the neighborhood burned down when I bought this house

Absolutely crazy stuff. So I pull up to that new house I just bought. The house right across the street burned down this morning.

Guys, this is my first ever office I ever had, but here we are,

it's my last day in it.

Alright, guys, we're buying another house today

and it's pretty cool because I get

to buy houses while sitting in my living room. I will say this, so sometimes buying rentals is overrated. For example, many people are like, oh

my gosh, you have to buy rentals. You have to buy rentals.

You don't have to buy rentals if you don't have a lot of disposable income. The reason being is after this house I'm buying, I'm going to be pretty cash poor.

Yeah, I have multiple, multiple houses.

But at the end of the day,

sometimes my bank account doesn't reflect my net worth and it gets stressful. Of course I trust God to provide for me and trust God to put the things in my life and put

me in situations I need to be to become a better man.

But I'm telling you, this stuff is stressful.

I.

But when the notary gets here, we'll be signing some papers.

I'll get it on video. I think it'll be pretty neat for y' all to experience.

But yeah, we're buying another house today and we got a bunch of meetings today.

It'll be a cool day for you guys to spend with me. So see you soon. I'll see you when the.

When the notary shows up to sign the papers. If you have any questions, feel free to reach out to me. I will gladly give you anything I can. Free resources in the description in the free school community. Go ahead and subscribe and if you have any questions you want to DM me on Instagram, you can do that as well.

But also, see you whenever the notary gets here. I feel like every time I lose something.

So. Yeah, gotta have that on there. That's right.

That's a breakdown of the numbers. Have you looked over.

Yeah, yeah, I looked over all this.

Now, are you doing a wire transfer?

The wire will go out directly after this.

I still need to see the.

Did they give you the tenant? They give you the lease?

I don't know because they said they

provide a copy of a lease before closing.

Okay.

They said they give it to me at closing.

The deed of trust, they got a

long one on this one, don't they?

They do.

I trust him. So I'm signing these blindly.

Oh, you already read these.

You must trust.

I don't know why they had me sign this. Because it says March 20th, the closing date. Yeah.

You think they would have extended it again on top of that? Yeah, maybe you e signed that one. I'm not sure. So this looks like maybe what you're looking for. The lease agreement. Okay, look at that and see if

that's what you were looking for. Okay. Here's my issue with this. I guess it doesn't really matter to you. There's only one page on this lease agreement though. That doesn't make sense.

Yeah.

At the bottom of that, how many does it say? Page of what?

It just says one of.

Oh, I thought it said one of something. That definitely isn't the whole lease. It's like they're just showing the front page to you. Yeah, Definitely ask for a whole.

Yeah, I gotta get that figured out.

Whole coffee for sure. Yeah, you can keep that copy if you want to.

There.

That would be great.

And then these are the rest of what you just signed. That's for you to keep. And these are the wiring instructions. And then that's the amount that needs to be wired once you figure everything.

Thank you.

You're welcome. So there's none of that.

Yeah, I definitely got to get. Cuz they didn't even give me the tenant contact info.

Okay.

So I'll scan it and then ship it all back to the title company.

Okay, awesome.

And then you get all that straightened out and wired and then I think everything's good to go.

Awesome. Thank you so much.

You're welcome.

Yeah, I'll get that handle right as I speak. Okay.

Hopefully you find that wallet.

Yeah, I need to find that too.

Definitely.

We got a lot of stuff to handle right now.

Yes.

Don't get too stressed out.

Yeah.

Thank you though.

You're welcome.

Have a good rest of the day as well.

Your call may be monitored or recorded for quality assurance purposes.

Good morning. How can I help you?

Hello.

I just closed on a house and I was agreed to get a full lease prior to closing as well as

the tenant contact information.

And none of that was provided at closing.

Mr. Stutter is in the closing package. The notary didn't give it to you?

Let me show you what I have. I have. I only have one.

Hold on. Go ahead, Mr. Stuff. Hold on one second. Let me open up the file. I have everything you need. I apologize. No, not a problem. No worries. Give me a second. So I have information that we got for the tenant. There was a printout in the email. It said and her number was eight the email at my.

Yes. Okay, so 865.

Yes, sir. And then her email is right there. And then right below that, the security deposit is 400. And it was stated on the agreement. And I transferred that to you on the settlement statement.

