All Forum Posts by: Dane Delatte

Does anyone know any good property management companies in Louisiana? 

Also, I have been reading a lot of stories and watching a lot of videos on getting the Property Management companies. From what I have gathered, it looks like a lot of these companies can kind of "nickel and dime" you to death. For example, I read that most companies will take the first months rent or half of the first month as a fee. I also should mention that it would be for a complex with weekly rentals. This seems insane if I were to agree to that when I can't say for sure the tenant won't move out after 1,2 or maybe 3 weeks. 

Also, another thing I've heard were them charging a fee for a room being vacant. Aren't I'm paying them to fill the room? This seems kind of counteractive for them to get paid to try to fill the room and then get paid if they don't fill the room and I get no rent from it, while it is 1 less room with a tenant that they have to manage.  

Another one is, I heard they may charge for a tenant paying late and then the PM company takes the late fee. So I pay them to get good tenants through screening and using their resources, then I pay them for the tenant moving in, then if that tenant that "THEY" put in pays late they want a fee for THEIR tenant that they picked is paying late.

So at what point does the property owner get any money??? Of coarse I'm joking about that, but that's kind of how it feels. It seems like the fees are extreme for a job they already get paid to do. am I to expect this from all PM Companies as a normal thing? 

So, if my business would not be able to afford all of these fees, what is the next best option? I know hiring my own manager may result in even more problems. Would it just be better to pay more and have my business barely make it by or hire my own manager until I can find a good one?
 

@Judy Parker 

@Jim K.

Thank you for answering me. I guess that is what I was asking. If most people take some out of the deposits for these things and how often do others do apartment inspections if at all? I do agree with you @Jim K. that it is an easy fix that does not take long to do but the problem I have is the frequency at which I have to do it. The place i have the most trouble with it is in a place that has weekly rates. It's not long term leases. So i may have a tenant that is in a room for just a few week and I have to patch the holes after they leave. I get a new tenant in and he stays for 3 weeks, After they leave i have to patch the little holes. Now that is not always the case, but take that times 26 units and and I am constantly fixing little holes everywhere when there is turnover in the rooms. (just to give an idea of what I'm talking about. With 26 units and weekly rates, we turnover about 2 a week. Just seemed like something that should not be such a pain, but if this is the normal then I can deal with it. Thank you again for the help.  

As a property manager I have been dealing with tenants hanging a lot of things on the walls and when they move out I have to many little holes in the walls such as nail holes, hooks still in the walls that I assume were used to hang things on the walls. 

So my questions are, How often do you do apartment inspections and what are some you guys rules on hanging things on the walls such as pictures and other things that put holes in the walls that have to be filled in prior to a new tenant moving in?   

thanks @Chad McLeod. I was looking for someone to address the Capital part it as well. I completely agree with your first paragraph. But my next question would be, if i already have a complex I am looking at and just need the funding. How do I go about it as far as trying to get funding when my credit is not good enough to get a traditional bank loan? 

Or am I looking at it the wrong way? Am I maybe trying to start out with something too big (too expensive) for a first time investor? And if so, how would I get funding to start off with something smaller?

@Brandon L.

"no down payment no money no credit. This can be done, but it is not a sustainable long term strategy."

You made this statement. Could you go a little further in to detail for someone that has a place being offered to him to buy but doesn't have the down payment and doesn't have the best credit? I've asked this question before in the forum and all I got back was I need to fix my credit. Well, I get that and I am in the process of doing so but how are the ways that people can raise the money for a down payment when they do not have it themselves and/or do not have good credit at the time to get a loan from a bank?

@Erin Auman

I know what you mean. I currently have a great opportunity to buy a 26 unit apartment complex that i currently manage. the owner told me he would sell it to me first if I wanted it. I know everything there is to know about this business and know it is a great opportunity. I just don't have the money to put a down-payment on it and have no connections to try to get funding nor do I know how to get started in getting some funding. It's like a lot of things. Once you get your foot in the door and have established yourself, people, including banks will throw money at you for business opportunities. But, the hardest thing of all is getting started. I feel the same way you do. If you find the secret solution, Please fill me in. 

@Michele Wax

@Kurt Michaelson

@Ronelle Hunte

Thanks to everyone for the information. I want to get into Real Estate really bad and I know this place is the perfect place to get started. I have been managing the place for the guy for 6 years now and I know it has great cash flow and makes good money. I guessing my only hope is he holds off on selling it until I can get the money but if not I can move on to something else. There's money to be made in other place also. Thanks again.

Prairieville, LA

I am trying to purchase my first property. It is a 26 unit apartment building that I currently work at and the owner is trying to sell it to me. I have looked at a couple different ways to fiance it and nothing is really working out because I don't have great credit. Because of this I can't get a loan for the whole amount. That being the case the owner has agreed to owner fiance but wants a down payment. 

That being said, What are some of the best ways to get funding (with a credit score of 550) so I can pay him the down payment and then start to fiance through him?

*** Side note.. I talked to a good friend of mine to be a partner. After we crunched the numbers, we decided that it wouldn't be a good investment for both of us together because the business needs some fix ups and wouldn't profit a ton in the first few years. He wants something a little bigger. So funding coming from another partner may not be a option in this case.

Thank you guys for the info. While I was think of doing it to help with the NOI, I'm just not sure it would be an easy sell to customers. Everything has been kind of hard to judge with competition . The only other competition that does weekly rate Kitchenettes like these around me are about 15 miles away and they are bigger hotel chains that are switching to the weekly rates because of the mass amount of transient traffic in the area due to the boom in the chemical plant business in the area. The closes mid-size apartment is also about 15 miles away, but I've seen those apartments and believe me, I don't want to mimic anything they are doing (its a dump).

I don't think I will do it. Too hard of a sell to customers and to much to deal with at first. Thanks.