No matter how long you have been investing in Real Estate, it’s important to always follow a procedure.  Of course the most important step is to get started, don’t get stuck in the planning phase!

Get With the Plan

Figure out what your short and long term real estate goals are then create a profitable plan. Determine what steps you need to take to get started. Some of the steps include; setting up your business entity, determining your market, and building a team to help put the plan into action.

Analysis paralysis

Find a good analysis tool or spreadsheet to determine the numbers that will make the deal work for you. Once you have that in place, analyzing property transactions is pretty simple. If you plan on selling, calculate what the property will be worth when it is done, and then subtract how much is needed for repairs and resale. Once you discount those two items, include your desired profit and you will know what to offer.  If you plan on holding the property calculate how much is needed for repairs, taxes, insurance, etc. Next determine what properties of this type are renting for. We like to use a 10% margin or better. Make offers based on your calculations and if the deal isn’t going to work move on and keep looking.  Do not reduce your profit to get a deal accepted and run the risk of losing money if something goes wrong. 

 Be a Problem Solver

Getting great deals is often a result of solving a problem, whether the seller is dealing with a foreclosure, a new inheritance or a landlord who is fed up with tenants.  When you are able to solve problems that few people have the answer to, not only can you get a great deal, but you also create a win-win situation where you become the hero. 

Become a Numbers Ninja

Real estate is a finance and numbers game. You must learn understand the concepts of leverage, financing, interest rates and various types of lending programs. You must know how to negotiate your deals, including terms and financing to property profit when you buy and sell your properties. Make sure your offers are based on your required profit and don't get emotionally attached to a deal.

Find Your Specialty

Determine what your niche will be. The more focused you are the more successful you will be. You cannot be all things to everyone, nor can you be a master of all markets. Determine what you’re good at – for example, if you love negotiating, you might be good at coordinating short sales or bank notes. If you love fixing homes, you may be a good rehabber or property manager. Whatever you choose to do, stay true to your specialty, you'll be most successful if you focus your time doing something you enjoy and are good at and hire or become partners with someone who has skills you need to be successful.

Stick with the Plan

Many people get wide-eyed about the millions you can make in real estate; however, generating wealth in real estate is not typically something that can be accomplished by taking a weekend course or purchasing a DVD program.  Creating wealth with real estate is done over time and is mastered the quickest when you have a mentor who has been successful in investing in real estate. You’ve got to create a plan and stick to it to grow your wealth. You must also invest time in education and learning new skills, strategies and tips that will keep you on top of your game through different cycles of the market. 

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Dulcey is a member of Rentec Direct who provides Property Management Software, tenant ach payment processing, tenant credit check, and criminal reports for property managers and landlords.

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No, the answer is not let the first person who applies move in and keep your fingers crossed and hope for the best! If you find a good tenant your job as a landlord or property manager will be so much easier, the time and effort you put in at the beginning will be well worth it.

As I gain experience as a landlord I am always learning ways to do things that make my life easier and how to be more efficient.  I also get a lot of great advice and tips from reading blog posts written by you folks on the Active Rain Blog and other blogging and Social Media sites I visit, so thank you.  I have listed the six steps that I follow when renting a property.

1. Advertising that the property is for rent is obviously step #1 and the more details you include in your ad the less calls you will get with questions. The first questions the prospective tenants are going to have is how much the rent is and when the property is going to be available so include this information in your ad. I also list information about the property including; the rooms in the house, appliances, heat type, pet friendly or not, the neighborhood, etc. I list my properties on Craigslist and put a for rent sign in the front yard and have recently started including a flyer box next to my for rent sign that shares all of the information I include in my ad with my drive by prospects.

2. Showing the property is undoubtedly the most time consuming component to renting a property. In an effort to save myself a trip across town I have the prospects drive by, if they haven't done so already to get a feel for the neighborhood. I also provide a link to the property management software I use which gives them access to the unlimited number of photos i have saved of the property inside and out. A tip I got from a blogger that I thought was a fantastic idea especially for the busy person who can't just take off from work whenever they please is to schedule multiple people at an appointed time and have an open house type showing. An open house showing for one keeps you from having to make individual trips to show the house but it could also have an added bonus feature of creating a sense of urgency or desirability because there would be several potential tenants vying for the same property.

3. The Application process;is pretty straight forward I always include a link in my ad to an online application form so that prospects can apply online. This online application feature plus the link to detailed pictures of the house has actually worked out very well for me. I have had folks that are moving from out of town/state move into my rental without even seeing it in person.  Make sure the application is completely filled out and require a copy of a photo id. I always verify employment and check with there previous landlords to make sure the prospects; paid rent, didn't do anything illegal, and left the home in good condition. I always charge a $30 application fee which covers the cost of, and leads me to, step #4.

4. Tenant Screening can be the most important step and should include a credit report, criminal background search, and an eviction search at a minimum.