Yes, that. That's completely fine. There's only one other thing I'm curious about. So this lease, this is only one page? Like, is there not another page?

I'll email it to you.

I thought all of them transferred over. Maybe she only printed one page.

I have them all.

It's not trial.

Okay, thank you.

Yes. You. You have my email too? Yeah.

You do?

Okay, so one, two. Yep. It's three pages. And there's also something else. I saw an email, a request that you let them know that they're supposed to send rent to you. Now, I think that's an you. You send them a letter saying, yeah,

I'll send them a letter.

Okay.

And let me see, what else do I have? I don't know if it's still HUD, Section 8 or whatever. That much I don't know. But I will send you this lease agreement right now and I'll send you another copy of the tenant info. And let me see if I have anything else that you need. That should be it. I think that is all. Give me two minutes. I'll drop that email for you. And I apologize for any inconvenience.

No worries. Thank you so much. You're welcome.

Have a good day.

You as well.

Okay, that's my bad. Her tenant contact information was right here, but they only did give me one page. The lease. I'm just not understanding this. So we're gonna have to go figure that out. I'm also about to go wire freaking $10,000. So we're gonna go wire that money. I'm gonna go to the property, take some pictures of the outside and post a thing on.

I'm gonna post a sign on the

door that says where to pay rent to.

And then I will be. I'll be calling the housing authority here soon in order to make sure that any portion of tenant paid rent goes to me or any portion of housing

authority paid rent comes to me. Because she actually doesn't pay that much

because her income went up, or the

housing authority doesn't pay that much because her income went up. So she's now responsible for more of the payment. Still a pretty solid deal.

She cashed about $500 flat per month. I'm going to go ahead and run and get some things printed.

Peace.

We're Going to go post that on her door and. Yeah, y' all have a good one. Sorry, my brain is everywhere. I just closed on this house, so

I never found my wallet.

I gotta go find that somehow. But I emailed her a PDF of my license.

Yeah, I'm gonna run out there to Ivy Avenue today. Can you write or can you print me something that says, like, hello, I'm your new landlord? Your lease is still valid. However, your rent payment will be due to Marketing LLC at the end by the first of each month. All late payments are still by the terms of the. Of the lease. Whatever. Can you, like, write something like that for me, please?

Yeah.

Have the lease agreement somewhere?

Yeah, I do.

All I. But really the big thing is, is just like, hey, I'm your new landlord. I need you to mail your rent payment by this date. It should be received by this date. Any late rent will be resulting in a fee.

I'll send you a picture of the. Of the thing right now.

Okay.

But basically, you can have chat gbt

write it if you don't know what that is. It's a thing that'll, like, automatically write it for you if you want to do that.

Yeah, I can handle it.

What time are you going, though?

I'm not going to go till 12

because I am at.

I'm at Alex.

Can you make it a little early?

Probably not what I'll do. I can go print it out myself. I'll go print it out myself at the office because I got to go to the office anyway to remove all the stuff because I'm moving out of that one.

Yeah, I was gonna ask you if you're done.

Yeah, I'm gonna move out today, so I'll just go after I eat lunch with Zach, and I'll just go after that.

Are you sure?

Yeah, I just need to go wire this money right now, though.

Okay.

So are you gonna keep this house, then?

No, I'm selling it.

And are you taking over a mortgage? No, I got private money on it. All right, sounds good.

Love you, Ma. All right, guys, I'm gonna consult with

my buddy Courtney here in a moment

about an offer we're gonna be having for our. For a new service we're providing.

It's gonna be a Section 8 service,

like acquiring the properties, building a team for you, all of that good stuff. So that's what we're gonna be doing right now. I'm gonna call him and see if he answers while I'm on this call.

Yeah.

What's up, jt?

Yo, you busy? I'm literally joining my morning meeting.

Never mind. We'll talk later.

I need help crafting an offer.

All right, I got you.

I'll see you, bro. All right.

That is my boy, if you don't

know him, Courtney Scott. He's the best Facebook marketer on the

planet for real estate investors.

In fact, I will never pay a

dime to anyone else. He's the person. He's the person who helped me out to my get my first 100k month. I put a lot of respect on his name. He's a fantastic man. I'm really appreciative of everything he's done for me. So I am gonna go ahead and wire that money. I'll get you a video of me going to the bank here soon.

