All Forum Posts by: Account Closed

Very true. I've compared notes with other managers. I going to speculate that time invested from start to finish per tenant per property is 20+/- hours. Some regions and properties a little more or a little less.

That includes everything completely turn-key.

From my experience, you're correct.

It requires a significant investment of time and energy. At least, to do it correctly.

Sure, you'll find a few shops that quickly accumulate and manage a ton of properties. You'll also read about those same properties getting sued, going out of business, having terrible reputation and giving the property management industry a poor rating.

Just surf these boards.

Plenty of terrible property managers because they're completely profit driven. To have higher profits you must have fewer employees and more properties. The result is a disaster.

In my opinion the only way to do it correctly is slowly.

Don't let the fancy words impress you just yet- ie reit, pension funds, etc.

Garbage comes in various shapes, and smells so examine the offering carefully. Find the offering circular, prospectus or whatever pitch paper they're using.

You want to rip out the first dozen pages of glossy pics with smiling executives. Ignore the sappy language about their crack team of highly skilled army of MBAs, blah, blah.

Read it. Sit down with a calculator and do some basic math.

You're looking for common sense here. Does it make sense? Where are they putting the money? Then research via web, phone calls, and any other means.

I can tell you the very first question right off the bat. How did they arrive at that buy in number? In other words, why is it set at $100,00 or whatever. I'm asking about value here. Where is it or did they just pick a number? Who assigned the price?

More questions like is there a return of capital the first few years? How is it structured? How is it taxed? K1 or what? Is it an open or closed end fund?

Sounds like a classic tenants in common(tic) arrangement where there is a long period of ill-liquidity.

Do your homework.

Hey I live in your town too!

Welcome.

Best post here.

Agreed. Institutional money is not equipped for a long term asset hold. Never has and never will. Historically, SFR has never been their business model. If banks don't like holding inventory, funds won't either.

The beauty of real estate is identifying opportunity with the changing tide. There will always be methods to create money if you're creative in every conceivable market.

Go ask the 30 year veterans of this business.

So what is their process? Are they hiring GCs to rehab and flip, or just buying to hold. What is their strategy?

If fund companies are getting into the game, I'm surprised that depository banks are not doing the same.

We receive calls every two weeks or so but nothing has materialized. If institutions start accumulating SFRs I wonder what the consequence will be?

What goes up must come down will eventually apply. It's probably just a phase.

I suppose I'm considered a former financial salesman.

Been around the block with the retail firms. Big wire-houses, regional shops and one bank based. I really enjoyed and hated the business. Talking golf to Ivy types makes my eyes glaze over these day. Professionally, my interest was specifically bond- tax free munis, fannie, freddie and higher yielding corp. stuff- nobody but institutions do that kind of biz these days. Previous to that I was part of the rollover craze in the late 1990s and worked for the self-proclaimed king of retirement and estate planning. This was back in the day when brokers were cold call cowboys and singing the praises of managed money billed the tune of 3% per year. The B-share mess, reverse churning and fee based account were just emerging.

So how did it help?

Learning to operate under significant pressure, crunching numbers, how to effectively manage time and dealing with very angry people. Operating in a hostile environment and maintaining professionalism despite massive difficulty didn't phase me. Seeing fellow advisors receive brass plaques and special award dinners for cheating clients did.

So I got out.

How has it played a role today you ask?

I worked in a small group and each person had a very specific assigned role. Every member of the group, or I suppose they call them teams now, was accountable for his specialty. We mastered the team approach and consequently taught me the cog-in-a-wheel approach. This can be applied to any discipline be in real estate sales, property management, whatever.

To answer your question- financial sales prepared me to effectively consult individuals regarding major financial decisions and helping them make those decisions. I speak the language of CPAs and tax lawyers thanks to my experience. I simply went from intangible assets(stocks, bonds, mutual funds) to tangible assets(real estate).

Eviction aka unlawful detainer is a process. A landlord doesn't just evict. There is a proceeding with the landlord as the plaintiff and you as the defendant. A judge will use evidence to make a ruling, in our state.

And your landlord had better educate himself on California statues regarding landlord harassment. That is, if he is calling you with litigious threats.

******The information above is for informational purposes only and not for the purpose of providing legal advice******

*It appears you are seeking legal advice which I am not providing here*

Verify the facts here so two questions come to mind-

1. Whose name is in the deed book for the property? Bank or the self-proclaimed owner?
2. Do you have a bona fide lease agreement with the former owner? You could be considered a bona fide tenant.

See Federal PROTAFA legislation from (2009 Sec.702)

******The information above is for informational purposes only and not for the purpose of providing legal advice******