All Forum Posts by: Danny Gonzalez

@Bryan K. I'm confused, are you wanting to buy an investment property in another state that you will rent out, or are you wanting a property that will be your primary residence?

I'm going to assume that you're wanting to buy an investment property.  If so, I would recommend to think not as a homeowner, but rather as an investor.  Typically $2m+ homes don't cashflow due to high taxes, high insurance rates, and low rental demand.  That being said, if you're wanting to build a portfolio, it's best to buy smaller properties that would all appreciate and cashflow.  

I work in the Birmingham, AL market which is known to be a great market for OOS investing, due to the median price and the high rental demand.  Feel free to reach out if you have additional questions.  

 Hey Kent.  I own a PM company and a brokerage that specializes in helping people purchase value add investments in Birmingham, AL.  It's a great market for cashflow since it provides a lower price entry point and demand for rentals is high.  

Feel free to send me a DM, would be glad to hop on a call with you to see if we can help you out.  

@Alejandro Valbuena. I live in Miami and would be glad to meet up for lunch to chat business.  I've been in the investing world for over a decade, I own a PM company that manages 400+ units, and I personally own 28 doors in a long term portfolio.  Just shoot me a message and we can coordinate a time and place. 

That being said, in general, there are a handful of masterminds out there that are solid and will get you around people that have similar ambitions as you.  They'll also have people that are ahead of you and that can teach you what to do and what not to do.  They're shortcuts to success.

The one I'm a part of is Collective Genius.   It's a great organization filled with a lot of solid investors and business owners in the real estate space.  If you have any questions about it, shoot me a DM and I'll be glad to share with you my experience about it.

For anyone wanting to grow in your business/real estate portfolio, get around people that are wanting the same thing.  It will drive you forward in a way that nothing else can do.  If you can't afford it, utilize Youtube and Podcasts to get mentored until you can start investing into your education through courses/masterminds/etc.

@Jeffery Jones As someone who owns 6 single-family homes under the Section 8 program and runs a property management company that manages over 100 Section 8 properties, I’ve learned a lot about the ins and outs of the program—not just the idealized version often shared on social media.

If done correctly, Section 8 can be a great way to diversify a portfolio. However, in my experience, those who rely exclusively on this strategy can face significant challenges. Here are a few key pitfalls to be aware of:

Common Challenges:

1. Aging Properties: Many Section 8-eligible homes are older, which often means higher maintenance and repair costs.  These will eat away at any "cashflow" you may have.

2. Tenant Issues: Properties in certain areas may face challenges with tenant behavior, making it tough to maintain the house long-term. Additionally, collecting the tenant’s portion of the rent (not covered by Section 8) can be difficult.

3. Organizational Delays: Section 8 offices are often overworked and understaffed, leading to slow processing times for new tenants, delayed rent increase approvals, and poor responsiveness.

Benefits of Section 8:

1. Long-Term Tenants: When you get a good tenant, they usually stay for a long time because of the tedious process required to qualify for Section 8 housing.

2. Consistent Income: If Section 8 covers most or all of the rent, you typically receive reliable monthly payments, reducing the risk of non-payment (as long as there isn’t a large tenant portion).

3. Lower Barrier to Entry: Because properties in these areas are often more affordable, it’s a good way for new investors to break into real estate without needing a large amount of capital.

Overall, I’ve seen the good and the bad of this strategy. My takeaway after more than a decade of experience is that Section 8 can be an excellent way to diversify your portfolio, but I wouldn’t recommend relying on it exclusively.

If you have any questions or want to dive deeper into the specifics, feel free to reach out. I primarily work in the Birmingham market, so my experience is focused there and with the local Section 8 offices.

Yep, I ALWAYS recommend doing an inspection prior to close.  This is the best way to ensure that you know exactly what you're purchasing.

And most of the time, you can use the findings of that report to reduce the purchase price/get a credit at closing for way more than the ~$400 inspection report.  

