Squatters, Seller Financing, and Is Becoming an Agent Worth It?

Does seller financing apply to down payments? What happens when you buy a rental with squatters who refuse to leave? And is getting your real estate license even worth it? The world of real estate investing isn’t always as cut and dried as it seems, but running a profitable portfolio doesn’t need to be a massive headache. In this Rookie Reply episode, we’ll go through the common pain points that rookie landlords are dealing with and shed light on some frequently asked questions only experienced investors (like Ashley and Tony) have the knowledge to answer.
If you’ve ever wondered what a property survey is or if you should charge a cleaning fee to your tenants, stick around! This time, Ashley and Tony will answer when you do (and don’t) need a property survey on your latest rental property purchase. From there, they debate the pros and cons of getting your real estate license (becoming an agent) as a rookie investor. We also touch on the ever-fun topic of what to do when non-leased tenants won’t leave your property, how to seller finance a down payment, and whether or not charging a “cleaning fee” at move-in is a wise idea.
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
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Join BiggerPockets for FREE:
www.biggerpockets.com/signup?...
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Join the Real Estate Rookie Facebook Group:
/ realestaterookie
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Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
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Squatters-What’s Legal, What’s Not, & How to Get Rid of Them:
www.biggerpockets.com/blog/sq...
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The Definitive Guide to Using Seller Financing to Buy Real Estate:
www.biggerpockets.com/blog/20...
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How to Handle Inherited Tenants:
www.biggerpockets.com/blog/in...
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Software Mentioned in Today’s Episode:
LandGlide: landglide.com/
onX Hunt: www.onxmaps.com/hunt/app
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Connect with Ashley and Tony on BiggerPockets:
Ashley: www.biggerpockets.com/users/e...
Tony: www.biggerpockets.com/users/t...
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Shoot Ashley and Tony a Question on Instagram!
@wealthfromrentals or / wealthfromrentals
@tonyjrobinson or / tonyjrobinson
Episode #268
Show notes at: www.biggerpockets.com/blog/ro...
00:00 Intro
06:00 The Importance of a Property Survey
12:11 Do You NEED a Real Estate License?
17:37 Buying a Property with Squatters
23:16 Can You Seller Finance a Down Payment?
28:30 When to Charge a Cleaning Fee
34:26 Ask Your Question!

[@DrJephtedoesRE]

I loved the very last breakdown there. We have tenants moving out in 15 days. That checklist is a great idea for us to communicate our expectation of cleanliness!

[@phil1954]

I've closed on 30 + properties in Georgia and never did a survey. But, I've had surveys done for every one of my Florida properties. I think it's required in Florida.

[@lawrencebriggs]

Great Q&A!

[@timtaylor9339]

I heard a great way to get squatters out of a property. Sign a lease with someone and let them move in to replace the squatters. You are not taking the property back directly and the new person has as much rights as the current squatters.

[@jayshahrealestate]

I’ll say this for becoming an agent, if you were very inexperienced and don’t know much about real estate getting a license can be a good thing to earn some extra money while learning a lot about real estate. I learned a lot being an agent which is the same stuff that I will be doing for investing. It also increases your potential earn and you can help your friends and family get into Real Estate too. Real estate agent is not a 9-to-5 job. It’s a job on your own time even if you sell three or four extra properties each year to different people you’ll make some extra money while being in real estate. I especially recommend it if you don’t know many people who are heavy, investors, or experience with real estate. It’s not gonna help you exactly with being an investor by saving money, but it’s a learning experience, and being in the industry, which helps.

[@obanking4181]

Can you charge a dump/move out deposit separate from security deposit? Most of my tenant use security deposit as last months rent and leave old beds, couches and dressers plus some damage 😢. The point would be to give them a bit of incentive to take there stuff.

[@truckerzee9643]

Looking for a some real estate spreadsheets , any recommendations?

[@dellfire8826]

What would you do? ----> My families dream is to be able to purchase some land and start a homestead, something that is very possible within the next six years or so. However, this means I would be unable to obtain a rental till later in life. If you were in my shoes what would you do? Would you start working on the family dream in hopes that your parents would be able to enjoy it. Or get a rental first then save up for getting the dream together but risk them being older and possibly experiencing the dream? This has been tearing at me from the inside because I want to ensure that financial stability is achieved and hope to FIRE faster so I can spend the rest of my days helping people like with my own nonprofit. However, if I focus on this path I could possible miss out on my parents dream.

[@jayshahrealestate]

There is a lot to buying a property and investing in real estate for someone who doesn’t know much or have a proper foundation. It can be much more nerve-racking. I can tell you that after selling a few properties going to a purchase for yourself is so much easier and if you’re at a proper team, you will have so much in person help and experience because many agents are investors.