without paying a cent in rent or utilities and walked away with nothing against me except a mark on my credit report that takes roughly 5 points off and shows only a collection agency name from 5 years ago

>>720770
Then why have home prices gone up so much faster than inflation?

The thing about real estate is if the economy bombs and i have a fixed rate mortgage i might have trouble finding tenants and maybe i lower rent a bit , but people still need a place to live (no ones making new land anymore either)

If my income stream was from Dividends and the market tanks 50% im fucked for awhile. Need to work again or draw down from my nest egg. That nest egg had to be fucking huge to begin with by the way.

With realty i can leverage very small amounts of my actual cash into money produxing assets. How much do you need to live off index funds? Now how many properties do you need for the same income? Especially considering the tenants are paying the mortgage and insurance and repair bills and the ixing on top is my cashflow

>>720206

Because they're not making any more land, insofar that I can tell. Therefore, owning land is eventually a good bet.

>>720959
nigger detected. i'm sure this was in shitcongo, since the suburbs would let the landlord kick you out.

>>719367
How about asking for a double security deposit?
Sure you won't get many takers but you'll be weeding out those who can't afford the rental.

>>721110
Laws about this are pretty strict. We're lucky to be able to ask for a security deposit at all, what you're suggesting could get us sued and fined.

>>720967

"no one's making new land" is one of the most pernicious myths in investing.

no brother. developers were making TONS of new housing. not new land, but new housing developments. fucking everywhere. more than needed.

>>721244
when they can't build out anymore.. they build up.

if you have an acre of land and you build 40 stories on top of it, you just created 39 more acres of land.

now.. you have to find the right kind of person that wants to live in a filing cabinet... but you did technically create more space - probably in a downtown location.

What they don't create more of, and it keeps disappearing at faster and faster rates thanks to big land developers, is the nice little house, by itself, on a 2 acre plot of land, brick, with a fence and room for a vegetable garden.

These types of houses down in the city are worth millions. Because a developer can come in, buy it, and put up a 40 story building with 300 units in it and charge 2k a month = 600k a month = 7.2 million a year.

So long as people sign up for living in filing cabinets, this will continue to happen.

But who can blame them... you can rent out an apartment on the 20th floor for 2k a month, or you can pay the mortgage on a 5 million dollar old and run down shit shack.

It's sad, but it's the market economics of the thing.

I'm loooking for a 4 acre estate out in the burbs right now, the way i see it.. with mcmansion developments happening everywhere, the 4 acre estate in the burbs will be the 1 acre shotgun shack of the city in the future.

>>721260
>4 acre estate out in the burbs right now

Same thing is happening as the downtown location. just instead of building up they buy the 4 acres, put in a road, subdivide the lot and build 8 mcmansions on a half acre each.

good luck finding any sort of privacy in a good location anymore.


>>721244
>no one's making new land

should be"

"No one is making more privacy"

I would never invest in property in that sort of anti-landlord jurisdiction, but that said if I ever did end up having to deal with a tenant like you I would go outside the law to find a solution to the problem.

>>721503
meant for this nigger >>720959

If you're going to own rental property, do it in a college town. College kids are much easier to bully than a 40 year old deadbeat because he's been around for long enough to know that you can't just "evict" people without going to court.

Plus college kids are much less likely to complain because they don't know any better and are afraid of confronting older people.

Also never buy anywhere nice because college kids won't take care of shit.

>>721509
Yeah, I posted about this yesterday. My properties are all within walking distance of the local university. I picked those properties because of everything you said and because the value of those properties is somewhat immune to fluctuations in the overall real estate market, there will ALWAYS be plenty of college kids with lots of their parents money to spend on a place near campus, which makes those properties extremely valuable.

It is also a good idea to rent to foreign students if you are careful about it. Most of them dont understand the rules here and really dont want to rock the boat, so they rarely complain about anything. Just make sure you dont get some filthy chink who will shit on the floors.

>>719367
Yes, one of the biggest real estate rentiers is McDonald, they rent out thousands of properties and they even increase their income by letting the tenant pay for their "brand" and "license" and "know-how" that really does not differ much from average Chinese fast food. Only stupid people think McDoland's main investments are hamburgers.

>>721521

I didn't realize that people pursuing higher education would need to be told not to leave their feces on the floor. Good info to have right there.

>>719367
This is exactly why anyone who's long-term financial goal is to buy and rent houses out by themsleves is a fucking fool.

It's like the worst possible idea you could have for investing your money. People who do that shit for a living are called management companies, and they exist for a good reason: cause managing a rental property is literally a full-time job.

>>721639
I might have been exaggerating a bit, but the Chinese are notorious for being filthy, even the ones who are here doing serious university programs. They can be good tenants because they tend to have money, rent is never late, but you want to make sure that they are taking proper care of your property. You can end up having to deal with a house infested by vermin. The Chinese are alright people but they just have a different concept of cleanliness than us in the west. I had a tenant who was a Chinese engineering student, really nice girl but I had to speak to her a few times about taking the garbage out and not leaving food out where it can attract rodents. They dont complain though, they dont want to rock the boat like I said. I have had several Chinese tenants and none of them ever asked about their security deposits, I could have easily kept that money for myself but didnt because I am not that type of landlord, I just had to remind them that I owed them money.