Charge ‘Additional Rent’ not Late Charges - 101 Street Smart Cash Flow Accelerators #55

Lou Brown

Jul 31 2019

Hi, it's Lou Brown. Welcome back to another amount, 101 passionate load generators. You know, I love this business. I've been buying, holding and selling property for over 40 years. I've learned some amazing things during this time and one of them is how we deal with collecting our money. You know, when someone doesn't pay as agreed, what happens is that you have to take them to court and you have to create an eviction and unfortunately sometimes you have to actually set people out of your properties and when you get to court, sometimes the judges want to take your money and give it to the resident and they do that in a form of late charges. Even though late charges may be a part of your contract, and in fact they are a, what the judges will often do is strike through the late charges and not give them to you in the judgment.

Wow, that's not too nice. Since after all, you're the one who didn't get paid. You're the one who had to resource other money to pay the pavement on your property. You had to pay your property taxes. You had to pay your insurance and obviously the use of the funds coming from the resident is one of the things that we used it like that happen. Uh, so it was kind of a flash of brilliance one day that I said, well, let's just not have any late charges and instead let's convert any amount of money on a daily basis that would be due because they hadn't paid us to additional rent. And so now in the agreement that we have, and this is our standard rental agreements loaded with profit centers and protection, this isn't my volume to settling and holding system. And you can find [email protected] and there is my amazing standard rental agreements. And what I've discovered is there's so many different things that you absolutely, positively must have in your rental agreement. We actually review it annually to discover anything that we need to update. And years ago we started putting in the additional rent and instead of late charges and what happens is each day that they do not pay on time, then that's additional rent or that day. And if we ever have to evict, we add everything together. We put it on the rent due line and

the line that says late charges week zero add that up. And then the amounts that we're applying work a judgement. Yeah, baby. All right. Well I love it. Share it and I will take care

Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so called gurus are missing.

* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…

* How to have a buyer or renter before you even buy property…

* How to have them already pay you money before you sold them anything…

These are exactly the kinds of deals he does day in and day out. Most 'investors' are getting it wrong. It's not about the property, it's about the buyer. Buying right and buying cheap is what you'll do after you have the buyer.

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Web Site: https://millionairejumpstart.com/ and https://streetsmartinvestor.com/

Real Estate investors in all fifty states across Canada and fifteen foreign countries including as far away as Australia and New Zealand, have long regarded the training, systems and forms created by Louis Brown as the best in the industry, Quoted as an expert by many publications and authors, “Lou” draws from a wide and varied background as a real estate investor having been buying property since 1976.

He's invested in single-family homes, apartments, hotels, developed subdivisions and built and renovated homes and apartments. Each of these experiences has given him a proving ground for the most cutting edge concepts in real estate today. He's widely known as a creative financing genius with his deal structuring concepts.

Being a teacher at heart he enjoys sharing his discoveries with others. He has served the industry in many volunteer positions such as past President and designated lifetime member of the Georgia Real Estate Investors Association, the world's largest real estate investor group.

He is also founding President of the National Real Estate Investors Association, which serves as the umbrella association of local investor groups.