All Forum Posts by: Jim Thomas

@Jonathan Marsh 1. Confirm the rent roll - make sure the existing tenants have leases that dont expire soon 2. Inspect the condition - get access to each unit to make a list of potential interior repairs 3. How old are the HVAC units and water heaters? 4. Does the roof need to be replaced? 5. What is the crime rate in the neighborhood (trulia)? 6. Are adjacent properties boarded up? 7. What have been the repair expenses, capex and utilities over past year? 8. How much is insurance and taxes? 9. What has been the eviction rate and costs over past year?

@Stephen Thomas Buy materials you know you will need for your properties next year. IE: HVAC units, water heaters, flooring, light and plumbing fixtures, and a storage shed. Don't store paint in an unconditioned space though.

@April Robbins Depends on your opportunities. If you can make more on a new deal than it costs for your credit card interest, definitely do the deal. Let the math decide.

I have heard multiple complaints from clients of Property Managers that are not happy with their cash-flow (or lack there-of). That is the same as complaining about their stockbroker making commissions even though their stock has no upside. It's not their fault that you chose the most expensive option for managing your assets. Sure, in the competitive space of property management their commissions have gone down, but when you choose a full-service option for managing your property, you pay full-service pricing.

What are the most difficult aspects of property management that keep most owners from managing themselves?

1. Marketing - Posting ads on the web, receiving applications, answering questions about the property, doing background and credit checks, drafting a lease, receiving application fees and reservation deposits. Yes, that alone seems like a lot of work and if not set up correctly could be a huge amount of work. Most property management companies charge the owner an average of one month's rent to perform this process plus they keep the application fees which can be an additional couple hundred dollars per property.

2. Managing Money - A reputable property management company is astute at managing the owner's funds in their trust/escrow accounts. They distribute remaining funds each month to the owner after paying expenses and holding a reserve amount. They provide financial reports as needed by the owner for their accountant and for their own edification. The owner has no access to these bank accounts.

3. Maintenance Requests - 25% to 50% of a portfolio may have maintenance and repair requests each month. Large, institutional property owners of rental properties assume an average of $300 - $400 per month as a budget for repairs and CapEx for each property. That budget alone could kill the cash flow of many property owners and if you have a property manager that is intending to profit from maintenance and repairs, cash flow has a 50/50 chance of happening each month.

Most property management companies have figured out how to automate the process of the 3 aspects above, why can't you? The property managers are not trying to steal from you, they are providing a full-service operation. That is their business model and you can often say, "you get what you pay for". BUT, as the property owner, it is your responsibility to make sure the property cash-flows. Make sure you can afford a property manager before choosing a full-service option. OR, self-manage with an automated process that we set up for you. Contact me to discuss this alternative option.

SELF-MANAGE - DON'T HIRE A PROPERTY MANAGER!!

We are a group of tech-savvy managers, contractors, lawyers, and an architect. Our collective experience helps real estate investors find money-makers, spend rehab funds wisely, find worthy renters, and manage the processes involved with tenants: document signing, bookkeeping, work order requests, online payments, lease disputes, evictions, repairs, inspections, Section 8 tasks, and all other Landlord assistance. Each property owner can maintain a hands-off relationship with their properties in the Atlanta market while watching its activities online in their portal. Nothing happens without your ability to see and approve.

We analyze wholesale acquisition opportunities before you buy, then we help you allocate funds toward the most cost-effective repairs before marketing the property. This process is a Landlord Assistance program, not a Property Management structure. That means the cost is far less than a Property Manager. We help you self-manage while accomplishing the efficiencies of hands-off management from a distance.

If you are interested in owning properties in the vibrant Atlanta market and need assistance with the entire process, send me a message and let's discuss how we can help. Don't hire a Property Manager before contacting us. We are the less-costly alternative to a Property Manager. 

@Brook Rieman Cash for keys. Make him an offer to leave. Or let him know you need to inspect and see if you can find anyting in the unit that causes him to be in breach of his agreement. For example, if he has caused damage then you immediately charge him for it. If he doesn't pay in that is the same as not paying rent and you can probably evict, depending on the local law. Or you can cope that he is a changed person and see if he may be the best renter in that property. Let the math decide, not your emotion.

@Matt Michaelson decide for yourself how much it will take to give him another chance . If he does not come up with that amount, then the math makes the decision. Always let the math decide not your emotion.

@Manny Martinez Sell it Manny!

@Kevin Drouillard The answer is probably nothing. You signed a management agreement where your manager is responsible for marketing. If they won't even answer the phone, you need to immediately give them 30 days notice that they are fired. If you want to self manage, there are ways to handle marketing so that your phone is not blowing up. Let me know if you want more input on how to accomplish that.

@Kristian A moreno Put your cash to work in deals that are safe use the cash for earnest money to put properties under control with a 30-day due diligence structure where your money gets refunded if you can't find find someone to assign the deal to. If you find someone they will pay you in assignment fee on top of reimbursing your earnest money. That is the best way to double your cash every month