All Forum Posts by: Christian Hansen

Funny, I don't think anyone asked if this was about you, someone else or just a hypothetical question. Also what will the new job be? Commission based, W2, waiting tables? 

@Josh Stack You nailed it! Just keep calling around. This is 2017 not 2012 the banks have loosened up quite a bit. 

You might even want to ask for a bit more $ to cover rehab work and so the closing costs aren't as big a % of the loan amount. I know some lenders won't lend under $60K because its too small a loan! 

Just go and make it happen, each No is one step closer to a Yes. Go make your own "luck".

Michael, Hi. I live in the Raleigh (Triangle) market and own/operate a Property Management company here. I think the answer to your question is probably the same as in most areas - "It depends". Overall the areas you mention are good for cash flowing rentals and with the overall economy strong in NC they should have low vacancy rates. However, like anywhere there are going to be better and worse parts of each market and they will react differently to any upcoming changes in the market. I can speak to the Raleigh/Durham metro area but you would want to connect with someone specific to this areas you mentioned. I think Winston-Salem and Greensboro are doing well from what I hear but I know there were parts of Winston-Salem that were really grim a few years ago and now look great, on paper, but I personally would be concerned as to how they would react to any economic dip. 

You might want to try and connect with wholesalers in those areas. You could start by reaching out to @Adam Schneider

He has been in this area for a while and may know those cities or likely can connect you to good people.

Good luck!

Michael,

Hi, I think your best bet is to find a place that needs a bit of TLC like what Christian Vann mentioned. It has been my experience that the current retail buyers want a completely finished/updated house that needs nothing. They do not want to do any work on it at all! So I think there is a good opportunity of you are willing to deal with some cosmetic upgrades like painting and flooring and later tackle kitchen upgrades. Some of these homes will be very affordable but aren't quite cheap enough for flippers to make enough profit on so they definitely exist.

Feel free to send me a msg if you want to dig into this a bit more.

Christian

Karl,

I started a property management company a couple of years ago and I can tell you it is not a "side-gig" there are a lot of puzzle pieces that you need to put in place to do it properly. By properly I mean in a way where you are not exposing yourself to a lot of liability. You are handling other peoples money and overseeing their assets (real estate), you need a solid accounting software system specific to Prop Mgt or it will quickly get out of hand. You need to make sure you have proper insurance (E&O and Liability). Possibly a real estate lic. depending on the state laws. And, most importantly you need Time.

I see how it can seem like an easy side business since you already know a bit about houses and leasing properties etc. But, it is more involved than that.

Having said all this, I still think it is a great business but it is not for everyone and not to be taken lightly or as a part-time job.

@Nate Estelle  I did this recently and there are a lot of details. I will echo what Chris said about Licensing, check with the real estate board, but make sure you dig a bit sometimes there are ways to do it legally that are faster if you have to get a RE Lic. and take a bunch of classes. I recommend a good SW for tracking all the accounting and leases etc. I use Propertyware, its very comprehensive but takes a a while to get used to if your not an accountant. 

Good luck and feel free to ask any questions!

Christian

Hi, @Jenny Keffer Sorry to hear this, It does make it hard for me (PM) but it's also why I started my property management business. It was clear that there was an opportunity to do it better. It's definitely hard work and a bit frenzied so if a PM isn't really "in to it" they will fail miserably, and in turn really hurt their clients. There's a lot on the line in this business and you have to deal with someone who respects that.

I would like to emphasize what Steve Babiak mentioned, make sure you send the ex-tenants a letter explaining the itemized costs that their Sec Dep was used for.

There definitely are good PM's out there and I strive to be one because this is MY business and my reputation on the line and I care about it. There's lots of people who don't care about their reputation.

It sounds like PA has lic requirements so definitely connect with the state real estate commission. Maybe let the PM know that first, it may be enough to motivate them to get the $ back.

Good luck with this and future properties!

@Justin Reed and @Shirley Gregory

Lol! I am also a former Mass resident, 12 years in the Boston Metro area and 4ish years at UMASS Amherst. We certainly don't have the snow but there is some significant heat in the summers!  I think Shirley has the best of it by being up in the mountains.