I've been wiring the cash, but right

now I've got to find my wallet because if I don't find my wallet, I'm kind of cooked. So we'll see you soon.

All right, guys. So this is what ChatGPT wrote for the notice of tenant subject change in payment Recipient Dear, I hope you're doing well. This letter serves you a formal notice that Blank is now managing your rental property. Please note that all terms of your current lease, including the rent amount and due date remain unchanged effective immediately.

All rental payments should be made payable to and sent to the following address. Additionally, please be advised that there may be walkthroughs conducted by possible new management companies within the next year months. We will provide advanced notice before any scheduled visits.

If you have any questions or need

further clarifications, please feel free to call me or text at Blank. Thank you for cooperation. We look forward to working with you. Best regards, Jackson or JT Cetera. Beautiful.

We love Chat GPT.

Right now I'm about to call this property manager company to interview them.

How can I ask you?

Hi, I'm.

I'm just looking to ask a couple questions to see if you guys would be a good fit for. For some of my rentals.

Yeah, sure. How can I assist you and. Yeah, go on please.

Well, currently how many properties or units

do you have in your guys portfolio that you manage?

Yes, currently we almost have 40 plus properties that we're managing right now.

Okay, and how many do you think you could handle?

It depends on the landlord. So every information I need to forward it to the landlord of. If you want to talk to him, I can forward his number. So you mean that you have properties and you're looking for a management company?

Yes.

Okay.

Okay.

I asked how many properties do you have that you want, that you. That you want to manage from other management companies?

I run a community where I also

have hundreds of people looking to purchase properties in Memphis and I have, I have multiple myself.

But the biggest thing is I'm looking

for somebody who is willing to work with me, who's willing to let me consult with them, who we can collab with, somebody who I can, you know, hold accountable and someone who's looking to hold themselves accountable and can handle a good amount of new landlords.

Okay.

Okay.

So sure. Since I am the assistant and it would be the best if you can directly communicate with the landlord or the manager itself, it is okay. If I will provide you his number and then I will also provide your number to him so that he can contact you if he's free already so that you two can directly communicate and talk about what you mean to imply. Is that.

Okay, that's fine.

Yeah, sure. Perfect.

Yeah.

Is this your active number? And may I have your email address as well?

My email is J. Holmes.

And then is this your active number?

Yes.

Okay, perfect. 898.

Okay.

And his number as well. Are you ready or should I just message it to you?

No, I'm ready.

Okay. It's 901.

Thank you.

You're welcome. And his name, by the way, is. Let me ask your name first.

Jt.

JT okay, perfect. Thank you for calling. Have a great day.

Thank you. Now let's call the actual landlord.

Hello, thank you for your call today. Please leave a message and we'll get back to you as soon as possible.

Hello.

I spoke to your assistant.

She gave me her direct number. I run a community of real estate investors. We're looking for property manager in Memphis. I also am looking for a manager for my own properties. We primarily focus on low income housing, section 8. I see that you do have some section 8 rentals that you're managing. I would love to interview you or at least get to talk to you, just kind of to understand where you're coming from, see if you can handle the capacity and see if, you know, you'd be looking to grow with us if that's the case and you know, you're willing to talk to about something like that. Eight, six, five. Thank you. J.T.

by the way, so I just wrote

out like a free training that I'm going to do. I'm going to make a free training that goes into leverage versus cash, which is risk versus stability, and then how to expect your expected returns, how to calculate those expected returns, where to Find properties and how to negotiate the deals, how to write an offer, how to go through due diligence, how to secure lending, how to find property managers, how to market the property and then how to lease the property and then how to scale and repeat. It seems like a two hour long video when I get into the nitty gritty of it, but I think it'll be beneficial for everyone to like get in here and learn. This will also be some cool content pieces so I'll get that up and running here soon. I think that that's going to be a really, really awesome video. But yeah, guys, if you want like to have a weekly call with me, you guys want a bunch of free, free value, you guys want free contracts, free calculators, free resources, anything like that, I will gladly give those to you. I'm going to put that. I have them in the school community and the school community is free. It's the link in the description. So make sure you go down there and click that if you're interested and also subscribe while you're down there. I'm about to head to the bank, as you know. I've got to go wire some money, but we're going to go wire some money, head to the bank. I had an office space. I'm going to take all my stuff out of the office. I'm going to go deliver the tenant notice onto the door of the tenant and then we will go from there. Yeah, it's going to be an awesome day. Let's go out and crush it. Before I go, I just thought that

I'd love to pray over everybody if you have the chance.

