374: Rookie Reply: Screening Tenants, Using Hard Money, and Raising Rents

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 1 March 2024

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

Every landlord wants the best possible tenants in their rental property, but of course, this doesn’t happen by chance. Today, we’re delivering several tips to help you improve the screening process, work seamlessly with inherited tenants, and raise rents without pushback! Welcome to another Rookie Reply! In this episode, we not only talk about dealing with tenants but also get into the different types of hard money loans and how to use them. Is an accessory dwelling unit (ADU) attached to the property you’re looking to buy? We discuss how showing its potential income can help you qualify for a loan. Finally, real estate investing is no walk in the park, despite what social media might have you believe. Stick around as we touch on some of the hard truths that new investors should know! If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover: How to screen tenants for your rental (and the three types of checks you need to run!) Why you NEED estoppel agreements when inheriting tenants Different types of hard money loans (and what they cover) How to bolster your loan approval odds with accessory dwelling unit (ADU) income The hard truths people DON’T tell you about investing in real estate And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Apply to Be a Guest on the “Real Estate Rookie” Podcast Grab Your Copy of “Real Estate Partnerships” Financial Freedom in 10 Years and $200K Cash Flow with a Small Portfolio w/Dion McNeeley Tenant Screening Tools for Landlords: BiggerPockets Pro Avail RentRedi AppFolio Buildium TenantReports.com Set Up Your Own Virtual Mailbox with PostScan Mail Check the full show notes here: https://www.biggerpockets.com/blog/rookie-374 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie episode 374.
0:05.0	One of the things we're going to talk about today
0:07.0	are different ways to screen a tenant.
0:09.5	So normally you hear about the credit check,
0:12.0	the background check, but we're going to go over a third report that you should be verifying when screening applicants for your rental unit.
0:19.0	I'm Ashley and he's Tony.
0:21.0	And welcome to the Real Estate Rookie Podcast where every week, twice a week, we bring you the inspiration, motivation, and stories you need to hear to kick start your investing journey. Now, Ash touch on what we're going to hit on today, but we're also going to talk about
0:33.6	ADUs, what they are, how can they help you get approved for a mortgage?
0:37.2	We're going to share some hard truths about real estate investing that you might not
0:40.7	realize as a Ricky investor, but first let's talk about hard money loans what
0:45.4	are they and how can they help you as you're building your real estate business.
0:48.3	All right so our first question today comes from Nicholas A and Nicholas says when it comes to hard money lenders do they usually
0:55.9	fund the purchase and the rehab and are holding costs separate I just want to make sure I understand things so
1:04.1	Ashley your experience working with hard many lenders what are they usually
1:07.8	covering for you so when I did it it was 80% of the purchase price and 100% of the rehab.
1:17.7	But there are so many different variations
1:21.6	you can actually get with a hard money lender as to what they will cover.
1:26.5	So I don't think there's any like fast hard rule as to what you can get covered.
1:32.1	I mean there's some people that can get 100% of their property
1:36.2	covered 100% of their rehab and a lot of the factors that go into determining what you can get, what kind of terms with the hard money lender,
1:45.2	really go off of your experience and also what kind of relationship you have with that hard money lender.
1:50.7	So if you already did 10 deals with them, you may be getting better terms than
	...

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