All Forum Posts by: Benjamin Pekarek

 Look towards the center of the state, Polk, Hardee, Highlands, DeSoto, Glades, etc.

Suche im graftschaften Polk, Hardee, Highlands, DeSoto, und Glades.

-Ben

Alejandro,

Welcome to Bigger Pockets! As you're from our backyard, I'd love to hear more about your investments - we're just in the process of feeling out the Caribbean, specifically Belize, and St. Kitts. 

-Ben

Welcome to Bigger Pockets! Whatever aspect of real estate you're looking to learn, you've come to the right place! Good lcuk on your journey!!

-Ben

Same here on the Gulf coast! I can't count how many times I've seen wholesalers pull MLS properties using a POF from some transactional lender, jack the price 20k - 50k, and my clients get stuck paying the spread, or finding something else. I agree that there is a place for wholesaling (see cheap houses not worth a realtor's time - 3% of $10,000 doesn't even get me out of bed!) but for the mostpart, I say get your license and be happy with your commission like the rest of us...there's no need to be greedy!

Ashley,

It's very apparent that you need to speak with an attorney. 

What you are describing above is a broker based management company. There are only two ways to do this, either as a flat fee entity, or commission based and be fully licensed. Either way, (just my opinion) it's not worth the expenditure for only one property. Buildium has a $60 minimum, and Hiscox insurance is going to run at least $100 - $200 for commercial liability insurance and your E&O.

If you go the flat fee route, you're going to charge the property a flat fee every month whether your tenant pays their rent or not. Can a single property support your management company expenses, your property expenses, and still cash flow?

Here is a list of problems you'll run into:

1. Once you create a company to manage the property, you are setting yourself out to the public as a reputable management company. To protect yourself you need to carry insurance, and the sooner you get fully licensed, the better off you are! 

2. If you open the company before you have a broker's license, you will be unable to start the licensing process ever. It is illegal for a sales agent to own a real estate company, either you need to be a broker, or unlicensed.

3. See above on expenditures - can you afford to do this on one property, and even if you can, wouldn't it be better to put that money towards buying more property?

4. Once you create a company, you are no longer an owner-operator, you're a management company. To do something, get your systems set up (I HIGHLY recommend Buildium!), and start planning now to be a management company in the future. But for now, just be a mom and pop owner operator.

I understand your desire to have a management company - when I was working as an apartment manager for a crappy salary, I wanted to get out out of there so bad! I went and got my real estate license, and joined the first property management brokerage I found without doing any research. Long story short, I went with the wrong guy. I made $10,000 gross my first year, lost my house, lost my cars, lost my REPUTATION!, and lived in an RV in a relative's driveway for two years getting my feet back underneath me. Do it right the first time, don't do something stupid (insert the word ILLEGAL) just because you want something. It's better to wait and do it right then spend time and money undoing, to start again. Believe me!

-Ben

John,

I agree wholeheartedly! Siesta Key, and Sarasota/Manatee in general are ridiculously overpriced! Unless you were here in the crash, none of the cashflow numbers make sense, and buying for an appreciation play is a crapshoot - if you're going to gamble, roulette is a lot more fun.

-Ben

@John D., 

It 100% depends on the economy. For season (November/December - April/May, again, depends on the economy/year), our occupancy hovers around 90-100%. In the off season (April/May - October/November), we sit around 50-60% if you price your unit competitively. 

It's going to also depend on if you're right on the beach or not. I've got one of the most run down, god awful 2/1s, but it's right across the street from Siesta Key beach (rated #1 beach in the US for 2015 by TripAdvisor) and it gets $750.00/week/season, and I can't keep it vacant. Off season is usually a month here, a month there for about the same price as the two week periods, but the dues are affordable, and the season more than makes up for it. If my clients are happy, then I'm happy. 

To put this specific complex into perspective, there is only one unit for sale - it's a 2/2 for $399,000, turnkey with leases in place for next season. 2015 income was $23,000.00 (stated by listing agent, I have not reviewed!). Taxes of $3,900/yr., insurance obviously depends on your personal investment strategy, & dues run $1,350/qt. but include cable, internet, water/sewer, & flood ins. 

-Ben  

Wayne,

You are correct. Unless you are the owner occupant, you are not allowed to do ANYTHING short of writing the contractor's checks, and cleaning up after them. 

Jeffrey Baughan,

The Siesta Key market is a 20% management fee, 500k-900k price range, and monthly rentals of $5-$8k mo. for the average rental. Some are higher, and some are less.

-Ben

Eugene,

Just from our side, (you would have gotten this if you chose to contact us) we do not work with ANYONE until we've met at least once. Additionally, we are selective on who we work with, and what we do. We're licensed, and not about to lose our livelihood over any one deal. If you'd like to visit us while you're here in the states, we'd be happy to speak with you - the Gulf coast is alive and well for flips.

-Ben