I don't work in the St Louis area, but my go to for insurance during the flip phase has been a local broker in the market I work.  They have connections to multiple insurance companies and can always find someone to carry the insurance.

I'd also recommend using Obie Insurance.  Pretty sure they also offer insurance for flips.  

@Anthony Zotto

The key in situations like this is to focus on building a genuine relationship with the property owner. Sentimental value can be a significant barrier to selling, so creating a level of trust and understanding is crucial.

One strategy is to consistently follow up over time without being pushy. One of my best deals came from a seller who initially wasn’t ready to let go due to sentimental attachment (it was a 12 unit apartment deal that was purchased by her late husband). It took her 8 months to eventually feel comfortable selling, and by that point, she only wanted to work with me because of the rapport we built.

A quick 5-minute call every two weeks or so can be a good cadence. This gives them time and space while showing you’re committed and reliable when they’re ready to make a move. You’ll often find that people warm up to the idea of selling once they’ve built trust with you.

Good luck!  Remember, the FORTUNE IS IN THE FOLLOW UP. 

@Mark Bady

Welcome to the world of real estate! It’s great that you’re jumping in. Here are some ideas to get you started:

1. Educate Yourself: Start with the basics—read books, listen to podcasts, and watch real estate videos (BiggerPockets is an excellent resource). The more you know, the more prepared you’ll be.

2. Find Your Strategy: Real estate offers multiple paths—flipping homes, building rental portfolios, commercial investing, etc. Focus on one that aligns with your goals and research it deeply.

3. Build Your Network: Connect with local investors, real estate agents, lenders, and property managers. Relationships are key in this industry.

4. Analyze Markets: Whether it’s your local area or out-of-state, study the market’s potential for growth, rentability, and appreciation.

5. Take Action: You don’t need to know everything to get started. Learn by doing—start small and grow your experience as you go.

By applying these strategies, I’ve been able to build a 28-unit rental portfolio. It’s all about learning, networking, and taking action. Feel free to reach out if you need any guidance!​

@Betty Urban

How's it going with the property?

Here are my thoughts on your question above.  Itotally understand why you’d want to manage things yourself—it can definitely help save costs. Having your handyman do showings could be a solution, but keep in mind that if he’s not experienced in tenant screening, it could expose you to more risk, especially with squatters or less reliable tenants.

You mentioned using something like Showmojo for smart access, which is great for efficiency, but I’d suggest ensuring you have solid procedures for background checks and tenant screening if you go that route.

As someone who’s owned a property management company for 5+ years and manages over 300 units, I’ve seen the impact of not properly screening tenants. If you don’t want a full property manager, you might want to consider at least a leasing-only service. They handle tenant screening and the leasing process for you, ensuring the tenants are viable and likely to stick around long term. It’s worth the investment—placing the wrong tenant can cost you much more in the long run if you have to deal with evictions or non-payment.

It’s about finding the right balance for your needs, but in my experience, having some professional oversight can save you a lot of headaches down the road.

@Andre Brock

Great question! Vetting a property management company is crucial for protecting your investment. Having owned a property management company for 5+ years and managing over 300+ units, here are a few key questions I’d recommend asking:

1. What’s your process for collecting rent?

• Specifically, ask “What happens if rent isn’t collected by the 5th?” This will help you understand their approach to late payments and how quickly they take action.

2. How do you handle evictions?

• You’ll want to know their eviction process, the timeline, and if they handle everything legally on your behalf or hire it out to a local attorney.

3. What’s your maintenance process like?

• “Do you have in-house maintenance, or do you subcontract?” Make sure to ask how quickly they respond to issues and how they communicate with you regarding repairs.

4. Who will be my main point of contact?

• It’s important to know if you’ll have a dedicated manager or work with a team to ensure there’s clear communication at all times.

These questions will give you a solid understanding of how they operate and if they’ll be a good fit for your portfolio.

Best of luck lining up the right PM team!