Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Thank You Steve You Rock.


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #11  
Old 11-05-2009, 08:50 AM
Edmir Edmir is offline
Junior Member
 
Join Date: Apr 2009
Location: Tennessee
Age: 34
Posts: 21
Rep Power: 7
Edmir is on a distinguished road
Default Rental Properties Suggestions?

Now for the average lawn care business owner who is reading this, thinking to themselves they would like to buy a rental property, where do you suggest they begin?

First, they need to make contacts with real estate agents that they turst. Being in Landscaping business, mos of us, have done business with Real Estate agents, I have several of them, they call me up, and need a full clean up of a property, they want to sell, a property that has been reposesed by the bank, or a property that they bought it an action. My first property was a commercial property. I know the real estate agent for years. So when I meet with her, I told her wat I wanted to do. I wanted to make money. She recommended the commerical property, and the location is within walking distance from shopping centers, from the local city high school, and from the community college where I live. This location enabled me to rent my property quick.
Another sugesstion would be to look in the local newspaper, when the properties have been repossed by the city for back taxes, or for defaulting on a loan. Or go to property action places see how the action the properties and what the procedures are for that?
Being in landscaping business some of us, have mowing contract with bankers, use those connections and talk to them? Tell them you are interested in investing in rental properties, how to go about financing them? Etc. They will help, beacuse they need people who can pay?

How much do they need to save for a down payment? How much can they charge for rent compared with the mortgage of the structure?


My commerical propert that I bought in 2007 was listed for 110,000. I offered $85,000. The owner had purchased the property in 2006 and went to www.tennessee.gov under asessnment properties section. There you can enter the property adress and it will tell you who owns it, and how much they bought it for, and in what year. Based on that I was able to determine how much profit he was trying to make on that property. Then I hired a home inspector before I purchased my property, to fully inspect the house and the property. The bank where I got my property financed appraised the property at $95,000. The house was in great condition. I put $10,000 down on the property and financed it for 15 yrs. My mortgage payment is $760 per month. I turned the upstaris of the house into a two bedroom apartment. I spend about $5000 remodeling the apartment and I did most of the remodeling work myself. That saved me about $3000 worth of expenses that I would have had to pay someone to do it for me. Charging the rent, they have to look at the location of the property, and how much other competitors are charging for a two bedroom apartement in that location. Do they inculde any utilities?
So before I bought this property, I was paying rent in the same location for a two bedroom apartment $450 per month. That didn't include utilities, only water.
My apartment rents for $500 that includes water, and cable. My mortgage is $760. I only pay $250 for my mortgage, where before I was paying rents $450 per month. So I have a positive cash flow of $250 per month. That adds up within a 12month period. Sometime you can look in the local newspaper, and see how much the apartments are renting within the location of that apartment.

It seems like a lot of times, the rent doesn't always cover the mortgage fully and the owner has to pay the difference.

When you want to buy a property try to buy a house that is two stories, or that has more then one unit. That means, you must have two apartments into that unit or house. Therefore, you can use the rent from one apartment to cover the mortgage and profit the rent from the other apartment. Sometimes when you finance you have to look at the numbers on the mortgage deal? You need to let the banker know, you want to have positive cash flow comming in everymonth? If the deal on the mortgage doesn't feet your needs, then don't do it?

What's your view on the types of buildings that are a good first time buy to rent?
With the recent economic crisess, banks have gotten more strict and some of them have tighten the financing options on the purchasing a house, such as now they require a credit score of 700 or higher, when I financed my house before the crises, my credit score was 680. Another sugesstion for a first time buy would be to buy a two story house, and turn the upstairs into a two bedroom apartement. Or buy a lot, where you can put a trailer there and rent that trailer. You can buy trailers for as cheap as $5000 up to $7000 cash. Do a lot of research, and shop around? Buying a house isn't like buying a car, you have to know how the market, works, and what to look for? Read a lot of books and programs, talk to people you know who are experts into the real estate market.

Hope this helped. It worked for me. The downpayment I used was from my savings with the landscaping business. I also work part time as a cook at a country club, I took that job, to make contacts. I lot of rich people come there to eat, and play golf. There I have made a lot of contacts, from attorney's to doctors, bankers, etc.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #12  
Old 11-06-2009, 07:50 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,567
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
That is very interesting!

