52) Other People's Money & Are You a Slumlord?
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House Money Weekly
In this week’s House Money Weekly segment, Lauren and Alan get together with their special guest, Matt. They discuss blog 148, 3 red flags you might be a slumlord. Alan bought 50 single family homes with an average price of $30,000 and he wrote this blog because when he tells people that he’s a landlord, people will tell him he is a slumlord. Alan wants to clarify that the price of the home does not determine whether you are a slumlord. Red flag No. 1 that you are a slum lord is when your property is unsafe for tenants. Slumlords are known for providing unsafe housing that usually comes from ignoring repairs or trying to not have a lease and only taking rent payments in cash. Red flag No. 2 that you are a slum lord is when they operate in cash. Lauren noticed that some tenants think that you are a slumlord if you're not fixing everything all the time but there is a delicate balance between keeping things safe, like by keeping them cooled or heated and keeping water running, versus nice-to-have updates. She also points out that you should only be renting units that are safe for people. Red flag No. 3 that you are a slum lord is that you break fair housing rules.
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Mortgage Minute: Jasmine answers the question: What can investors do to make getting a loan easier?
Sponsored by: Jasmine Mortgage Team https://www.jasminemortgageteam.com/
Real Estate Is Easy Segment
Lauren interviews Michael Albaum. He is a Fire Protection Engineer turned real estate investor that became a real estate consultant and van lifer. He started his career as a Fire Protection Engineer in the insurance industry. Michael originally thought bigger was better, so he owned 75 doors, but that was a little bit too big for him. Currently, he now has 65 doors which consist of single family, condo, small multi family, and some commercial multi family. He also has short-term and mid-term rentals which started doing because of the pandemic. Furnish Finder is what Michael uses as a platform for listing his midterm rentals. Michael shares that he manages his properties remotely. Lauren and Michael started doing short-term rentals in the same year which is 2021 and that was the peak of short-term rentals. He has 3 in the smokies currently, one of which he’s going to arbitrage out soon. Lauren asks Michael what he thinks about the future of short-term rentals. Michael is also more excited about short-term space now than in 2021 because it’s getting harder and those who are good at this will survive while those who don't won’t. Michael believes if you’re thinking of entering short-term rentals, figure out how to be one of the good ones and don’t just try it because you heard it is easy money. And lastly, Michael makes real estate easy by setting yourself up the right way from day one.
Contact our Guest:
https://twitter.com/MichaelAlbaum
https://www.linkedin.com/in/michaelalbaum
Guest Host Segment
Guest Host Matt debunks the myth that people need money to invest in real estate. Matt shares their new program called MB Alpha. It is like a business working capital that is not secured by anything and you can use it and complement that with Alpha’s money which is 80 to 90% of the funds. Alan clarifies what you’d use this money for, and there are a lot of options. He also clarifies the terms: one-year 10-12% interest only is typical. Lauren asks Matt if early investors can execute this when they've never done a deal before, and Matt says the answer is yes. The hosts then talk about their hard money loan experience. Matt’s company prides themselves on their personal touch. Don’t forget to check out House Money Media’s BROKE Method course too.
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