All Forum Posts by: Jared Tillery

@Filipe Pereira has a good point. It the system adds value to the property (meaning you have positive ROI from it: increased rents, better tenants, etc.) it may be worth installing a system. You could offer to split the cost with the tenant with the condition the system stays with the property when they move out. Keep in mind there are all sorts of levels and types of security systems and they can have different purposes (Deter, detect, deny, and control entry are all different types of systems). Also some systems have a monthly cost for monitoring. I would recommend passing that cost to the tenant if they want the property monitored. If the tenant only wants to prevent others from entering to feel safer, this is best done with hardware (robust locks and doors). ( I work as a security design manager, sorry for the rant).

I would ask to walk the property inside and out to make sure they are taking precautions to prevent break-ins.  If they are leaving valuables out in the open, leaving windows unlocked, or not drawing blinds, it is a red-flag. A system will not prevent break-in attempts when there are no habits to protect their property anyway. 

I had the same issue with a tenant.  They flat out denied smoking weed even when I could see the smoke behind them.  The reality is you cannot force people to live how you want them to live but you shouldn't make a habit of tolerating the behavior when its a violation of the lease. Its a slippery slope.  With that said, threatening people with consequences only breads resentment.  What I did was talk to the tenant and explain to them that they are great tenants and I enjoy having them but I cant allow it because its a safety issue. If its a problem, I would let them out of the lease but either way I wouldn't renew the lease if they continue smoking. I explained this in person and gave them a letter for documentation.  The tenant stopped smoking but opted to move out at the end of the lease. When they moved out I found they removed the batteries from all the smoke alarms. Many times when you see tenants break one rule, there are other rules they are breaking you dont see. But dont forget to treat them like people. 

One option I had some success with is placing "PROTECTED BY BRINKS" or similar signs on the lawn or windows.  If non of the neighboring properties have security systems this will give you an edge.  Even though you wont have the actual system it still acts as a deterrent for only a few bucks.  

When I spoke with a layer to set up an LLC (multiple), both the lawyer and the insurance agent recommend having an umbrella policy on top of your regular property coverage. Part of the reason being to mitigate personal risk. The umbrella will help protect other properties and equity in the same LLC. It is best to speak with a lawyer about setting up the LLC because there is a lot to consider and what you do depends on your personal risk tolerance. As far as insurance, you should be pretty well covered with a property policy, umbrella policy, and requiring your tenants to have renter's insurance. It would be quite a feat for a lawsuit to have enough steam to go through all of that. (Not a lawyer or agent myself). I feel the best thing you can do is keep up maintenance on your properties, pick good tenants, get an property policy, umbrella policy, and require your tenants to have renter's policies. With these mitigations in place, when something does happen, the impact is minimized.

Im setting up my business and networking as best I can with the current COVID landscape.  I have a basic team put together; agent, accountant, lawyer, PM, and GC. I want to continue building my network to cast promote the relationships I have with my business. 

I feel I have the needed resources and members to begin with deal generation so I dont need a website currently to drive leads towards (that will change in the future). However, I am considering building one for credibility.  

My question: Is it worth building and perhaps paying for a website now for credibility to other investors, wholesalers, and prospective sellers I find even though I do not yet intend to use it for lead generation?

Thank you Shawn and Marcus for the clarifications.   That makes much more sense to me.  

I have been interested in some of the seller-financing/LO techniques but have not researched it yet. 

@Shawn Ackerman, That sounds like an excellent strategy. Are you able to give the buyers competitive rates or are you going above market rates since its a sellers market currently?  

Hello Harrison!. Im newer myself. Im also building a team. What I did was join the local REIA. They sent some welcome materials including some preferred and paid business listings. I called most of the contacts to speak with them. The benefit is you are talking with people who know they will be working with investors and perhaps have before. Otherwise, William has some great suggestions. I advocate calling and talking with them. I judge the company a lot by how they handle my call when I am a prospective client. There has been a few calls thus far where I ended the call early because it was too underwhelming.

I found it works best for me to write down all my questions early before the call.  Try to ask each firm the same questions so you can compare apples-to-apples with answers. When you get them on the phone, tell them you are a new investor.  Ive actually gotten some good references on these calls because they of their relationships and being honest with what your looking for. 

Shawn, excellent advice.  Thanks for sharing.  Are you still finding the ability to achieve a  2% rent ratio in Milwaukee?

Thanks!

@Calvin Ozanick, Im familiar with Rock County.  (Family in Edgerton) I would be interested to dive deeper into the area and learn more. Do you a resource for the meetup schedules?