All Forum Posts by: Curtis Bidwell

@Robert Saunders. One of my favorite “no out of pocket” deals was after I got a line of credit from my banker (signature line - no collateral - this happens after establishing a relationship and a proven track record).

I found a deal, agreed to an 80% ltv, used the line of credit for the 20% down and rehab.  Same banker Refinanced it 10 months later at almost double the value.  

I had no cash out of pocket.  So yes, it can be done.

@Jonathan Steiger

   ...Always subject to amendment!

ANIMAL POLICY
This policy gives general guidelines as to the suitability of a particular animal. Each resident requesting an animal will be required to sign and abide by an Animal Addendum added to the Rental Contract.

1. We understand the bond that owners have with their animals and so we work to accommodate as many of these situations as we reasonably can, given the limits of the property and the security and sense of well-being of each neighbor. Permission to keep an animal is granted at management’s sole discretion.
2. Management may restrict animals to specific apartments.
3. Tenant agrees to not have animals or temporarily care for the animals of other parties without prior written agreement.
4. While we do not allow a new animal to be added to a lease, we strive to accommodate owners who have had their animal for a minimum of two years.
5. Tenants are limited to no more than 2 animals.
6. Restricted breeds include Pit Bulls, Rottweilers, Doberman Pinschers, Chows, Akitas, Alaskan Malamutes, German Shepherds, Siberian Huskies, St. Bernard’s, Wolf Hybrids, and any mix of any of the above. Again, permission to keep an animal is granted at management’s sole discretion.
7. All dogs must be no more than 30 pounds, and no taller than 15 inches.
8. All animals must have evidence of the required shots, licenses and tags, including tags with name and phone number of owner.
9. Other animals, such as birds and hamsters, will be appropriately caged.
10. The tenant is required to provide evidence of renters insurance with animal liability coverage naming Philia Holding Co LLC as additional insured.
11. If any part of the animal agreement is violated, or the animal becomes a nuisance or a hazard to others, property management can require the animal be removed or can terminate tenancy. If only the animal is removed, this will have no effect on the validity of the signed lease agreement, which the tenant will still have to adhere to.
12. Landlord has the right to make changes to the animal agreement with a 30-day notice.
13. Notwithstanding any other provision, people with visual, hearing and physical disabilities may keep certified service animals. Nothing herein shall hinder full access to the apartments and common areas by persons with disabilities. We welcome legitimate service animals for people with qualified disabilities. Tenant must provide a written statement from a recognized doctor or qualified professional as to the disability need and respective function of your declared service animal, or other allowed accommodation (if not so apparent).

Our animal agreement can be seen at: 
http://philiahc.com/application/

Our policy is to allow “animals” that are at least 2 years of age (no puppies or kitties), limit 2.  We charge a refundable animal deposit to incentivize good behavior, and additional monthly rent ranging from $15-$50.   We have a written animal policy they must sign off on.  Some of my best and worst residents have been pet owners! 

Hi @Freddy Rondon.  Welcome to BP! 
Like any other good investor you need to be able to spot the anomaly in the marketplace.  There are deals if you know the market.  Study the values/ neighborhoods/ rent rates, etc.   What may look like a typical price on a home may be a great value for that particular neighborhood (or vice-versa!).  

And as @Jake DeAtley said, Network consistently!  The more that people know what your looking for, the more likely you will find it.  

Finally, Be Ready To Act When the Opportunity Strikes!  Have your money ready (down payment, financing, partners, etc).  The deal will arrive when you're ready.  If you're not ready when the deal shows up it will pass you by!

