All Forum Posts by: Brett Fitzgerald

My wife and I are looking at getting started with the BRRRR strategy, and I've found a couple properties relatively quickly in my area that I want to check out. I have no idea what the rehab costs will be without walking through them with a contractor. How do I determine which properties are worth calling my agent and scheduling a walk through? Even if I make a lot offers, if I stick around the 70% rule, I have a feeling not many offers will be accepted. That seems like a lot of work for my agent, without much return. How do I not waste his time?

Thanks!
Brett

Excellent, thank you!

Thanks @Fred Heller, that's helpful. Just to clarify, the management fee is calculated BEFORE any of the fees are deducted, correct? So if a given month has $1000 in rent, and I have a 10% fee, I'd bring in $100, whether or not there is a $300 repair bill that month.

Thanks for the input, everyone. Sounds like I need to either be hired as an employee by them, or be partial owner of the property.

How do most property management companies structure their fees and expenses? Most companies I've looked charge a % of the monthly (or weekly, etc.) rent. Are the expenses (potential cleaning, bills, service calls, etc.) simply subtracted from the collected rent? Before or after the % fee for the management? Or are they billed separately to the owner?

Thanks for your help!

I was not aware of that. I don't have a real estate license. I live (and will be operating) in Michigan.

My parents own a duplex and they want to take a less-active role in managing it. They approached a couple property management companies in the area to get rates, then approached me asking if I would be interested in managing it for them for that rate, instead of them paying someone they don't know. I'm extremely interested, and I see this as a good entry point for starting my real estate investing. I want to treat this like a business, not just a job. For 3 months of the year, it is a vacation rental, and the rest of the time is a monthly rental. I'm sitting down with them tomorrow night to talk over the details and what the arrangement would look like. Are there any expenses that a property management company commonly incurs during the rental (eg, cleaning between renters, marketing, etc.) or are these usually all passed on to the owner?

Thanks!

Brett

Thanks for the advice, I'll be sure to check out those links. Are all auctions in-person, or is it possible to invest in tax liens remotely?

Hi everyone,

I recently listened to podcast #56 (http://biggerpockets.com/show56) and found the idea of tax lien investing very interesting. Is there an overview that goes a little more in depth as to the advantages, risks, and process involved with purchasing tax liens? I'm in west Michigan, and from what I can tell our state only allows the auction of the properties themselves after they are forced into foreclosure from overdue taxes, by the state. Is anyone aware if that is correct? Do only some states allow the auction/sale of tax lien certificates?

Thanks!

Brett

Thanks @Alex Cotton! I listened to the 2 most recent episodes and am going back through all the previous episodes. Just finished #8 this morning. I commute to Grand Rapids, so I get a lot of podcast/audiobook time :)

Thanks for the welcome! I definitely have a lot to read / listen to / watch!