All Forum Posts by: Account Closed

Hi Charlie Lehoux It sounds like you, Axel Ragnarsson , and I are all in similar positions - I’m 26 living in Dover and have been in real estate since graduating. What both the previous posters said is on point, your decision making on properties has to match the goals you have laid out. For instance, My first purchase was a duplex in a nice neighborhood of Dover at foreclosure; now that it is newly refurbished and fully rented, it’s a great asset, but selling at current numbers may not be enough of a return to warrant it (I perhaps over renovated) However, positioning it for a longer term hold is very suitable because of its great cashflow. If you wouldn’t mind sharing, what are your goals with regards to real estate? If I can ever be of assistance please do no hesitate to reach out. Best, Jon

Phil McAlister Jay Hinrichs A question for the two of you: property management. Everyone wants to syndicate but few seem to truly know how to manage property. I’m laser focused on being an exceptional property manager (whether I hire a PM or not), do you think that’s the right move? My instinct tells me to truly learn everything there is to know managing properties. Most notably pride of ownership, reducing expenses, proper budgeting, seamless tenant relationships, debt management, and overall running a professional business of real estate investing? As one of those young aspirants looking to syndicate in the future, I would admit I think it’s a poor time to start syndicating. Much more focused on building my own experience with my own resources... which will become the reason investors will want to work with me.

@Alex Corral Are you happy how your strategy has panned out? 

Very interesting topic. I'm currently implementing a portfolio line of credit on several properties and using it essentially how you guys are... buy in cash, stabilize, refinance out... If I can't refinance under good terms, I can term out the line of credit and simply focus on paying that off quickly. 

In theory it sounds so easy to do a little rent raise, sub-meter expenses out, simply renovations, and go back to the bank with a brand new income statement... but perhaps it isn't enough to instigate a refinance, then you're stuck with all your "deployable capital" in one property.

@Matthew Rayl

I haven't tried to change servicers actually. Admittedly, this was a bit of a rant - mostly around their online platform... which in the past few days I received an e-mail that they are re-vamping the website to be more user friendly. We'll see... I've considered just paying it off so I don't have to deal with them but the rate and terms are better than anything else I could originate right now.

Jon

I dress the way my clients do. If it’s contractors I’m in my work clothes. Tenants? Usually a simple blue jean and polo sort of look. My lender? I put on my dark gray or navy suit. If it’s an older lender I go with the paisley tie specifically.

Cameron Knight I must’ve missed your tag somehow. I would’ve responded earlier otherwise! I like the BRRR strategy, especially for our area - you can get a lower price, renovate and take your time, and learn the construction of how your properties are built. Not much scares me after my first property, a foreclosure. With regards to the refinance, if it’s a 4 unit or less, I would go 30yr fixed rate. I did say the commercial side is a nice transition to running things like a business but the predictability of a 30yr mortgage fixed rate is very comforting long term.

Blair Poelman Nathan G. Nathan, I’m glad you’re having better luck than I am with pet owners! I’ve had several tenants who are clean cut working professionals making six figures who don’t take care of their pets. Most paid on time as well and were very friendly, yet they didn’t take care of their pets well! I also have bad memories from cleaning apartments with my dad when I was a kid and dealing with some of the awful tenant turnovers with pets. Albeit, it was a less desirable area, so in some ways to be expected. I do find that tenants with pets stay longer though. I’m happy to see various opinions and experiences, healthy dialogue for the OP. Jon

I can say from experience that very very few tenants truly take care of their dogs well and you will likely have some damage or adverse affect to deal with from it. Even small hypoallergenic dogs. Given that, charge monthly pet rent (in NH we cannot charge a pet deposit order but can monthly pet rent is allowed, check your state). Do quarterly inspections to prevent damage from persisting. Animals will just about always cause problems. It’s frustrating because I love dogs too... except I walk mine 3 times a day, many dogs are cooped up in doors all day and it’s awful.

I like what Bjorn Ahlblad said. Flat roofs are great if the rest of the property is great - it’s not the roof but whether the owner is taking care of it and staying on top of inspections, maintenance, snow clearance etc. I’ve never heard of a lender changing terms over a roof pitch.

I’m amazed at how often these creeps are brought up and this Morris Invest malarkey. I would certainly support Lane Kawaoka turnkey criteria - it is spot on to the properties I have and they have been success stories.