All Forum Posts by: Bill Worsley

As always @annbellamy hits nail on head...

If a hard money allows you to move forward on a profitable investment after paying the lender, you should strongly consider it, understanding there is risk in the event of nonperformance. If you can keep 60 to 70% of the profit in the deal, vs. 100% of $0 profit because you were not able to do the deal, then hard money makes sense.

Look at hard money as the middle ground between bank financing and equity. Equity wants 50% when all is said and done (and will also share in the downside if that occurs). The bank will be cheaper, but much harder to get. So see hard money as a tool that allows you to leverage your limited capital and increase your ROI significantly.

And by all means, develop your own sources of private money over time.

Before, during, after and focus on people you know and trust (and whom you believe trust you). You will not be able to close deals if your funding is not lined up - if I am selling, I want to know you have capital and are ready to go. So I would start now. First money hardest to raise if you do not have track record. Be willing to give up more of the deal to build track record. If you have proven experience and a string of successes, and are comfortable sitting across a table from someone and asking them to invest, you will be able to raise capital.

Bryan A. hate to hear you have had a different experience with section 8. I don't disagree that it can be a pain to work with Section 8. It is bureaucratic, and the process is just involved and takes forever. However, I have had a really good experience in terms of working with people who are responsive, return my calls or emails, and are reasonable to deal with...

Victor - you ask a great question. First of all my suggestion to talk offline is so we can discuss things offline that would not be appropriate for this forum. Hard to help without more information.

At some point, you or the property manager entered into a contract with section 8. You authorized that manager to enter into this agreement as your agent (I am assuming you had a property management agreement in place authorizing your property manager to act on your behalf). That manager rented your house to a section 8 tenant, took the house through the inspection process, brought the house in compliance with Section 8 requirements, and entered into a contract with section 8.

I have found the section 8 department in Charlotte, NC to be reasonable but firm. If I have had issues with an inspection, I have picked up the phone and called them or have sent an email to my department contacts. It might take a day, but I will get a response. As a Landlord, if I do not uphold my side of the agreement with Section 8 as committed, rent stops. It is that simple. And what is required is that I provide a home that is safe and meets reasonable requirements for a rental home.

My guess is your property manager did not uphold their side of the agreement. There might have been an inspection requiring repairs and those repairs were not made in a timely fashion, resulting in a rent abatement. If rent abates then you have a short window (I think it is 30 days) to pass an inspection and if that inspection is not passed, the tenant is required to move. Section 8 in Charlotte in particular has recently been much stricter on these deadlines so I would not be surprised this is what has happened.

In terms of your recourse against the previous manager, good luck. I will tell you that good third party management companies are hard to find. They are out there for sure, and as the owner you will have to be hands on in the management of that relationship. There is information you need to know beyond the financial reporting. Know your rent roll, status of each rental, what type of tenant, etc.

Ask questions and expect answers. You don't have to be a pest - your manager just needs to know that they will be held accountable for the management of the property. Can not be hands off in management of your property manager. There must be accountability in that relationship, otherwise the manager will focus on matters that seem to be higher priority than your unit. Trust me... you have a LOT more to lose than that manager if a unit goes vacant.

Glad to continue discussion. Good luck in getting this matter resolved.

Victor I have dealt with the section 8 dept in Charlotte on many occasions as a landlord and through our private lending operations. Would be more than happy to help you navigate. I am personally a big fan of section 8. Nothing like that monthly rent check coming in like clockwork. Just stay in compliance.

Also would be willing to talk offline re your situation and specifics around operator and location of property. Might be able to offer some insight. Feel free to PM me or call if that would be a help.

Nothing could be finer than to live in Carolina! I am with you Jim...

Key words has revolutionized Bigger Pockets for me personally. Want to be actively engaged with the forums and this has made it possible. Keep the innovations coming!

Chris - it might be worth exploring whether a commercial lender with a local community bank in the market where there property is located would consider doing some form of an operating line of credit. Challenge here is the fact that you are personally located in California, not Georgia. Would be worth a few calls to explore this option. Good luck.

Donna - welcome to BP! Great meeting you at the TREIA event in Raleigh last week. Sounds like you are building a solid team - good luck and let me know if I can help you in any way.

I think you'll be hard-pressed to find someone to offer you better terms then what you are being offered by your bank.