... and Landlord! Rental Real Estate Investing Podcast

What are your thoughts on money? How do you feel about debt? Are you a person who thinks in terms of "I can't" or "how can I"? The difference between rich and poor (or middle class) may very well exist in the distinction between those two mindsets.

Most people would LOVE to be a Real Estate Investor. I've yet to meet the person who says they would NOT want to own Real Estate. I've met people that would rather not be a Landlord, but everyone wants to own Real Estate. But most people will dismiss this thought as something they can't do by saying "I don't have the money" or "I can't afford it".

That's disappointing - because if instead such people would ask "HOW can I get the money" or "HOW can I afford it" - they would be unleashing the power of their mind to solve the problem just placed before it. This reasoning comes from the book Rich Dad Poor Dad, which is mentioned in the opening minutes of this Podcast Episode #15 - Where To Get The Money? Using Other Peoples Money (OPM) For Real Estate Investing Success - Part 1.

This is a two part episode, because while I talk about getting money from: Banks; Hard Money Lenders; Retirement Accounts (IRA/401K/TSP); HELOC; Credit Cards; Private Lenders; and even a line about Cash-Value Life Insurance - I spend most of this episode speaking in general about using debt to buy Real Estate. I even go into details of "Good Debt" versus "Bad Debt"; and a term from fellow Investor & Podcast Host, Jason Hartman - "Inflation Induced Debt Destruction". Because if you think ALL debt is bad, then we're done right there!

So listen to this Episode #15 - Part 1 of the [... and Landlord!] Rental Real Estate Investing Podcast and we'll continue in Episode #16 - Part 2 next week speaking more about Private Lenders - which is really where you want to get your funding from as you progress in your Real Estate Investing business. But you most likely want to start out using a Bank or Hard Money Lender, so I talk about that in this Episode, along with thoughts on how and where to get your 20% to 25% down-payment you'll likely need in addition to closing costs and reserves.

Have you ever heard of the BRRRR method of Rental Real Estate Investing? BRRRR Stands for Buy, Rehab (or some may say Renovate), Rent, Refinance, (and to add yet another R) - Repeat. I've used the BRRRR method for all of my rental properties, buying each at some level of distress. And then rehabbing them into cash-flow positive rentals, before refinancing to pull out my invested cash, plus a nice profit - at least for most of them there was profit.

Now the idea of buying a distressed property to rehab into a rental may seem risky, and so you may be more inclined towards turn-key properties. Who wants to do actual rehab work when you can buy rental ready properties that need no more effort or expertise on your part beyond turning the key? But as mentioned in this episode of the [... and Landlord!] Rental Real Estate Investing Podcast - you make money in Real Estate Investing proportional to the level of problems you're able to solve. And the one solving the problems is the one who gets paid most.

So while a turn-key investment property will give you potential positive cash-flow, appreciation and tax benefits - it's not as likely to produce instant equity or an infinite return. Whereas a BRRRR deal successfully executed is one where you found a property with a problem you could solve, and your benefit for doing so is positive cash-flow, appreciation and tax benefits - PLUS, all your invested money back out of the deal (creating an infinite return), a nice profit check at refi closing, and instant equity in the deal.

Turn-key may be easier, but you're not solving any problems. Someone else solved the problem, and so that is the person who will profit the most from the deal. And then you have to hope that person knew what they were doing and did not cut any corners - thus still introducing risk into the deal, but a risk with no reward... just risk that you're dealing with a turn-key provider who is incompetent or a crook. But worse than that, what do you learn and how do you improve in your problem solving skills by buying turn-key properties?

This episode of the [... and Landlord!] Podcast is about doing BRRRR deals to build your rental property empire, because among other reasons - each deal done increases your knowledge, experience and skills. You can then do more complex or more challenging deals as you move along - and each increases your profit potential for solving higher level problems.

