All Forum Posts by: Ben Stout

I disagree when it comes to using Craigslist. Maybe it's because my area is smaller, but I've had great luck with CL for the past 8 years.

If I'm having a super hard time renting a property, I'll run a "move-in special." Usually the deposit is lowered or I cut the rent price. I used to be against lowering the deposits and insisted on a full month's rent, but these days I've found that halving a deposit or losing a half month's rent due to vacancy is six of one have dozen to the other. I also prefer to lower the deposit because it's easier to recoup than reduced rent when you have a tenant who stays past the initial contract.

Yesterday I called a few property managers I found on google to see what's on offer in the area where I invest in TN.

#1: Answered the phone "Hello." I asked him if I'd gotten the right number and his response was "Yep."

#2: Didn't actually know what his rates were. He'd have to check with his boss and call me back.

#3: About half way into our conversation he said someone had just walked into the office and he'd have to call me back. (Apparently walk-ins get priority over someone trying to find a manager for 4 primo, tenanted properties in good neighborhoods.)

#4: 10% and 1st month's rent. There is no flexibility on pricing.

#5: I had to call 4 times to get someone to answer and was then told 10% and 1st month's rent.

I just switched all my policies to Shelter and am saving a truckload of cash. I've gotten quotes from 7 companies and theirs are far and away the best.

Daniel,

My accountant ended up recommending I just set up an LLC with him and he would make sure it qualified for FONCE. If you're in TN and need a good accountant, shoot me a message. Thanks.

Joel Owens I couldn't agree more. I've never been one who wants to do anything by half. I'd rather go 110% of not do it at all. I have no time for Debbie Downer types and the market we're in right now is a really exciting one.

I think maybe this would be a great topic for a new thread... how to find an agent who you can see eye to eye with. Maybe I just need to interview every single one in my neighborhood. As I've found out yet again, some can talk the talk, but that's where their (lip) service ends...

The inspection was canceled because he still didn't have the code. Finally got it last night and found a lot of drywall punch holes and a sink ripped off the wall in the bathroom. I guess that's why they didn't want the water turned on.

Overall, no big issues from initial pictures and impression. Having a regular inspection and a close friend look at the property tomorrow. It looks like it may work out for the best. I'm definitely ditching the agent though.

Thanks, everybody.
Ben

Update:

After a "strongly worded letter" I now have the agent trying to rectify the situation. He has contacted the listing agent, sent a volley of emails, and is bringing up the questions he should have been bringing up all along.

He was out at the house in the early morning on new year's day taking pictures of the OUTSIDE and still doesn't have the code. This is still pretty unreal. He now says he DID put 10 days to inspect in the PA... he must have been confused. We still have no access to the property. He's trying to get an extension and is asking me (and my mother!) if I'm mad at him? I don't need a friend; I need a professional. This is just business to me. How awkward.

I hope this works out. Lesson learned.

There's one thing I'll just put out there. We have a lot of professionals on this board and people who are serious about what they do. I really respect that. I respect anyone who is passionate about something. It shows a desire to do more than what the average person calls "good enough."

That said, I'm a professional in my field. I make a good living because I go above and beyond and have developed a great deal of knowledge, experience, and relationships. People know I work hard and am reliable. Those of you earning a great living in real estate know this to be true. Getting a license is the entry-level step. There are people who earn millions a year and there are those who close a house a month and make excuses.

I believe in giving everyone the benefit of the doubt and a fair shot. Sometimes people don't give you the fair shot you give them, and that's when it's necessary to cut them lose ... or keep them around and suffer the consequences. I will not be using this agent again.

Finding agents that actually respond to emails, answer phonecalls, and have an idea what cash flow is seem to be a rarity. Out of 20 agents I contact, I get a few calls or emails back, and maybe 1 will correspond long enough to do a deal. I don't understand why this is, but I'm making it my mission for 2013 to find someone who fits the bill.

Joel Owens I agree with you. I had the intention to reward this agent if he brought me great deals and I definitely would have. As it stands now, he has worked two property deals for me. One he brought me and one I found myself. Between both deals, one HUD and one BoA foreclosure, he's made at least $2000. To earn that, he spent maybe a total of 5 hours making phonecalls, emailing me, and doing paperwork. He didn't even show to the closings. I may not be factoring in other elements of the equation, but I see him as grossly overpaid for the service he's provided.

That is the truth! Hopefully I'm getting this mess out of the way at the beginning of the year so I don't have to deal with similar circumstances later. The more deals you do the more likely you are to run into snags--comes with the territory for sure.

I've been trying to think of ways I could have avoided this situation and I honestly can't. I had contingencies in place, accepted offer, was in constant communication with my realtor, etc. I guess it just goes to show you can't prepare for everything. This is a new one to me.

I liked what was said about incompetence costing major money. This is so true. This year I'm going to strive to find the most competent people I can. This community is a wonderful asset I'm very thankful for.