RentPrep For Landlords

Recently we came across a blog post on https://optionalpha.com/ talking about how to reinvest income in rental properties through a snowball philosophy. 

When we reached out to the author he said we needed to interview him and his wife together. Turns out his wife runs the blog over at http://rentalrookie.com/ and they have a treasure trove of resources for investors.  Emily and Kirk have a great story and are well on their way to building their real estate empire. We interview them to learn how they got started and what speed bumps they've encountered along the way. Original blog post: https://optionalpha.com/the-snowball-investing-strategy-for-rental-property-how-im-investing-outside-the-market-16467.html

Mark is a busy guy who has his hands in rentals, flips, commercial and also building out his educational site at https://investfourmore.com/ We had him on the podcast because he has such a diverse range of experience. We're impressed with his ability to grow and build a team that allows him to get so many deals done each year. He has a podcast, books and online community of real estate investors. Check out all the education and resources he has waiting for you at https://investfourmore.com/

Mike has bought more than 25,000 homes.  No, that is not a typo... He's managed over 20,000 rental properties at his property management company he owned. He's closed loans from $35,000 to $11,500,000 at his company Reliance Mortgage Company, Inc. He started in 1989 with 5 employees. He has worked as a Residential Mortgage Loan Originator ever since. In 1993, Mike directed the company in the origination of over $400 million in home mortgages. Today, Reliance Mortgages has closed over $8 billion under his direction. Mike received the Century 21 Top Listing Sales Person in a three-state region from 1971-1981 and was named the 1995 Prestigious Entrepreneur of the Year by INC. Magazine. He was listed in the Who’s Who American Businessmen of 2000, and was recently approved to teach Texas Real Estate Commission continuing education classes for realtors.

Josh is our guest on the podcast and he has a really interesting story when it comes to rental properties. People may not think of Kentucky as a real estate hot bed but Josh has done extremely well buying up cheap rental properties, fixing them up and cash flowing into the next property. He's bough some rentals for less than $10,000 because his market is so cheap. He shares his story and experiences of buying rentals in a smaller market.

It might sound cheesey to say our guest "wrote the book on SDIRA investing." But... it's absolutely true.

Mat Sorensen is an attorney and best selling author of "The Self Directed IRA Handbook." He has sold over 20,000 copies and shares his insights on today's podcast about how real estate investors can invest in their future with a SDIRA. You can learn more about Mat at https://sdirahandbook.com/ and his law firm at http://kkoslawyers.com/ 

It happens.

A former tenant moves out and is upset so they trash the place. This happened to one of our Facebook group members who was shocked when they saw a giant Venn Diagram on the wall of their rental. Listen as this case unfolds in RentPrep court and Judge Rudy Fortune shares his thoughts on the matter.

This week's guest is Tim Shiner of Dallas, TX and he's a pretty interesting investor.

He owns businesses, class A rental properties and also works in tandem with his wife who is a real estate agent.

Tim shares his strategy of how he only buys class A rental properties now and why he makes more money when his tenants break their lease early.

Plus he has a crown royal tuxedo.

What else do you need to know?

Resources mentioned in this episode: https://www.rentprep.com/resources/ https://www.texasrealestate.com/for-texas-realtors/legal-faqs/category/landlord-tenant-issues https://www.classaction.org/employment-background-checks

Narrator voice

This is the plaintiff Jim Jackson he’s a renter from Texas and he says the defendant denied him a rental because he has a large family. He’s suing for $1,000 in statutory damages related to his discrimination claim.Narrator voiceThis is the defendant Wilson Wharton who claims he found better renters and that Jim is just angry he was denied the rental.Bailiff Will all parties please raise their right hand

Narrator voice  - What you are about to hear is only real in your imagination. The judgements are fictitious but real life lessons are waiting to unfold. Welcome to RentPrep court.

Bailiff

All rise for the honorable Judge Rudy Fortune.

Judge Rudy FortuneJim Jackson you are suing Mr. Wilson Wharton for damages of $1,000 dollars because you believe you and your family were discriminated against. What kind of evidence do you have to substantiate your claims.Renter Jim JacksonYour honor. I have six kids and it’s been very difficult for my wife and I to find a place to live. We’ve been denied many rentals so far but with Mr. Wharton it was the only time we felt someone discriminated against us.Judge Rudy

What makes you believe that you were discriminated against?

