All Forum Posts by: Fred Maul

I am looking for a good NC lease agreement.  

I'm due to leave NC in a few months and I have decided to self rent my home.  It was built two years ago, so it's in fantastic shape.  So far, I've received a ton of interest.  I have two other properties that I rent with property managers.  I have an ex-Realtor friend that will manage it for me.  I have signed up for the background check thing on bigger pockets to screen applicants.  I've looked at some templates online, but will happily review any good lease agreement so that me and the tenants are protected from any shenanigans. 

I've been reading through the guides on biggerpockets.  Any other random advise is welcome.   

Thanks,

@mark bookhagen,

I am having that issue with my property manager in Texas right now. We are firing them next year. The tenant was interested in buying the house and we found out the hard way that they were going to collect a commission of 5%. Me and tenant agreed to wait it out a year.

Here is the juicy stuff from the contract...

3. Compensation of Manager. Owner agrees to compensate Manager as follows:

Owner agrees to pay the Manager ___12 (twelve)_ percent of all gross receipts and income collected, as a fee for managing the Property (gross receipts are defined as all revenues of any type or nature collected from the operation of the Property), including but not limited to refundable deposits; which fees, plus all other expenses of any kind or nature, direct or indirect, as to the Property and management thereof, shall be deducted by the Manager from gross receipts and income, and further agrees to abide by the conditions set forth by the Manager to the tenant on the Owner’s behalf. $50 monthly fee on months of vacancy. A leasing fee, upon new tenants, will be charged of (1/2) one half of the first full month’s rent. To the extent there are insufficient funds available from revenues received from the operation of the Property to reimburse Manager for expenses incurred, owner shall directly reimburse Manager within ten (10) days after demand by Manager for reimbursement. Manager shall not be responsible or liable to Owner for any act, default or negligence of on-site personnel, or for any error of judgment or mistake of law or fact in connection with their employment, conduct or discharge, so long as Manager exercised good business judgment in Manager’s actions.

My property manager retired and sold my account to Leria Group. Leria Group, while bigger, has been only a marginal property manager. Several months after the fact they send us a contract with a 12% rate and $50/month vacancy rate.

12% is ridiculous. I have an SFR in Norman, OK that always rents and the families pay on time. I've never heard of getting charged $50/month for an empty house. That's like rewarding failure.

I read another thread where I see that 7-10% is still the norm and 12% is for labor intensive properties.

Any help or recommendations would be greatly appreciated.

Hey BP AZ. Is it me or is the Phoenix real estate market insane right now? I'm in the military and I'm looking to eventually settle down in Phoenix area. So I figure I would buy an appropriate 4/2/2 home and rent it for a few years as I expect properties to have pretty good rates of appreciation.

The issue I'm having is the numbers aren't working as well as they did even a few months ago when I started thinking about this. A home that was $175k a couple months ago is now over $200k. Should I wait for the hedge funds to wear themselves out or is this a longer term trend?

My worry is that in a couple years when I show up that home I didn't buy now at $200k will be back to $300k. The areas that I like are Tempe/Chandler and Peoria. Anyway, what do you think I should do. Just wait, give up, by something cause it's going to appreciate?

I am looking at a package of three condos with excellent rental history. They are in the same complex and the guys wants to sell all three. They are worth $45k each and he wants $90k for all three. Are there lenders in NC that will do a single loan on all three properties? Or should I finance them all separate?

Welcome to BP. Good to see someone else fairly local on the site.

Thanks for the replies. My Realtor advises me to offer $100k. My mortgage broker tells me I can get an investment loan with 25% down at 3.75%. It looks like a great deal for me, but I like to get sanity checks. My only other concerns is the part of town kind of sucks.

I am from Tampa. I am stationed in at Fort Bragg, NC. I recently sold our house and I was looking for a rental property. I found a duplex that was rehabbed and is for sale.
Stats; asking price is $119k; 1850 sq ft; 2 units; 3 bedroom, 2 bath. Section 8 tenants = $1050 and $1100. So both side recently rented. 2010 taxes were only $750 which is really low. It's not in a flood zone. It's block w/stucco construction from 1960. Central heat and air, brand new AC units.

Everything is brand new except the roof. It might last another 5 years.

Any concerns with this? What should my max offer be? Let me know your thoughts.

President Obama was definitely rusty. I'm sure his staff will make sure he's prepared for the next one.

I hate both parties as they are. Too many extremists. Not enough compromise. Certainty of fiscal policy and the laws allow business owners to plan and invest for the future.

Obamacare created uncertainty. The party strategies (in the House) not to compromise, but to choke the country for two years with a fiscal cliff and nothing substantive to show for it creates uncertainty. Big business does not like to invest in uncertain environments.

The point I am making is that you have pay attention to who you are voting into congress and the senate. You need people represent your beliefs, but also clearly understand we are all Americans and that you will not be hung for coming up with a compromise solution that moves the country forward.

In the end, the house holds the purse strings. If they agreed on something the president most likely would go along with it and sign it into law.

Just my two cents.