What made that property a commercial property? From the description it sounds like a residential home. How does it get defined as either residential or commercial?

Can you park your lawn care equipment on that location too?

What do you see as your next real estate investment move? What would be the ideal next step?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #13  
Old 11-23-2009, 01:53 AM
Edmir Edmir is offline
Junior Member
 
Join Date: Apr 2009
Location: Tennessee
Age: 34
Posts: 21
Rep Power: 7
Edmir is on a distinguished road
Default

Hi Steve:

Been on the road lately. Haven't had time to read your posts? Just got back from Memphis. I also, work part time as a translator for Immigration Attorney's. I do this when they need me.

To Answer your Questions:
What made that property a commercial property? Properties have different zoning. My property is B-4 zoning, because of the location. B-4 is considered a commercial property. I have a list of businessess I can operate on my property based on the Zoning. That's why I purchased that property to begin with. The land is worth more then the house.

From the description it sounds like a residential home. How does it get defined as either residential or commercial?
It gets defined by zoning, it is a residental house, but the property is a B-4 Zoning. On my road, I can walk to McDonald's, Arby's, Real Estate Offices, Shopping centers, and Gass stations. Before you purchase a house, it will tell you the type of zoning your property is. You can check the zoning on www.tennessee.gov under real estate property assesment. On that side, you can enter a mailing adress of a property, and it will tell you, how owns it? How much they bought it for, and you can see how much they want to sell it for? That will give you some idea what the sellers profit is?

Can you park your lawn care equipment on that location too? Yea. I can park my lawn equipment, and put my business sign on my front lawn, without having to apply for a permit. I have put my for rent sign, and didn't even have to put an add on the local paper. Because of the location I had my place rented within a week.

What do you see as your next real estate investment move? What would be the ideal next step?
My problem is that I want it all. You can't have it all. I am very competetive, and like it. So right now, I plan on paying off my two cars, and my motorcycle. Then build more equity on my properties. While generating positive cash flow from rent.

I hope that answered your questions.

Hope everyone in this forum has nice, and safe holidays.

Edmir
Reply With Quote
  #14  
Old 11-23-2009, 12:09 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,567
Rep Power: 10
Steve has disabled reputation
Default

This is all fantastic!

