Pro's:
It's great to have BP as a trustworthy partner to give clients a level of trust that they will be taken care of. BP cosigns our ability to operate and vets us both on the phone and online prior to featuring us. If we do a bad job, then it looks like BP also does a bad job. Neither party wants that.
I've helped out a handful of people that found me on the platform and heard a variety of unique and exciting stories from real investors that need some help with their situation. Whether it's a refinance on a balloon payment coming due or as simple as an active duty military person wanting to house hack their first home. Really rewarding when I can help them meet their goals.
The cost of the service is pricey, however it can pay itself off if you are helping folks consistently.
Most of the clients that come in are not qualified or don't actually want financing, however there are some folks that are indeed serious.
Con's:
Incorrect phone numbers and email addresses
Delusional keyboard warriors threatening to start being an investor. These folks are imagineers that have a real estate empire in their own heads.
Many folks that fill out the "Find a Lender" form just want to talk to someone for educational purposes and are not interested in actually purchasing a property. Instead of reading one of the many books and podcasts BP publishes on the foundational elements associated with REI, they would prefer that I take 1-2 hours out of my day on the phone to explain everything. I'm a complete stranger. Although I'm happy to talk about REI (it changed my own life), the purpose of the platform is to facilitate financing, not to be a full time educator. This happens so frequently that changed my lender page description's first line to read, "SERIOUS INQUIRIES ONLY."
Dopamine hits. In the age of same day delivery and on-demand streaming, filling out a form gives newer folks a hit of dopamine and makes them feel like they are doing something positive in their lives. How do I know this? Well, I've done it myself and so have you, if you're being honest. "Learn to code and create a coding portfolio to get a $100k job in just 18 weeks!" Regrettably, I've filled out that form many years ago and ultimately decided that's not what I want to do with my life just 30 seconds after filling it out. When folks fill out the find a lender form that have not put in the simple research into what it takes to buy a house or investment property, the euphoria quickly fades and they go back to work and forget they ever filled it out.
New client inquiries from the "Find a Lender" platform keep coming in the middle of the night when I'm sleeping and cannot reach out immediately. I've set up a Zapier zap to text my phone whenever I get a new client message because folks are very impulsive (see above about wanting education and dopamine hits). The impulse and question they have quickly subsides once they get off of the BP platform and they go back to their late night cocktail, TV show, or go to bed and forget they even filled out the form. Again, many folks are just looking to talk to someone about HOW TO START investing in real estate instead of having a basic foundation of what is feasible - and they want the money right now. Often times, folks have little to zero income, little to zero capital, and want me to sell them the dream of purchasing real estate with no money and no job. I'll leave the dream selling to David Greene and Tom Cruz.
Fake leads. I've sent support a number of bots or fake leads with false information.
Our job as lenders is to provide education for clients for THEIR SPECIFIC scenario, not to educate the population as a guru on why they should get into real estate investing. Folks will need to decide on their own if REI is right for them and have a basic understanding of how it works - it is very personal to them. I am not a guru or a podcast host, just a resource to help you carry out your plan
So basically high priced garbage. I'm not surprised. BP has become a marketplace for everything real estate. If it wasn't for the forums, this place would have died a long time ago.
Thank you for your honest review.
My experience with Featured Agent has been hit and miss, seem similar to the find a lender program. The lead quality had taken a turn for the worse in the last few months. I started with BP in 2005, upgaded to pro 2007, Featured Agent 2 years ago. BP used to be the "anti Carleton Sheets" platform, but the good ol days are gone! The forums are still good, but the rest of the content is basically a bunch of advertisement. I guess as a featured agent, I'm part of the problem! Ha!
They need the funds for the BS expos and getaways. BP was amazing when it first started. When it slowly started to become heavily commercialized and ads ads ads, it's gone down hill. If BP didn't have the forums, it would just beyond pointless to visit. I understand one needs to make $$$, but these skeptical at best "gurus" hacking their crap and their events, promotions, etc. In the end it's just damaging the brand. Once you lose the community, there's really no way in turning things around. Hopefully, it doesn't go that route.
