Hurricane Katrina How can Investors Help.

General Real Estate Investing
21

REO,

Once again, it appears that we live in two totally different worlds. I completely disagree with you that citizens anywhere would loot, rape, and shoot at their rescuers in a natural disaster. This is a particularly bad bunch in NO and I totally agree with those that have said they behaved like animals (although I can’t really think of any animals that behave that badly)! If our town went through a disaster, people would NOT behave like animals, they would pull together and it would be their finest hour. A small city near me was nearly wiped off the map by a tornado a few years ago and I don’t recall a single incident of looting and certainly no-one shot at the rescuers. What amazed me was just how quickly the losers in NO started looting everything in sight! Based on these incidents, I certainly would not be proud to say that I was from NO. It was a disgrace and a stain on the city!!!

I do agree with you that renters that have good credit are few and far between. That’s exactly the reason that I do a credit check on every applicant. I’m looking for good tenants, not losers. More importantly, many prospective tenants are criminals! These are the ones that I’m especially interested in screening out. The last thing that I need in my property is a murderer, a gang member, a convicted sex offender; someone who beats up their wife; a drug addict; a drunk, etc! My point with respect to the Hurricane Victims was that thousands of criminals from NO are now on the loose mascarading as victims. If you can’t screen a potential tenant, you could easily end up with one of these losers. That is NOT a risk worth taking in my opinion. You said that the key is to be a good judge of character - NONSENSE. It is impossible to tell if many of these criminals are lying. They are expert at it and the only way that you can uncover their lies is to do the appropriate checks. You also say “give someone a chance and let him or her prove you wrong”. I absolutely would not do this either. I’m in the REI business and am not a social worker or a gambler. My task is to take as many risks out of the equation as possible, not gamble on iffy people. It only takes one scumbag who destroys your house to wipe out the yearly profit from several houses. That is no way to run a business.

So, while I’m all for helping the victims of Katrina, I certainly would not risk my business to do so!

Mike

22

All my tenants are criminals that is the great part. There are no surprises they have terrible credit and an even worse criminal back ground and it works. I also think you should really call your local law enforcement office and see if you can get a list of your local sex offenders. You would be shocked your neighbors are. I personally do not take sex offenders. But call and get a list. Also when you say you run a credit check WHY if someone has really bad credit do they ever turn in the application? NO they do not.
How hard is it to fix your credit? SIMPLE. I brought a guy from 560 to 740 in 33 days. You never know fully who you are renting to there is no way it is a craps shot at best.

Trust me when you have bought and sold over 100 deals then you can tell me I am talking NONSENSE until then good night and good luck to you!

Some R.E.O. Consultants Facts

      322 deals last year (2004)
         0% vacancy all last year and so far this year 
     mid 5 figure income per month positive cash flow!
        6 deals last week and 8 more this week!
23

Robb (REO) made over $20,000 last week, most of it while he was still in bed. You guys should listen to him…

24

YEA, STILL IN BED WATCHING THE PRICE IS RIGHT.

You’re right manga, everyone should listen to him, he knows his sh** and knows it well.

JOhn

25

Hey,
Propertymanager: Granted, the guys shooting and raping are thugs and criminals and they probably just should have shot them as they found them. On the otherhand, the number of days some these folks went without food and water for their family and themselves - well, I am not sure I would have not broke in somewhere and got food and water for my child. A tornado, though tragic, is not in the same dimension as a hurricane. I agree with being cautious, etc., but your cynicism regarding humankind is a bit extreme. These foks were in an extreme situation and it drove them to extreme acts.
Peace,
Richard

26

I agree that a person in a survival situation has every right to do what’s necessary to survive, including taking food and water. However, I’m not referring to taking food and water as looting. I’m referring to all those fine residents of New Orleans that were taking TVs, jewelry, designer shoes, etc. Even worse is that they started looting almost immediately after the storm. There was a feature story on the news last night about a Walmart where nearly everything was stolen including every electronic device and all jewelry. These losers stole everything in sight, they didn’t do it for survival reasons, and I certainly wouldn’t want one of them in my property. There are not a few of them, there are tens of thousands! If you’ve been listening to the news, you’d know that over 4,500 sex offenders are unaccounted for. That number is just sex offenders and doesn’t include all the looters, murderers, drug addicts, drunks, and other general criminals!!! That’s why I’m urging caution. It’s only common sense.

