All Forum Posts by: Joe Funari

@Frank James Batignani First identify the market you are going to invest in. Long term rentals are the way to go. But suggest you find a fellow investor/realtor in the market you are going to invest in. They will give you the contacts they have used for years to help them reach their real estate investment goals. Its amazing to me how many rookie investors want to reinvent the wheel. I would strongly consider the Dallas/Ft. Worth area in Texas. Landlord friendly state, as well as, constant job growth and low cost of ownership makes this area great for REI. Feel free to reach out to me if you want to learn more. But if you do go local where you live I recommend you attend local REI meetings. Networking with fellow investors and inexpensive REI education can't be beat from these meetings.

@Kay Nemen I would recommend you reach out to @Kyle Mccaw with McCaw Property Management. https://mccawpropertymanagement.com/ They manage all my rentals in the Dallas/Ft. Worth area for many years. I worked for a PM in high school and college years. So I know what to look for in a good PM. I would recommend you stay away from small independent PM's that manage less than 200 doors. Their maintenance people aren't very good based on my personal experience. Also, franchise PM's there always seem to be a disconnect and long delays in responses to questions or concerns. McCaw is a local company. Kyle is the owner and fellow investor/broker. State of Texas requires PM's to have a real estate license. So the good one's will typically have their brokerage license by now because of their many years of experience. @Russell Brazil is absolutely correct on not focusing on just rates. McCaw does perform annual inspections with full reports with photos on all the rentals the manage. This has been very helpful to me in managing my rentals. Also, you are blind copied in on all work orders tenants submit. So you can stay on top of the PM with regards to maintenance. Not all PM's offer this. Also, each year at renewal of leases McCaw sends current rent comps with recommendations for lease renewal fees. Treat your long term rentals like a business and you will succeed. Any further questions please let me know. 

@Hamp Lee III I haven't seen it here in Texas. But when I switched brokerages about two years ago I negotiated the agreement with my broker to ensure I was able to have another firm manage my rentals. But the agreement made it very clear I would not set up a PM because my brokerage has an existing PM arm. But everything is negotiable. But if your thinking about setting up a PM I would suggest you get your brokers license and set up your own brokerage. This would solve the problem. 

@Shawn Blake I would strongly suggest you have a title company arrange closing. Title is neutral in the transaction.They will ensure that seller not only does actually own the land. Bu equally important that the seller is current on their property taxes. Also, recommend you get an existing survey from the seller. If they don't have one have title order one. Also, get survey insurance from the title company too. They can explain in more detail coverages of this. But inexpensive and will mitigate your risk. Also, moving forward post the city and state your purchasing in so that you get fellow investors familiar with that area to give more targeted advise. I work in the Dallas/Ft. Worth area. But have been involved in plenty of land deals. 

@Rajagopalarao Paidi Andrew Postell is my recommended lender and fellow investor too. He is who I recommend to all my investor clients looking to purchase long term rentals using a BRRR strategy. I would also be happy to help you with that search too. I am a fellow investor/realtor working in the Dallas/Ft. Worth area. Hope this helps. Good luck on your REI journey too. BP is a great place to help with your REI education.

@Danny M. It is not uncommon for Realtor "Teams" to have a more senior member of the team to pass on leads to junior members. But this is more common with traditional owner occupant listings. I am a preferred realtor with BP. So when I speak to a potential client I do not pass them on to a team. The clients work directly with me thru the entire process. Regarding availability of a realtor your working with you need to set expectations up front as to when to communicate with them and typical response times. Every realtor is different regarding this. So manage expectations on communication. The fact if they were out of town and passed it to a colleague to help isn't a bad thing. Glass is half full in my opinion regarding this.

I would suggest moving forward post on BP the actual area your looking in when asking questions. That way you will get other investors working in that area to give you more specific advise. Its amazing how often I see new investors try in reinvent the wheel in setting up their Core 4, etc. A good investor/realtor, like myself, will gladly share my contacts with my clients that have made me a successful investor over many years. Hope this helps you in your search. 

@David Hill you can't go wrong with @Andrew Postell for a fellow investor/lender. He has been my go to for lending needs for investment properties for years. Thanks so much Andrew.

David, I have helped fellow  investors buy and sell in Ft. Worth for many years. I will help you get over the analysis paralysis. Look forward to helping you any way I can. 

@Joanna Mendoza make sure you get a landlord insurance policy for the property. Based on my experience here in Texas having a pool doubles your landlord coverage. Just too much risk if you ask me to have a pool. And really doesn't provide additional value in terms of rents. But suggest you get insurance quotes both with and without a pool, as well as, quotes to remove it properly as you suggest. That way you can make a calculated decision. But again in AZ pools may get you more rents. IMO, if you can remove it your mitigate your risk if a tenant (or tenants guest) drowns in your pool.

@Caroline Knight congrats on using a VA Guaranteed Loan to start your REI journey. I am a veteran and have used the VA Guarantee many times. Multifamily is definitely the way to go. If your looking to house hack I recommend you research the VA habitability requirements. A quick online search and you will find them. But to summarize these requirements think big ticket items, roof, electrical, and foundation. I am keeping it simple. But since your using the VA Guarantee suggest you find a realtor in Chicago that is a fellow investor. Also, one, like myself, that understands VA Guarantee requirements. A great local lender that specializes in VA Guarantee loans will be helpful too. Hope this helps in your REI journey.

@Muhammad Akhtar Shiekh I have helped fellow investors buy in Justin. Its located in the Northwest ISD. Which is very highly rated and desirable. I almost moved my family to this ISD a few years ago. But COVID happened. There is a lot of new construction there. So be warned. Most new construction builders won't sell to investors. But if Justin appeals to you I would consider Newark, TX and along the Highway 287 corridor. Most of this area is also in Northwest ISD. But property tax rates can be lower if you purchase properties in this area located in Wise County. Justin is located in Denton County. Thus, a higher tax rate. I will be happy to help you with your search. But hope this helps you get the ball rolling.