Yaniv Berliner - Post # 5 - The Big Secret # Entrepreneur of the Week
Yaniv Berliner - Post Number 5 - The Big Secret # Initiated week
Notwithstanding, we have already reached post # 5. What is the secret to success? What Causes Real Estate Transactions to Succeed or Fail? How do we reduce our risk to a minimum (that's all the Torah)?
Well, the answer is a good tenant. A good tenant is a tenant who pays rent on time, maintains our property and maintains good relations with neighbors and the surrounding area (without noisy parties and the like)
If I could buy a cheap property let's say at 50 thousand dollars and get it all very high (all statistical of course) then I wouldn't think twice. So the most important figure for us is whether we will rent the property to a good tenant.
This is where all the other factors come from: To rent to a good tenant the house must look reasonable: a nice shower, a kitchen that the wife or husband will want to cook, a floor that seems reasonable, a general structure of the house. Also of course the area must be at least reasonable. A good tenant will not want to live in a crime neighborhood or somewhere that does not look good in general.
That's why the rules are as follows:
1. Choose a reasonable area plus
2. Make sure the house looks good on the inside
3. Choose a tenant who meets a good tenant's criteria. Given a management company, do the maximum so that the management company chooses a good tenant.
To me it works well and I have a high passive income. I work in the Cleveland area and base my data on experience. I came across a lot of investors who fell down and asked for help after the fact. Of course there are others whose strategy will be different but as a solid investor with experience this is my way.
A little tip worth a lot: There are such and other publications for example: "A house in Cleveland for $ 180 and a plane ticket on us." Dear friends, be careful and then be even more careful. Check well and then check again good. Ask yourself what kind of investor am I (you)? Solid, adventurous, bold. The difference between bold and stupid is often thin. God forbid I do not say that anyone who posts such assets is a crook. Just test well and make sure the deal is right for you.
How to get the data on the potential tenant from the management company:
Ask the management company before submitting a rental application form to a tenant. A person interested in renting a property fills out this form. In the form he fills in all his details including his credit score and recent landlord details. This is a very important form as it will give you all the information in the center.
The credit review must be verified in the document that the tenant brings. If you can't check it online. Once we have received the form it is very worthwhile to dedicate it to the proper time even though the management company should. Working hours (including coffee and cake in the middle) can keep us from having a lot of heartache.
You should call the tenant for a short call and be impressed. If it is a doped or strange type you immediately recognize. You can also call the previous landlord and ask him questions. One can ask what the tenant's disadvantages are and find out how long he rented the property.
A little tip: Check out the property details where the tenant previously lived in the county. You will sometimes be surprised to find transfers of ownership that the previous landlord could not explain or mismatch between the landlord's name and what is written in the county. If the person who filled out the form tries to lie many times you can find out by crossing this data. To me, this has happened more than once. How we said - minimize risks.
See you tomorrow, Yaniv Berliner
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