Fixer Jay’s Mom & Pop Millionaire Blog

When it’s time to sellout, take a cruise or step back and smell the roses — Owners of small income-producing properties, like myself, will typically sell to the next generation of up and coming investors. The problem we face is the very same problem we once had starting out. It’s called, lack of cash. Funny how some things never change!

Down payments are traditionally less for older income units – even when they’re well kept and full of smiling tenants! 10% cash down is normally what most investors expect to pay. Many young start-outs with tons of energy to burn feel fortunate to come up with 10% cash. My problem is not really the low down pay­ment — It’s the matter of protection I’m concerned about.

When I sell property for a small cash down payment, I insist on securing my mortgage or note with not just the real estate I’m selling – but also, another property the buyer owns or quite often, his relatives own! For example, a young man wishes to purchase my small apartment with 10% cash down. He doesn’t own any other property, but Daddy agrees to help his son get started. Daddy owns a $200,000 home with a $100,000 first mortgage.

If I’m selling a $100,000 apartment for $10,000 cash down – I will simply record a 2nd mortgage on Dad’s house for an additional $10,000 as added security for me. No payments are required from Dad – and I will generally reconvey (release Dad’s house) after 60 months of faithful payments to me from Junior. Meanwhile if Junior goes bonkers – Dad’s house is on the hook for $10,000. Ain’t Dad great or what!!

Tags: Fixing For Money by FixerJay
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Like a good husband or wife – a skilled real estate agent can be a valuable asset to every investor! And, much like building a strong and successful marriage, you will need to spend some time and effort finding exactly the right one who fits your style. Chances are you won’t find Mr. or Mrs. Right on the very first date! But don’t be hesitant to dump a few along the way. That’s how it works for everyone during the hunt.

The worst part is always breaking the ice – introducing yourself to complete strangers who you think might be able to help you. There’s no way to short¬cut this procedure, so it’s best to simply charge ahead and do it! When you eventually find an agent who can appreciate your goals and is willing to spend time helping you achieve them, you’ll suddenly realize you’ve added a powerful new tool to your “wealth builder’s” kit.

Real estate agents are the eyes and ears of the real estate business! 96% of all sales and trades involve licensed sales persons and their brokers. It would be very foolish indeed to harbor any serious notions about excluding them from your investment plans. The best thing you can do for yourself is to diligently begin searching for a good one.

Tags: Success Secrets by FixerJay
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Most real estate investors realize that real property is the best security ¬That’s why they invest. It only follows – if investors have “extra money” (heaven forbid). It should be invested in real estate. Offering small loans, secured by real estate, provides safe, easy money (passive-type) if you decide to stay home and watch TV for awhile. It’s even more attractive to someone like me who’s always on the prowl for a “super buy”—Let me explain.

Naturally I’m happy to earn a high rate of interest on my money – say 4 or 5 times what banks pay — Still I don’t wish to become a permanent “couch potato”. I still like action – furthermore, I like this kind of action which causes hard money lends to throw-up on the couch – namely, a default or fore¬closure on their loan!

Should the property owner (borrower) have the audacity to not send in his mortgage payments to me or any of the other lien holders – whoa be unto him! I’m off my couch and ready for action! I only have 2 lending rules:

1. Would I like to own the property? My answer must be yes.

2. My loan, plus all other loans must not exceed 60% of what I judge the property to be worth (no appraisal needed). See how simple this is!!

Tags: Success Secrets by FixerJay
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Would you rather be popular or profitable? You don’t have to be greedy to be a wealthy landlord. What you must be is a fair-minded business person. Fair-minded means that rents are collected in a timely manner and that your houses are maintained properly by the tenants who lease them. See how simple this stuff is.

You won’t be hated when you demand timely rents. Landlords that insist on timely rents are no different than cashiers in the supermarket.

It’s your business to make sure rents are collected and the rules in your rental agreement are followed. Never let a tenant intimidate you. The most serious mistake new landlords can make is to allow the tenant’s urgency to become their urgency.

After many years of doing this job, I’m hard pressed to think of any situation so compelling that there wouldn’t be enough time to think it through. If there’s a fire at my property, the community fire department will handle everything. I’m protected by insurance on the building. Should someone die in one of my rental houses, I simply can’t do very much. I’ve yet to meet a landlord that would be of much help in this situation. The county coroner is the person you need.

Tags: Managing Tenants and Toilets by FixerJay
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