All Forum Posts by: Charles Frankenhoff

looking for similar, unwilling to use Cozy due to bad experience, any feedback on dwolla and erentpayment?  Or another one?  I don't my paying a reasonable fee, I've decided free costs too much...

Any other sites anyone would recommend?

I just came on here due to a bad experience with Cozy customer support.  While I didn't like the way they handled it (I feel they ripped off my tenants for screening) I have to say their email turn around time was consistently within 24 hours.  I have no problem with that, and like the paper trail.

I'm also very interested in Turbo Tenant.  Or any other suggestions for online tenant management, from application through payment.   I use transunion smartmove for screening, and would need at least that level of data, I don't want an automated confirm or deny.

I just had a bad experience with Cozy, screening side not payments, so I'm here to find a better service.  I can't speak to their collections, but in my opinion their handling of the screening process is scuzzy and misleading, and reflects poorly on me as a landlord.

So I just had a pretty bad experience with Cozy.  Came here to inform others.  

I really like the idea, though I find their application pretty rigid (can't put in my own questions, etc).  I've been sending out application pdfs, but would rather have a web form.  And as I keep buying things I'd like to automate.  I also find the check deposit thing annoying, but its a good annoyance...

So place came available because the tenant is buying a place.  (I do high end/yuppy rentals mainly).  I show it to a couple who is interested.  I have them do a TransUnion Smartmove credit check (been pleased with this).  Then I set up the property on Cozy to get the application in there.

Since they already had paid for the credit check, I checked the boxes that was not necessary.  When my tenants went to fill in the app, they were misled into paying $80 to cozy for another report.

I called this to Cozy's attention.  Their response?  Basically boiled down to "your tenants must have wanted to pay to send you another credit report".  I'm sure you all find that as believable as I did.  

I pointed out that this was clearly unlikely, and that in order to show good faith I hadn't looked at the applications.  Rather than refunding this clear error, at no cost to Cozy, they said no, you are stuck.

Basically, I get where they are planning to make money.  But tricking my tenants out of application fees makes me look bad.   

If this is how their customer service handles a simple, clearcut, provable issue, I have no intention of dealing with them on an actual problem.  I'll refund the tenants money myself, and regard it as a lesson learned.    I know better than to expect a good product for free, I could kick myself.

So on here to find a good similar service that costs money.  Anyone have a rec?

 Got out, it was the death of a thousand paper cuts.  Don't even do my own closings.  And yeah, that was my take on site demographics, but I thought I'd take a flyer.  I've actually found development opportunities to be my best returns, though pure speculation makes me nervous.   Big hesitation on 5/25 commercial notes for that reason, even though more opportunities there these days thanks to the flood of people in retail

I think I didn't articulate my point very well above.  The question isn't about the 2% rule, per se, or the plus and minuses of rules of thumb, which I think people have done a great job of explaining on here.

What I'm more curious about is how far experienced people push the edge of the envelope on the numbers. The general "rule" that comes up amongst the sophisticated investors is 144 GRM, as being the outer limit (barring a crazy cheap conduit, or other not normal situations). This would be for properties with ironclad appreciation built in, usually some sort of clear cut development opportunity. (all normal variables normalized)

I was wondering if anyone thought that was overly conservative, based on substantial experience.  I will say in my experience at that point you aren't making anything on rent, after appropriate reserves, it's appreciation or die.

I just happened to be reading some of the threads on here, and it got me to thinking.  I don't generally use the 2% rule, but I don't disagree with it either, as a rule of thumb.    I've done 2.5% percent, and best deal I ever did was for 1/2% (break even on rent, home run on appreciation).

I've been in this for 16 years or so. I tend to use GRM more - a 50x deal is a screamingly good one to me, assuming it's a neighborhood I know (I only invest in areas I know well, and feel pretty strongly about that...). The most I'm generally willing to pay is 144x GRM, and I have to see significant development or cheap money to make that work. Thats like a .7% rule.

Do any experienced people go under a .7%, or over a 144 with any frequency?  If so, how would you defend it - I've found those places are pure development/appreciation plays, and cover their expenses at best.  And I was a lawyer before doing this full time, and am a fully qualified contractor, with people who work for me.  My expenses are wholesale, not retail.