All Forum Posts by: Bailey A.

Hey guys,

I want to make sure I'm not overreacting as a new investor. Its been a little over a month since I've handed over my property to a management company to lease out and take care of. I originally posted it at $1,400 (too high) and didn't have any showings so we decided to take it down to $1,300.  After lowering it I could see that contacts almost tripled on Zillow which was encouraging.  However, I only had two showings and nobody was interested.  

BUT something just wasn't sitting right with me.  Contacts at this point were between 65-70. When I asked the manager about the number of contacts he responded that most were dead ends and that Zillow "spits out fake data".  I did originally list it myself and had 5 leads that went nowhere so the dead-end thing I can understand.  But that was 5 people. Not almost 70. So! I had my friend contact them through Zillow and its been a week since she's heard anything back.  On top of that, she contacted them when it was listed at $1,300. Now its listed at $1,250.  So it kind of makes me wonder what other interested people could've been missed at that price.

I haven't mentioned anything to them yet.  They are successful and their references had nothing but positive things to say. I also have never done this before and don't want to put my foot in my mouth. Advice?

@Dick Rosen

Thanks Dick! I did finally find a company that works like your saying, 12 months with 30 notice to terminate and no fees. Yah, when I read the first contract and saw that I would have to still pay them if terminated, my heart kind of dropped. It’s a bit wild!

@Bjorn Ahlblad

Thanks, thats super helpful! I remember seeing something about selling the home in the doc I reviewed today. I’ll check it out again and look for that accreditation.

@Christine Kankowski

Thanks Christine! I’ll keep this in mind. I got my first contract to look over today and should get more throughout the week for comparison. It’s definitely uncharted territory for me!

Hi guys,

I’ve just about finished my property and have been looking around for management companies to take over and needed some qualified advice. Is it typical for the contract between a homeowner and the company to be one-year with the added clause that if I terminate the contract early because it doesn’t work out that I owe them their dues they would’ve received for the remaining time of the lease?

I remember hearing on a podcast to be weary of yearly contracts but wanted to get your advice. In particular, I’m looking for advice from property managers themselves. Thanks a bunch!

P.S. if there are things specifically to AVOID in a contract please let me know. I’m brand new to this and wanted to make the best decision possible.

I believe it is, its actually offered by Freddie Mac! You can do the 3% down with this one, its very similar to the FHA. They also offer the HomeStyle loan too (similar to the FHA 203k rehab loan but you can do more than 35k in repairs).

Have you considered the HomePossible loan? You can eventually cancel the PMI with this loan versus the FHA. I originally thought FHA too until someone told me about it. Its worth checking out and could put more money in your pocket!

Hi Jonah,

I'm just starting out too and its been suggested to me by a couple of investors to also include the Gross Rent Multiplier when analyzing a property. Its worth a Google search!

Hi Michael,

I would check out the HomeReady loan offered by Fannie Mae vs. FHA. You can cancel the PMI after you reach 20% equity in the house so that might save you some money in the long run. Just a thought!

Hey Caleb, I'm new to this as well but thought I would share some info you might find useful if your looking for areas to invest in DFW.

In Fort Worth there is an area called Scenic Bluff (sometimes referred to as Four Points or River East) that's being revitalized. Long ago the city tried to implement a program for improvement but it was halted due to the crash. Lately though the improvements have started to happen.  An investing firm from Dallas has come in and re-done Race Street along with building two apartment complexes and some REALLY NICE town homes. There is also a new Top Golf and some things they are doing to the Riverside Park. 

There are still areas with run-downish houses that could be value add opportunities if your willing to put in the work.  I think the price-to-rent ratio is pretty good too.

I've had my eye on this place for about 6+ months hoping to start my journey here but now I'm thinking about transitioning to storage units in the area I live.  I would have to manage at a distance if I rented in Fort Worth so I'm just weighing my options.

Well, I hope this info was useful for you.  I know it might seem weird that I'm sharing this info because you could be my competition in that area one day but hey, someone should reap the benefits! Good luck to you and your wife on your real estate journey.