All Forum Posts by: Clayton Coombs

Where are the properties in Florida?

@Clayton Coombs

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Clayton Coombs Hello dear,
To streamline rent collection and accounting consider using property management software like buildium Appfolio or Rent Manager. For finding a trustworthy property manager seek recommendation check reviews and conduct interviews. Ensure they are licensed and have a clear transparent contract. please visit a roof repair local services and more information....

a comment on above - if you’re going to find someone else to manage for her, I wouldn’t bother trying to find a rent collection platform. Let them handle that. But if she wants to self manage, have more control and transparency over the portfolio, and keep more profits, my suggestions stand. I self manage 19 units including 4 MTR and can take long vacations, my tenants are well served, it takes very little of my time, and I am more organized and profitable than if I had PM.

Quote from @Stephanie Cabral:

Hi Clayton, ok so many suggestions for you!

I’d start by creating a virtual space to manage everything like google workspace (for business) so you can have a centralized storage space for all files and access them remotely. Set up google drive and move all files/templates/checklist, and SOP there.

 Switch rent collection to a dedicated online platform. I love turbotenant bc they have great customer service, robust features, it’s free for tenants, and they can opt into credit reporting so you look like a rockstar for helping them out. there’s a free version but their paid version isn’t expensive and worth it for the premium features. 

then, implement scalable and efficiency-focused processes like keyless entry locks, templates and checklists for applications, processes, maintenance (proactive and reactive) issues, and even communications for things like late rent, increases, etc. once you find something that works, use it over and over :)

and then add help performing the tasks. I love abodea for maintenance coordination and dispatch (of my vendors) and hiring them allows me to take long vacations knowing my tenants are still covered. My VA helps with keeping my books current, filing even through she’s in the Philippines w the help of google drive, all my leasing and communication, etc. get a password protection site like LastPass to give your VA access to sites from one location so they don’t actually have passwords and you can remove them from the sites by removing them from LastPass rather than remembering all the sites you gave them access to :)

hope that gets you started!

Quote from @Clayton Coombs:

Hey guys, my mom has a portfolio of 30 properties (mostly Florida) that's she's been managing for many years. She's getting older & wants to enjoy her time & not have to worry about managing anything anymore. I'm going to help her get some systems in place & find someone to manage the properties for her. Most of these properties are single wide trailers but some are houses. Most of the properties are located within a 10 mile radius. 

I wanted to see what programs you recommend for rent collection & accounting? (She currently has a mess of cash, zelle, checks, etc. & not a good way to track expenses/ rent roll)

What are your suggestions on finding a good property manager? She's afraid of hiring someone she can't trust. 

Thanks for your assistance!

Quote from @Clayton Coombs:

I also suggest looking for a property manager. There's a very good chance your mom is renting her properties below market and a good property manager could increase rents enough to pay for themselves, maybe even put more money in her pocket.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

@Clayton Coombs  An important thing to keep in mind based on this feedback is software is just a tool not a property manager.   Either she continues with better tools as the property manager or she hires a professional manager.  Go to Narpm.org and find a PM that is a NARPM member in her area and start there.   Good Luck!

There are many solutions like Buildium, RentRedi (Biggerpockets product), Landlord Studio are all pretty good.  

@Clayton Coombs I would try to get away from any p2p apps right away if she's using them for colleting rent as those can be trouble.  Most property management software solutions are going to include ACH payments and some even have cash payment options where the tenant pays at 711, Walmart, CVS, etc and it electronically deposits into your account.

Here's some software options that I commonly see recommended on BiggerPockets.

The more mature platforms that are designed for landlords include Rentec Direct, Buildium, Appfolio, Propertyware, and Rent Manager. These platforms typically have billing policies where you pay a per unit fee per month to the software and you get regular updates and support each month.  For 30 units, which is a substantial portfolio of properties, you will probably be looking at this group first.

There are a number of low-cost platforms available that are able to offer you a lower price by passing along some of the costs to your tenants (payment processing fees, applications, tenant screening, etc). These platforms include RentRedi, Stessa, Avail, Innago, Apartments.com (formerly Cozy), and TenantCloud.  

Pretty much every platform mentioned contains the features you are going to need. It boils down to which platform's processes, pricing, and support works best for you. The best way for you to figure this out is visit the platforms and explore their free trial (if offered). Run through some of the features you will need like setting up a property, moving in a tenant, receiving rent payments, and publishing online applications.

Pay attention to which platform feels the best to you as you perform these functions. Each platform does it a bit different and you are going to like some more than others. While trying it out, call their customer service and see how they treat you and how knowledgeable they are on their product. Ask their customer service to walk you through the above options if needed.

It shouldn't take more than a couple hours of research to try out the top platforms and identify which feels the best for you. Those couple hours of research will save you hundreds of hours of time down the line, so it's well worth the effort.

@Clayton Coombs, my best suggestion is small community bank and credit unions near the subject property.  Here's the updated list. 

All in One, Ridge Lending, first position HELOC. CMG Financial.

America First Credit Union 80% LTV on noo 65% LTV UT, MO

Arvest Bank AR, OK, AL, MO

Bancorp South, TX HELOCS & Lines of Credit on free and clear houses

BankNewport

Bank of Southern California, CA

Bank of West (BNP Paribas) 60% LTV CA, AZ, OR

BankRI

BB&T will loan on a rental portfolio

BBVA, now PNC

BECU for OR

Best Finance www.bestfinance.io No closing costs, fixed rates

Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs

BMO Harris, 3 HELOCs to 70% LTV

Boeing Employee Credit Union

Cal Coast Credit Union, CA

Central Pacific Bank, HI

CFSBank will do on LLC, PA

Change Wholesale

Charter Oak FCU, CT

Chelsea Groton Bank, CT IPLOC (investment property LOC)

Citizens Bank -MN

Citizens, first position HELOC

CMG Financial 70% LTV. Aadvertises downpayment assistance through crowdfunding.

