All Forum Posts by: Brandon Lawrence

@Rebecca Nieves I agree with @William Sing that having a umbrella policy and a tenant acceptance policy is a good idea. In addition, in our lease agreements we require tenants to
obtain renters insurance for theirs and our protection. 

1. Umbrella Insurance: An umbrella insurance policy provides an extra layer of liability protection beyond the limits of your landlord insurance policy. It can help safeguard your personal assets in the event of a lawsuit or liability claim that exceeds the coverage limits of your primary insurance policies.
2. Tenant Acceptance Policy: Implementing a thorough tenant acceptance policy is crucial for selecting reliable tenants who are likely to pay rent on time, maintain the property, and adhere to lease terms. This policy should outline your criteria for tenant screening, including credit checks, rental history, employment verification, and background checks.
3. Renters Insurance: Renters insurance provides financial protection for tenants' personal belongings and liability coverage in the event of accidents or damage within the rental unit. Encouraging tenants to carry renters insurance not only helps safeguard their belongings but also reduces the likelihood of disputes or claims against the landlord's insurance policy.

@Stephen Bruce You're welcome. Yes, we are a local company based out of Greenville. We cover most of the Upstate of South Carolina, from Spartanburg down to Anderson.  

@Stephen Bruce In South Carolina, where month-to-month tenancies default to a 30-day notice period with no formal contract, it's especially important to exercise due diligence. I agree with Keven that obtaining signed estoppel forms from each tenant is essential. These forms provide a written confirmation of the terms of the oral rental agreement and help prevent misunderstandings or disputes down the line.

By having tenants sign estoppel forms, you can verify important details such as rental amounts, deposit amounts, and any additional agreements or responsibilities. Without these forms, there's a risk that tenants may produce conflicting documents or make claims that could complicate the transition of property ownership.

We are a property management company based in the Upstate of South Carolina. It continues to surprise me how many landlords approach us to manage their properties without having proper leases in place with their tenants during the transition.

 Awesome, that's some great news! I know you have been working hard on the showings so it must be a relief. 

@Shane Bishop

 You're welcome, let me know if we can help in any way once you decide on the rental.  

Hi @Erik Dofelmier,

If you are effectively communicating the property's requirements upfront before scheduling a showing and reaffirming those requirements during the showing, it appears that you are taking appropriate steps. However, it may be worthwhile to conduct a thorough rental analysis to ensure that the unit is competitively priced. Requiring an application before showing the property may deter potential tenants, particularly given the prevalence of scams in today's rental market. We just performed an open showing to 6 prospects, 3 asked for an application on Saturday and 0 have yet to applied as of right now. As @Erik Dofelmier mentioned, open showings can be an efficient approach to maximize your time and resources. It also can put a little pressure on prospects if done right to help motivate them to get an application done quickly. We are already queuing up a prospect list for another showing at this property in a few days. This is just one of the many reason property managers are great to have for your investments, I'm one so a little bias on this last part.  

Feel free to reach out if you have more specific questions.

Best regards,

Brandon

Hi Shane,

When considering the purchase of a HUD (U.S. Department of Housing and Urban Development) property, it's essential to weigh both the advantages and drawbacks. Here's a breakdown to help you make an informed decision:

Pros:

1. Affordability: HUD homes are often priced below market value, making them attractive to budget-conscious buyers. This affordability can be especially beneficial for first-time homebuyers or those looking for investment opportunities.
2. Various Financing Options: HUD offers a variety of financing options, including FHA loans, making it easier for buyers to secure financing for the purchase of a HUD property. These loans often have more lenient qualification requirements compared to traditional mortgages.
3. Opportunity for Renovation: Many HUD properties are sold in "as-is" condition, providing buyers with the opportunity to renovate and customize the property to their preferences. This can be appealing for buyers who are handy or looking to invest in a fixer-upper.
4. Priority for Owner-Occupants: HUD prioritizes bids from owner-occupant buyers during the initial bidding period, giving them a better chance of securing the property before investors. This can level the playing field for individuals looking to purchase a home for personal use.
5. Potential for Profit: Investors may find HUD properties to be lucrative investment opportunities, especially if they can acquire the property at a discounted price and make necessary improvements before selling or renting it out.

