All Forum Posts by: David Korchak

Thank you @Greg M. for your response and a different perspective on the situation. I much appreciate it in my learning process. One thing I did not mention is that I am an out of state investor and I personally could not be there to meet the appraiser. In a case of out of state investor that responsibility would be then on my PM, would you agree? 

You are making a very good point, I do not know what exactly was communicated to the tenant, as PM was the one to schedule the appointment. But the fact it was missed, second time in a row doesn't play well with me. Somebody didn't do their job. What I am trying to figure out is who. It may very well be me, as I should have anticipated it based on the first missed appointment and lay out exact expectation to the PM prior to setting up the appointment. 

I guess the learning lesson for me here would be to make sure that PM representative is told exactly what I expect to the last detail and not assume they know what to do. 

Thank you @Lien Vuong and @Sunny Alexander for your responses. 

I appreciate your opinion, but I disagree with it. If I continue ignoring the wrong behavior by the tenant, this behavior will continue and escalate. I did eat up the cost for the first missed appointment, and I am not planning to encourage this type of behavior in the future. The same way as he expects me to respond fast and take care of any issues in the property, I expects him to be respectful to my needs and accommodate. Especially when he is the one who picked the date and time for the appointment. Again, I am not an experienced real estate investor and many of my opinions are formed based on Brandon Tunner's book "Managing Rental Properties" in which he explains the need for setting limits and not encouraging "bad behavior".  

I am sorry if I came out frustrated with my PM, that is not the case. I actually am very happy with the way they perform, I was merely wondering whose responsibility it is in this case. 

@Drew Sygit thank you very much for your response and the perspective of the PM on this situation. 

I am obviously an inexperienced investor, but I would think the 10% of monthly rent should address your first question. Shouldn't it? Otherwise what is exactly the management part that I am paying for? Collecting the rent?  

You are absolutely correct, this situation is not described in the management contract and I applaud you for including these details with your customers. That makes things much clearer. Also thank you for your insight about the potential response from the tenant, and I agree with you, I don't anticipate him being happy about the charge. I am very open minded and understanding and the first time he missed the appointment I covered the fee, however I do not want it to become a norm and that is why I asked my PM for compensation. 

However as a PM, that you already know you are dealing with a tenant who has a history of missing appointments, would it not make more sense to back up to provide a better service to your customer the investor? 

Hey BP community 

I have a situation, that I need advice on. 

We are doing a cash out refinance on a property and our property manager scheduled an appraiser visit with the tenant who choose the date and time for the appraisal. When the appraiser arrived there was nobody in the property to let him/her in. Obviously now the lender is charging me the missed appointment fee and since this is a second time that appointment was missed I let my property management company know that I am expected to be compensated for this charge. They agreed and said will charge it to the tenant. 

I have my doubts about if this is the right thing to do. In my opinion the property management should have sent their agent to the property on the time of the appointment to make sure appraiser will go in (since they have already had one missed appointment the second time they should know better) they did not, and now they want to charge the tenant. On the other hand the tenant was the one who picked the time and the date and if he/she is not responsible enough (for the second time) to make it, maybe they should be one paying. 

Anyways, any advise is welcome

Thanks 

David

@Jennie Sanders

I don’t have a nice thread like @Joseph Schweizer, but I also did my first investment with RTR. We closed few weeks ago and now the PM is screening tenants to place. I have to vouch for them as the process is very smooth, they are very nice and accommodating. They work with great professionals who will not only do amazing job, but will also educate in the process. I personally learned a lot in the process and still keep learning. Once “the dust is settled “ I will continue investing with RTR.

I had a similar situation with landscaping in my own house. The way we were explained is that discovering roots is not change in scope, since the scope is what you asked the landscaper to deliver. This is change in complexity and usually takes more hours to remove roots. We ended up overpaying about $2000 as well, but that was not 35% increase. More like 15%. Even though we were in the house while roots were discovered we were not notified until later when we asked why there was a delay. I feel your frustration, but does seem like a legit scenario to me.

Yeah, I am now in the process of closing my first property with RTR and I have to say it has been smooth ride so far. @Zach Lemaster and his team really have it all figured out. I promise after we close I will post a long nice thread about my experience for other new investors to take the path. I feel this is definitely the easiest out of all I’ve been exploring. 
I am also continually monitoring RTR inventory for our next investment 

That is a great topic @Cruz Gartner !! 

Total newbie here, just starting, we have our first SFR under contract, so just starting our way. The goal is financial independence by 50 and the choice to work or not. As of now I enjoy my W2 job too much to think about fully leaving it. I would love to have the option for me and my wife to work when we choose.

@David Stelzer

I think I am as puzzled as others for the 7 figures. I am newbie myself, so forgive me for not giving you any meaningful advice. I just want to understand something 

with a 1,000,000 salary at W2, - 40% in taxes you get 600,000 clean a year, which translates to $50,000 a month. Even if you maximize your 401(k) it is just <20,000 a year, before tax, meaning more monthly. Without knowing your mortgage and other expenses, let's just apply a 50% rule so you spend 25,000 a month leaving you a 25,000 for savings and investments. If you focus on buying houses of 200K-250K, you will need around 60-70K out of pocket for each purchase. Meaning you could be buying 1 property in 3 months. 

Am I missing something? 

@Nicholaos Koufoudakis

That makes sense as it is not different than expense report an employee submits when traveling or making expenses on behalf of the company. They use their own credit cards to eat while traveling for example and then submit expense reports to their companies and get reimbursed. Nothing different with the LLC that you own, it's just a company owned by you instead of by someone else.