All Forum Posts by: Neil Schoepp

@David W. He is from Cleveland give him a shout and pick his brain a bit. See if he and you would be a good fit. 

Remember that to grow you gotta become comfortable being uncomfortable.

You posted in hopes of finding a direction. One has been presented to you, the only question is will you take it. 

@Raden Mantuano

EMD is your down payment. It is not part of typical closing cost.

Closing cost are things like title work, recording fees, reimbursement to seller for pre-paid items (taxes/oil/propane), etc.

Closing cost should be lower on a seller finance deal as there are no banks involved.

Your title company will be able to give you a close estimate, call and ask. 

@Elice Jackson

Welcome. You are in the right spot. Absorb all you can then pick your niche and focus solely on that one thing. My niche is Multifamily. What is yours?

As I have not attended them I have no clue of the quality of the below groups so please proceed with caution but they may be great places to meet and network. 

Greenville Meetup

Greenville Reia

Hope to see you around. If you attend those meetings post it up for others to find out about them. 

All my best

Join us while we discuss setting SMART goals and how they will help propel you on your journey of wealth creation.

I am looking to add a property management company to my team. Can anyone suggest a reliable property management company able to handle 25 to 50 class C/B units in the Greenville, South Carolina and surrounding sub-markets.

Thanks for the Help

Not sure if you have this or not but give it a look.

Texas property code

Scroll down to page 539 that's where Landlord Tenant starts.

I cannot speak to Texas, in most jurisdictions if an annual lease was signed and not renewed it goes to month to month. All the terms of that original lease still hold. 

Yes, 30 days notice is needed (some places it's 60 days) if you choose to not lease the unit to them. As for a reason when ask I would simply state that I am choosing not to rent it at this time. This avoids personal feelings and he said she said scenario's. Besides you don't want to give a reason that could give them wiggle room. Less is more here.

If I were in your situation I would be serving a Notice to vacate, as you did. I would make sure that you served it correctly per the law. This starts the clock. 

As for the Baby Daddy as you refer to him, there will be a law, (in my lease I use 5 days) as to how many consecutive nights your client can have a guess. Once he has pass that time she is in violation and you may precede with eviction. On a Month to Month the eviction will take longer and you have the burden of proof. 

I would simply over look, but document the guess staying pass the allotted time. I would serve her notice per the law that you will not be renewing her month to month lease and she will have to vacate. The manner in which you serve this notice is EXTREMELY important as when she doesn't vacate you will immediately move to evict and it will be based on her being served the notice to vacate. Some jurisdictions want you to certify mail it, some want you to post it to the front door. Some want both, some want specific information given. The process will be in the law link above or by visiting the courts.

It's never a bad idea to visit with an attorney. I would find one that works for a flat rate as oppose to an hourly.

Above all else never lose your composure. This is business and you are to act and be professional at ALL times. (Even though you want to kick them in the as* and send them on their way)

The first thing you have to hash out is if you are doing a JV or acting more as an employee or an independent contractor. Each have there own responsibilities and compensation. Which is it?

It sounds like you will do all the work and they will bring the money to the table. Is that the case? 

I would become crystal clear on what I wanted from this. Do I want a job where I just tend to things and make a salary? Do I want to build a working relationship and transition into bigger deals down the road and use these smaller ones to test out the waters? Do I want to create my own company and contract out my services?

It sounds to me like there is potential here for you to JV with them. They bring most of the financing and you bring the boots on the ground local area knowledge and the management of the property and some capital so that you have skin in the game. They make a return on their investment as well as you and you get a percentage for acting as the manager.

How did you meet? How well do you know them?

Real estate investors from a macro level needs to do three things correctly. Buy right, finance right and manage right. So any career choice that will allow you to hone those skills is where I would focus.

Buy right:

Negotiation

Underwriting

Market analysis

commercial broker office

Finance right:

Mortgage broker

banking loan officer

Raising capital

Creative financing

Title office (they see how all the deals are structured)

Manage right:

Property management

Implementing systems

solving problems

You can never go wrong with sales. Even though you are a buyer of real estate you must sell yourself to the seller convincing him that you are the best fit. 

I personally believe you are moving in the correct direction. Build skills now that will serve you for eternity.

@Nathan Coldsmith

Review leases thoroughly before purchasing. You may not be able to get it amended, but you will at least know what you are walking into. 

Month to month tenants are either notified that the lease will not be renewed or asked to sign an annual lease. 

With time still on the lease then I am fair but very firm. Rent is do on the first and strictly enforced per the lease (in PA they can waive the grace period). Notice to quit is served for any violation (unregistered auto, messy yard, etc.) Remember to afix the notice to the structure (usually the front door) and take a picture. Do this even if the tenant is home.
 

In the same sense any deferred maintenance is address in a quick time frame from date of closing. Never make it personal, you are running a business. It is human nature to try and get away with things. The more you let it slide the more they "ask" for. Firm and fair has always worked well for me.

@Jeff Benson

When investigating new markets I look for things like

population growth (upward over the last 10 years)

Job growth 1% or greater

Unemployment =< national average

per cap income 20K

Household income 3 times annual rent

number of households (in comparison to other markets)

Favorable government policies (is the local government looking to attract business)

Those numbers will give me a sense of the macro market. Then I look for the micro

Crime states (block by block) <national avg. I know what my neighbor hood is and compare it to that.

School ratings B

proximity to amenities (walmart/home depot/ chic-fil-a)

When they all check out it's time to get feet on the ground. Either yours or someone you can trust. There are things you can only find out by being in the area. Which schools are the best ones with in the district. What side of the tracks / hwy / river do you want to live on? Some areas are block by block. Does it flood during heavy prolong rain. Are you in a flight path. All sorts of things that aren't online. 

To directly answer your question and using the assumption that you did your macro mkt analysis. I would do a micro on each one and find out what is causing the difference. Is it class of property, class of neighborhood, class of tenants, amenities, proximity to highways or transit. Individual school rating within a great overall district. Once you know the cause you can then decide where you are most comfortable investing. Typically speaking the lower the class the better the cash flow but also the potential for bigger headaches. So you have to find your own personal balance.

Demand in the market is created by population growth and population growth is created by job growth, job growth is created by business friendly government.