Max Cash Flow Now

Max Cash Flow Now: Don’t let your rental property become a charity shelter.

I just read a blog by Donna in NM, who has had the most dreadful experience with a Section 8 tenant. She wrote that she did not have Section 8 housing experience and her tenant had 10 years of experience scamming the system. No rent has been collected and now she has a squatter and is unsure how to correct the situation. Several good remedies were written in response to her questions and I don’t want to repeat her options here. I can not imagine that this is an isolated case. Probably not your specific circumstances, but even so, many real estate investors, who are holding rental property are making costly mistakes.

Depressed real estate prices and the profusion of very good deals on distressed properties are drawing many new investors into real estate. The smart ones look for coaching or mentoring from others more experienced. The majority most likely feel they can figure most things out for themselves, and then there are areas that they are inexperienced in and can have a harmful effect on their net monthly income. Getting good counseling can save money and headaches.

With our method and transitional housing, our landlords and I have never had these troubles. If the rent is overdue by more than 3 days, I just make a phone call or two, change the locks and wait for the tenant’s family member or friend to set up a time to pick up any personal belongings. I do not return their damage deposit. Within a few hours or a few days, I have the room occupied by another tenant from my waiting list.

It’s just that simple. It doesn’t involve an expensive eviction process and a minimum to no loss of rent. Squatters are absolutely unheard of, there are no legal fees, no court fees, and no fee made to local law enforcement.

Discover how I can get away with this by downloading our FREE Ebook from the side bar.

Max Cash Flow Now Tip #6:  Control.  Most every real estate investor with rental property, screens the prospective tenant thoroughly either by doing credit and background checks themselves or contracting with a property management firm to do so.

Even though you or your property management company are all in agreement that all the rental applicants for your dwelling have passed the screening process, e.g. good credit, no criminal record, employment checks out, etc.  You never really know how someone is going to treat your property.  You may have had good experiences up to now, but you never really know how much damage might be inflicted on your property, or what might be stolen if the tenant is behind on their rent.  You end up using the security deposit as their last month’s rent, while you start the eviction process and then they leave the house never to be seen again with all of your appliances.   It happens.

Now consider another scenario, one that puts you in complete control.  You would have the right to enter the premises at ANY time, day or night, and inspect anything you wanted, no calls ahead of time for permission to stop by.   If you did find something amiss, it is addressed immediately with the tenant, and the issue is resolved quickly and without fuss.  If the tenant doesn’t comply then a simple phone call evicts him.

If this sounds farfetched or unrealistic, it is all spelled out in our FREE eBook, Max Cash Flow Now.  See side bar to download.