All Forum Posts by: Alissa Engel

@Savannah Arroyo

I think the con is using your parent’s hard-earned money and putting them at-risk in their golden years.

It may be your responsibility, but THEIR home will still be foreclosed on if YOU default. Since you are a newer investor (I’m assuming since you need your parent’s money), and given the current economic climate, this seems too risky.

@Frank Szymanski

I’ve done three sets of 70-90’s oak cabinets in rentals. I’ve always used the Rustoleum Cabinet Refinish kit from Home Depot. I’ve done dark brown, white, and Grey. White was my favorite, but they all turned out well, and have held up with tenants. The issues is TIME. It is very time consuming to do it right. There are many UTube videos that show how to do it, but many claim that it’s a weekend job. I don’t think this is possible. It’s been a week of full days for me.

We currently have another set that needs done, and my husband is pushing for paint instead. He thinks it will be less time consuming.

Curious if anyone has done both of these options: what’s the difference in time required? And how has paint held up compared to the Rustoleum product??

@Erin Spradlin

In general, yes. If I meet one that I don’t like; I don’t rent to them. I have my screening procedures that they must pass, but I rent to people I like and respect. Right now I have two military, a FedEx pilot, a doctor, an ICU nurse, a rancher, a business owner, a teacher...They follow the rules, they pay on time, and they take care of my properties.

That being said, I’m not friends with them. There’s a difference. Because you can’t really know how they are until they move and you get to return their deposit.

Over the years I’ve had a couple that I grew to dislike and they are gone the first legal chance I have to remove them.

People like to say things like, “It’s a business, take all emotion out, it’s all about the money, etc.”. It IS a business, and it’s so much more enjoyable if you like the people you work with. Emotional intelligence is highly undervalued on this forum.

@Ree Rolle

Don’t confuse being shy or having social anxiety with being introverted. Introversion simply means that you get energy from being alone....it has nothing to do with the ability to socialize with others. Being extroverted means that you get energy from being around others.

You can be very successful as an introvert, but you will need to make sure you get enough alone time to recharge your batteries.

@Jesse Smith

I’m watching my husband go through this right now. He’s in his second year as an agent, but we’ve been investors for almost 20.

We are mostly to the point where; WE don’t want to work with friends. I have several friends/coworkers who’ve inquired about using him, and I politely refer them to the agent we used to use. Why? I don’t want to loose a friendship or see the ugly side of these people.

My husband does a great job. I’ve worked with a lot of bad realtors in the past, and he’s great. BUT I also see that most people don’t value what agents do, and they think they are over paid. They ALL want a friends/family discount, and have hurt feelings when he won’t negotiate commission.

He’s helped several friends thus far. Some have gone great; even though you will never see them the same way again. It’s such a stressful and important process, and you are bound to see their ugly side at some point.

The first client he had to send packing was a high school friend of ours. He showed them 70 houses....yup, 70. They had him writing crazy low-ball offers that were never going to be accepted. They refused to listen to him. They were his most demanding and unrealistic clients, and they had zero clue about real estate (first timers). He spent countless hours on them, had to cut them loose, and they haven’t talked since. Oh, the Saturday’s that we lost while he showed them countless houses that they would never buy!

The absolute BEST (sarcasm) is when they use another agent to purchase a rental property. Then turn around and ask us for copies of our lease! They want to “do dinner” so we can teach them about being a landlord. I really think they don’t realize how hard good agents work, and how insulting it is.

We’ve gotten very good at referring them back to their agent or lender for answers. We politely say that it would be a misstep to provide guidance without knowing the whole situation. And it can damage my husband’s relationship with his colleagues if he sticks his nose in their business.

But really, we’ve moved from being offended to being relieved when our friends and family go another route. You’ll probably get there after loosing a friendship....it’s simply not worth it.

@Nathan Hui

I moved from SoCal to Bozeman, MT in May 2007. I was completely unaware of how inflated and over-built the area was. I was used to SoCal prices, so Bozeman felt affordable. By Fall 2007 the market crashed. People lost jobs. People had to move and couldn't sell so the market was flooded with rentals. 80% of the condos in my HOA became rentals over-night, which meant I wasn't able to refi or sell. It's a college town, so there were students to rent, but that's not my ideal renter. Rents dropped due to over-supply. I broke-even for 9 years. Then I was able to cashflow $250 a month for 3 years before finally selling at a nice profit last month. The HOA was still allowing too many rentals, so I had to find a cash buyer....12 years later. SO MANY MISTAKES.