Renter Jim JacksonWhen we looked at the rental he kept asking us prying questions about our family. He started off by making a comment about our mini-van and asked me how many kids we have. He made comments during the showing and said that the rental was ideal for couples and not great for families. But we’re desperate so we filled out an application and paid the $50 fee and we were never told if we were denied.

Judge RudySo how did you find out you were denied the rental?

Renter Jim JacksonI called Mr. Wharton about a week later to ask about the rental and he said he went with another applicant.Judge RudyMr. Wharton… is this true?Landlord Wilson WhartonNot completely your honor. I never made any comments about their mini-van or that the rental is better suited for landlords. That simply did not happen. Jim’s right that I did rent out the space to someone else who is a better fit for the rental.

Judge RudyMmm hmmmm… and how did you make that determination that the other applicant was a better fit for your rental?

Landlord Wilson WhartonThey had a much longer and more stable job history so I ran their background check and everything checked out fine.  Judge RudyMr. Wharton did you provide Mr. Jackson with your tenant-selection criteria when he filled out an application?Landlord Wilson WhartonAhhhh… no your honor.Judge Rudy (cue music)Mmmm your situation reminds me of a friend of mine growing up. A bunch of us use to play baseball down by the quarry at the edge of town. We’d go to Mr. Jenkins grocery store and snag some of his spare cardboard boxes. We’d make some bases and drop em down on the field and have ourselves a day playing until suppa time. Our one friends we called Racing Rick because he’d run so fast round the bases his feet would never touch cardboard until he got to home plate. In school he was the same way. He was always cutting corners to get things done as quickly as possible. Mr. Wharton do you understand why I am bringing up Racing Rick today?Landlord Wilson WhartonAhhh… I’m not sure I’m following your honor.Judge RudyYou mentioned you didn’t provide the applicant with your tenant-selection-criteria. In the state of Texas it is required to make printed notice of the landlord’s tenant-selection criteria available to the applicant. Are you aware of this law? Landlord Wilson WhartonNo I wasn’t your honor.Judge RudyNow, this tells me you’re a landlord who doesn’t touch the bases because you’re too busy thinking bout home plate. You’re racing just like Rick to get that rental filled as fast as possible. My suggestion is that you read up on your state and local municipalities law’s before you start screening tenants.Landlord Wilson WhartonI’m sorry your honor. I’ll do that ASAP.Renter Jim JacksonI bet he didn’t read up on the Fair Housing laws neither!!! I want my money for being discriminated against!

[Gavel noise + crowd murmur]

Judge RudyMr. Jackson. My courtroom is not a place for accusations... but finding the truth of the matter. Do you have any other evidence to present that would suggest you were discriminated against?Renter Jim JacksonNo your honor but it’s obvious he doesn’t follow the law!Judge RudyMr. Jackson as far as your case of discrimination against Mr. Wharton... please tell your wife I said sorry Mrs. Jackson... and I am for real... and I never meant to make your daughter cry... and that I apologize a trillion times. You see a courtroom isn’t a place for anecdotal evidence. I need evidence and not your version of the truth.Landlord Wilson WhartonThank you your honor![gavel noises]

Judge RudyI’m not finished Mr. Wharton. Now yes, I am going to dismiss the charges of $1,000 in this claim of discrimination. However, in the state of Texas if you charge a tenant an application fee to run a background check you must present them with a written notice of your tenant-selection-criteria. Since you rejected the applicant and failed to make your criteria known you must refund the application fee to Mr. Jackson. You got off lucky today but my suggestion is that you stop cutting corners and read up on the laws. My verdict is a payment of $50 to the plaintiff.[gavel sound]Narrator: Well.. the honorable judge threw out the discrimination claim in a case of cutting corners but the plaintiff was still awarded $50. We’re going to toss this over to Steve and Eric to see what the guys in the RentPrep office think about this.

Kim and Scott Hampton manage around 1,000 doors in the Central Florida market and they recently had to file 60 insurance claims due to recent hurricanes. In this episode they will share the tips they've learned along the way.

Going to court is stressful and that's why we want to share details of court cases so you have the knowledge ahead of time so you don't end up in court like these landlords. In this episode Judge Rudy Fortune rules on if the landlord should be able to keep the security deposit plus additional damages caused by their renter.