If you're watching this, if you're in this portion of the video, I'd love to pray for you just because I know things can get hard and I

know things get stressful.

But never give up and I'd love to pray for you. So anyway, God, thank you so much for giving us the ability to not only wake up another day, but the ability to go out here, work and chase you, chase your glory. And thank you so much for just giving us grace and, and just forgiving us for all of our sins. Lord, I know that in this worldly life it's sometimes hard to stay focused on what really matters. And what really matters is you and our relationship with you. And all other things will fall into line. So Lord, help us put you at the front of our life. Let us surrender ourselves to you. Let us surrender our lives to you in all. And let us speak your words through our Body, let us live the life you want us to live. Let us build that relationship with you and help us to crave our relationship together and help us to go out there, help other people go out there and spread your name. And all while doing that, to take control of our own life and to take over control for our life and go out and do things that you want us to be doing. And Lord, just do your best to work through us and let us see you. Let's see you in everything we do. Let us listen to you. Let us do our best to listen to what you're calling us to do. Lord, help us follow your path and help us do things to be able to go out and achieve the goals that you want for us and achieve the goals that we have set out as well. Lord, I'm grateful for all the things you've done for me. Please bless the person watching this as well. Bless them with. With all the. The goals and desires they may have. As long as they align with you, Lord. Connect with them, Lord. That'd be amazing. And thank you for everything. And thank you for blessing them as well. Amen.

That's just an off the top of

the head prayer not scheduled. I just wanted to try and bring some Jesus into the day. Y' all go out, have a fantastic day. I will be. I will get back on here when I get to the bank, when I'm wiring this money.

And then actually we have a meeting

after that with one of my. With my disposition guy, Zach, and then I have to go downtown and get another meeting, a guy named Brandon.

And then I'm meeting with some private

money lenders for dinner tonight.

It's going to be a packed day

and we have our section 8 challenge at 4, which is going to be awesome.

So y' all keep crushing. Keep doing it.

I'll see you guys soon.

Guys, we're here at the bank right now. I'm about to drop off the wiring

instructions have in my backpack here.

But, yeah, I've been, like, really chasing

my relationship with God lately.

The more money I made, I found

myself losing, Losing that. But we're.

Go ahead and get this. We're going to go ahead and get this. This wire sent out.

It's about 9,000 bucks. Also. How pretty is she? Like, Kylie. I never thought I could ever do something like that. That's so beautiful.

Anyway, yeah, I'm gonna go in here,

drop this off, and I'll see you all on my way to my next deployment. I'll do like, a little recap. We get to. When we get to Connors, guys, we're here at Connors. This is actually one of my favorite restaurants of all time. It's probably my favorite restaurant in my city. And I come here. I used to come like three to four times a week. I'm trying to not. Because I'd be spending hella money and I need to be better at that.

So. Yeah.

Because I need to build more reserves.

So I'm gonna stop eating here as much.

But I'm here for lunch.

It's gonna be a good time.

Meeting my disposition, guys. Zach, that's gonna be fantastic.

But yeah, I definitely need to stop

being here as much because it's expensive. Guys, this was my first ever office I ever had. I decided I was gonna take a massive step in my business and I got this office. I really didn't even need it, but here we are.

It's my last day in it.

I got the corner unit, as you can see. It was beautiful. I really enjoyed it here. I got a lot of work done here from some of my biggest deals were closed here. It was a. It's a very special place. But guys, we outgrew it. We realize it's to run lean. We can just throw more money at marketing if we run a virtual company. And it's just kind of the way we've been running it now. It's been working really well for us. But yeah, guys, I've been moving all my stuff out of here. I'm really grateful for this opportunity to have had this and to be able to afford this and be able to like, provide for families out of this office. So it's pretty neat. A lot of good stories here, a lot of good times here. But the show must go on. That's what we'll do here. For my second meeting, we're at Smash City with a brand new whole. So I'm gonna help them get started. But parking here is an absolute joke. Like the truck with my truck, I literally couldn't park anywhere.