Hi all,
I have a tenant couple who moved in 4 months ago. They are requesting an addendum to their current lease because their relationship has changed. They were supposed to pay the rent jointly, as stated in the lease agreement. However, it appears they agreed to split the rent 50/50, and one of them is not meeting this agreement. They are now requesting an addendum stating that each person is responsible for their own rent, and payments are not mutually exclusive. Please advice on what to do. Much appreciated. Thank you.
No. You should offer them the option to leave. I can see this becoming an issue in the near future.
I keep my house and office at 69.
You are way too nice to your tenants...
Thanks for input @Calvin Thomas. Just to clarify, I do pay separate moveout inspection fees that are not included in the above charges. Also, a 10% markup to all repairs is added to the PMs pocket separately…..which seems like a conflict being that he is now using his own contracting business. I’d hope that the inspection fee and markup would cover the costs you are mentioning.
He sells all the renters insurance. Charges them all for parking passes (on the lots I own), charges for pets, charges to empty the coin op laundry, charges for credit checks etc. There is plenty of meat on the bone for him so to speak.
A few things. The parking pass and pet fees should go to you minus the PM fee. You should contact a company in your area to convert the coin-op laundry to e-payments (Venmo, Paypal, Credit Card, Debit Card, etc.) to eliminate that fee. Credit/background checks are charged to the tenant, not you. So, he may be double dipping there. Renter's insurance is charged to the tenant, which is fine; we do the same. However, we allow them to bring their own policy too.
You should consider researching other options and see if there's someone else who can handle the PM. If he's he only one in the area, you could try to do it yourself by making everything automated (such as e-locks, internet, security, laundry, etc.) Just hire a handy man for the turn-overs and a realtor to rent out the place. However, while you will save in money, you will have to then use your time to oversee the management.
You would then have to see if the fees you are paying are less than what your time is worth. I know, when we acquire a new property, we need to dump 30-60 grand into the whole building to bring it up to our standards. After that, it's usually okay. This is because the previous owner didn't take care of their property and things break. It's just the nature of the business.
Hello,
I've had some issues with excessive costs through my property management company over the years. I'm a passive investor and these properties are in a different state than I reside in so I'm not there in person often. These properties typically turn over once a year as they are mostly student rentals. I put a significant amount into bringing all the units up to par when I purchased them several years ago and revisit anything that they need annually so there is no deferred maintenance. This year I received a bill from the PM with the following line items and costs:
- Bathroom 1 : Shower/Tub Caulking | Re-caulk tub
- Bathroom 1 : Toilet bolt caps | Missing bolt cap
- Bathroom 1 : Window Covering | Missing miniblinds
- Bedroom 1: closest to the front door : Door/Knob/Lock | Door know needs tightened
Needs deadbolt installed
- Bedroom 1: closest to the front door : Window Covering | Broken miniblinds needs repaced
- Kitchen 1 : Wall/Ceiling | Pull nails and spackle
- Living Room 1 : Wall/Ceiling | Nail and holes in paneling
- Living Room 1 : Window Covering | Miniblinds need repaired
Line Items
Description Amount
Macomb Glass Invoice $40.99
Sherwin Williams Invoice $40.60
Walmart Invoice $62.37
Total $2,271.27
1 of 2
Ace Hardware Invoice $82.93
Ace Hardware Invoice $28.33
Ace Hardware Invoice $42.50
Macomb Glass Invoice $188.58
Walmart Invoice $135.30
Ace Hardware Invoice $65.19
Ace Hardware Invoice $9.78
Shop Supplies $3.00
Labour hours 24.18 @$65 rate $1,571.70
Total $2,271.27
This is a very small, one bedroom apartment in a fourplex. I'd like to get other investors takes on these repair rates. 24 hours of labor seems excessive to me and $65 per hour seems excessive for non skilled labor. These repairs are through a contracting company owned and operated by the PM. When I inquired if they charged a flate rate per job, they said no, actual hours the jobs take. I asked for actual days and times the repairs were done and they came out to 1/2 of the hours charged so I'm assuming they are using a 2 man crew and charging $65 per worker. Here is another example.
This is a small 3 br house.
