Dear Monty

  • Richard Montgomery gives no-nonsense real estate advice to readers’ most pressing questions. He is a real estate industry veteran who has championed industry reform for more than a quarter of a century. Send him questions at www.DearMonty.com.

Dear Monty answers your real estate questions

Investor Question: Out-of-the-Box Due Diligence Tactics

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DEAR MONTY: About six months ago, three longtime friends and I decided to make some real estate investments together. Our investment goals are similar; we are each high-income professionals, share similar risk tolerance and see real estate as a long-term investment opportunity. Now, we have identified a 60-unit apartment building ...
Real estate investing question of the week: Should I buy 5 houses next to the rental we already own?

We own a rental next to five houses I would like to buy: What is your advice?

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Reader Question: Hi Monty, I have a question about some properties for which I want to create a purchase proposal for the properties’ owner. Quick background: these are modest houses in a decent neighborhood where we own other rentals. One is vacant. We have a rental right next to the ...
5 ways to evaluate investment property

5 ways to find the value of investment property

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Reader Question: We want to make our first real estate investment purchase. We have decided on investing in older two- to four-family apartments. It appears there are different ways to decide what a property is worth. How do you evaluate an old three-family property? — Julie and Rob P. Monty’s ...
A 5-step strategy to sell a real estate investment portfolio blog by Richard 'Monty' Montgomery with the real estate investing question of the week.

A 5-step strategy to sell a real estate investment portfolio

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Reader Question: My dear wife and I embarked on our real estate investing career in 2009 in Central Maine, and over the course of three years amassed 13 buildings totaling 51 units. We turned a slew of low-quality, run-down buildings into desirable blue- and white-collar communities. Now our properties have ...
A Realtor asks how to get started as a real estate investor blog by Richard 'Monty' Montgomery for the real estate question of the week.

How can a Realtor get started as a real estate investor?

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Reader Question: I'm a Realtor, and I'm interested in becoming an investor in the next two years. How can I find and work with trustworthy investors to help find distressed properties to purchase, fix up and resell? Thanks! — Xavier Monty's Answer: Hello, Xavier, and thank you for your question ...
7 costly mistakes of new real estate investors blog by Richard 'Monty' Montgomery

7 costly mistakes of new real estate investors: the real estate question of the week

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Reader Question: We just backed out of our first real estate investment deal. We took some bad advice, but luckily, we discovered an undisclosed issue through a whistleblower. It made us ask ourselves, what else could we have missed? What are the biggest mistakes of new investors? — Justin and ...
Where is one to invest in this market real estate investor question of the week for Richard 'Monty" Montgomery for Personal Real Estate Investor Magazine

Is shadow inventory a problem for real estate investors?

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Reader Question of the Week: Where is one to invest in this market inclusive of the banks shadow inventory? A good example is Clarksville, Tennessee which appears to be an excellent opportunity, however if you consider Housing and Urban Development (HUD) unoccupied housing information, it paints a very different picture Monty's ...
How will deflation impact the owners of mobile home parks and low-end apartments? The real estate investor question of the week blog by Richard 'Monty' Montgomery

How will deflation impact owners of mobile home parks and low-end apartments?

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Reader Question: How will deflation impact owners of mobile home parks and low-end apartments? Prices are VERY high for MHPs right now. Buyers are jacking up rents, while tenants can't get full-time jobs. Tons of 1031 Exchange money chasing too few deals, too. Seems like a good time to SELL ...
Question of the week: How to find investment residences blog by Richard 'Monty' Montgomery for Personal Real Estate Investor Magazine

How to locate an investment property: Real estate question of the week

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Reader Question of the Week: What is the best source of locating real estate investment residences in Phoenix, Arizona? Tried HomePath, much competition and the profit margin way too low. Searching MLS has not produced anything also. -Michelle Monty's Answer: Hello Michelle and thanks for your question. The bloom is ...
Question of the week: How do i get started in real estate investing in my area? blog by Richard 'Monty' Montgomery for Personal Real Estate Investor Magazine

Question of the week: How do I get started in real estate investing in my area?

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Reader Question: Hello, I need to know how to get started in real estate investing in my area? Monty's Answer: Hello Theresa and thanks for your question. Our country’s foundation is real estate. Real estate is the largest sector of our GDP economy. It has been the foundation of America’s ...
10 principles and actions that show you are a good landlord for your tenants

10 actions that show you are a good landlord

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 Question: What makes a good landlord? — Sue and Vic S. Owning and managing rentals and apartments is very hard work for a landlord. Management practices must be tailored to the environment, the clientele and working conditions. That said, there are a number of principles that, if properly utilized, can reduce ...
Real estate investor question of the week: What should my offer be on this property?

