All Forum Posts by: Edwin Williams

I know TK companies can be used for the BRRR method on SFR. Does anyone know of a TK company that offers the same for MF properties?

Here's the simple answer. Buy the property, get a good PM and move on to the next deal. You've got some deep pockets on this thread turning down a verified 12K every year. On a bad year say you spend 6K on repairs that's not the end of the world. 

It's not hard work when you have a good PM running a property. This is easy money. Jump Jump Jump. 

Hey everyone on this thread. If you come across an opportunity in these areas and want to partner up please consider me as a prospect.  I know the area and agree with what has been said. I don't live in Chicago any more but come back every year to visit the in-laws..

The six units are the way to go...more diversification. If you have to sell you will have more options. If there are issues it more isolated and can be contained.  I would always go with the plan that offers more options..

Ravi,

There are more experts on this site that can provide more information than you can handle.  I recommend to keep things simple, find a turnkey provider in an area that fits the investment plan you are trying to accomplish. This way you don't have to make contact and try and vet a realtor, a property manager, a rehabber, plus all the other contacts you are going to need out of state.  It's just too many variables and if you get one wrong its going to be an expensive lesson.  You just want to get on base with a base hit to get your feet wet.  The home runs will come later with more experience.  You could do it without a TK provider but why go through all the time its going to take. Of course you could make more money if you do things yourself but the money will come pouring in after a few deals. Just due your due diligence on TK providers that way you only have to worry about one person and not the whole team right off the bat.. As you grow then you can do more on your own.  I'm a small fry here on this site and I'm getting to know who the real players are and they are on this thread but as a newbee its hard to know who to trust. 

Originally posted by @Mike F.:

Originally posted by @Edwin Williams:

Why not hire a Property Management Company to find the tenants; they normally charge a one month fee. You pick the tenant, they do the showings and it saves you a lot of time.

 I'd like to see some statistics of turn over rates and profitability of rental units of self-managed versus property management company managed. I can only guess the results based upon all of the different property owner's stories I've heard over the years crying the blues about their rentals, with the common denominator being they aren't self-managed.

If the PM and the owner have the same criteria there should not be an issue. If the  owner allows the PM to select a tenant with a criteria that the owner is not happy with there's going to be some finger pointing when things go south. I think a good PM saves time which is money. Instead of screening each tenant screen the PM, get on the same page and use your time somewhere else. Each month that goes by its $800 plus your time. You can still look for a tenant even if you have a PM but the PM should have a wider reach and a team to spread the work around. 

Why not hire a Property Management Company to find the tenants; they normally charge a one month fee. You pick the tenant, they do the showings and it saves you a lot of time.

I would add Charleston to your consider list .. Boeing is moving a good amount of work to the area and will be building planes there for a long time.  It may even be too late to beat the wave but its should be on your list.

My issue with MFs is that you have to sell to an investor.  This limits your options and the buyer is going to want a deal... With SFHs you have many more options no matter what the market is doing.  The name of the game is options.. I've been stuck with MFs when i was leveraged to the till and i could not get out when the market went south. 

You also get better tenants with SFHs.

Keep rolling!!!

Hey everyone. Here's the question. What's the process to document the lean on the property when you have a hard money lender. I'm thinking the hard money lender gives the money to the title company to hold. The title company puts the hard money lender let's call her "A" on the title as a lean holder. Once I pay A off what happens with the title how is that corrected to remove the lean. Are there other ways to handle this process to document the lean holder. I'm buying the property 100% cash.