Work Order Instructions:
- Entry 1 : Security/Screen Door | Replace Exterior Door Screen
- Entry 1 : Wall/Ceiling | Spackle and paint
- Bathroom 1 : Door Stop | Replace door stop
- Bathroom 1 : Light Fixture | Replace bulb
- Bathroom 1 : Shower/Tub Caulking | Re-silicone tub
- Bathroom 1 : Toilet bowl/lid/seat | Replace toilet seat
- Bathroom 1 : Toilet Paper Holder | Replace toilet paper holder
- Bathroom 1 : Tub/Shower | Relay loose shower tiles
- Bedroom 1: closest to the front door : Closet/Door/Track/Shelving | Install Closet Rod
- Bedroom 1: closest to the front door : Light Fixture/Fan | Fan light does not work - replace fan
- Bedroom 2: 2nd closest to the front door : Closet/Door/Track/Shelving | Replace closet rod
- Bedroom 2: 2nd closest to the front door : Window Covering | Replace blinds
- Bedroom 3: furthest from the front door : Switch/Outlet | Install smoke/CO detector
- Bedroom 3: furthest from the front door : Window Covering | Replace blind
- Dining Room 1 : Window Covering | Replace Blind
- Hallway/Stairs 1 : Light Fixture | Replace bulb
- Hallway/Stairs 1 : Other | Replace blind
- Kitchen 1 : Window Covering | Replace other blind
- Laundry Room 1 : Light Fixture/Fan | Replace bulb
- Living Room 1 : Switch/Outlet | Replace Outlets
- Living Room 1 : Window Covering | Replace Blinds
- Basement 1 : Light Fixture/Fan | Replace bulb
- Systems 1 : Thermostat | Reattach thermostat
Line Items
Description Amount
Labour hours, replace several blinds, screens, door stopper, replace toilet seat and toilet paper holder, reset shower
tiles, install closet rods, replace necessary bulbs, smoke detectors and outlets, touch up paint
$2,096.38
Shop Supplies $3.00
Ace hardware invoice I51016 $44.64
Ace Hardware I50619 $53.69
Ace Hardware I50569 $43.57
Total $2,552.16
The gross rents on these units are great but so much of the profits get eaten away by the turnover costs it just makes less and less sense every year. Advice appreciated. Thanks.
G'Day everyone,
The team (@Dominique Osborn, @Sean Mahoney) and myself have an opportunity to on-board 189 units.
This would be a very nice "chunk" of new business but to be honest, I'm inclined to pass.
I have always believed in doing business on your terms and for terms not to be dictated by someone else.
Especially when you are looking to hire us/me to do the work for you.
Also, business done right needs to be a win/win for all involved and this doesn't seem like a win for us.
I do however understand the caution and reluctancy to "let go of the reigns" per se as many landlords get screwed by property managers.
But at the end of the day, you have to "let go" and let someone else do it or just do it all yourself.
I'd love your advice on the suggested terms given to us below:
1) In AppFolio they want admin level access to their account.
2) They want a standardized list for maintenance items so they know in advance what repairs would cost.
3) They want a copy of all invoices from contractors to us so they can verify we are not marking up more than promised.
4) They want to be able to talk to our contractors before work is done (each time) so they can talk contractors down in price themselves.
5) They mentioned that they pay around $300 for full paint in a 2-bedroom unit.... we do not have a contractor that will touch a full paint on a 2 bedroom for $300
6) They want tiered PM Fees based on occupancy.... for example (their example): at 90% they would pay 8% PM fees, at 70% occupancy they would pay 2% PM Fees, and at 50% occupancy we would part ways.
The deal breaker in my opinion is points 4, 5 and 6.
With the lack of oversight/control on maintenance we have little control over the occupancy and it kills our process and efficiency.
So in a way, we are destined to fail from day 1.
Also, if someone does want so much control why not just self manage.
The unit count justifies hiring 1-2 full time people to run it.
Otherwise, let us do our job.
@Drew Sygit and @Jay Hinrichs I'd appreciate your professional opinion.
@James Wise I already know your answer but want to hear your unprofessional opinion so I feel better about my own thought process haha
Thanks everyone
That might be your problem. We manage a little over 400 properties that we own and operate in NYC, NJ, CT and Philly. You should look to see how you can cut the fat and automate where you are able.
