All Forum Posts by: Brandon Ingegneri

@Steven DAmbra

With a reputable consistent lender your going to initially pay until you build a relationship and prove that you consistently hold up your end of the deal. As their risk when investing in you decreases, so does the expense that you incur.

@Akeim Fin

This is an interesting idea. Honestly, it’s something I never considered before. Curious to see how it works out. I used to do mtm leases but got away from them. I have had good luck with 1 year agreements which has allowed me to avoid many winter turnovers. With the few we have had turn in the winter, we do seem to get a good applicant pool to choose from but efficiently working turnovers in Nov/Dec isn’t ideal for our model. There are always year end projects and trying to fit in an unexpected turn into the holiday season is something we try to avoid. Taking the time to thoroughly screen the 1 year tenants has worked well and has motivated the unseasonal turns. If we have to do it we will, but why not just do it in the spring when it’s much easier and we plan for them accordingly?

@Kingsley Osias

That seems very reasonable

@Scott Benson

Both South County and Washington County are on the rise. The footprint of RI is so condensed, and these areas are where most of the new construction is happening because of available land. With regard to the shoreline, it’s more about the few areas with close proximity to the water that I would be less interested in. The majority of the coastline properties I am seeing now are old tear downs and complete rebuilds with the exception of those few, historically depressed areas.

@Jonathan S.

I’ve had it happen one time. At this point you have negotiated favorable terms that allowed them to sell. Now it is time for them to accept rental terms that are favorable to you. It is your property now. In my circumstance, it was a 2 month period after my purchase where they stayed in order to transition to a new residence. An extended agreement would be case by case for me. They would have to be someone I would accept as a tenant otherwise.

@Bernard Sanga

I typically require everyone pay online. I do have some inherited tenants who mail checks like clockwork. One tenant is developmentally disabled you an extent and has paid cash directly for the last 20 years. For her, I make the exception and pick it up every month. I honestly think that she would be overwhelmed trying to break that routine. However, I do typically make a hard push to transition inherited tenants to online payments when a-typical circumstances are not a factor.

@Ray Reed

I recently purchased an 8 unit property where all of the units were well below market rent. Luckily, 2 units were vacant, and I was able to do some value add to bring those current with the market which gave me ample cash flow after 2 months. I do have several tenants that are elderly, have lived in this building literally as long as I have been alive, but pay below market rent. I was very honest with them and had a conversation with them. I asked what they could comfortably afford, and we came to an agreement. My goal is not to squeeze every penny out of a property if it means alienating an elderly 30+ year tenant. Other units are getting necessary increases, theirs will get the necessary but not ideal increases until the unit inevitably becomes available.

If I was in a situation where I was negative instead of neutral or modestly positive, it would be a more difficult decision. Having the number of units that I do, I would allow a building to run a modest, temporary deficit given my portfolio could support that one property in order not to relocate a long term, reliable tenant in the final act of their lives.

My advice, look at your own situation and work every angle of the problem. More often than not, a reasonable solution will present itself. With my own example, I cash flow on that property, but I don’t get nearly the returns that I could get were I to maximize increases. I’d rather have gradual but consistent increases, reduced turnover costs, etc. In the end, my view is that these people are essentially paying for my property regardless.

@Neftali Reyes shoot me an email. Lets discuss 

If you do go into business with several friends, at the very least meet with an attorney and create an operating agreement.  Do this early on, because if things should go sideways, if one partner doesn't hold up their end of the deal, or simply loses interest, you want to to have a legal document that everyone agreed on when everyone was on the same page before any number of circumstances changed. 

If you are still in need, please feel free to reach out and we can take a look at the project for you.