So we found a parking place.

We're gonna go now. We're gonna have some valuable meetings right now, guys.

Absolutely crazy stuff. So I pull up to that new house I just bought to put a notice to state that we would be for where they should be sending the new.

Their new rent to.

And so as I'm doing that, I'm pulling up to the house and there's like a hundred cars outside.

I'm like, what is going on?

The house right across the street burned down this morning. It could have been a Disaster if that was my house. So for one, praise God that it was not my house that I just bought. And for two, everyone in the neighborhood was there. So I met all the neighbors and they were like, how many more houses you going to keep buying around here? And I'm like, oh, gosh. I'm like, this is my first. So, yeah, definitely a crazy thing. I'll see if I can attach the

video that I took of the burning house.

It was insane. It's such. It would be different if I was like, making payments on it. Like, I couldn't afford it. Right. Yeah, I paid the whole thing too.

Yeah.

And so my friend, he ran a fulfillment center with like, I think similar to what you did. Yeah. Amazon. He was spending like 100k a month. Right. And he's leveraged. Like, you know, you're. You're paying off your stuff when your. Your stuff sells. Right? Dude, his. The plum card, I believe. Yeah, dude, the plum card, he had like 70k on there and they took his credit limit to like 10k. They're like 60k right now. How crazy is that shit, bro?

That's crazy. I mean, the only good thing about the plum is you get 60 days

to pay instead of 30.

Dude, that was huge within Amazon business because, you know, the turnover takes time.

It's like 30 to 45 days.

Yeah, that's what.

That's what he was saying. He's like, dude, I love plum. Like, the plum card is so awesome because you get to wait 60 days and, like, you got to buy inventory, then you got to get it. Yeah, it's a pretty sick thing. I'm not super Amazon heavy, but he's. He loves it.

That's the best card for Amazon.

Well, I hope that gets better. Thank you guys again for joining. Did we all take a look at the Amazon inspection checklist yesterday?

Yes.

Guys, give me your bullet points. What are the basic things that they're looking for in every single room? Every single room basically has the same

thing, like hazards and safeties.

Yes.

So electrical, plumbing, can they plug in outlets? Is there a place for them to use either one. One outlet and a lighting source. And a lighting source or two outlets. Right. That's literally what they're looking for in every room. Is the water pressure? Is the water working? Are the windows airtight? Are they weather tight? Are the locks on the windows and are there smoke detectors? And is there any paint peeling? If you do all of that stuff and you have heat, you should have no problem at all getting approved for

a section 8A tenant.

Holy shit, guys. So I forgot to tell you this. So I just bought a house this morning, okay? I bought another Section 8 rental this morning. Dude, I go there today because it's in my. It's like in my city. I'm like, going to put the notice on the door, like, hey, I'm your new landlord. This is where you'll be sending your money to every month. Now I pull into the area, there is like a hundred cars, and everybody is like, all circled up in the front yard of this house.

I'm like, oh, my God.

Like, what have I done? You know what I'm saying? So this is like I'm in the hood and I'm like. And I'm pulling up my brand new truck, you know, I'm like, this is bad. Like, I'm thinking to myself, like, I. I'm bad. And guys, this is so. This is so cooked, too. Oh, my gosh. So all of my friends called me lover boy. Like, oh, you're such a lover boy.

Yada, yada, yada.

Okay, so my license plate is literally lover boy. And so I'm like. I'm like pulling into this neighbor. I'm pulling into this neighborhood, and there is like hundreds of people in the front yard. I'm like, oh, my gosh. So I pull into the driveway and I'm like, why is everyone here, right? Like, everybody standing in there facing the other side of the street. The entire other side of the street. Houses burnt. Burnt down. I bought it this morning and it literally just burned down. So that literally means that I would have been, like, literally, if it had been on the other side of the street, 50ft farther, 50ft farther north, I would have been cooked. I would have literally lost this house I bought this morning. It was a very crazy thing.

And if you had insurance, you could

have claimed the whole thing.

