Wednesday, April 29, 2020

Charge Additional Rent not Late Charges #55

https://streetsmartinvestor.com/101-cashflow-accelerator/charge-additional-rent-not-late-charges-55/

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…
* 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…

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.


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Hi, it's Lou Brown. Welcome back to another of my 101 cash
flow generators. You know, I love this business. I've been buying, holding and
selling property for over 40 years. I've learned some amazing things during
this time and one of them is how we deal with collecting our money. You know,
when someone doesn't pay as agreed, what happens is that you have to take them
to court and you have to create an eviction and unfortunately sometimes you
have to actually set people out of your properties and when you get to court,
sometimes the judges want to take your money and give it to the resident. And
they do that in a form of late charges. Even though late charges may be a part
of your contract, and in fact they are, what the judges will often do is strike
through the late charges and not give them to you in the judgment.
Well, that's not too nice. Since after all, you're the one
who didn't get paid. You're the one who had to resource other money to pay the
pavement on your property. You had to pay your property taxes. You had to pay
your insurance and obviously the use of the funds coming from the resident is
one of the things that we use to make that happen. So, it was kind of a flash
of brilliance one day that I said, well, let's just not have any late charges
and instead let's convert any amount of money on a daily basis that would be
due because they hadn't paid us to additional rent. And so now in the agreement
that we have, and this is our standard rental agreements loaded with profit
centers and protection, this is in my volume two Settling and Holding System.
And you can find that at StreetSmartInvestor.com in there is my amazing
Standard Rental Agreements. And what I've discovered is there's so many
different things that you absolutely, positively must have in your rental
agreement. We actually review it annually to discover anything that we need to
update. And years ago we started putting in the additional rent instead of late
charges and what happens is each day that they do not pay on time, then that's
additional rent for that day. And if we ever have to evict, we add everything
together. We put it on the rent due line and on the line that says late charges
we put zero, add that up. And then the amounts that we're applying work a
judgement. Yeah, baby! Alright. Like it. Love it. Share it. And I will see you
soon. Take care.
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