Lessons from the Pros

Real Estate

Hands off Millionaire – Want to Learn How? Part 2 (Hands on)

I received a question from a student just yesterday that fit our topic perfectly.

“Diana, I’ve already submitted an offer and received the counter offer, but I don’t know if this property would be easy to rent and how much the regular rent is in the area.  Additionally, I have concerns if this property would qualify for Section 8.  My purpose in this deal is to have my father get cash flow; his money is sitting in the bank and he’s looking for one property with a low down payment and a low monthly payment which will cash flow.  Please help me.”

Free WorkshopMy direction to this student is to run the numbers and protect themselves legally.  To do that they will need a variety of resources:  forms, legal advice, continuing education, account systems, credit checks and so on.  I use two main resources, AOA – Apartment Owners Association (of California) and Rentometer.  If you are in California, I would suggest you look into AOA. They have a lot of great resources. I feel their legal advice line, forms and credit check services are superior.

But first, find out what the market rents are for this property.  That is one of the places that Rentometer comes in very handy. 

 rentometer graphic

Rentometer, with its advanced product RentometerPro (an automated rental management system), can help you do all the management functions you need with ease.  “We’re essentially acting as an impartial third party for both people (landlord and tenant) to interact in a really convenient way that is up to date with the times. A majority of our clients are individuals or small partnerships and those folks really own a majority of the rental property in the United States.  Most of the people who fall in that category are people who are in an industry other than real estate and they’re just managing their properties on the side as long-term or mid-term investments for additional income,” says Atsiknoucas, CEO of Rentometer.

The Rentometer’s services helped Matt Angerer, an owner of 22 units in Northwestern Pennsylvania, go from the cumbersome process of collecting rents to a process he doesn’t even have to think about. “My tenants can now send their rent either directly to the processing facility that RentometerPro owns … and in turn, they will actually cash the checks and deposit them into my account, or my tenants can pay online via electronic fund transfer or pay by credit card.”

The system is automated so that rents are automatically posted to the landlords account ledger and to the tenants account.  Part of the automated system is automatic notices to pay if rent is late. It will then bill, track and collect the late charges.  That in itself can pay for the service.

Being a landlord doesn’t have to be hard and it is one of the easiest ways to build wealth.

Great Fortune,

Diana D. Hill

DISCLAIMER This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.

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