        -Credit Report: A credit report will give you a glimpse into the prospects finances and indicate if they are responsible bill payers or not. I have dismissed a foreclosure and medical bill delinquencies, and even a person who had some delinquencies from years back but was now dutifully paying there bills. A credit report is more then a FICO score and so I don't think a minimum score is necessarily a good criteria.

        - Criminal Background: Trust me you do not want a criminal living on your property, and a criminal background check will ensure that you are not housing one of America's most wanted.

        - Evictions: An eviction report is a no brainer and is inexpensive, so no excuse not to get one.

5. The Rental Agreement is an important document that should outline what you expect of your tenants and what they can expect from you. You will want to be sure that you have incorporated all of the appropriate legal jargon that you will need for the state in which the property is located.

6. The Move in inspection is really more for the tenant then for the landlord but nonetheless is an important step.  You would have done a post tenant inspection for the previous tenant in which you documented any damage and took updated pictures where appropriate. The move in inspection gives the prospect the opportunity to make note of anything that wasn't already documented such as stains on the carpet, chipped tiles, broken cabinets, etc.

Once you've completed these six steps then you're ready for your new tenants to move in and if all goes well they will live there a long time and treat your property as there own.  If I've forgotten steps or if you have any other tips or advice I would love to hear your feedback!

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Dulcey is a member of Rentec Direct who provides Property Management Software, tenant ach payment processing, tenant credit check, and criminal reports for property managers and landlords.

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Now that I've got your attention I want to get your thoughts on allowing tenants to reside on your property who have a medical marijuana card. In property management, there is always something to consider. In Oregon, the voters passed the Medical Marijuana Act in 1998 authorizing the use of medical marijuana, and exempting such use from criminal liability under state law. Today, Oregon is home to 35,500 marijuana grow sites producing marijuana for nearly 55,000 medical marijuana patients. How to handle this law as a landlord or property manager has been a little hazy, pun intended.

Last year I performed an inspection on my duplex and during the inspection I noticed 5 six foot tall marijuana plants in the second bedroom (kind of hard not to notice that).  The tenant had medical marijuana cards for herself and two others s he was growing for.  Although we did not have to allow her to grow for others, I couldn’t do anything about the growing he was doing for himself and his wife (he was within the law in this case).  I couldn’t charge an additional deposit and I had to allow her to smoke inside the unit because they can’t smoke marijuana in public according to the law.  This is because it would be discrimination due to their disability and in Oregon BOLI could investigate a complaint of discrimination on this basis, even in housing.

So, what do you do?  Fortunately, the Oregon Supreme Court decided in the case of Emerald Steel Fabricators v Bureau of Labor and Industries that an employer can terminate an employee who used (outside of work) medical marijuana, even though they followed all the rules for using medical marijuana.  So what did that mean for housing though?  On November 4th, 2010, BOLI released a policy statement that they would no longer investigate employment OR housing claims of discrimination pertaining to the use of medical marijuana. This is the first “good news”  for property owners.

And the second is that as of right now, a landlord in Oregon doesn’t have to rent to someone who is a medical marijuana patient.  You certainly can if you choose to, but you do not have to.  So it looks like more due diligence from landlords/property owners like myself to decide if we do or don’t want to rent to medical marijuana card holders in the future. We’ll be keeping a close eye on this issue for our state but if you live in another state I would like to hear how you are dealing with this issue.

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Dulcey is a member of Rentec Direct who provides Property Management Software, tenant ach payment processing, tenant credit check, and criminal reports for property managers and landlords.

Fairhaven Homes For Sale

Search Homes By Neighborhood

Search Alabama Hill Neighborhood homes.
Search Birchwood Neighborhood homes.
Search Columbia Neighborhood homes.
Search Edgemoor Neighborhood homes.
Search Fairhaven Neighborhood homes.
Search Geneva Neighborhood homes.
Search Guide Meridian Neighborhood homes.
Search Happy Valley Neighborhood homes.
Search Lettered Streets Neighborhood homes.
Search Meridian Neighborhood homes.
Search Mount Baker Neighborhood homes.
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Search Roosevelt Neighborhood homes.
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Search Silver Beach Neighborhood homes.
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Bellingham Residential Real Estate for January 2013  shows prices and number of sales were up from last year, continuing on that roller coaster ride of rising and falling prices.

If you take a look at the absorption rate chart you can see we are still in a sellers market. The number of homes for sale in Bellingham is still very low. We call it low inventory, which creates scarcity and even multiple offer situations, which is great for sellers a little more stressful on buyers.

Interest rates are still at all time lows.

The talk in the press is that the housing market is coming back.  I've even heard building material prices are going up. Spring is close by I'm sure that more homes will be coming on the market, it is the number that will determine if it continues to be a seller's market or turns the other way.

Looking for a great deal, they are still out there. Give me a call to help you find one.

If you have any questions or want to see any Bellingham Real Estate feel free to email me at or give me a call at 360-739-6981