What happens if a tenant trashes my Indy rental property and I love out of state?

Being an out of state real estate comes with obvious risks. One of the biggest fears out of state Indianapolis real estate investors have is what happens if a tenant trashes their rentals.  How would they find out?  How do you get the work done correctly?  How do you avoid this from happening again? Today we’ll cover these questions and more and show you how to CORRECTLY manage your Indy rentals from out of state.

First of all, THANK YOU again for making this channel the number one channel for Indiana real estate on YouTube according google analytics and SocialBlade info for BigReia.com. 

How to create passive income with Indiana real estate as an out of state investor.

If all we did was talk about our properties and what has happened to us and our students in the past, then this would be a novel of mistakes and examples and what NOT to do.

Here are some of the questions we’ll answer in this video:

What is the most damage a tenant has done to one of your houses?
How often does that happen to you or somebody that know of?
How much, money-wise, did it cost to repair and how long?
How much money did that property make that year?
And the following 5 years, 10 years, 15 years?

Here’s what you’ll find:

The return on your investment is usually FAR higher than the costs associated with tenant problems.

You just need to get the problem tenant out, clean things up and do it again.

Remember, if you hire the right property manager, then you don’t do the work yourself.

A few questions to consider about tenants trashing your rentals:

How much does it cost to keep up a property if all you have is just the normal wear and tear?
Who does the work if a property gets damaged and it isn’t the tenant’s fault, like weather?
If someone does major damage, what happens if you lose a YEAR of income?
Does insurance cover damage to a property?
Overall is it worth it?

First let’s talk about the insurance coverage.

Malicious Damage is a form of vandalism and is done when a person knowingly and intentionally damages property on purpose.  It is not accidental nor unexpected, but destructive, reckless and usually vindictive in nature.

Some examples of Malicious Damage may be broken windows, holes punched/kicked in the walls, doors knocked off of hinges, graffiti, dumping garbage or any other intentional destruction or defacement of property.

Because it is considered vandalism, tenants can be prosecuted.

They may face fines or even jail time, in addition to paying restitution.

Depending on the provider, some policies may include malicious damage under property damage or vandalism, but with some providers you may have to purchase a “Malicious Damage Coverage” rider separately.

There are measures you can take to prevent it.

Prior to engaging in a lease agreement –

Follow these precautions when considering potential residents:

1.) Credit Check

2.) Background Check

3.) Ask for references, and confirm them

4.) Require a large deposit or lease option fee

5.) Take photos of all living space and appliances prior to move in

6.) Set clear expectations and be courteous and treat your tenants fairly and with respect.

Those were Joe’s notes, here are Azam’s…

I’ll start with a quote.

Astronaut Chris Hadfield’s book “An Astronaut’s Guide to Life on Earth”, had an interesting excerpt:

“It’s puzzling to me that so many self-help gurus urge people to visualize victory, and stop there. Some even insist that if you wish for good things long enough and hard enough, you’ll get them and, conversely, that if you focus on the negative, you actually invite bad things to happen. Why make yourself miserable worrying? Why waste time getting ready for disasters that may never happen?

Anticipating problems and figuring out how to solve them is actually the opposite of worrying: it’s productive.  My optimism and confidence come not from feeling I’m luckier than other mortals, and they sure don’t come from visualizing victory. They’re the result of a lifetime spent visualizing defeat and figuring out how to prevent it. Like most astronauts, I’m pretty sure that I can deal with what life throws at me because I’ve thought about what to do if things go wrong, as well as right. That’s the power of negative thinking.”

Lesson: BE READY.

Don’t think you’re going to manifest a perfect tenant who walks three inches above the floor, never spills anything, has no furniture, is allergic to children and sleeps 23 hours a day… outside in the backyard.

Remember: There’s no such thing as bad weather, only bad clothing.

What happens if somebody trashes my house?
Bottom line: you will pay for it
This is a risk but we can do things to limit it
If or when it happens you need to be properly prepared

Good tenants: “Nurses with no kids!”

How to prepare for this issue obvious stuff:
Screen tenants
Screen management
Above all keep reserves

Not as obvious:
Maintain tight relationships with tenants (tutors, credit, jobs, etc.)
Connect with neighbors and have presence in area
Have regular marketing ability to replace NOW
CreditKarma – Pre-Approvals – BUYING
Future proof contracting

Most importantly:
Focus on the LONG term
At 1-2k/month FOREVER what really matters?
Develop income and resources to absorb challenges with a smile

You MUST be focused on the long term and understand that blips along the way are just pit stops on the journey to FOREVER income.  Any costs you get hit with will ALWAYS be made back, with enough time.  With only a few exceptions, you’ll always win.