I do have insurance. I do have insurance, but it's only ca. My insurance on this house. They could only get me cash replacement value, so they can't get market value. So, like, I would have gotten like 125,000 instead of like 150, 200,000. But the other thing was, is I get out of the car. Oh, gosh. And all the neighbors are there, and of course they're not. They're not very wealthy. They're more like lower income. And they're sitting there and they're like, hey, boy, how many more houses you gonna buy around here? I'm like, I'm like, I'm cooked. I'm like, hey, man, this is my first one. He's like, right? I'm like, nah man, this is like my first house around here. He goes, yeah, around here. Where's the other ones? I'm like 37915. He's like, oh, that's that way where the government housing is. So you're just going to buy up everything around here, huh? I'm like, sir, I'm new to this. I'm just trying to help out low income individuals. But that is why you don't self manage properties for one. And also that's another thing why you should get insurance on your properties. Because literally 50ft more and I lost that entire investment for at least three months. I would have at least gotten, I would have at least had insurance to cover it, but it would have taken time to replace the home. I'd be losing out on vacancy, I wouldn't be getting rent. It would just be a pain in the ass. I'd still have to pay taxes, all that stuff.

How do you ensure that you can get insurance that covers like the full market value?

You should talk to your insurance agent about that.

Okay, so you just got like a cheaper one for that home, A cheaper policy?

No, this is a very, it's a modular home. It doesn't have a title. So modular homes are looked at with HUD standards as the same thing as a single family home, but it has to be the title and permanently affixed to the foundation. My property did not have any of the HUD paperwork that said that. So what they had to do was recreate another parcel ID for the property since it was such a complex statement. The only insurance they would give me as an investor, not as a homeowner, but as an investor was cash value replacement and liability. All of the other insurance portion is fine. It's just the replacement value. Instead of getting like market replacement, I got cash replacement value which is a little bit lower on this house than I want it to be. But here's the other thing. Honestly, with these Section 8 tenants, you almost don't even care at this point if the depending on how much the policy changes. Sometimes I would just take the cash value because my, my policy is like 60 bucks a month. So it's cheap. I'm cash flowing like $500 on that house.

Okay. Rather than paying the 1200 a year you were saying.

Yeah, so I mean I can get insurance pretty cheap everywhere. I put 1200 as a conservative estimate. Right. But I can either get a better policy that's going to be covering like you know what this is a great lesson on why you should have umbrella policies. That's just what I'm going to say here. If you have more than one rental in an llc, you should have, you should have umbrella policy.

That's, I'm just going to leave it

there because all this other insurance talk you should consult with your, your insurance

agent about, but me personally, I'm going

to tell you to go out and get an umbrella policy instead. Make sense?

Yep.

So here is why my section 8 inspection periods go way better than everyone else's. When we have our inspection scheduled, a handyman will be at the property with, with the inspector or someone who can at least do any fixing they require. For one, I've already fixed the big ticket items that are listed on there that are listed on the Section 8 checklist that I provided for you. If it's not on there, then it's going to be something small. And if I got a paint, your boy will paint. Does that make sense? If there is a water pressure issue and it's because the shit's not screwed in tight enough, I'm getting under the sink and screwing it in tighter. But I would have a handyman do this because I'm a pretty boy. Honestly, like, I don't, I don't get dirty. I don't do that stuff. I barely know how to change a light bulb, so I send a handyman out. But say you have experience, do it yourself, right? If you're going to self manage, but your property manager should have a person with them. Say, tell your property manager you will pay $50 if they'll have their handyman come out while the inspection is going on. Not only will that $50 be a good investment because it could save you from two weeks of vacancy, it's also good to have them there because the housing authority loves it when they don't have to come back. Let me ask you this. You're an inspector and you're there, you're like, shit, I've already told you what needs to be done. You already have the checklist. Why isn't it done right? Then imagine they're like, you're like, oh shit, I totally missed that part. Let me go fix that right now while my handyman's here. They're like, damn, I don't have to go back to the office. And then two weeks come back to your property because you were lazy and didn't do it correct. Now the housing authority is like, this person takes their landlording life seriously. The better of a reputation. You can Build. The more tenants you're going to get and the better your rates are going to be at the housing authority. And the more negotiation power you have when you provide a shit ton of housing to the community. Guess what? When they're negotiating rent with you, they ain't going to haggle you down to the penny. You're supporting an entire section 8 economy. Does that make sense?

And the negotiations are with the property manager if you're not self managing right?