Keep us posted on all your future updates. You are going to find a lot more continued success!
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Rock 'N' G Enterpises IL mylawnwi Introduce Yourself 5 07-19-2009 10:55 AM
Was a a rock show last night Steve Show Off - Picture Post - Photo Gallery 1 11-24-2007 03:57 PM
What can we learn from Rock? StartALawnCareBusiness Starting a lawn care business. 4 11-22-2007 10:14 PM
nice rock job! All County Lawns Search Engine Optimization and Website Design Discussions. 1 06-04-2003 11:57 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
John Deere 667a
acrajchel
Yesterday 10:00 AM
Today 05:55 PM
by Just for Cuts
3 64
Dane Scag
Steve
08-28-2015 12:29 PM
08-28-2015 12:29 PM
by Steve
0 70
24 and 50 acre cemetery...
grassmasterswilson
08-18-2015 10:09 AM
08-26-2015 02:42 PM
by Steve
13 524
Rookie business question...
WarriorLandscapingCAN
08-05-2015 05:20 PM
08-26-2015 02:33 PM
by Steve
3 394
How to clean an old...
rmccutchan
08-16-2015 05:23 PM
08-26-2015 02:31 PM
by Steve
9 402
how to make customers...
Bradcook21
05-27-2015 05:04 PM
08-26-2015 12:25 PM
by kslawn
19 3,731
Needing a website built
burtle
06-17-2015 09:02 AM
08-25-2015 11:31 AM
by acrajchel
9 2,467
Big mowing job
Bradcook21
07-30-2015 03:57 PM
08-25-2015 11:23 AM
by acrajchel
17 978
ZTR Review
Shark1611
05-31-2012 10:42 PM
08-25-2015 11:16 AM
by acrajchel
8 3,749
Hi Everyone
mmays29
08-25-2015 08:16 AM
08-25-2015 11:15 AM
by Steve
3 112
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
08-25-2015 11:08 AM
by acrajchel
11 1,176
Old Business New Owner
Toyman
06-17-2014 08:57 PM
08-25-2015 11:00 AM
by acrajchel
17 1,567
Hi everyone! We're new...
alltrades
08-22-2015 12:46 PM
08-24-2015 10:41 AM
by Steve
2 161
CAn I get some help with...
rootytalbot
08-11-2015 06:14 PM
08-24-2015 10:36 AM
by Steve
12 502
Hi
Wemowjunction
08-16-2015 08:45 PM
08-20-2015 01:46 PM
by Steve
11 398
Drive cable bad?
SGL1
08-10-2015 11:16 PM
08-20-2015 01:41 PM
by Steve
5 359
Hey there everyone
Cole8999
08-16-2015 04:42 PM
08-18-2015 04:35 PM
by Steve
3 247
Help with a truck
bdodson89
04-27-2015 08:15 PM
08-18-2015 11:47 AM
by rmccutchan
7 958
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
08-18-2015 07:59 AM
by rootytalbot
7 376
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-17-2015 04:34 PM
by Steve
1,229 406,034
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
08-16-2015 11:42 PM
by rmccutchan
3 587
What's your next...
Steve
05-15-2015 11:54 AM
08-16-2015 11:09 PM
by SC93
16 1,234
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
08-14-2015 11:08 PM
by scaypa
95 11,451
New Biz
kufnerins
08-14-2015 05:52 PM
08-14-2015 08:56 PM
by Steve
1 208
Chemical and Fertilizer...
rmccutchan
08-09-2015 10:36 PM
08-13-2015 11:11 PM
by rmccutchan
6 401
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
08-13-2015 02:10 PM
by rootytalbot
12 2,068
Hello all thinking about...
bernie
08-11-2015 04:28 PM
08-13-2015 10:33 AM
by Steve
8 365
Logo Help Font Color
LZLC
08-08-2015 09:26 PM
08-12-2015 03:50 PM
by Steve
4 336
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
08-12-2015 12:30 AM
by Jeff1
20 1,798
My new mower
Chilehead
08-08-2015 09:09 PM
08-11-2015 08:36 PM
by Chilehead
9 506
Thought this was a good...
Just for Cuts
08-06-2015 03:38 PM
08-11-2015 10:54 AM
by Steve
8 506
Plowing pricing
jcurr33
08-08-2015 04:58 PM
08-11-2015 10:51 AM
by Steve
6 466
Should I upgrade my back...
googus
08-07-2015 10:50 AM
08-11-2015 10:44 AM
by googus
7 431
Keeping it clean....
Wolf4dk
08-09-2015 11:31 PM
08-11-2015 06:34 AM
by Chilehead
7 357
I have been rude and...
biglee
06-15-2015 10:11 PM
08-10-2015 09:41 PM
by stallman419
12 2,747
Newbie Saying Hi.
LZLC
08-08-2015 09:22 PM
08-10-2015 11:20 AM
by Steve
1 250
How much do I charge to...
Chris Herrera
08-06-2015 09:30 PM
08-09-2015 11:31 AM
by biglee
2 391
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
08-07-2015 03:26 PM
by Steve
17 1,133
Best commercial contract...
sanlanct
08-04-2015 12:18 PM
08-06-2015 06:20 AM
by sanlanct
2 386
I came across this on a...
rootytalbot
08-02-2015 11:04 AM
08-05-2015 08:17 PM
by SC93
9 624
Help bidding a hedge...
hopolb33
08-02-2015 06:09 PM
08-05-2015 02:07 PM
by Steve
3 427
recycler toro 22"
rvezakis
08-03-2015 12:10 PM
08-04-2015 11:47 AM
by Steve
1 306
» Popular Tags
ad landscaping advertising aerocore applying bark billy goat brushcutter blowout bob villa bush collections contract help curb appeal services deliquentaccounts demonstration design door hangers edging employee problems equipment dealer equipment rental facebook flyers free advertising free lawn care google growing a lawn care business hiring how to hydro increase customers jobs landscape landscaping lawn aeration lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch new business ordinance past due per hour charge per hour service plowing pricing profit on employee roundup scag secrets to landscaping sell the vision seo shell shreaded solo solo backpack sprayer sq ft square foot swzt tree tree pics walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:20 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 10:20 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy