Questions to Ask Lenders/PMs/Contractors

[Tim Kappel]

Hello

As I start out in this career of a REI, I am looking to interview some people for my team. I have a list of questions that I have put together form books, forums, podcasts, etc for 3 key players on any team. Does anyone have any good questions to add? Are any of these terrible? Thanks for any and all advice!

• Lender
• How much am I able to borrow (pre-approval amount)
• What is the current rate for investment properties
• How long is the “seasoning” period before I can borrow money against the property
• What is your LTV %
• What are your closing costs (breakdown)
• How much it will cost to buy down the rate
• What is your “cash out” refinance rate
• Does lender work with out of state investors
• How quick can you close

• Property Manager
• What are your fees (flat fee/% of rent)
• Do you have references
• How many are you currently managing
• How often do you check in on tenants
• Who keeps the damage deposits
• What do you charge for evictions
• Will you advertise and show property while occupied
• How long does it typically take you to turn a property around between tenants
• Do you conduct background checks on tenants
• Do you take photos of the property before and after move
• Do you offer a tenant placement guarantee
• How do you handle calls for repairs, do you try to solve the problem before sending someone out
• Do you establish a threshold $ amount on repairs above which you always call the owner
• Who do you use for repairs

• Contractor
• Are you licensed and do you have insurance
• How long have you been running your own crew
• Do you have a list of references
• Will you be using any subs on this project
• Do you give out warranties
• Have you ever had any legal action filed against you
• How often do you communicate with your customers
• How do you clean up your jobsite and what does that mean to you
• How many projects do you have going right now
• What will our contract look like
• How and when do you like to be paid