Real estate investing question of the week: The answer to your flipping question

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Reader Question: When I hear people who are flipping, or who are talking about flipping, they are usually only talking about flipping low-priced or averaged-priced single family homes, and there’s nothing wrong with that. My thing is, yes you need to start small, with say a $100,000 property or $150,000 ...
Real estate investor question of the week: What should my offer be on this property?

Real estate investing question of the week: What should my offer be on this property?

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Reader Question: I am looking at making an offer on a REO. It is a two-bedroom, one-bath, 710 square foot single family home. There is a $127,900 asking price, which is $180.14 per square foot. It sits on a 10,019 square-foot lot that has fire damage. The comps in the ...
Investor with low credit score asks financing question

Investor with low credit score asks financing question

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Reader Question: I have two rental properties free and clear but having hard time borrowing money using these properties because of low credit score. It is 620. Any suggestions or lender who may work with me? -Shalaish Pathak Monty's answer to the real estate investor question of the week Monty’s ...
10 principles and actions that show you are a good landlord for your tenants

10 principles and actions that show you are a good landlord to your tenants

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Dear Monty: My husband and I own about 75 units in 25+ buildings. He has a good day job, and I manage the apartments. We have been expanding slowly for over 20 years. This is not easy work. Over the years we have had tenants occasionally complain about different things, ...
Real estate question and answer of the week

South Jersey contractor asks, “How do I find out who owns these REOs?”

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The Real Estate Investor Question and Answer of the Week Question: Good morning, I'm a contractor in South Jersey and I see hundreds and hundreds of homes with stickers on the window that are abandoned. I'm thinking they are REOs bank owned properties. How is it possible to get the ...
8 tips to consider before investing in real estate

I want to become a real estate investor – where do I start?

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Our country’s foundation is real estate. It is all around us, like the air we breathe. Real estate is one of the largest sectors of our economy. It is an investment vehicle with a foundation in America’s dream from the time of the early pilgrims. Our first president was a ...
Dear Monty answers your real estate investing questions and tenant and landlord questions

What makes a good landlord? 10 tips to avoid complaints from your tenants

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Reader Question: Monty, My husband and I own about 75 units in 25 plus buildings. He has a good day job and I manage the apartments. We have been expanding slowly for over 20 years. This is not easy work. Over the years we have had tenants occasionally complain about ...
Dear Monty answers your real estate investing questions

3 things investors should look for in converting an old commercial building to a new use

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Reader Question: Monty, my partners and I have been in commercial real estate for 15 years. We own a variety of income producing properties. We have been toying with the idea of converting an old, vacant building. It is pretty, under the dust, but in rough shape. One of the ...
Dear Monty answers your real estate investing questions

8 tips to add sparkle to old apartment buildings

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Q: Monty, we inherited two 16-unit apartment buildings from my father. They have been in the family for over 30 years. I never took an interest in real estate until now, but as a kid I did mow the lawns. They are free and clear, and we intend to keep ...
Dear Monty answers your real estate questions

Remodeling in a less desirable area – how to know when it’s right for investment

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Q: A friend and I are going to buy an old home and remodel it to rent out. We have a limited budget, so we are looking in areas where prices are lower. Are there any strategies or tips for buying and renovating houses in “less than desirable” areas?  How ...
Dear Monty answers your real estate questions

Who should you draft for your real estate investing team?

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Question: Monty, I am saving and looking to buy my first rental this year. What kind of infrastructure do I need to have in place to support this kind of business? Thanks, Rob P. Monty’s Answer: Hello Rob, and thanks for your question. Owning investment real estate can be a ...
Dear Monty answers your real estate questions

Small investor asks: Should we move to buy larger properties?

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Reader Question: Monty, my wife and I are 32 years old and have just finished restoring a big Victorian two-family home in New Jersey. We took on a bit of debt, but I just paid all of the credit cards down and completely paid off a pretty big loan. We ...
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What advice do you have for a first-time residential developer?

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Reader Question: Monty, as an apartment developer, I fuel future development by regularly investing in raw land. I have owned a 40-acre parcel for 20 years. I am certain I cannot rezone it for apartments as the surrounding area has developed as single family. It is a beautiful parcel and ...
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Boomer investors ask about rental cash flow vs paying off mortgatges

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Reader Question: My husband and I own two cash positive rental properties with a combined mortgage balance of $260,000. We have 401k accounts that total approximately $1 one million. We will both retire next year and will draw social security of $4,000 per month. Should we pay-off both mortgages with 401k ...