All Forum Posts by: Angela Harding

Please remember the phrase those who can’t do teach. You’re better to find good investing partners in this day and age then pay large fees to be in groups. There’s so many networking groups as well as so many weekend seminars where you can work and find people like-minded. But always do your due diligence on who you’re working with because even in the small groups there are people who may not be who they seem they are.

Thanks Dave. 

It is important to people reading that just because you see property management in the name does not mean it is a legit property management company. Toledo has lots of problems with management companies here not being properly licensed, using "rent a broker's," and helping people from out of state invest and the end up in areas that are not profitable and are high maintenance and it only makes the "unqualified" managers money and not the investors. We are always happy to see new faces in Toledo as we need good quality landlords in this great city. And what that means is landlords that want to provide quality and safe housing. We don't need anymore slumlords and unlicensed property management companies. I am tired of cleaning up those messes. But if you are someone that got involved with the wrong company and your portfolio is not performing, you know how to find me. 

Angela Harding 

TPM Realty 

I am a broker in Michigan and Ohio. I am also a very seasoned investor in both states. 

If you are looking to invest in Michigan I would recommend Lansing (area) before Detroit. But I liquidated all of my assets as well as my investors assets a long time ago in Michigan and moved us all to investing in Toledo area. I am not an expert on Cleveland or Columbus but I will strongly recommend you visit the cities you may be interested in and tour the local market with a Broker/Agent that specializes in rentals. Cincinnati has an amazing network through Venna Jones Cox real estate group so that would be a good place to check out also. For my investors and myself, we stay in Toledo because there are so many opportunities here. But really do your research on building your team. We have a lot of investors leaving the Cleveland area and coming to Toledo because of code compliance and difficulty with management companies. It is a big city. We have some of the same issues with management here but there are a few good ones if you do your proper research. My best advise is to make sure your team has an acquisition specialist that knows the areas and which ones produce the best cash flow. Just because they have a real estate license does not mean they know anything about purchasing good investments. Hit me up if you want to take a look in the Toledo area! We are always hoping to have good investors come to Toledo. But where ever you are going to invest. Take the money and buy a plane ticket and go look at where your money is going. Be involved with your management company and realtor until you completely feel comfortable. There is a lot of big talk in this business. 

I’m always leery of the “new” cookie cutter programs for investors. I would first want to tour any houses already built for quality as i’ve seen a ton of “affordable homes” built for rentals and the quality is substandard. Windows fall right out after a few years. The experience of the management would also be a concern. Some of these programs in theory, look good. Then lack of experience causes the program to fail. My advice with investing is to be hands on when choosing your homes. Don’t get involved in cookie cutter programs unless they have at least a 5 year success and/or experience. If you want a house built to rent, then pick a builder and build a house. Make sure you have a property management company screened and ready to go before you choose your area if you are not managing yourself. In 2008 there were builders that did this program in florida and everyone jumped right in. Atlanta Georgia had a program that was later shut down by the SEC. There was a turn key program in Tennessee and it took years before those houses were actually worth what people paid for them. And now Guardian and Hughes Capital had a turn key program and the only people that made money was those who were on the ground level putting together the program. Thats my two cents. In the Toledo ohio area, it is still better to buy a home and update it and it rent it. Homes average about $120,000 all in and rent for about 1395.00 if you are buying from the regular market sources. Numbers are better if you are using cash and purchasing auctions. You can do cheaper but then it becomes a higher turn over area. In conclusion, stay involved in anything you invest in. Make sure you get a lot of information. It is buyer beware. I see more people actually lose money in these programs than make money. The concept of “when everyone is running in one direction, go the opposite way.” And most importantly, if someone is selling you a turn key program, how many of those homes do they own? If it makes money, then they should have their own money in also!

Lost of good replies here. I just want to add about a comment regarding don't have a lawyer or PM look at the documents, look at them yourself. I strongly suggest that you do learn your local laws and process before you even buy a property. Have questions for an attorney or PM. I know my attorney can tell me one thing on the legal aspects of the lease, but he can't tell me the day to day activies in my lease that makes my job easier. He also can't look at tenant applications and tell me from experience what tenant is going to do well. You need to find a happy medium and do some research. In Toledo we can search exactly what a tenant is required to do and what leases need to include. The eviction process is laid out also but someone who has done multiple evictions can give you more of a timeframe and costs. Pick up the phone and call people locally with experience and join a good local real estate group. 

I do not know Philly but I do turn around apartment complexes that are not performing and the number one issue I see is that the screening is poorly done. People that pay bills on time will always pay bills on time and screening finds those people. If they do not have 2 years of good rental history payment then they do not go in my property. But i see management companies start making exceptions when units are less desirable or not updated. I hate to see anyone dump units and lose money. I would take a look at why these units are not attracting the clients you want. How the management company is marketing. And I don't know what the units look like and not making any assumptions but is there something odd about the units that could be changed or some upgrades that would attract better tenants. Just a few words for thought. 

Just want to ad about the conversation regarding the costs of management. A bad management company isn't worth any amount of money. A good management company is going to make you more money than if you management by yourself. They will earn their 10% and allow you to move forward with other investments. Time Value Money. I don't care how many properties anyone brings to me, I do not discount management fees. I also don't do all the extra add ons other companies do either. Those are what you need to negotiate. What does the % include. All your numbers come into play when you purchase a property. Have a plan when you start investing. Keep management numbers in play and know it is about how good the company is. You get what you pay for!

Any houses that we carry conventional financing on we don't play with changing deed to LLC's. You can put it in a living will trust as that does not violate a due on sale clause. There may be other trusts that can hold the deed also but it is very state dependent. That is just a little FYI cause trusts are just a blizzard of red tape for law suits. In my opinion, just lease this house and make sure your lease is solid with your state requirements. Screen your tenant well. Most importantly, change your insurance to non-owner occupied and carry a larger liability on it. We carry one million liability on all our rentals. I also carry 3 million in liability on my management company and a one million personal umbrella policy. In 20 years I've been sued one time and my insurance stepped in and handled the law suits. People will sue even if they get drunk and fall down a couple steps. You insurance will step in and protect you cause they don't want to pay a big amount either. They have to prove it was your fault. In my case a handrail failed that we were in the process of fixing. It was a holiday and apparently a little wine was involved. In the end they settled with her and she got $10,000. After attorneys and medical bills, she took home about $2500. Never even went to trial, just mediation. It wasn't my fault but that is the way the system works. I paid a $500 deductible. And that is just what happens. Insurance will settle quickly to save money as trials are crazy expensive. It is my opinion that insurance is more important than the entity being on title.

nope, no one will give you all that information without a written offer. And it is standard to be able to review leases and ledgers in your due diligence but few do. So many people just throw a tenant in getting ready to lease it at a high amount, and knowing they won't be dealing with the tenant do little background checking. When I purchase a property with a tenant in it, i like to see its been a long term tenant. Even if the rent is a little below market. So just don't forget to ask for the background check and if one was not done then get the name and birthdate of the tenant and look it up in public records yourself. 

Let me know how it goes!

When buying correctly , real estate is always a good investment. Rentals are for long term wealth. Invest with that in mind always. But don’t just buy to buy. Be smart. I never make less than 15% return on rentals. I’m pounding the pavement harder this year and still finding my clients and myself great properties. I’m leaning more towards sheriff sales and properties that need major work but it’s worth it as I’m setting a record year for my business and personal investments. A big score for us is mismanaged properties and investors that lose money from it.