All Forum Posts by: Dani Beit-Or

You get a mortgage where the event you get the best terms. A mortgage is about terms not about the state. 

The lender must be lics. in AZ or any other state to funds the purchase. 

BTW, why AZ? 

Why not keep the current tenant?

If rent is around market value, there's a signed lease and security deposit, and as much as you can tell there are no issues w/ current tenant why not keep'em?

And if the situation is the opposite . . . don't keep'em.

BTW, if the tenant has a valid lease most likely you can't just ask them to live if they are holding their end of the lease. 

Here's my take/suggestions:

You live in an excellent metro - PHX many things will work in your favor if you buy locally.

Also, I rather invest in St. Louis before Chicago.

Why not Chicago? 

VERY high property taxes

Tenant friendly laws

+cold weather work against you when selling/leasing . . . 

I know the #s in PHX had gotten less attractive BUT there are so many reasons why to stay local vs going to Chicago!!!

Just expressing my persoanl opnion. 

IMO before asking "where" ask yourself some other questions. 

Important Questions You Should Be Asking Yourself (before investing):

1.How much funds do I have?

2.What’s the source of the funds?

3.Do I have money in my rainy-day fund?

4.How free/busy am I and do I want to be actively or passively involved?

5.Can I get a loan?

6.What am I trying to accomplish?

7.What are my concerns:

•Vacancy, mortgage, will it go up or down, will it rent, can I trust the property manager

8.Do I know how to analyze a deal?

9.Do I understand the risks that are involved?

10.Do I have exit strategy/ies?

11.Have I set my investment criteria (baseline)?

12.Am I a doer?

Will I be able to pull the trigger when the time is right?

I personally have invested in more than 45 US metros in the past 18 years. And you can find different types of opportunities in almost any metro. 

But I can tell you few things:

I love PHX, invested there 2002-2008, 2010-2013. then stopped because I could get higher rent for the same price. Is it a bad market? not at all. Can you get better rents/cashflow these days? for sure. Again I LOVE metro PHX

Another example: I have been active in metro OKC since 2005. Stopped investing there in 2016. Why? not a bad market but it had pretty much-done nothing (or VERY little/much less than other metros during the same times) in 15 years price-wise. Bad metro? not at all! Can you do better? no guarantees but probably. 

But it all comes done to what type of properties you are looking for and other factors. 

There are opps in every metro, OKC and PHX included. 

WOW, so many aspects a basic 101 manage the PM, and calibrating expectation is required!

But . . . 

Let's start that there is no such thing as perfect PM. 

A good PM is not a PM, it is a system. 

It sounds like maybe this PM is not perfect or a good match OR is not operating efficiently (common practice w/ PM).

First, you need to see if your PM is up for the task to begin with, ie would you hire him today if he was not your PM?

1. Is he a one-man show or a team?

2. How many properties does he manage?

3. What type of properties does he manage? what type are his core one?

When I interview a PM it is a 50 questions survey + 1.5-hour phone interview just to make sure he is a good potential. I may interview/speak to 5-6 companies, ie 10+ hours, before choosing one (when I spend that time it is because I'll eventually have more than 100 houses w/ this company.)  

4. You need to calibrate your own expectations and his. 

5. Getting worked up over $200 is a symptom - as it probably shows the mistrust or lack of confidence you have in that person.  

If you have the attitude of the "PM is me when I'm not there" - you are off - that's NEVER going to happen.

Your attitude needs to be: supervise the PM but not micromanage him.

I suggest you find a course or a system that can help you as it sounds like if you continue on this path you will end up w/ the same result. 

All the best. 

LLC forming is a very common question.

Like many of my friends, I agree that it is best to speak to an att. first to make sure you need one. 

BUT I also want to encourage you to think about LLC w/more open eyes.

I have been investing in RE for 18 years. 

In the first 8ish years I kept hearing about LLCs, and must have LLC, and how I should not operate w/o an LLC. Mainly this info was promoted by attornies and such services that plant fear and sell an LLC related product/service.

10+ years ago I started looking at this concept a bit differently. 

Now I ask myself before making a decision:

1. What are the reasons I should consider LLC, e.x. asset protection, taxes, other.

2. What specifically are the risks/exposures I have in my investment.  And can I mitigate these risks differently? 
Fliping has different risks than owning a nice middle-class rental and are diff. from a running an AirBnb, etc.

In my humble opinion, I believe that we, the community of investors, have elevated the LLC onto a pedestal as if this is the best thing in life.

LLC fits very well with some scenarios but not all.

Note: I'm not an attorney, this is not a legal/tax advice. I just want to make whoever reads this think.

I'd say build yourself a baseline criteria what you would consider a good investment, should include something like:

1. Min. beds
2. Min. bath
3. Min. age
   
4. Min Sq Ft
5. Price range
6. Rent
7. Garage/s
   
8. Min. ROI
9. Min. cashflow

This will help you ID acceptable/unacceptable and great proeprties. 

This means you will quickly know if a specific on the worth your time checking or should you move on.

It will also help you focus on the right ones.

I fully agree with @Arsen Atanasovski 

@Joe Prenger I used Nick Baldo from Income Digs (look him up).

He's very experienced w/ RE and Podio, very methodical and systematic and delivers!

@Account Closed

I'll start by saying that no-money-down and 4% rate is very good terms . . . for him.

Based on the past experience (+possible emotional involvement) I think the best course of action for you is to speak to an attorney and raise w/ the attorney all your possible concerns.

This will also make sure you don't miss anything important that will possibly come to bite you and all under relevant CA laws. 

I don't think a forum like this or not using a proper legal expert is smart.  

I wish I could give you a better and more concrete advice.