All Forum Posts by: Account Closed

Okay, fair enough.  Thanks for the banter, guys--that was very informative.

I just don't see the point in complaining repeatedly about something without making an effort to do something about it.  And there seems to be quite a bit of complaining about property managers.  So either most of them are not certified by NARPM, IREM, or whatever--or else those certifying bodies are failing their duties.

BP is sufficiently well established that it could create its own endorsement process which, in my opinion, would actually fit its mission statement perfectly.  Best practices, no upselling.

I see no reason why this would create legal concerns--being 'BP certified' (or, perhaps, 'BP endorsed' if folks are too squeamish about 'certification') could simply carry the clout we all decide to give it.  As I understand it, the American Kennel Club does something quite similar when they decide which dogs are AKC and which are not.

No question this would be a significant undertaking; I alluded to that in my original post.  But since it is my idea, I would be happy to begin compiling inputs and ideas from the masses and put forth the effort to see where we could take this...

-V

Hmm, this did not generate much interest--surprising since I wrote it before  episodes 100 and 101 which brought this issue up yet again.  Come on @Joshua Dorkin, whatd'ya think?

  Okay, between the podcasts and the forums it's clear that it is not easy to find good help, particularly property managers and contractors.  We've all heard or read how instead of spending their time finding new deals or working on their businesses, many real estate investors are forced to deal with poor communications, unexpected expenses, no-shows, and worse.

  No doubt there are many good property managers and contractors out there, but the bad ones seem to get all the attention.  What we need is a system that recognizes the exceptional ones and also offers a pathway for improvement to the less-than-stellar ones.

So here's a thought: why not create a BiggerPockets certification program? Professional certifications already exist in hundreds of professions from finance to medicine to supply chain management, among others. Certifications assure an individual's qualification to perform a job or task and are typically issued by universities or agencies appointed to safeguard public interest. BP is neither, but occupies such a large swath of the REI space that to say, "I am BiggerPockets certified" would carry immense clout.

  It could work like this, a syllabus is created incorporating all the best practices of, say, a property manager so that when the course of study is completed the newly BP-certified property manager understands and employs all the best practices (mandating automatic rent payments and providing monthly e-mail updates, for example).  Certification could last  for a set period of time and there could be a social media aspect to it, including ratings and reviews.

  The benefit to the BP-certified individual is the clout certification brings and the ability to charge slightly higher fees, perhaps.  The real estate investor may endure these higher fees but will make up for it by spending less time and energy dealing with lower quality help.  In a sense, BP certification ensures everyone is on the same sheet of music.

  Naturally there are many details to work out but I see a real opportunity here.  Any thoughts?

Vincent

P.S. A Certified Property Manager qualification already exists, conferred by the Institute of Real Estate Management.  My proposal is specific to BiggerPockets community of like-minded folks.

Hey All,

Did some research in the forums but could not find an exact answer to this one, hoping someone out there can help: What are the tax implications for the seller who owns a SFR outright and seller finances?

  Background: we are moving to a new area and heard about a house that the owner owns outright who wants to rent when he and his wife move to a retirement community because he does not want the tax burden of a windfall.  But he also does not want to be hassled with the house so plans on using a property manager.  I asked if he would be interested in seller financing, which seems a win-win for both of us, but neither of us knows what the tax implications would be.  He has probably owned the house for a long time and because of the location and current value, would have significant appreciation (well over $1M).

  I appreciate any info.  Thanks,

Vincent

Hey Chris,

  I lived in San Diego from 2010 to 2013 and am returning in a couple months.  I was not an active investor at the time so I cannot answer your questions with precision, but from what I gather from podcasts guests and forums the market there seems pretty flooded with folks trying to find their niche.  I'm sure there's room for one  (well, hopefully two...) more.  Find something you can specialize in and be the best at it.

  Noticeably missing from the stats you listed are real estate costs--property is not cheap there!  Living in San Diego is expensive, close to 300% of the national average according to some sources and property costs are no exception, but there is an incredible diversity of real estate options.  A 1,700 sqft 3/2 on Coronado Island might cost $1.7M but a larger house on a larger lot in east county might be a fifth of that.  As with anywhere else, it's all about location (duh).

  I probably have not helped  but I presume some of the big hitters from the area will pipe in here.  If nothing else, maybe you and I can get something going when I get down there.

Best,

Vincent

You have to burn the ships and put a little skin in the game to show you're serious.  Think about it, following the strategy you propose would quite often not result in much as most people would not carry through and never make that first deal, let alone a second.  But by putting some money in up front you not only oblige yourself to taking action but the mentor gets the compensation he or she needs to offer those services in the first place.  If you are committed then the fee should not be an issue as you will make that up right away.

Good one, Sam.

Update for anyone interested: I brought this up with the wife a couple weeks ago and got shot down again (who wears the pants around here anyway?!).  Despite my best efforts to convince her otherwise she just can't imagine a scenario where it would not be in someone's best interests to be represented by a realtor.  But as fate would have it, a day later "Heidi Buys Homes" bandit signs appeared all over town so I called the number and talked to a guy in a nearby town who is beginning a direct marketing campaign in this area.  He added me to his list of buyers so with any luck I can get a deal wholesaled through him, although nothing has materialized yet.  (Interestingly, the guy had never heard of BP, can you imagine?!)

Happy holidays,

Vincent

Update: evidently within the past few days a group of investors have been buying up houses in Fernley with cash.  No proof that they're from Tesla but that seems to be the rumor.  Evidently 8 homes have gone to the same group in just a couple days.

I live in the next town east of where the factory is going in; so far my realtor wife and I have not seen much change.  Of course, we are also heading into the holidays and cold season so perhaps by next spring things might pick up.  As far as foolish goes, I am investing in this area.  But then, I live here.