Correct. Your property manager should have some sort of relationship with the housing authority if they're going to be your property manager. That's how we handle the sex and inspection. I passed the first time.

Every single time.

I've never failed. A lot of things people do forget is the carbon monoxide and smoke alarms. Just get the ones that are combination. 20 years, plop that on the ceiling in every room, then you never have to buy it again for 20 years. That costs like 200 bucks. Because most of these houses are living room, bedroom, bedroom, bedroom. That's like. And they're like 30 bucks a pop. So 120.

120 bucks for 20 years.

Let me think that's good. The inspection is good. Also here is a pro. I think I mentioned this yesterday. When you buy the house, invest in professional pictures. Put them in a Google Drive, put them in a hard drive. I don't care what it is. But the next time you have a tenant turn, do not pay for pictures again. Use the same ones you just used. Make sense? The next part is the leasing and negotiations guys, I'm going to go ahead and send. I want you to read through these with me if you guys have the time.

Let me go ahead and send these over. I'm going to show you guys all the documents you need here.

Y' all get that link. So when you get this link, you're going to see. First thing first is the housing assistance payments contract. Right? This is going to be where you answer questions about the property. It's very simple questions about the property. Who is the heating paid by and what type of heating is it? What type of cooking is it and who is it paid by? What kind of water heating is it and who is it paid by? Who pays water, who pays sewer, who pays other electric, who pays trash collection and who pays for air conditioning. And then also who provides refrigerator slash range and microwave. Then you're also going to need the initial lease term when the lease begins. When the lease term ends, you'll sign this with your, your actual lease and then the initial rent to owner is blank. So whatever rent you agreed upon with the housing authority. And then of course the HAP contract commences on the first day of the initial lease term. The tenant name here, the contract unit, the address, household, basically all the people who are actually allowed to live in the house. Not everyone can live in the house. If she got a boyfriend who ain't on section 8, guess what? Ain't supposed to be there. And if they ever test your gangster, you evict they ass. Initial lease terms.

You said he gets kicked out cuz he's not on the lease.

I'll kick the girl out too.

Oh, okay.

So you can't just invite somebody cuz they're cuz you know they're not in the lease.

If they're not in the lease, we usually say they can't be there for more than like 24 hours at a time.

Okay, good to know.

All right.

And they can't spend the night. The initial lease term begins on X date, then it ends, then the rent to owner is due.

Blank, the initial rent to owner.

That means you can't go over that at any point in time. The H and P contract term commences on the first day of the initial lease term. At the beginning of the HAP contract term, the amount of housing assistance payment by the PHA to the housing or to the owner is blank per month. Meaning that's their portion of tenant paid rent. Right, but it's subject to change at any point in time. Okay, that's this first one. There's nothing else you have to fill out here, so just read through it if you want to read through it. It's basically just a lease addendum. It's what Section 8 requires. Section 8 requires this thing called a lease addendum. W9. You're treated as an independent contractor with the government, which sounds kind of badass, but this is what you get. Your name, your business name, Whether it's an llc, you're probably going to be a sole member llc. Then you got address, city, state, zip code and then Social Security number or ein and then signature and date.

Would it be your LLC or the property manager management company's llc? If they're the one filling out the

lease and everything, they will already have had to set up. They're already going to have a landlord packet. Now it's completely dependent. It's dependent on how your property manager works. So you're going to want to ask the property manager specifically how they treat the housing authority payments. Do they go directly to the property manager or do they go directly to you? It's completely dependent.

Most property managers take the payment themselves and then direct disperse it. Right. Because that's how it is.

My other property, they're usually in charge of taking the payment. But if you're hiring like a local person, they may not do that. They may just have you pay them

like an independent contractor fee.

Gotcha.

Okay, thanks.

Yeah, but I would say the majority

of people get the payment themselves.

This is the rfta. So once your property, once someone comes to your property, Right. They viewed it, they want to move in. You're now going to fill out the request for tenancy approval, the name of the public housing authority, the address, the requested lease, start date, the number of bedrooms you're constructed, proposed rent. So this is what you're shooting. High on security deposit, amount date, unit is available for inspection. Right. If it applies to any one of these, you should know.

You would probably know before you're applying, but I would probably just ignore that structure type.