Our biggest expense has been property taxes. We increase 4% a year in NJ, 5% a year in NY and CT. Philly, it depends. The prop. taxes increase because of increased benefits, social programs and costs to operate the city/schools. If cities had people actually budgeting correctly, maybe we could stop raising the rents every year.
G'Day everyone,
The team (@Dominique Osborn, @Sean Mahoney) and myself have an opportunity to on-board 189 units.
This would be a very nice "chunk" of new business but to be honest, I'm inclined to pass.
I have always believed in doing business on your terms and for terms not to be dictated by someone else.
Especially when you are looking to hire us/me to do the work for you.
Also, business done right needs to be a win/win for all involved and this doesn't seem like a win for us.
I do however understand the caution and reluctancy to "let go of the reigns" per se as many landlords get screwed by property managers.
But at the end of the day, you have to "let go" and let someone else do it or just do it all yourself.
I'd love your advice on the suggested terms given to us below:
1) In AppFolio they want admin level access to their account.
2) They want a standardized list for maintenance items so they know in advance what repairs would cost.
3) They want a copy of all invoices from contractors to us so they can verify we are not marking up more than promised.
4) They want to be able to talk to our contractors before work is done (each time) so they can talk contractors down in price themselves.
5) They mentioned that they pay around $300 for full paint in a 2-bedroom unit.... we do not have a contractor that will touch a full paint on a 2 bedroom for $300
6) They want tiered PM Fees based on occupancy.... for example (their example): at 90% they would pay 8% PM fees, at 70% occupancy they would pay 2% PM Fees, and at 50% occupancy we would part ways.
The deal breaker in my opinion is points 4, 5 and 6.
With the lack of oversight/control on maintenance we have little control over the occupancy and it kills our process and efficiency.
So in a way, we are destined to fail from day 1.
Also, if someone does want so much control why not just self manage.
The unit count justifies hiring 1-2 full time people to run it.
Otherwise, let us do our job.
@Drew Sygit and @Jay Hinrichs I'd appreciate your professional opinion.
@James Wise I already know your answer but want to hear your unprofessional opinion so I feel better about my own thought process haha
Thanks everyone
I've been obsessed the past decade on trying to understand why some people become financially free, while the majority of the population is living paycheck to paycheck.
I just launched a book called Baby Money Soldiers, which is a book on personal finance, that shares the story on how we all need to be "Generals" of our financial army. It's a great way to teach young adults about money and finance.
I would love any feedback on what you think are the main forces holding people back from becoming financially free. I'm always trying to create content that will help people make more money, and start driving towards their soul purpose.
Thanks for taking the time to read this and to share your thoughts.
I believe People With Financial Intelligence Can Change The World For The Better".
It's quite simple... Most times, the risk and reward is NOT worth going through real estate investing or starting your own business. If one has to take care of other family members, then that adds another level of stress and complexity.
If someone is on their own and wants to gamble, sure, some will take a shot. Most people are lemmings and would rather have the false confirmation that their paycheck will always be there; until it isn't.
I have many friends and family who rather have a steady paycheck and keep with the status quo then roll the dice. This is fine, but that is why they struggle and never get ahead. Now, since as much as 7 out of 10 businesses fail these days; I am not sure how secure starting one's own business is either without a huge safety net.
There's no guarantee that REI, self-employment or W2 workers will always be safe and sound. Actually, the only real secure job these days are governmental jobs. That seems to be the place to be these days. Outside of that; it's a crap shoot in life.
Many many decades ago when I started, I was in a small Brooklyn, NY apartment with brown water. I ate a lot of rice, apples and other inexpensive food to get by. I am not sure if I'd be able to do that if I had a family to take care of.
I also read on here all the time that some people are making 80 - 200 a door and they are happy they are in the game. That's great, but if something major goes wrong, they are sh*t out of luck.
I really do not have an answer for you. Success is basically timing, luck, and chance. Knowledge and experience only come in hand after you've made those mistakes in life and business.
Unless you know Philly, stay the heck out. The laws, registration, crime... It's nearly as bad as NYC. I'd say stay around the university or medical center, but you'd have a hard time finding a property that cash flows at 8% interest.