All Forum Posts by: Edward Burke

@Donald S. Thanks for the feedback. Yes, that's the area of the property.

Wow...on to the next one! Good for you!

Congrats on getting through the flip and not losing money. The place looks fantastic! It takes guts to take on a project like that. I close on a huge 4 family in Tower Grove South (over 5k sq ft) right near Rooster Cafe tomorrow. Debating whether I take on an ambitious high-end rehab, or keep it cosmetic as I do with most of my properties. Would you recommend your GC? I'm out of state, so definitely need someone reliable. If done high end, the comps suggest it could pull in $1,400/unit. Just a bit scared of the unknown when opening those walls. :)

@Jared Mann - Definitely go the 4 family route! However, don't just focus on the rental numbers. Really make sure the property is in good shape and find an agent you can trust. Dave Nall at Garcia Properties is fantastic. I own 7 four family properties in Southwest garden, North Hampton, South Hampton area. I've known about repairs in advance and negotiated the price accordingly. Dave made sure that was the case. Your biggest enemy will be capital repairs (new furnace, plumbing stacks, AC unit, roof, etc), so make sure you adjust the purchase price accordingly and have reserves to pay for them. I love my four family properties.

Good luck.

Thanks to all who have posted.  After having some discussion with the tenant, he has not only created an e-mail account, but will be using Cozy.  He even executed a rental application (as the prior landlord did a horrible job of retaining tenant information) via DocuSign!  For someone who didn't have an e-mail a week ago, and is now filling out rental applications via DocuSign, I'm pretty impressed.  People are afraid of technology, but it can truly simplify everyone's life if people are willing to try it.  It's amazing what you can get done when you explain that you are not trying to inconvenience the tenant, but this is the way you have chosen to effectively manage your business.  By offering to help him with any questions along the way, I think the tenant has surprised himself with how easy it really is to use these mobile applications. 

@Alan Grobmeier - Thank you very much!  In my professional life, I have always been the guy tasked with making processes more efficient, and was regularly moved into new jobs to help make that area of the business more optimized.  As such, I try to focus of the processes and systems.  I find that by being diligent with the processes, it is fairly simple.  

My favorite tools are as follows:

• DocuSign - I truly love this tool.  I use it for rental applications, Estoppel agreements when purchasing a new building, lease agreements, etc
• Cozy.co - I use it for all rental payments, and maintenance requests.  Any e-mails that tenants send with pictures, I will immediately load them into cozy as a maintenance issue, and direct them to use cozy in the future.  So far so good.  I then send a link of the issue via e-mail to my maintenance guy.
• Microsoft OneDrive - I have every file diligently organized on OneDrive.  This way I can access any document on my mobile device, or anyone else's computer.  I can be as effective at the beach as I can in my office (or at least close to).  If I edit a document on my phone, it will get updated in the cloud and will be available when I get back to my desk.
• Todoist - This is my to do list application.  I log every single action/reminder.  Once again, this works across all my devices and helps me to never forget an action.
• GoogleVoice - My office line is a google voice number.  I have it work with my landline, but it will also call my cell phone should I be out and about.  Additionally, it will transcribe voicemails that I can access anywhere, from any device.  
• Quicken - Of course, maintaining clean accounting records is very helpful....
• Venmo, Paypal, GooglePay - I use all of these services for one off payments to third parties.  When asked, nearly everyone has one of the above and is happy to accept payment this way.

I suppose my point is that the technology that is available is so easy to use, and can make running a business so efficient.  If you are consistent in the way you use these tools, you can become hyper efficient.  I have literally executed a new lease agreement, and set someone up for automatic payments on cozy while waiting for a waiter to bring my lunch. 

@Nicole A.- I filled out the online information.  I was directed to a partnership between Paynearme and AMS.  I think they can handle a single unit, but there is an initial set up fee of $150.  

@Siler Coggins - I tend to agree with you.  An e-mail and bank account seem pretty basic requirements, but I also don't want to force out a tenant who pays on time.  I just have to balance the level of inconvenience I am willing to assume....and it isn't much. :)

@Dick Rosen - Seems fair....I may just have to go with that.  I'm not a fan of the $150 paynearme set up for 1 tenant.

@Amy Beth - That was my original sentiment.  However, I may be willing to make an exception for money orders, or him directly depositing it into an account that isn't my primary.

@Andrew B. - A deposit only account sounds appealing....I will have to look into that as well.  Just when I thought paynearme was the for sure answer. :)

Thanks everyone for the help.  I think Paynearme is the option that works best with my business model.  I assume this won't be the first time I encounter this, and perhaps it's nice to offer tenants this option. 

@Steve S. - Believe it or not, I don't think the tenant has a bank account...I know, crazy.  

@Jesse Moran - I forgot about them! I had looked into it a while ago before I had an LLC (a EIN is required), and it wasn't allowed. That is no longer an issue! I will look into that again...good advice.

I like your idea...start small rather than not at all.  Dogtown isn't a bad area at all.  I was afraid you were looking in Dutchtown.  My agent works for a brokerage that has a property management arm.  I think that is common. 

@Josh Hickman - I have no idea why this thread popped into my notifications, but once I read it I decided that I must comment. :)

I've spent the last 12 years working with Electrical Engineers (not Mechanical) and have been fairly successful in business.  I'm a financial controller for a large tech company, and have led the business side of the engineering groups I work with.  Having said that, I am dying to know what the end game is with your educational path.  Don't get education for educations sake!  A mechanical eng degree sounds great.  Then, and only then, get the MBA if you want to fully change your career path to work in business within a company that is primarily comprised of Mechanical Engineers.  Specifically, this combo is great for product management or product marketing withing a company.  My colleagues who have their BSEE, MSEE, and MBA only got the MBA as they were tired of engineering and moved into the business side of the house.  My colleagues who have their BSEE, MSEE, and MBA who stayed in engineering quickly realize that the MBA was useless to them.  Most regret the decision, or justify that it helped them have a conversation with me about business (that's an expensive education to be able to carry a conversation).  The addition of physics after the MBA just leaves me scratching my head (it's an interesting trio that may not be as marketable as you think).

Sorry, now that I am done with that....I like the idea of investing in real estate while in college. I wish I had lived in a market where it was possible. If you are in the St Louis area, I would highly recommend that you buy yourself a 4-family property with a FHA loan and you live in one of the units. You can put just 3% down, and the other 3 units should fully cover your mortgage! It would be great if you could find a property that isn't a full BRRR, but a value add deal (for example, turn all the 1 bedroom units into 2 bedroom units with a little bit of drywall and framing). Once you do that, the property will not only pay your rent, but you will be profiting. At this point, move into another one (once again, 3% down). By the time you finish your undergrad you will probably own 4 x 4 family properties (1 per year - 16 units). These properties will pay you for the rest of your life. :) At that point, you may just decide to say F more school and do it full time.

Best of luck!  P.S. What I described is called house hacking.  I didn't do this....like a chump I worked really hard, saved a bunch of money, and now invest like a mad man so that I can get out of the rate race before I am 40....not too far away.