Is it single family, is it a duplex, is it townhouse, is it low rise, is it high rise, Is it a mobile home? Then you go back to this, who's responsible for what, who pays for what, and then also what kind of fuel source it is. If you have like a big multifamily property, then you must enter other addresses and units, what they're rented for and when they were rented to make sure that it's fair housing. If the lead based paint disclosure. So there's a lead based paint disclosure. You may have to get filled out if the property was built before 1978. Now this is dependent on the city. Okay. This is dependent on the city. And so you need to ask the housing authority what they do about lead based paint in Cleveland, Ohio. If there's lead based paint. Right now, they're not even letting, they're not even letting people live there. So you would basically just be stuck with an empty house with the public housing authority. You can't do section 8 with it, as far as I'm aware. Unless you repaint it, you'd have to encapsulate it.

Sounds expensive.

Yes, kind of. It's not horribly expensive, but it's a pain in the ass. It's going to kill cash flow for a couple of years or at least a year.

Then of course, that question to our questionnaire.

Right.

Like to, like when we're asking a realtor if it has lead based paint, we should add that to our questionnaire.

They you have to fill out something called a, every single real Estate transaction, you have to fill out a lead

based paint form if it's built before 1978.

Okay, so we would know either way.

Yes, but if you're not using a realtor, you should know that. Okay. And then you're going to fill out your information on the left and then

they're going to fill out their information on the right.

And then you guys are going to that. You're going to email this or if you fill it out in person, you're going to, you're going to have them take it to the housing Authority. Here's the inspection form. This is what your inspector will fill out.

You guys have already gone over this yesterday.

This is the tenancy addendum. I believe this is actually within the first packet too, but this is just an addendum to the lease. And then this is the actual voucher holder form. This is the form that they should tell you they have or should show you before visiting the property. Here's a good thing. So, unit size, if they're only approved for a two bedroom, but you have a three bedroom, how much is the housing authority going to pay?

Significantly less.

They're only going to pay the maximum that a two bedroom could pay, even if the property's worth double. So if they're not approved for a three bedroom, you shouldn't let them in. But if they're approved for a four bedroom, they actually can pay more. Crazy, huh? All of that will be within here. Make sure that this unit size matches the unit you're trying to do or is greater. Make sure that the date the voucher is issued. Sorry, the date the voucher expires is still valid.

And then if there's an extension that'll be there, make sure it's still valid between then.

But the rest of this should be already filled out. And that's all your HUD documents, guys. So we're currently at Chesapeake's.

We're doing a private money meetup dinner tonight hosted by Jordan Car. He's awesome. He is one of the best networkers I've ever met. One of the best marketers I've ever met, just from the terms of word of mouth. He's fantastic. He's like head of like business development or something at a title company near here that we use for some of our investments. So really good, dude. I'm about to go in here, meet some of his private money lenders, have a good chat, trying to get connected with them and yeah, I'll tell you how it goes. I thought I would take my camera in there to record, but I just don't think I'll be doing that. So I don't have any pockets for it. So that's why I usually wear a hoodie with this. But, yeah, we're gonna go in here,

have a good time, meet some people,

and hopefully make some progress. Guys, honestly, God bless me, it was such an awesome day.

Like, today was great. Met a really cool private money lender. He was awesome.

Extremely knowledgeable, and not only that, he

has some very, very competitive rates. And he wins 100 LTC, up to 75% of ARV, which is awesome. No appraisals, no nothing like that. It's really.

It's really neat stuff. And he can close in, like, an hour sometimes.

I was really, really cool.

It was really, really cool to meet him.

I'm getting ready for bed. I wanted to come in here. I just went to the gym.

I didn't even get it on video.

It was a little bit late. I just hit cardio for an hour.

Why?

Because I'm trying to get ripped.

I peaked in high school, they say, so I'm trying to make sure that's not the case. I'm trying to get my six pack back.

Guys, honestly, thank you so much for watching this.

I hope you got value out of

it in the description.

I'll link the school community. I will link my Instagram.

I will link my Section 8 Instagram

page, and I'll link my wholesale Instagram

page, too, so you guys can get

some free value there. If you guys want to join the

free community, get one coaching call with me per week. Get one coaching call with our sales

trainer who has closed over 600 transactions in 2024.

All of that is free for you

in that school community.

I hope to see you join that.

And anyways, y' all have a blessed

rest of your night.

Peace.