All Forum Posts by: Raquel L.

Hey Greg,

Thanks for the info! I shot him an email, and noted his profile on BP. Let me ask you something: how do you find your off-market deals? Are you driving for dollars, or do you have a marketing system in place? If so, what areas?

R.

Sooo... I'm not a big beer drinker.... so I browsed the internet and sort of mimicked a letter I found... any comments?:

July 1, 2013

Dear Happy & Satisfied RenterFace:

Your residence has come under new ownership/management; we represent Happy Cash Flow Lover, the new property owner.

We would like to take this opportunity to introduce ourselves and the primary rental policies we use when working with our tenant residents. Our contact number is xxx.xxx.xxxx. Please call this number regarding any and all concerns you may have. Our business address is xxxx.

Policies
On-Time Payments: Payment is due by the 1st of each month.

Late Fees: As per your tenant agreement, there will be a $50.00 late fee charged for any payments received after the due date, and a $25.00 per day charge following each day thereafter. We will begin legal proceeding on the 5th of the month if we still have not received payment.

Pay Online: For your convenience, we accept online payment of rent. You will receive an email with directions on how to set up your account with us. You will use this system for payment of rents each month. Your payment must be processed on the 1st of the month in order to be avoid paying late charges. If the 1st falls on a weekend, the payment must be processed before the 1st.

Repairs & Maintenance: Upon the original purchase inspection, we noted several repairs that need to be made. These repairs will be scheduled with you directly, and upon completion, a walk-through inspection will be completed, with a new move-in report being filled out to reflect these updates. You are responsible for the upkeep and maintenance on the property’s interior, exterior and lawns. For any and all repairs, you are responsible for the first $25 per request. As may be the case, we may schedule future property inspections on behalf of the owner to ensure the property is maintained in a satisfactory condition.

Contact Information: We encourage you to contact us with any questions you may have at the following: xxx.xxx.xxxx. Please make payments to our online portal at:

Thank you in advance for your cooperation in this management transition.

Sincerely,

Oh Joyous Occasion Of Cash Flow Management Team

I'm closing on a property in a few weeks in Georgetown, TX. I'm usually ALL about property management, but this property is in good condition, in a good area, and with a stable tenant that wants to stay.

I've self-managed two properties total, but one was an easy-to-manage white collar condo type deal, and the other is still in my property--a friend, so no hassles there.

I've never self-managed in TX, nor do I know the laws/in/outs, etc. BUT...I'd like to learn, and I have a voracious appetite for books, etc--so diving in isn't a problem.

Here are my questions:
I've already met the tenant--when I do a property inspection, I like to be physically present in order to learn about the inspector (if they're new), what to look for, and to inspect the tenants/get a list of "issues" from them. I ask the tenant to write a list of all the property flaws/things that need fixing. This works as a nice negotiating tactic with the seller, and it also gives me some insight into the tenant and their plans with my soon-to-be property. Okay, rambling..back to questions..

*How do I introduce myself as the new landlord to them?
*Do I send them a packet of info on where to send the rent, etc?
*I will be doing some repairs (good will, some are "unnecessary" but I like to get things in order to keep a good tenant HAPPY, and to dissolve their concerns about a scary new owner)... so, after the repairs are completed, should I do another walk-through with them in order to have an updated move-in sheet?
*Is there a generalized protocol on all this?
*How can I educate myself about the landlord/tenant laws in Texas?

Feel free to scare me out of this or talk me into it... it's something I feel is important to learn at this point in my investing career....

:) Thanks!!

Arjun: Yes, I believe you're right. It's definitely got to be a match in terms of goals/areas. I have a wonderful agent I work with in another state who does fix/flips himself; he understands them, understands the method, and wants to see certain areas of the area cleaned up and brought to a higher standard-- and I feel the same way, so we sync perfectly, and I trust him enough to have bought 2 properties last year sight unseen (except for photos/video footage) until after closing--and they both pulled through with excellent returns.

I'm new to the Austin arena, and I feel the *HEAT* of the market--I definitely don't want to get burned, so I need a pretty knowledgeable agent, and a resourceful one at that. I'm more into the cash-flow properties, but I buy and hold (or flip and hold) long-term (why sell if they *produce*).

Bryan: What was your take on Cory? What did he talk about specializing in? Are you going to work with him?

Thank you! I will look him up immediately.

Hey everyone,

I'm looking for a great realtor in Austin that invests themselves, and also works with investors. I'd like to find someone for a long-term business relationship. Please, send me recommendations if you have them, or PM me if you're The One. :)

R.

If you can get cash out of your property now, I'd do it! It's better to have the cash on hand for when a deal pops up rather than to have a deal pop up without the money available.

Also, rates are only going up from here... don't pay down the debt unless the places aren't cash flowing... that debt is your hedge against inflation. ;)

For your first 1-4 loans, you can do cash out refi's on single fam's up to 75% without having to occupy. On your owner-occupied residence, you can do 80% LTV even if you already have 10 loans-- it doesn't count against those loans. So I'd do 10, then do one more. The only issue I've heard of is that if you're doing this every year, they don't like it... but liking it and still doing it are two different stories.

Also, you're talking 10 years down the road, and things are changing quickly. Almost overnight rates jumped a whole point because of Bernanke's little speech... lock in the debt while you can. It might just be a quick jump and go back down, or a steady climb. Keep that in mind when you're making plans. It's a changing market.

From my current knowledge: FNMA's...
1-4, investor SFH's = 80%LTV or 75% cash-out refi.
1-4, investor multis= 75%LTV or 70% cash-out refi.
5-10, investory SFH's = 75%LTV, NO MORE CASH OUT REFI's...
5-10, investor multis = 70%LTV, NO MORE CASH OUT REFI's...

For your loans #5-10, I'd buy all cash and do the cash out deal... just make sure you keep accurate and detailed records of ALL expenses, AND... I'd even go so far as to create a little packet for the lender detailing progress, comps, etc... they like that. ;)

Hey Mehran,

Let me know which meetups you attend... I am out of LA for most of the summer (it's when I travel to my colder climate markets and do repairs/flips), but come fall, I'll be rolling strong! :)

Hey Lynn: Yes!! Absolutely, I will PM you.

Tim: Thank you for the info--when I get back into town I will look them up and attend. :) Welcome to BP and welcome to the Wacky World of Real Estate Investing. :)