As a real estate investor you are engaged in transactions that have opportunities to make a little extra cash or not lose money. Here are some techniques you may have missed. All of the following have made or saved me money.
• Cleaning fee: When you lease a house or apartment consider including a cleaning fee. Most tenants do a cleaning job that is not good enough for the new tenant moving in.
IE: Tenant agrees to accept the property in its current condition and to return it in a “moving-in clean” ready condition, and to pay a special cleaning charge of $185.00 upon vacating the premises.
• Escrow Balances: Seller agrees to turn over all funds in the escrow account to the Seller at the time of closing. Include this clause in your purchase agreement or as an addendum there too, Use a clause that states the seller agrees to turn over any remaining escrow balance in the house escrow account to the buyer.
• Abstract of judgments: Real estate investors often need to evict a tenant, after the justice courts find in your favor file an Abstract of judgment at the county courthouse for money the tenants owe you. If the tenants then try to buy a house, sell a property or collect an inheritance the abstract you filed might prevent them from doing so unless they clear up the abstract by paying you. Most landlords do not record an Abstract of Judgments for what is owed them
• Note payoff discounts: When I have a long-term note with an individual that I am paying off, I send a letter to the lender asking for a discount if I pay them off in the next 60 days. Send the letter with a blank space for an amount for them to fill in, a signature line and a postage-paid, return addressed envelope. When the signed letter comes back, take it to the title company for the closing.