Advantages of Investing in Residential vs. Commercial Real Estate

Question: “What are the advantages of investing in residential rather than commercial real estate?” Answer: Great question. Each has its advantages.  I always recommend residential for new investors as overall it’s much simpler than commercial real estate. Though I wouldn’t necessarily say residential is easier.  You could argue that dealing with residential tenant issues are
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How to Buy Tenant Credit Reports

Question: “Hi Gary…As long as I have had a home in Clairemont (early 80’s), you have been the one Realtor that has stayed in real estate, and kept me up to speed with your newsletter! Now that my home is a rental, I need a referral.  The company I used to buy credit reports [to
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Is It Okay Not to Get an Appraisal?

Question: “My friend was buying a home and the seller asked him to waive the appraisal contingency.  Isn’t that a bad idea?  That means he won’t know if he’s overpaying.” Answer: An appraisal is just an opinion, and usually a less accurate one than a good Realtor who knows the area. I once listed a
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A Good Choice For Your First San Diego Home & Investment

Question: “I’d love to buy my first house, but can’t quite afford one.  And I really don’t want a condo.  Do you have any houses where the owner will let me make payments to them at a low rate?” Answer: Nope, and you’re unlikely to find anything like that. But I have a totally different
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How to Find a Tenant for Your San Diego Home

Question: “I want to buy my first investment property, so I’m going to buy a little house.  What’s the best way to find a tenant?” Answer: Craigslist, hands down. You could also put a For Rent sign up, but Craigslist is going to be your best bet. By the way, in case you’ve heard of
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Can You Require Your Tenants to Pay in Cash?

Question: “With the tough economy, a lot of my tenants’ checks have been bouncing. Obviously that makes my life pretty stressful. So I want to tell my tenants that they can only pay in cash. However, a friend of mine said I can’t legally do that…?” Answer: Since January 1, 2005, it’s been illegal for
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How Interest Rate Increase Affects San Diego Home Prices

Question: “What do you think the recent interest rate increase will do to home prices?” Answer: Great question.  Many people are asking me the same question right now. My economics degree gives me some insight.  Economics is ultimately a study in human behavior and how various forces impact that behavior. So how does increase in
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Should You Request a Schedule E for a Rental Property?

Question: “Hi Gary. Question: When buying a Rental Income property, is it customary to request a last available copy of IRS Schedule E on that specific property??? This certainly would be reliable tool to estimate a Near True rental income? Warm regards.” Answer: That’s a great question and a great idea. You never want to
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Be Tough, Hire a Manager, or Don’t Be a Landlord

Question: “I’m not sure I’m cut out to be a real estate investor. You’d have to be so heartless. How could you ever evict someone who’s down on their luck and can’t pay the rent?” Answer: I admire your thoughtfulness and caring. The world would be a better place with more people like you in
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What Is an Estoppel Letter?

Question: “What is an estoppel letter?” Answer: The following story actually happened to me two separate times… I made an offer on an apartment building and it was accepted. That was the good news. When I went through the apartments, I asked the tenants how much rent they paid. Oddly, EVERY tenant paid less than
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