All Forum Posts by: Colin Higgins

I credit BP with getting me interested in real estate in the first place. It has helped demystify the whole industry and replace some of the negative stigmas with positive ones. That and the stories are inspirational. Full steam ahead, you're in a good place!

Orlando is really crackin down :-(

Quote from @Sandra B.:

My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind. We're financially very stable, we bring in 400-600k annually on average and also have about $200k in cash. Eventually we would like real estate to be our primary income but as of now we don't even know where to start. We've read books, searched through forums, watched videos, but every property I've found the numbers end up in the negative. I'm not looking for crazy cash flow but definitely not negative. We would love some hands on mentorship or really just advice from this forum. Thank you!

 Reading all the comments I'm seeing allot of good advice and perspectives. I personally just finished listening to one of the more recent BP episodes of seeing green where David addresses a very similar topic to yours. A subscriber wrote in about making the leap from contractor to investor. In one realm they are a black belt and the other, a complete newbie. Thats the reality, you gotta put in the work, plant the seeds, and be patient. You're both very established in your careers but in real estate, you are at square one. You're getting ready to open up a whole new chapter in life. I agree with @Scooter Williams it would be worth while and show real commitment to find a mentor and compensate them in some way. An 80-20 relationship of sorts where you both put in 80 percent and they in put in 20. Just thinking out loud. 

Not sure how that counties MLS is set up but in mine (brevard county) sometimes I find multifamily hidden under the commercial search type and sub category multi fam. Not trying to insult your intelligence. I just know sometimes I've let a few get away from because of this. Perhaps they might not even been categorized correctly. Another good resource is RPR and MLS advantage, those two are realtor resources if you have a buddy or yourself have access. Regardless it sounds like the pickins are slim. Happy hunting!

I see allot of good points being made in these comments. I think what sticks out to me most is the trade off for time, experience, stress. Having an agent (who's on top of their game) and who you mutually respect/get along with well, is there to reply immediately and provide you value. The time you have to put in to research a topic, comps, legal terms, city codes, laws ect... they can have done in minutes. When someone reaches out back to you about buying or selling (a good agent) will handle it, take calls, give information, get information while your at work, driving, family time ect. You can 100 percent can buy and sell on your own if you put the work in and due diligence. There's no doubt, its just a question of your time and connivence of the transaction. You can get yourself a nice ten dollar sandwich if you get in your car and drive across town to your favorite deli, or post mates can bring it to your door for an extra five and you dont have to get out of your pajamas. 

Quote from @Drew Sygit:

@Colin Higgins

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😊

Please send us any feedback via email, as we do not use the DM feature here.
Also, if you like our response, please don’t be shy about giving us a vote😊

First off thank you!

What a professional and well thought out response with allot of value. I couldn't agree more, I believe this like shopping for a mortgage lender, house, or really anything else. Compare and shop around MULTIPLE choices. I plan to take your advice and do my due diligence I believe i multiple options  in my area and i want to be prepared not scared when i purchase my multifamily residence. 

You're on the right track. Just keep that motivation and remain studious. Divide and conquer all aspects of this plan you must learn. You've already learned whats holding you back as a 1099 employee and what you have to do to overcome that. I agree with @Bjorn Ahlblad more money on the sidelines will NOT hurt you, there are plenty of surprises in this industry. Start thinking about who you are going to fill that fourplex with, strangers or people from your sphere of influence; Highschool, college, work, family ect... how do you want to go about managing it. Do you want to outsource management to save a buck or is your time more valuable? Not only this but what are things you could do in personal life to creative some extra income other than your job alone?

BE inspired by others, but don't compare yourself to others. It's only you vs you and progress not perfection. Give yourself credit as you look back & see how much you've learned and acomplished.

I think hard money would be easier by far, but check what interest and points that would cost today to borrow that money. It would cut into your profits big time, conservative underwriting is the key to BRRRR. If you can get a private money loan it would be preferable 10/10 times.

Amen, we had it good for a while. Don’t expect lightning to strike twice.