All Forum Posts by: James Hall

Thank you sir. That’s certainly good information that I didn’t realize. 

Hello all, I'm seeking help with implementing our business next goal. We already have 17 rental units and a good network of handymen. Along with our rental properties we also own a tax prep franchise. As such we have shifted much of our rental management side to our H&R Block office manager. After reading Managing Rental Properties by Brandon and Heather Turner, (which was a godsend by the way!!!) we have put together strong policies (including a full policy manual) and procedures for the office, paperwork, maintenance, etc...

So, after putting all of that together for our own properties, we thought about expanding. We have all the tools and resources we need to expand into outside property management. So, I am asking for any and all input and wisdom that we can get. Especially in pricing, contracts, and what we should and should not cover in the monthly cost. 

As you can tell, we are already crazy busy so we aren't desperate to build this quickly. We'd rather pace ourselves and make sure to do it right. 

Thanks in advance for any help you can offer!

Jim Hall

@Justin Klepfer Man I hate what you’re going through. Although I haven’t had that specific problem, I have been taken to the landlord woodshed way too many times. Basically for trying to be nice and understanding to dirtbags with a hard luck story. After loosing way too many thousands of dollars I knew I had to do things differently. All I can recommend is Brandon and Heather Turner’s book: Book on Managing Rental Property. What a godsend!! I honestly think It saved my company. I hIghly recommend It.

Here's a question. After reading Brandon and Heather Turner's great book on managing rental property we are working hard on setting our business up as they recommended. So, I contacted a tenant who has had a live in for about a year and told her that he needs to be added to the lease. Her response was that he doesn't really live there. He eats with them, visits, but only stays the night occasionally. I know that she's resisting because he's a convicted felon with a drug and burg history. 

So, what are my options? Can I force her to put him on the lease?

Kevin, Thank you so much for the input. That really helped me understand more. I appreciate you taking the time to educate me, and I'm sure many others. 

Thanks again!

Jim

Thank you for the help and insight. I know I still have much to learn but I am determined to learn all I can. 

Thanks again!

Has anyone else noticed that it seems that the people who have the least understanding of money, investing, and profit and loss are bankers???

Seriously though, we own 17 rental units; a five plex, a four plex and a house with 6 cabins on a single property in Eastern Washington. We also own a single family home in NC. The 16 units in Washington are all on owner finance notes at 7%. We also have a 50k note with a private investor at 9%. 

Our cash flow is actually great. Right now, despite the fact that several of the units are still far below market rental, our net income is around 3K per month. (not counting our Home Depot credit that is temporary and will be paid off in a few months). I approached Washington Federal and met with one of their loan supervisors who was giddy at the possibilities, yet a few days later she said they were giving us a no stating that the numbers didn't work. She said the properties are not profitable. 

The only possible way that they could claim that the properties are not profitable is to discount the fact that, in the 2 years we've owned them, we haven't taken a dime from the properties. We have sunk tens of thousands of dollars into upgrades and repairs to make the properties nicer. Yes, we still have a long way to go but they are lightyears better now than they were when we got them. I even made a 3 page list of unit by unit repairs and upgrades that have been done and gave it to the banker. We even had our real estate agent do a current market analysis and she believes the properties are worth 150k to 200k more now than when we bought them. 

So, my question: any ideas on a better banking/financing options?

All I can say is NO!!! It has never worked out well for me, ever...not once.