We’ve done hundreds of deals with fed up landlords who got emotional.

If they had listened to logic (and US) they would not have sold their property to us and they only reason we were willing to take on their headaches is becuase we were focused on the long term.  When you work out you don’t focus on the pain, you focus on the body that you’ll get.

You must keep your eye on the ball, it is the key to makign better decisions.

If you get hit with a sudden $10,000 cost for example, just remember that once this Safehouse is making 1k-2k/month that $10,000 bill just means that you are waiting 5-10 months to make $2,000/month FOREVER.

Which would you rather have:

$2,000 a month forever, but you have to wait 5-10 months longer to get it.

Or…

Nothing.

You see how easy that is when you put the question properly considering TIME.

Also as always you want to make sure you build your team correctly and that includes property managers.  You also want to get your finances right and keep your numbers tight so that you know the exact timeline and how long your passive income targets will take to reach.

That being said remember the team and who should be on your team:
Realtors, lenders, PM, HML, appraisers, contractors and investors
Title companies, insurance, inspectors, accountants, eviction attorneys…

Make sure they got you connected and you can talk to them ahead of time too.

If you want a list of OUR contacts and every possible person that you will ever need to build your real estate business you can check out our People Page at BigReia.com/People.

Sta.

The MOST important thing to look for are OUTCOMES.

Indy CAN be a great market for turnkey investing but you need to pick the right team.  Joe and Azam have an obsession of helping folks from around the world create 10-30k/month and far beyond so you can use that as a ruler to measure others against.

Here’s what to do next:

1.) Download a FREE copy of our book “The Book on Indiana Real Estate Investing from Out of State” and see how we help folks turn 200k into 100k/year passive income forever.

2.) Devour are FREE accompanying classes, videos and testimonials and make sure you are qualified and fully ready to apply for us to build you passive income and generational forever wealth.

3.) When you are SURE that the GRS program is for you, you can apply and after your interview (Joe or Azam will speak directly with you in your final interview) if your application is accepted we will begin immediately and start collecting Safehouse FOR you, you don’t have to do anything – you don’t even have to leave your house – everything is DONE FOR YOU.

So that’s how you create passive income with Indianapolis real estate from out of state.

As always remember that you can use our  People Page here for a full list of every contact you’ll ever need to build your real estate business.  Also we have a list of all the paperwork and contracts that we use and we add to this list regularly so you can download anything for free and feel free to send me feedback or requests.

Want us to build your real estate portfolio for you?

Apply for our Get Rich Slow (GRS) Program and have me and our team build passive income for you.

Apply here now.

In the meantime you can go through the previous Elevators, classes and other FREE training material and use it to grow your impact before you check out.  Use our stuff to both create passive income AND buy small businesses zero down, follow the steps, be kind, help others and you’ll…

Make the Universe Smile.

~ Indy Anna and Rachel and Eve
Love (at) BigReia.com
(YES that’s my actual Direct Line and I really do answer lol, so please text me first Thx!)

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

Wanna Create Generational Passive Income Buying Real Estate and Small Businesses?

Here's a class on exactly how to make $30,000 in passive income as an out of state Indy landlord.  Exactly how many Indiana rental properties do you need to make 30 grand a month.  Anna can you help me invest in Indianapolis turnkey real estate investment properties?

There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list

Speaking of lists, for a list of the "Good People" and My Indy Anna Homeys - this is a FREE list of EVERY possible contact that you'll ever need to build a real estate business in the Indianapolis or the Midwest.

You can also get a LONG list of every contract, piece of paperwork and legal document that you'll EVER need for your real estate business all FREE to download.

Also perhaps the most important class Azam has done is on the "Frequency of Thought" and how to use the laws of quantum physics to rewire your brain, attract brilliance like a lightning rod and be the best version of yourself.  Check out this epic 3-hour class on Quantum Real Estate.

When I first go started I thought wouldn't it be great if somebody put together ONE list of every possible contact that I would ever need to build a passive income with Indiana real estate - or any Midwest real estate?  Well that's exaclty what I did with our “People Page” here it is:

A totally FREE list of every possible real estate professional contact you’ll ever need to do unlimited deals, start and scale your real estate business and create generational passive income with real estate anywhere Indiana or the Midwest.

Stay here at BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Income Ascension and Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
(YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

Free Comic Book Reveals:

100 FREE ways to find motivated sellers.

Free Comic Book Reveals:

100 FREE ways to find motivated sellers.