All Forum Posts by: Burke B.

Hello fellow investors!

I wasn't sure of the exact best place to post this but thought I would try here.

I am considering a 1031 Exchange into a fractional ownership investment set-up through a Delaware Statutory Trust (DST) and am looking for any pros/cons or experiences in general from others who have invested in a DST. Also, if you have a DST "sponsor" or syndicator that you have experience with and want to pass a referral my way, that would be welcome as well. If I proceed down this road, I need a sponsor who accepts non-accredited investors. I have found one but would like to have and consider other options. This option appeals to me because of the more passive nature of the investment.

Thanks!

Sorry for not responding sooner!  For some reason, I didn't get a notice of your reply.  

Industry is web/internet.  

Thanks!

All,

This is not really a real estate related question but I thought someone on here might have a suggestion anyway.  I am looking at a business investment with a company based in Illinois.  Can anyone recommend an attorney familiar with contract law in that area who could review a 8 page contract for me at a reasonable price?  Anyone have any idea what something like this might cost?

Thanks!

Burke

Thanks Dinakar!

All,

If this has already been answered, I apologize. I read through some of the search results and didn't find it.

For a husband and wife applicant "team" does SmartMove charge each of them the $25/$30 fee to conduct the screening on both of them? I could not find this clarified on their website.

Thanks!

Not sure if this is the best forum to post this question or not but here goes.

In the "dream big" category, I am considering whether I can/should consider and/or pursue a property in a tourist destination. The property is vacation rental listed at $3.2M with a 6% cap rate. Info states that it brings in over $29K/month. There are 3 rental units on the property - a 5 bed, a 3 bed and a 1 bed.

My limited experience to date is with residential SFHs. I have the opportunity for a work related relocation to this tourist destination. I am unsure how to begin my due diligence on this property without looking like a complete novice. I would like to see the financial details so that I can get a better feel for the reality of this before I spend a lot of energy digging deeper. Is it common to just come right and ask for income/expense information in the first contact on a deal like this or will that immediately flag me as an uneducated newbie in this aspect of real estate investments? What is the best way to get this dialogue started realizing that making this happen is likely an extreme long shot?

Thanks!

Patrick and Tom,

Thanks for taking the time to respond! Much appreciated!

Good Friday All!

I have a land lording question. I turned a primary residence in another state into a rental last summer. Since out of state and new to land lording, I turned property management over to a PM. Our first tenant from last summer just vacated at the end of their lease. PM said that the tenant left the property in exceptional condition. However, there were a few items 1) there was a light stain in the master that neither my wife and I remember or that the PM caught upon assuming responsibility when we left. We believe it to be new but admittedly could have all missed it. Carpet cleaner got it out but at a $75 cost. 2) there was some small "dent" damage to a wall in a spare bedroom that we are certain was not there before. Repair estimate is $100 plus paint. Easily fixable if I weren't 8 hours away but I am.

Would most of you experienced landlords charge this stuff back to the tenant or would you give them some slack and cover as a part of doing business because of leaving the rest of the house in such exceptional condition otherwise?

Thanks!

Burke

I have a question for any members that have a good amount of experience with property managers. I apologize for the length of the post.

I currently own a property in another state and have a property manager who manages that property. For managing the property, I pay a flat 10% of gross rent per month. The PM doesn't charge me any additional fees to locate and screen tenants or when they arrange for repair services. So far, I am fairly happy with their service and this fee structure seems to be reasonable and somewhat what I expected from the little bit of reading I had done online prior to enlisting their services.

I am considering purchasing a property in another location that is about 5 hours from me. It is a small town so property management services are very limited. My dad lives in this town and is serving as my "on the ground" person to do research on the properties and PM services. He is not comfortable serving as an actual PM for me and I don't want to put him in that position if it isn't something he feels comfortable doing or is interested in learning.

The one property manager that he has located that has been responsive to our inquiries sent us the following email to describe his fee structure:
"*I would help as requested to find the properties. If the property is listed, as a realtor, I would be compensated for this by the seller. If the property is unlisted, only the following hourly rate would apply.
*I would help secure pre-leasing repairs as needed. I would too handle all in-lease complaints and coordinate repairs. For this, $30 per hour.
*I would take pictures, present a write-up on/outline of the property on craigslist after having it approved by you. I would then meet/interview potential tenants and collect the deposit and present and deliver a lease agreement. For this, I would keep 1/2 of the security deposit - the total deposit being the equivalent of one month's lease. (This is consistent with what I do for the properties I currently manage.)
*Thereafter, for being the first point of contact, I would retain 10% of the lease money per month. Should a tenant fall behind, I would work with both parties to secure remedy. "

As you can see, this PM's fee structure is significantly different from that of what I am used to with my only other PM relationship and different from what I was expecting based on what little reading I have done on the internet concerning this topic. Our attempts to get a fee quote from other PM companies for comparison purposes has turned up nothing.

So...I am turning to the vast knowledge here for thoughts on this fee structure from those of you who have a bit more experience in this than me. I look forward to hearing your thoughts.

Thanks!

Burke