All Forum Posts by: Brian Ploszay

The agent cannot reject presenting your offer, if they still want to represent you.   I get agents don't want to mess with low-ball type of clients.  Then they have to exit the representation of that client.

Don't give up.

Make the offer directly to the seller's agent.  Or seller.   You can agree to pay them a commission anyway if such a claim comes up.  The commission rate is low, so I'd pay them anyway.

Are there not enough local deals in Houston to invest in?

#2  Avoid high tax areas.   I passed on a very good deal in 2020, just because of the high tax rates.  My thoughts are very detailed on this, but in the end, you are right.

More thoughts:  Some of my properties that have less cash flow in higher appreciating areas.  I've made more money in these break even deals over stellar cash flow properties.  But it didn't happen right away.  

You made some comments about Turn Key Properties.  The problem with many of these offerings is that the real estate lies in lower middle class areas, that often have poor long term potential.  Avoid any investments in rust-belt areas.  

I generally think that owning real estate in multiple out of state areas creates both risk and operational difficulties.  I am attempting to purchase my first out of state property, but I have expertise and boots on the ground to help me.  

Paint encapsulates smoke smell.  If there is carpet, a carpet cleaning will usually do the trick.  If you like the property, proceed.

I am assuming this is cigarette smell.  If there was a fire of sorts somewhere, it should be investigated.

I've had tenants die.  I've had a tenant incarcerated.  I've had a tenant just leave without telling me.  In some cases, the property was abandoned.  All of the above rarely happens by the way.

On a tenant application, make sure you have "references" of a relative.  In all cases, I immediately took control to secure the property.  The contents of the houses were removed - ranging from contacting a relative to our removal.  I consulted my attorney (eviction) to tell me the legal process.  I did not have to go through a legal process to gain possession with careful documentation showing several signs of abandonment.  

I see you are from Chicago.  First, I know many experienced, strong, professional and successful local women in the business.  I never thought landlording was a male oriented business.  Certainly roofing is.

From reading your posts, you may have been taken by a contractor.  This can happen to any of us.  To succeed we have to find trusted, competent and fairly priced contractors.  

Feel free to PM me, and I"ll give you a couple names if you're getting stuck.  If the buildings are becoming a money-pit and you detest the work, it would be better to exit the business.  But I think you can make it.

I remember when I bought such a property.  On paper it looked great.  In reality, once you have to evict people, it was a loser.  I am a better landlord now.  But such an investment is more risky, mostly because of the tenant base.   

I would not recommend that property for a beginner.  (I don't know your experience level).  

For single family houses, I put in the lease that the tenant is responsible for snow removal and for cutting the grass.  I will leave a shovel.  Sometimes.

==the bank can call the loan due==   That is fairly rare.  Sometimes, a bank will not renew the loan if they think the borrower or the asset is diminished.

During this pandemic, lots of commercial properties are not performing well.  I expect to see this happen for some recourse loans.

Well, lots of larger landlords do just the opposite.  They create a strong internal organization to manage the properties;  It is rare to find someone who cares about your properties as much as you do.

Yet there is some merit in your advice.  For someone who has a small holding, like an 8 unit apartment building, managing will be a major distraction.  I found a group that partially manages my properties.  They collect rent, take phone calls.  I control the repairs and definitely the leasing.

The main issue is finding a property manager who will really pay attention to your property.  I never did.  Maybe I never tried hard enough.  I figure that my partial involvement in management creates more success in the investement(s).