All Forum Posts by: Andrew Clark

I'm interested. 

@Colin Sweeney

I use Rent Manager Software with the PayLease payment add on. It's cheap, the tenants love it. They can pay in person at Walmart, Kroger, most check cashing places, online via checking, saving, debit or credit card. It all goes straight to the bank. I dont deal with any NSF's either, PayLease handles all of it.

@Chase McArthur

It would be great if I could stay on the east coast but the criteria above are more important to me than geographics. If I feel secure in the investment, I'll go anywhere. 

@Chase McArthur

Thanks, Chase. I have thought about this and expect that having an experienced and reputable operator will help mitigate lawsuits.

I am looking to diversify my portfolio of single family homes and have found it challenging to find what I am looking for. I have refined my most sought after terms to the following:

• 10-12% annual return, paid quarterly
• 20%+ IRR
• 4 - 10-year exit
• Equity position
• $500k - $2M positions
• Collateralized 

Senior living seems to be a good fit.

Does anyone have other suggestions and contact information for those who may be able to help place an investment or investments? 

Thank you,

Andrew

You'll want to read this post about Rocky Mount: https://www.biggerpockets.com/forums/726/topics/660647-thoughts-about-investing-in-rocky-mount?page=1#p3953384

I would HIGHLY recommend going to the Rocky Mount TREIA event to get the true vibe of what is happening there. 

Every TREIA meeting in Rocky Mount is packed! They are held inside one of the most active Rocky Mount investor-owned buildings: Station Square. Active investors are all over this town. I can personally attest to having friends who have in the last 18 months purchased 15 + downtown commercial buildings, 150+ single family homes, and many multifamily units. My wife and I bought two commercial properties on Main St (Music City & Lights buildings). We are currently doing full gut rehabs on both buildings financed by a local Rocky Mount bank. We will have two 2000sqft+ luxury lofts on the second floors and two commercial spaces on the bottom. We plan to attract restaurants on the bottom of each of these buildings.

Where are the jobs coming from?

$580 million project, Triangle Tyre Co, 800 jobs: http://www.rockymounttelegram.com/News/2018/09/24/... 

$200 million add-on project, Pfizer, 800 jobs additional jobs: http://www.rockymounttelegram.com/News/2018/10/14/...

$160 million add-on project, CSX, 300 additional jobs: http://www.carolinacoastonline.com/news_times/opin...

HBO Special about the youth sports in Rocky Mount: https://www.youtube.com/watch?v=9ATwFkYpVys&featur...

Rocky Mount just debuted their 165,000 sqft indoor  Event Center which can seat 4000+ people. It is literally 2.5 blocks from my buildings. That will become an economic powerhouse of the downtown area. The Event Center is NCAA certified, can host 16 volleyball courts, 8 basketball courts, music concerts, and has a video arcade, a ropes course.  All of this is walkable to downtown.  

Rocky Mount Mills was mentioned in previous comments but I just want to reiterate the impact they are having. My wife and I toured the grounds about a week ago. It is fascinating. Not only have they purchased entire streets and renovated all the houses (front porch lawn chairs and kegerator included in all houses), they have 60+ condos they are currently renting/renovating inside the mill, and they have A COMMUNITY OF 20+ TINY HOUSES they will be renting out soon. 

Again, visit the TREIA meeting if you are interested in Rocky Mount. The movers and shakers are not always on Bigger Pockets :)

TREIA this month it is at 5:30pm, Wednesday, February 20, 2019

Station Square

301 S Church St

Rocky Mount, NC 27804

Cheers,

Andrew

Here are some of the lessons I've learned about renting out by the room in very low-income areas to low-income tenants. For us, all the numbers looked great on paper but our estimations of some commons expenses and issues were off. We underestimated turnover, repair expenses (wall damage, broken windows, destroyed stoves, busted doors), vacancy rates and overestimated % of rent charged vs. paid. We also learned that PM's don't really exist for low-income room rentals. At least not in the Raleigh, NC area. PM's do not want to deal with the constant attention needed. 

With all that said, most of our issues could have been mitigated if we were more selective in the tenant screening process. We now screen based on verified income, criminal history (we do not accept violent criminals or folks with a current ongoing history of drugs, alcohol or domestic violence), no evictions in the last two years, and a few other small things. We deny promptly anyone who does not have 2x income and/or recent arrests. Nearly all of our tenants do have a criminal history but they are no longer engaging in whatever behavior caused the arrests.

Our mantra of more people more problems keeps our headache down. We do not tolerate traffic in and out of the house or tenants allowing people to sleep over more than two nights a week. We also eliminate tenants who are causing problems as quickly as possible; either by eviction or cash for keys. One bad tenant will prevent other tenants from paying their rent (they won't tell you that is why they aren't paying).

Bottom line, I would do it and I would pay special attention to the tenant screening process.

Cheers.

Hey members! I plan to put up a fence around a duplex and would like to get a better understanding of my property lines. Does anyone have a preferred survey company for downtown Raleigh properties? I had two properties surveyed a few blocks away in 2/2017 for $450 each. The same company is now charging $850. Any experience with this is appreciated.

Thanks!

Andrew

Unfortunately, I have filed 200+ evictions in the last 3 years and found the following two statements added to my leases very helpful.

This first statement allows me to file an eviction without a ten day notice.

"Upon partial or nonpayment of rent, YOUR COMPANY is not required to give notice before filing an eviction.Tenant completely waives, or voluntarily relinquishes the right to notice pursuant to NC Gen.Stat.§ 42-3." 

This second statement allows me to accept partial rents without jeopardizing the validity of the eviction:

"Any payment made AFTER the eviction paperwork (Summary Ejectment) has been filed will be applied to the arrears and does not waive the tenant's breach for which the right of reentry is reserved and JBAC Properties, LLC's exercise of such a provision does not constitute a violation of Chapter 75 of the General NC Statutes."

I want to be very clear that under no circumstance do I surprise a tenant with an eviction. Nearly every eviction has ended in a handshake, a hug and many times the tenant thanks me in front of the judge. Evictions are already unpleasant. No need to fuel the fire with hostile words or threats. The trick to a successful eviction is No Surprises. Explain the process and the timeline to the tenant. If the eviction is solely about rent, I explain we do not want them to move out, we just want them to get to a zero balance and this process gives us a firm deadline. They usually understand and thank me for the time that the court allows.

Ps. This is not legal advice and I am not an attorney. This is just my experience.