Segments in this Video

Getting Into the Business (02:32)

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Tom Brunk began investing with family back in the 1980's. Down payments were low, making it easier to buy properties. He was able to help an investor manage his properties and reinvest his money to compensate for negative cash flows.

Mentors in the Business (02:32)

Tom was a mortgage banker and his wife sold Real Estate. They realized they needed to plan ahead for retirement. It was important to find affordable contractors or do the work yourself. He utilized the help of brokers who knew foreclosures.

Sweat Equity (02:57)

Tom and his wife needed $25,000 to invest in 11 properties. They negotiated 30% interest in the properties of the investor they were working with. Tom did all the painting and cleaning and the investor bought the appliances.

Locating a Property (02:40)

Tom talks about the best locations for him, at the time. They bought some homes at auction and some through HUD. Rent-ability was the key factor in deciding what to buy. Homes with 2 or 3 bedrooms and 2 bathrooms were preferable.

Challenges of Managing Properties (02:18)

It is challenging to work with people who find themselves unable to pay rent. Pets and condos don't mix very well. Be honest and patient. You have to be firm with people, as many will have an excuse why they can't pay the rent.

Where Tom is Now (01:34)

He was able to sell the properties at a profit. He and the investor separated. Tom and his wife now own all their properties without any partners.

Lessons Learned - Dr. Tom Duening (02:21)

Be patient; buy early; live frugally; minimuze risk; network with brokers and agents.

The Entrepreneur's ADVISE (02:46)

If you are young, with very little money, buy owner occupied properties. Pick a modest property that you can rent out in a couple of years. Multi-unit properties are good because you can live in one of the units.

Appreciation is no Guarantee (03:05)

All markets are not alike. Some areas of the country may take more time for appreciation. Realtors are a good source of information. Too many rental signs in an area may mean it is not the best place to buy. People will rent something if it is clean and nice.

Background Checks (03:47)

A local credit Bureau will run a credit check for you. They will also run criminal and eviction checks. Get references and pay stubs. Make sure to do your due diligence. No personal checks for first months rent or deposit.

Application Form (03:07)

Have tenants prepay for credit checks. Look for cleanliness of their car. If someone wants to move in quickly, that should be a red flag. Be wary of someone wanting to move in on a weekend.

Timing of Lease (02:31)

Try to have leases terminate February through March so you are not competing with the summer market. Live frugally and put away cash reserves for unexpected expenses. Preventative maintenance is critical.

Collections Process (02:16)

Tom offers renters a three day grace period. If they do not pay he serves a 3-day demand letter--a scare tactic.

Eviction Process (02:40)

If you go through with the eviction, give the 3-day demand letter to the attorney. The attorney will file for a court date. A process server will serve the tenants notice of their court date. If the tenants come up with the rent, don't forget the late fee.

Contracts- Evictions-Liability Protection (03:43)

Tom initially got a lease agreement from an office supply store. Over time, he had a lawyer fine tune it. Serve your own 3-day eviction notice, to save money. Talk with your insurance agent about the different kinds of coverage available.

Scaling the Business (03:41)

Start with an owner occupied loan (you can only have one at a time). Move out of your first property into your second property. You will have had to save 5% or 10% for a down. Tom gives additional details on buying a third property.

Professionals to Consult (02:03)

A mortgage broker, real estate broker, accountant, and eventually an attorney, are professionals you will need to work with. Tom offers final advice. Start early and don't become emotionally attached.

Recession (02:16)

There are more renters now because so many people lost their homes. Tom advises someone just starting out to buy a multi-family unit first. Stay there a couple of years, save some money, and then buy your first single family home.

Summary with Dr. Tom Duening (04:01)

Tom summarizes all the key points made by investor Tom Brunk.

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Buying and Managing Rental Properties: The StartUp Experience

Part of the Series : The StartUp Experience
DVD (Chaptered) Price: $129.95
DVD + 3-Year Streaming Price: $194.93
3-Year Streaming Price: $129.95

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Description

Tom Brunk, a former banker, founded Brunk & Brunk Metro Brokers in 1984 to provide services in the areas of real estate investment and development, property management, and relocation. Tom is considered to be a major thought leader in the industry and is often sought for his insights into the trends and topics that are shaping the future of the rental property industry. In this program, Tom discusses how to locate and evaluate potential rental properties; how to leverage properties and finance new ones; secrets to qualifying renters; how to handle legal issues that inevitably arise; how to earn profits in this highly volatile industry; common mistakes property managers tend to make and how to avoid them; and more. (53 minutes)

Length: 53 minutes

Item#: BVL47868

ISBN: 978-1-62102-483-5

Copyright date: ©2011

Closed Captioned

Performance Rights

Prices include public performance rights.

Not available to Home Video customers.

Only available in USA and Canada.


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