Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so called gurus are missing.
* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…These are exactly the kinds of deals he does day in and day out. Most ‘investors’ are getting it wrong. It’s not about the property, it’s about the buyer. Buying right and buying cheap is what you’ll do after you have the buyer.
* How to have a buyer or renter before you even buy property…* How to have them already pay you money before you sold them anything…
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Hi, it's Lou Brown. I am back with another of our 101 cash
flow accelerators. It's so exciting to share with you things that I've learned
over being in this business for over 40 years. And one of the things I've
discovered is to build into your rental agreement rental increases. Now what
that means is that you're telling your resident in advance that the rent may
increase by X percent annually. So what that means is that you now can, can
prescribe in advance that the rent may go up, say 10% and then what that means
is now we tell the resident at what we call the signing ceremony. This is when
we meet and we go over that document. This is when we train them to be a good
resident. This is when we tell them everything that they need to know about becoming
a good resident and being a good resident in good standing with us.
flow accelerators. It's so exciting to share with you things that I've learned
over being in this business for over 40 years. And one of the things I've
discovered is to build into your rental agreement rental increases. Now what
that means is that you're telling your resident in advance that the rent may
increase by X percent annually. So what that means is that you now can, can
prescribe in advance that the rent may go up, say 10% and then what that means
is now we tell the resident at what we call the signing ceremony. This is when
we meet and we go over that document. This is when we train them to be a good
resident. This is when we tell them everything that they need to know about becoming
a good resident and being a good resident in good standing with us.
And one of the things we explained to them is so important
that you pay your rent on time and you take good care of your property. And Oh
by the way, annually there is an increase because there's typically an increase
in property taxes and insurance. So we're going to review that and we're going
to, we're going to touch base with you about 60 days before your renewal just
to see how things are going and to let you know how much your increase is going
to be. The first thing we're going to do is we're going to look at increases in
property taxes and insurance to discover exactly what the increase will be.
However, we're also going to look at how much damage was done, how many times
did we have to come out and make repairs to the property. Were those repairs
aging or were those repairs actual damage that was done by a family member or
even guests.
that you pay your rent on time and you take good care of your property. And Oh
by the way, annually there is an increase because there's typically an increase
in property taxes and insurance. So we're going to review that and we're going
to, we're going to touch base with you about 60 days before your renewal just
to see how things are going and to let you know how much your increase is going
to be. The first thing we're going to do is we're going to look at increases in
property taxes and insurance to discover exactly what the increase will be.
However, we're also going to look at how much damage was done, how many times
did we have to come out and make repairs to the property. Were those repairs
aging or were those repairs actual damage that was done by a family member or
even guests.
So what we are looking at is the overall picture of how
that resident is taking care of the property. When we make our decision of how
much to increase the rent. Now this may be subject to certain guidelines within
your local community or your state. They may have limitations on the amount of
increase you can do annually. And I can tell you that in most cases we do not
raise our rent more than 5%. However, in our agreement we do have a blank line
for the amount that you can increase the rent by. So we typically have in that
blank line 10% that we tell the resident. It's not typically that much. Now
this is available in my Property Management System. This Property Management
System is available online at StreetSmartInvestor.com StreetSmartInvestor.com
and it is loaded with valuable things. Listen, if you are going to own
property, you've got to become a professional property manager for of your own
assets.
that resident is taking care of the property. When we make our decision of how
much to increase the rent. Now this may be subject to certain guidelines within
your local community or your state. They may have limitations on the amount of
increase you can do annually. And I can tell you that in most cases we do not
raise our rent more than 5%. However, in our agreement we do have a blank line
for the amount that you can increase the rent by. So we typically have in that
blank line 10% that we tell the resident. It's not typically that much. Now
this is available in my Property Management System. This Property Management
System is available online at StreetSmartInvestor.com StreetSmartInvestor.com
and it is loaded with valuable things. Listen, if you are going to own
property, you've got to become a professional property manager for of your own
assets.
And let me tell you something. When you can learn how to
professionally and properly manage your property, you can save a fortune in
fees because property managers do typically charge a pretty significant amount
of your profitability, a full month's rent to rent it up. They charge up to 10%
on a monthly basis. And collections, they charge other fees, they add on
sometimes for repairs, for managing the repairs. They charge a half a months
re-up fee. I mean, there's all kinds of different fees that you're faced with
when you hire a professional property management, and that can be a significant
sum of money, particularly if you're going to acquire a whole bunch of
properties. So I suggest that you learn how to be a professional property
manager and do this thing right. Now, this comes with training. It comes with
six CDs, also comes with a forms disc where you can pull this up on your
computer, highlight the blank line, type it in. I've got a built in version of
every document, a blank version of every document, a cover sheet that explains
it. Who gets an original, who gets a duplicate? Does it get recorded? Where
does it get recorded? All that information is available and you can find this
at StreetSmartInvestor.com Yeah, baby! Well like this. Love this. Share this.
And subscribe. And I will see you soon. Take care.
professionally and properly manage your property, you can save a fortune in
fees because property managers do typically charge a pretty significant amount
of your profitability, a full month's rent to rent it up. They charge up to 10%
on a monthly basis. And collections, they charge other fees, they add on
sometimes for repairs, for managing the repairs. They charge a half a months
re-up fee. I mean, there's all kinds of different fees that you're faced with
when you hire a professional property management, and that can be a significant
sum of money, particularly if you're going to acquire a whole bunch of
properties. So I suggest that you learn how to be a professional property
manager and do this thing right. Now, this comes with training. It comes with
six CDs, also comes with a forms disc where you can pull this up on your
computer, highlight the blank line, type it in. I've got a built in version of
every document, a blank version of every document, a cover sheet that explains
it. Who gets an original, who gets a duplicate? Does it get recorded? Where
does it get recorded? All that information is available and you can find this
at StreetSmartInvestor.com Yeah, baby! Well like this. Love this. Share this.
And subscribe. And I will see you soon. Take care.
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