In this episode, I give details of how I increased from doing BRRRR deals where the rehab budget was estimated to be $3,000 to projects with rehab budgets of $150,000. I don't want to hold you in suspense, so I'll just tell you now that I made a lot more profit on the $150K deal than those nearer to $3K. That is because the $150K rehab had some big problems to solve, as did a $90K rehab project that I also mention in this episode. And since you would not want to jump right out there on a 6 figure rehab project, you need to work your way up by doing repeated BRRRR deals... that is why the last R is Repeat.

Back in 2016, I found myself clearing my first (AND LAST) toilet clog in a rental property. It was my 4th property, but numbers 4, 5 and 6 came to me in a very short amount of time. And by the time I got #7, I was officially out of the DIY (Do It Yourself) Landlord life. No more would you find me clearing tenant toilet clogs. I was done handling jammed garbage disposals. I was finished with pest control. NO future maintenance and repair tasks would involve ME - doing anything directly.

Over the period of time from obtaining rental property #4 to #7, I had started building my team of personnel and vendors, including: Plumber; Electrician; HVAC; Cleaners; General Contractors; Painters; Handymen, etc... So now when something needed to be done at a rental property, I had people to call who could take action on my behalf. But this was hard for me, because of course these people also wanted to be PAID - and much of the work I tasked them to undertake on my behalf were things that I was fully capable of handling myself.

So this 13th Episode of the [... and Landlord] Rental Real Estate Investing Podcast is titled "Avoid Becoming A DIY Landlord" - and its all about my journey from feeling I should be saving MONEY - by handling everything myself; to saving TIME (which is far more valuable than money) - by leveraging the time and skills of others to handle things on my behalf.

Finding myself clearing a tenant toilet clog was my eye opening moment to see how wasteful it was of both my time and ultimately also a waste of my money - for ME to be clearing toilet clogs. When I could have been out finding more properties to grow my Rental Property business. Or working to get clients to grow my Realty business. It certainly was not the best use of my time and skills to be clearing a toilet clog in a rental property - something I didn't want to be doing anyway! That certainly wasn't why I got into Real Estate, so why was I doing it?

Well no more DIY Landlord tasks for me.. And hopefully after listening to this 13th Episode of the [... and Landlord] Podcast, you will be done with the DIY Landlord life also. Or even better... Maybe this will help you to avoid it entirely if you've not yet fallen into that trap. Instead of clearing toilet clogs, go out and get more rental properties. And if those rentals are in the Raleigh / Durham (Triangle area) of North Carolina, then you should hire me and Blue Chariot Management to manage your rental properties on your behalf. I've put together an impressive team to handle all your Raleigh / Durham Property Management needs.

Blue Chariot Management is here! #12 is a Special Episode of the [...and Landlord] Rental Real Estate Investing Podcast, titled "Elevate Your Real Estate Investment - Introducing Blue Chariot Management".

Effective Property Management is an essential element of having a profitable Rental Real Estate Investment Property. This Special Episode serves as the official announcement of Blue Chariot Management. Professional Property Management by Blue Chariot for Single-Family and small Multi-Family Rental Properties in the Raleigh / Durham (Triangle) area of North Carolina.

Prior episodes of the [... and Landlord] Podcast have given insight into how you can more effectively self-manage your rental property... Like #8 | Don' Let Vacancy Kill Your Rental Cashflow; and #9 | Rental Property Advertising How To Make Your Rental Home Stand Out From The Crowd - among others. But now you can hire Jonathan Taylor Smith and Blue Chariot Management to handle this on your behalf.

Please visit: BlueChariot.Management - to learn more about Blue Chariot Management and to get a FREE Rental Analysis and quote for Professional Rental Property Management from Blue Chariot.

So let's talk about your rental lease... Where did you get yours? Did you download it from some random site on the Internet located by searching Google for keywords like "rental lease agreement"? Did you buy it at Office Depot or Staples? Or did you go the professional route and pay an attorney to create a custom lease specific to you and your rental property?

First, I don't recommend going the random Internet search route. I also wouldn't buy or use a lease from anywhere, unless it is indicated and confirmed to be written specially for your state. I'm in North Carolina, and the Landlord / Tenant Laws here (and thus how a lease must be written to comply with them) are certainly not going to be the same for you in some other state. You need a state specific lease.