How I survived a really dumb purchase: I put 20% down even though I could have used my 0% down VA loan. I didn't panic and sell when I was 60K underwater even though I had a lot of pressure to do so. I didn't have any debt other than mortgages, so I was not financially over-extended.

@Renee Yarbrough

Hi Renee! First, I’m proud that you are my Aunt! Secondly, I’m sorry the deal didn’t go through, but you are learning.

Lending will always be one of the most stressful parts. As you know, my mom was a lender, and she always said that SOMETHING will go wrong on every deal. The key is to find a lender that anticipates the problems early, and offers creative solutions. I stopped working with her bank several years ago, because their rules were too stringent. They couldn’t (or wouldn’t) get creative. Eventually, the hassle of her underwriters out-weighed the luxury of knowing that my mom wouldn’t over-charge me.

We moved to a lender who is at a private company with more flexibility, but I spend a lot of time double-checking rates and fees to make sure we aren’t being over-charged. He believes in us, but he has a tendency to blow smoke and say all the right things to get our business.

For example, we just finished a 1031 that came dangerously close to falling through as a result of lending. We got pre-approved for an amount, found two properties via direct mail, made offers that were within our pre-approval amount, had offers accepted, went through all inspections.....then two weeks out from closing he lets us know that we are NOT okay for the loan! He apparently wasn’t listening when I said I was only part-time in the National Guard. He’d entered full-time military pay to get the pre-approval! Thankfully, I was just leaving for a deployment where I would be getting full-time pay for the duration. He managed to squeak out the deal by pennies. I was livid. It was stressful.

It’s a fine line between someone who will think outside-the-box, and someone who’s full of it. Someone’s empty promises and inattention to details can just as easily cause a deal to fall through. It pays to have “your guy” that knows you and your finances, and always get pre-approval BUT things can and will (almost always) go wrong on the lending side.

I hope you enjoyed the chocolate....and I can’t wait to hear about your next deal! I know you will get back up tomorrow and try again.

@Matt Crusinberry

Not sure how you can say that it has no impact.

I am downrange right now, while trying to get a section 8 out of a property that I am 1031 exchanging. It’s absolutely more difficult than if I was at home. The time difference for calls, the spotty internet service, the POAs, the fact that you need trusted people, etc. It’s challenging AND my husband is not military and is a realtor! I have some serious work to do on my investment business before I deploy, and it would be amplified if I didn’t have my husband. It’s totally possible, but there are definitely added considerations. Don’t even get me started on PCSing considerations....

@Cole Black

Maybe. My husband is a realtor who really likes working with investors. Why? Because they know what they want, they don’t get so emotional, and they move quick.

But if you call yourself an investor, but act like a first time home buyer....that’s annoying. If you expect the realtor to work fast, jump on things, identify promising properties....you’d better be prepared to work just as fast.

He is also a “junior” realtor, but not a newbie. He works his *** off for people. He does much more than the very busy and well-known realtors in his office. That said, he will fire people that waste his time.

After watching my husband, and using many realtors before he got his license. Personally, I would look for one that has 2-3 years experience. They know what they are doing, but they are still hungry and eager to get your business.

I’m guessing he heard, “I am new. I am gonna ask a million questions. View a million properties. Only settle for the deal of the century in a high market. And suck HOURS from me.”

You have to learn and get experience and that’s fine. But communicate that you are aware of their time. Drive by stuff first. Do some research first. Don’t send a list of 10 properties you want to see...every.single.day.

@Ross Kerne

I was stationed in Pensacola two years ago and loved Orange Beach, Ft. Morgan, Gulf Shores. My husband and I looked at doing this, but are very weary of management companies. We’ve had terrible experiences with PMs with our long term rentals. Are you willing to share which companies you use? Also, we are from MT....not much for major weather disasters here, but it seems like its inevitable in that area. Have you been through a hurricane or tornado with your STRs? If so, how was the PM’s response?