Coastal1, RI

Coastal Federal Bank of NC

Consolidated CCU, high LTV NOO LOC, OR, WA

Community Credit Union Will do HELOC on a rental in Florida.

Credit Union West, AZ 80% LTV

East West Bank, up to 60% LTV with "no docs” CA, WA, NV, GA, NY, TX and MA. Super easy.

Eastern CT Savings Bank, CT

Fairway Independent mortgage corporation- uses blockchain to close in as few as 5 days. Up to $400k, fixed 5, 10, 15 or 30 year terms with draws after the initial draw. Min FICO of 620 for primary and 680 for investment properties.

Fairwinds will do HELOC on rental property in 2023. 15 year draw, quick approval and fast closing, no application fee and no annual fee.

Family First Funding, Frank Avallone HELOC in New Jersey for investments properties.

Figure 80% on a rental, not in LLC. 640 FICO 95% LTV on primary. DTI must be under 50% and they prefer under 43% (not in FL)

Finance of America, 95% CLTV, second home only, 680 FICO, not TX

FirstBank CO and AZ 70% LTV

First Citizens

First Commonwealth

First Florida Credit Union FL

First Midwest, IL up to 90% Chicago area

First Republic - CA

First State Bank of LeCenter Minneapolis, MN

First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.

Fremont Bank- up to 60% CA, Sacramento area

Frost Bank - TX. Great for HELOCs in DFW

Fulton Bank, PA, NJ to 75% LTV

GFA Federal Credit Union 10 yr draw, 10 yr repay, MA, NH

Golden1 California HELOC Sacramento Valley

Granite State CU, NH 90-100%

Great Lakes Credit Union, Chicago area IL

GTE Financial, Tampa, Sarasota area FL w 2 yrs tax history on property

Hanscom FCU, not TX or NY

HarborOne, RI

HSBC 70%, for premier clients only. FL, NY, MD, CA, VA, NJ,

Horizon Bank, Kalamazoo MI

Hughes Federal Credit Union

Huntington MI 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation

Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.

KeyBank, flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary. BLOC FL, CO, OH, UT, ID

Lafayette Ambassador Bank is now Fulton Bank

Langley FCU 70% LTV

Loan Depot supposed to have new HELOC product.

Lumen Mortgage (CA and OR), Agricultural lending

Merchants Bank MN See Pavel Ushakov

Mid-Hudson Valley FCU

Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term “Mini Mortgage.” Salt Lake (also Zions)

Navy Federal 80% LTV

Nevada State Bank, in first position

Norway Savings Bank, Maine

Omaha Mortgage

One Nevada Credit Union

Oregonians CU - OR

PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties. Pulls Equifax.

Peoples Bank of NC

Pioneer Bank, MN

PNC Bank on primary and secondary (2nd homes) must be in personal name and 50% DTI is required.

PSECU up to 80%

Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period. FICO at least 680. Not in Texas. ***one investor said her line was reduced in Nov22 ***

Red Canoe Credit Union, WA OR

Regions

Renofi Purposed for ADU financing

River Bank & Trust, AL

Rivermark Credit Union, OR 90% LTV

Santa Ana Credit Union CA

Savannah Bank in NY, call it commercial LOC, up to 75% LTV.

SCCU Florida 80% LTV, 2.75% first year promo, not LLC

SECU NC 65% LTV rate 2.75% Oct 2021

***Signature Federal Credit Union 80% LTV to 100% LTV (100% on primary residence). All States. Fixed rate in Texas. 75% for NOO properties.

Silvergate Bank, CA

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv.” CT

SouthEast Bank TN

Spring EQ will do a HE Loan on an investment up to 90%

Symmetry

S&T Bank, PA

TBK Bank, CO, NM, KS

TCF Bank, FL, GA

TD Bank 75% line with FICO about 740. Up to 4 properties. PA, FL

Torrey Pines Bank, see also Western Alliance Bank Corp. Commercial real estate solutions for developers, home builders.

Troy Bank & Trust, AL

Trustco Bank, FL, NY, NJ, MA, VT. Paused offering HELOCs.

Trustmark Bank, TX. Call it a LOC rather than a HELOC

Umpqua Bank 80 LTV

Union Bank, specializes in noo HELOC. KCMO, NE., MUFG.

Univest Bank, $100k per line and 10 yr draw

Upstate Bank in Rochester NY, LOC up to 80%

US Bank 80%. “Business equity line of credit: Use Real Estate as Equity” up to $500k, interest only. gather your business and personal tax returns, financial statements, articles of incorporation and other legal documents.”

Vectra Bank - Colo

Veritex, TX HELOC

Webster Bank, CT, RI

WAFD Bank. Origination fee 1% or $700. Can be in an LLC, max 75% LTV. WA, OR, UT, NV, ID, NM, AZ, TX. All-in-One construction loan, too. They don’t sell, assign, or transfer the loan.

WellsFargo 60% LTV Up to 5 properties.

Workers Credit Union, MA 80-100%

WSFS...up to 70% on rental

Zions Bank, Utah. Call it HECL



High primary, not investment, HELOC:
Spring EQ 97.5% and fast, at 11 days