So it would seem the best method would be to get a lease drawn up by an attorney in your local area who is knowledgeable of the Landlord / Tenant Laws and resulting lease requirements in your state... Right? Maybe, but not necessarily...

In this episode of the ... and Landlord! Rental Real Estate Investing Podcast, entitled "#11 | Make Sure Your Lease Protects Your ASSets" - I speak on the topic of rental leases... Where I got mine. How and why I've customized it. And I provide examples of how I use my lease as both a sword and shield in the protection of my rental home assets; as well as, my rental property and property management businesses.

I give two locations (BiggerPockets.com & EZLandlordForms.com) - at which you can obtain state specific leases. The lease I use for all of my rental properties comes from EZLandlordForms.com - and I've then customized it to fit my specific needs, including adding and altering provisions to make the lease even better at protecting my rental home assets and businesses. Of course, I ran this lease by my attorney, along with any additions and changes that I've made. And the end result after 4 years is a document that speaks well to almost any scenario that occurs at one of my rental homes and for my rental property and property management businesses.

Likewise, in this episode I give tips to making sure you have the best possible lease in place to both help keep you OUT of court, and making your WIN (should you end up in court anyway) next to inevitable. And the most important part of that equation is staying OUT of court - so I provide details in making sure your tenant is fully informed as to the lease contents and your strict adherence to following this document in the handling of any and all issues.

I even go into details as to when, why and how to make an exception in handling things only as detailed in the lease. There needs to be room for reasonableness in your handling of matters, even when you are fully within your rights according to the lease and law. Yes, the lease can be your sword - but "he who lives by the sword, also dies by the sword." - so be reasonable with your tenants and your handling of matters, as that may also work in your favor should you ever end up in court. You don't want to be in front of a judge looking like the unreasonable party or a bully.

In short, rental property is an asset that comes with certain risks - so this episode is all about making sure your lease protects your ASSets as best possible.

So let's talk Section 8! There's an Eight Ball on the cover image of this episode for a reason. All too often Landlords effectively "Black Ball" Section 8 voucher holders. When a person with a Section 8 voucher calls to inquire about a listed rental home and they begin to ask that question of the Landlord... "Do you accept Section 8 vouchers?" - All to often, it may seem to the prospective Tenant as if the Landlord barely waits for them to finish asking the question before beginning to respond - "No... We don't accept vouchers".

But when those prospective Tenants call me to inquire about one of my rentals, the answer as it relates to most of my properties is... "Yes, certainly we accept Section 8 vouchers." - And it's funny (ironic) when the person then asks the question again... "You do accept Section 8!?" - As they are so (pleasantly) surprised to hear something different than all their prior inquiry calls - they hardly believe their ears.

In this 10th Episode of the ... and Landlord Rental Real Estate Investing Podcast, I discuss Section 8. I go into many of the reasons that Landlords often effectively "black ball" (refuse to accept) these prospective tenants who are on Section 8. But I concede that in some markets this may be a wise decision, as County Section 8 programs are not always administrated effectively and Landlord / Tenant Laws can be shewed (un-reasonably) towards the Tenant in some Cities and States.

I warn that if it takes 6+ months to evict someone in your market, then it does increase the risk of accepting Section 8 as a Landlord - as well as, just being a rental property owner in that location at all. However, where the program is administered properly and where evictions can happen (should it be needed) in a reasonable amount of time (like 1 to 3 months) - then accepting Section 8 can be of great benefit. That benefit can be for you (the Landlord), but also for the Section 8 Tenant, the Neighborhood, the City, the State, the Country - and everyone.

There may be many legitimate reasons for NOT accepting Section 8, of which I cover several in this episode. But there are also many valid reasons TO accepting Section 8 - that should be fully considered before just refusing to participate in the program for fear of what might happen. Landlord Horror Stories abound, but you can run your rental business (including accepting Section 8 vouchers) in a way that makes it unlikely you'll be the next victim.

As such, I cover many of the things that can be done to lessen the chance of a negative outcome. And how to increase the likelihood for getting a long-term Tenant who will greatly appreciate having a wonderful home for their family.

