All Forum Posts by: Alex Deacon

We can go on and on about when the market will tank etc.. NOBODY KNOWS. I think we are heading for an economic meltdown and if that happens it wont matter what business you are in. its going to be hard as hell. Buy smart, be selective and work your *** off to learn the business. If it fails at least you tried. If the economy really takes a downturn then what's the difference at that point. We will all be in the same boat. 

I do believe there are certain states that are on the up and coming and growing and you could get a much better long term return. For me, I am not willing to move my business or take the time to learn those markets. I focus on the Pittsburgh Market and I am very good at it. There is only so much time in a day.

I cant help you with a recommendation but we manage over 720 units in the Pittsburgh market. Some helpful tips to look for. What is the companies current vacancy rate? Who will be assigned to my property and can I interview them? What is their experience level? Are the owners of the company involved in the day to day operations and can I rely on them if there is an issue with my current property manager? How long have they been in the business? 

You want to hire slow and fire fast. Dont sign more than a 1 year contract and make sure you talk with at least 3 companies. Property management is a super hard business to run and manage and profit. Dont just look at the fees. Thats the least important. If you want to message me I can send you a PDF with a lot more questions you should ask.

You can file its very easy. If it goes beyond the magistrate level then you will need to hire an attorney. There is a good chance that the tenant will pay or leave once they get the notice from the court for a hearing. If you dont feel at all comfortable with the process then absolutely hire a lawyer that specializes in landlord tenant hearings

We manage 720 units in the Pittsburgh market and I have never heard of such a thing and dont think any magistrate will see in their favor. Read through your lease with a fine tooth comb. Even if they had something in there that says you are responsible I am pretty sure thats not a legal clause. I would let them know you spoke with another property manager and they advised you to hold the rent in escrow until this is resolved. That should get their attention. If that doesn't then go ahead and hold your rent in escrow until they either come to their senses or try to take you to court. They will lose. One more thing. I have a lot of experience with tenants. Please make absolutely sure this was not your fault. I dont know the circumstances but if they are as you say the landlord is not going to win

The old saying is Never wait to buy real estate. Buy real estate and WAIT. If you are sitting on the sidelines you are losing money. Regardless of the market. I am born and raised in Pitsburgh PA and that's where I buy. I am always in the market. Like Warren Buffet says, nobody can time the market. You have to be in the market at all times. Ramp up your buying when investors are getting out and when investors are flooding the market you have to make adjustments.

Not too many agents form an LLC. You will have E and O insurance through your brokerage. If you want additional insurance you can get some sort of business umbrella policy.

Seek out the advice of a good real estate attorney and insurance provider. Myself being a licensed agent for nearly 30 years with over 2500 transactions under my belt, my opinion is you dont need to form an LLC

@Jonathan Quesadilla you can get much better terms with a conventional loan. There are even lenders out there at 10 or 15% down. Seller financing is awesome as long as the terms are right.  The downside of seller financing is you lose some leverage.  Also, its hard to find a good seller financed deal in a strong sellers' market. Make sure you are doing a good job at researching the property and the income potential, upside and the downside. 

100% first thing to do BEFORE you buy is get the tenant the hell out. Let your dad know this. I don't know the market you are speaking of well enough to comment on values etc... I manage 720 units in Pittsburgh and I own an extensive portfolio here. Thats what I would recommend.

@Jonathan Faltot My partners and I have purchased well into the hundreds of properties at Tax and Mortgage foreclosures in Allegheny county PA. The only reason I have never this on my own is because my partner really knows how the system actually works. These things happen all the time. Its not a great place to start buying unless you understand ALL the things that can go wrong. Hiring an attorney and so on will most likely fix your issue and you may win the battle, but the time and money lost (and sanity) may not be worth the potential profit gained. We have been involved with a ton of SENSELESS lawsuits that on paper make absolutely no sense but guess what? It cost money and time to defend regardless. Fight this one out but for the next deal, make sure you do follow the legal process like @Chris Seveney stated. Then all you can do is hope for the best. 99% of the time it works out and there are no issues. You just happened to get the 1%.

@Sharls Alexander cash flow is going to super hard to find here in the Pittsburgh market. We are being inundated with out of state and out of country investors. Its caused the price to go up but the returns have plummeted. You will most likley need to buy in a c or even a d area to make the numbers work. If you plan on a long term play then this area could work for you but I dont think cash flow is going to be that great