REO, the number of deals you have done is truly impressive, but I am perplexed by your advice. Are you really suggesting that new landlords don’t check the credit or criminal background of prospective tenants? That is unbelievable! I’m getting the feeling that while you may own rentals, you don’t manage them - am I right? If you did, you wouldn’t be saying some of these things. How many other landlords on this list recommend not screening their tenants? How many other landlords on this list accept tenants regardless of their credit situation? How many other landlords on this list accept applicants with extensive criminal backgrounds? If you followed this advice here in Ohio (or anywhere), you’d be out of business in less than 6 months!!!

We charge a non-refundable application fee for every rental applicant. We do a credit check and criminal background check on every applicant. A tremendous number of people put down their $25 and lie on their application about their credit and criminal background. It happens nearly every day!!! They are betting that I won’t actually check their credit and criminal background. To be clear, I don’t judge their credit only on the score, but rather look at the details. I’m interested to see what their recent payment history is and whether they’ve had cars repossessed or had their utilities turned off for non-payment. Things like that. It’s also very illuminating to see whether they’ve lied on their application or to me in person. If someone lies during the application process, I certainly won’t accept them as a tenant. For the criminal background check, I look to see what their history is lately and for any serious crimes at any time. As an example, I would accept an applicant who had a minor offense 10 years ago, but I would not accept an applicant who has had two minor offenses in the last 2 years.

In my opinion, performing a proper credit check and criminal background check is absolutely essential if you are to succeed as a landlord. It’s just common sense!

Mike

27

No Mike what I was saying is if you are to hard on your screening process your property will be empty for awhile!

Do me a favor shut off your television for a few and quit believing everything you hear on that. Call your local sheriffs department and ask for a list of sex offenders in your area. They are everywhere!

Also let me add that I am truley happy you are successful in REI and that your system seems to work great for you! even though I personally would never do it that way! Robb

28

I am new here and I must say that I am appalled at some of you folks. I couldn’t even read it all without getting totally upset and disqusted.

First off, It is obvious to me that FogDryer is not a caring person. To say what he said is just plain evil.

Secondly, propertymanager, you would be shocked at the way people responded to FogDryer, but not shocked at what FogDryer said? What’s that about?

I am a REI newby and I don’t look at this business the way you do, and I’m sure I never will because I have a heart. As far as investors benefiting from the sad circumstances of others, I look at it as helping people more than hurting them. People who are in foreclosure, or those that can’t afford their houses, are going to lose their house with or without us, so I really didn’t understand your point.

Granted, I don’t think that FogDryer should burn in hell and I don’t hate him for what he said, but at the same time, I understand why people as well as myself, are disqusted at his lack of sympathy for the situation.

And as far as the guys stealing TVs (etc) and shooting. Guess what, they are thieves-criminals in this world. They were possibly that way before Katrina, and they will more than likely be that way after Katrina. We all have them in our Cities and States. They walk among us everyday, all ethnic groups. Let’s get real!! There are people everywhere who have a blatant disregard for life with destructive tendencies. You have them where ever you live, believe it or not!

You said that you would not be proud to say that you were from NO. And why is that, because they have people that steal-loot and committ crimes? Whatever!! I am not proud to say that I am from America!! The way this whole thing was handled was a disgrace!!! And just because you didn’t hear about any crimes being committed after the tornado in the city near you, does not mean there were none.

I have so much more to say, but I just had to get this off my chest!!! You two guys, just simply disqust me!!

Karen