Do Good While Doing Well...

Section 8 offers a prime opportunity for Landlords to do good for others, while also doing well for themselves. But the program and those on it have gotten a negative stigma attached that makes many Landlords fear even trying to participate in the program. As stated, that can be a wise choice in some markets. But in many (if not most) the risk is more than worth the reward. And the risk can be largely mitigated by having proper Tenant screening, strict policies and well established procedures that allow your rental business to function smoothly.

This episode relates my experiences with Section 8 in Durham, North Carolina. And you be successful with Section 8 also, here or elsewhere - if done right.

This (9th) Episode of the [... and Landlord] Rental Real Estate Investing Podcast is titled "Rental Property Advertising - How To Make Your Rental Home Stand Out From The Crowd".

So in this episode, I go into things such as posting enticing pictures (lots of them), and making sure that your main exterior and kitchen (or kitchen and living-room) pictures are amazing. These can be taken with a SmartPhone, but you need to know what you're doing and have proper lighting - otherwise, go pro and just pay to have it done right. You can stage the home with some furniture and decor, or showcase your wide-open space - but the pictures have got to be on point.

I continue to say a word on your words... Yes, a picture is worth a thousand, but you still need some, and they need to paint a compelling picture. So I give an example of how to tell a story with your listing text, instead of just citing bland facts and figures - like all the other rental listings on Zillow and other sites.

And I mention Zillow, Trulia, HotPads, CraigsList, Realtor.com - and other sites, including GoSection8.com. Have you considered Section 8? In this Episode I go into a bit of detail as to why you should, including some stats on the program for Durham County, NC. But I don't tell the full story on Section 8 here (only how it relates to making your rental listing stand out from the crowd) - so in a coming Episode, I will go into more detail on the pros and cons of making your rental homes available for persons with Section 8 vouchers and the process for doing so.

I also provide an example of how to conduct market research on Zillow to learn what the competition is like in your area. And how to use the information presented on Zillow to identify how best to stand out among others listed. And even what your target rent should be as suggested by Zillow, CraigsList and Rentometer.com - but possibly adjusted to target Section 8.

Upgrades? Lastly, I speak on how you can make your rental home stand out from the crowd by making upgrades. Why have fermica counters when you can have granite? Why carpet when it can be "luxury" vinyl plank? Why have white appliances when they can be stainless steel for not much more? Why not add fans in the bedrooms and living areas, upgrade light fixtures, add a backslash in the kitchen, tile the shower, etc...?

If you can make people say "WOW!" when they see your listing, and feel a sense of disbelief that it is available within their rent range... You'll get the best tenants; who remain for years; while gladly accepting annual rent increases; and having pride in the home - of which they take great care.

This 9th Episode ("Rental Property Advertising - How To Make Your Rental Home Stand Out From The Crowd") is a deep(er) dive into the rental advertising aspects of last week's: Ep. #8 | Don't Let Vacancy Kill Your Rental Cashflow.

So as mentioned in Episode #8, your rental listing advertising is a critical element of keeping vacancy to a minimum. Now learn how to make your rental home stand out from the crowd, like your house has a spotlight shinning on it from above.

In this, the 8th Episode of the [... and Landlord] Rental Real Estate Investing Podcast, I discuss how vacancy kills rental cashflow; and therefore how to avoid vacancy.

On this topic of avoiding rental vacancy, I discuss such things as making sure that your existing tenant leaves on terms that are favorable to your finding a new tenant BEFORE they're gone. This includes having a requirement of 45 days notice to end tenancy (not 30 days unless mandated by law). Also, having it stated in your lease that you have the right to show the home to new prospective tenants during that notice period while the current tenant is still present - along with details on how to handle this properly.

I speak on how to advertise the property for rent and making sure its priced right. For example, might you be able to rent the property faster and for a longer period of time at a slightly reduced rent? And for once you have people inquiring about your rental, I talk about screening those prospective tenants in a way so as to lawfully eliminate those persons who are more likely to create problems for you and likely to be short-term tenants - as you want tenants who will be in the home for years.