EXAMPLE: Market Knowledge, Networking, Preparedness: We are closing on a 2250sf rambler tomorrow in Olympia for $100k. We'll put in another $100k and it will value at $360k. Rent will be $2250/mo. HOW? I was sitting in Starbucks when one of my tenants walked in and complained he might not have enough money for rent AND property taxes too. PROPERTY TAX?!?!? Yes, he had inherited a home from his father that was in severe disrepair and couldn't see his way through it. He offered it to me for $100k. I knew the area, the values (ARV and market rent), and I was ready to act -before he responded to someone's yellow letter. I drew up an owner contract for 25% down, he carries the note for 5 years at 5%. Our exit plan is to rent it for 1 cycle and then sell (long term capital gain). I already have a prospect for tenant/purchaser (neighbor's family: still networking! Getting to know the neighbor while doing some preliminary inspection work).

Look forward to seeing your next deal! 

@Nathan Ramirez This is not uncommon particularly with smaller mom and pop operators. When I purchase a property I simply want to verify my own assumptions - so a personal meeting looking over his schedule C’s, bank deposits, utility bills, Leases, etc will generally suffice on a smaller property. 

I already know what rent should be when/if properly managed.  I know what utilities should run, what the taxes will be in the year after purchase, how much insurance will be, etc... so I’m looking for outliers and reasons for the discrepancy. 

Know your market better than the seller (or their management co), but don’t tell them! Let them tell you everything.  My biggest concern is the facility, not the financials. What condition is it in, what work needs to be done, any deferred maintenance, etc.  

I Also want to know when the leases expire, so I can plan the adjustments going forward. 

Happy Investing!

@Vic V.  I just did a Craigslist search for 4+ bedrooms in Kirkland, Bellevue, Redmond.  I found $2950 at the low end and $5500 at the high end, with $3995 and $4700 in between (not a lot available in that size!).  

Average and median prices don't generally account for specifics such as neighborhood, quality, amenities, etc.  Many who invest in that market are willing to wait for appreciation while being satisfied to break even for awhile.  A bit risky, but a lot of foreign money is sitting in that market right now with that anticipation!  And based on my previous post, I think they're right.  

@Vic V. I just read that there were 281 NEW construction homes for sale in Seattle, and just over 1 months supply totally.  We are not even close to meeting the demand.  We need about 3k homes a month to meet demand!  Both purchase price and rent rates will continue to rise until supply meets demand.  
Seattle allows towers that meet FHA height requirements in the downtown core, but not outside the financial district. So condo/apartment construction is limited. And there are physical limits to growth, along with the growth management act. So, anti-growth policies are colliding with a hyper-business environment bringing massive growth to the region (in the 5 fastest growing cities since 2010).
So, people like my tech-driven son pay high prices for little homes knowing in 2-3 years they will see a great return on investment due to basic ... supply and demand!

FEBRUARY 13, 2020 BY MARCO SANTARELLI

@Kiera Underwood. My businessman brother chided me a lot during the downturn about “losing my shirt” because property values dropped (they’re back stronger than ever today!). As @John Barrett said, we didn’t need to sell and so we lost no value.  And most importantly, I NEVER LOWERED RENT ON AN EXISTING TENANT (across 60+units at that time), So cashflow was steady.
Our value drop was in part due to a glut of inventory as people needed to move but couldn’t sell, which also led to excessive “unintentional” rental units available.  as foreclosures grew prospective renters regularly asked if we owned the home and if we were in foreclosure (just trying to squeeze a buck on our way out!).   Our professional approach and almost 20 year history gave us an edge over the unintentional landlords sitting on an empty homes they’d moved from.

Ironically, our State’s anti-growth policies combined with a hyperactive business climate have forced extreme appreciation and rent growth throughout our region.  Until business dies (unlikely) or they make significant changes to the cost of development we will continue to see higher rents and home prices. the bubble will burst when supply finally outpaces demand -not anytime soon in Washington. 

I'm looking to replace 8 windows in a 1950's SFH in Phoenix, AZ. Do you have a go-to supplier and/or installer? Thanks for your recommendations!

@Naomi Pinger Yes, that is one of the big benefits of the associations.  Along with help in all things landlording and making landlord connections (forms, contracts, legal and practical questions) They put out alerts, organize a “day on the hill” each year, have active lobbyist to talk with legislators, will put you in touch with your representatives, formulate talking points, etc...