Cons:

1. Limited Availability: HUD properties are often in high demand, and competition can be fierce, particularly for properties in desirable locations or with favorable characteristics. This can make it challenging to secure a HUD property, especially for first-time buyers.
2. Strict Bidding Process: The bidding process for HUD properties can be complex and highly competitive. Buyers must adhere to specific guidelines and deadlines, and any errors or omissions in the bidding process can result in disqualification.
3. Potential for Hidden Costs: While HUD homes may be priced attractively, buyers should be aware of potential hidden costs associated with repairs, maintenance, and renovations. Conducting thorough inspections and assessments before purchasing is crucial to avoid unexpected expenses.
4. Limited Financing Options for Investors: While FHA loans are available for owner-occupant buyers, investors may face more limited financing options for purchasing HUD properties. This can restrict investment opportunities for those relying on external financing.
5. Risk of Unknown Property Condition: Since HUD properties are sold in "as-is" condition, buyers may encounter unforeseen issues or defects that were not apparent during the initial inspection. This risk underscores the importance of conducting comprehensive due diligence before making an offer.

Purchasing a HUD property offers both advantages and challenges. It's essential for buyers to carefully evaluate their individual circumstances, conduct thorough research, and weigh the pros and cons before deciding whether a HUD property is the right investment for them. By doing so, buyers can make informed decisions and maximize their chances of a successful purchase.

Feel free to reach out if you have more specific questions or if there's anything else I can assist you with as you embark on your real estate investment journey in Greenville. We are a local property management company here in the Upstate of South Carolina. Best of luck!

Best regards,

Brandon

 @Zach Fulton I'm late to this one but I agree with @Bob Stevens, it would be your responsibility unless it was excluded in the lease agreement and/or your tenant damaged it intentionally. I'd recommend reading over the "Residential Landlord and Tenant Act" of South Carolina https://www.scstatehouse.gov/code/t27c040.php. Sections 27-40-410 and 27-40-510 would help the most in this case. Let me know if you have any other questions or need help. 

Best regards,

Brandon

Hey @Avery Lauber,

It's fantastic that you're considering getting into buy-and-hold real estate investing, and choosing a market you're familiar with, like Greenville, is a strategic move. Here are some reasons why Greenville, SC, could be a great place to invest in real estate:

1. Economic Growth: Greenville has experienced significant economic growth, driven by diverse industries such as manufacturing, healthcare, and technology. A thriving economy often correlates with a robust real estate market.
2. Population Growth: The city has seen steady population growth, indicating a demand for housing. This is a positive sign for real estate investors, especially in the buy-and-hold strategy.
3. Job Opportunities: Greenville's job market is diverse, with major employers in various sectors. Job opportunities contribute to a stable rental market and can attract tenants.
4. Quality of Life: The city offers a high quality of life with cultural amenities, outdoor activities, and a vibrant community. These factors can make it an attractive location for potential tenants.
5. Education: Greenville is home to reputable educational institutions, which can attract students and faculty, creating additional rental demand.
6. Affordability: The relatively affordable cost of living and housing in Greenville makes it accessible for a broad range of tenants, supporting the demand for rental properties.

Regarding local regulations, laws, permitting, and zoning regulations, it's crucial to conduct thorough research and consult with local real estate professionals. Familiarize yourself with any licensing requirements, building codes, and zoning regulations that may apply to your investment plans. Local real estate associations and government offices can provide valuable information.

Feel free to reach out if you have more specific questions or if there's anything else I can assist you with as you embark on your real estate investment journey in Greenville. Best of luck!

Best Regards,

Brandon

Hey @Nicholas S Sally,

Thank you for sharing your exciting plans for your first property purchase. Given your circumstances, the offer from your family for seller financing on their rental property presents a compelling opportunity. Here are some considerations:

1. Financial Advantage: Acquiring the 2 bed/1 bath property through seller financing from your family could provide financial advantages compared to a traditional mortgage. The flexibility they offer regarding the down payment is certainly noteworthy.
2. Rental History: The fact that the property has been successfully rented out for the past 7 years, generating $900 in rent, adds stability to your potential rental income. This established rental history is valuable in building a reliable portfolio.
3. Renovation Potential: Although renovations are needed, having control over the property allows you to tailor the improvements to your preferences and budget. This hands-on approach can contribute to your overall investment strategy.
4. Equity Building: Acquiring a property through seller financing allows you to build equity from day one. This can be a crucial advantage as you aim to strengthen your financial position and portfolio over time.

Considering your goals of building equity, renovating the property, and establishing a rental portfolio, the family-offered property aligns well with your objectives. However, it's essential to conduct a thorough analysis, including projected renovation costs, potential rental income post-renovation, and long-term property appreciation.

Wishing you success in making the right decision for your real estate aspirations.

Give me a shout if you have any questions on the Upstate SC market or analysis of the property. 

Best Regards,

Brandon