This is because tenant turnover is expensive, so I speak on ways of getting your existing tenant to remain longer, so as to avoid not just vacancy, but also the major expense of making the home rental ready again between tenants. Your tenant is your customer, so you must treat them with appreciation, while also running your rental business with professional processes that make them want to remain being a customer (tenant) of your rental property business. This even includes how you handle lease renewals and rent increases.

And lastly, I give an example where one of my better rental homes will soon experience a tenant turnover. The existing tenant in this homes gave notice in April that they would be vacating the home at the end of May (Sunday, June 2nd actually to have one more weekend to complete the move-out). We quickly got the home listed for rent and scheduled showings. There were lots of inquiries and showings, which resulted in 5 applications being submitted. We processed each and approved one for a new tenant to begin occupancy in this home on June 7th. That will give us 4 days (from June 3rd to 6th) to complete touch-up painting and any other work as needed to make the home rental ready again for the new tenant. And because of how we manage our properties, it is highly likely that very little work will be needed to make the home ready, as it passed an inspection just a couple months earlier.

In line with this example, I speak a bit during this episode on property management, such as doing quarterly inspections. This creates a situation where when you do experience a tenant turnover, you already know the condition of the property and its likely to require minimal work if all prior quarterly inspections have been passed and the tenant follows the move-out cleaning guide.

The episode ends with mention of the new [... and Landlord] Podcast Book Recommendations page at: https://www.andlandlord.com/books - and my personal comments here referencing: The 4-Hour Work Week & Secrets of the Millionaire Mind. I highly recommend both books, and you can read details of what they did for me at the above links.

Books have played a critical roll in my Real Estate success since starting in 2015. I once had negative thoughts towards so-called "Self-Help" books, or those on Mindset, Business or Money & Finances. But once I actually allowed myself to read the first, I was hooked.

As I've expressed before, that book was Rich Dad Poor Dad, and it changed the way I looked at both money and myself. Some time later I read Rich Dad's Cashflow Quadrant, and it changed the way I looked at my business and how my wife and I made our money as an employee and self-employed small business owner.

I don't remember exactly, but I'm pretty certain my finally reading Rich Dad Poor Dad was a result of listening to the BiggerPockets Podcast, where at the end of each show they ask the guest for book recommendations - and almost every person mentioned this book... So I had to read it! And thus naturally, I started reading the other recommended books also.

Now I'd like to return that favor by not only recommending books that I found valuable, but also providing details into WHY. On the [... and Landlord] Podcast Website at: https://www.andlandlord.com/books - you can get a listing of my favorite books that I feel every Real Estate Investor should read. But also I'll give some details of where I was along my journey when I encountered each book, what I took from it, and what it did for me - so that maybe you may benefit as well.

In this episode of the [... and Landlord] Podcast, I focus on two... The 4-Hour Work Week & The Richest Man in Babylon.

In 2019, maybe more than ever before - you need to be able to evaluate properties, market for deals, negotiate with sellers, and have reliable funding in place to close. As I've mentioned before, I started my Real Estate Investing career in 2015, which admittedly was a better time to have started than 2019. In fact, I'd say I was about 5 years late. Had I started in 2010, its possible I'd have 10 times the number of properties as I do now. But like the Chinese Proverb says...

"The best time to plant a tree was 20 years ago... The second best time is now."

Having started my Real Estate Investing career in 2015 instead of 2010, I'll try not to lament only catching the tale end of what may prove to be the greatest opportunity to acquire deeply discounted properties in mass that may occur within my lifetime. Likewise, YOU should not use the current market condition as an excuse NOT to get started or to grow in YOUR Real Estate Investing business in 2019.

In this Episode (#6) of the [... and Landlord] Podcast, I talk about Evaluating Properties, Marketing for Deal, Negotiating with Seller, and Funding Purchases... all things that are always needed in Real Estate Investing, but even more so when in a "Hot" market where almost everything appears to be greatly over-priced as a Rental Property Investment.

Checkout the full Episode Blog & Transcript at: https://andLandlord.com