All Forum Posts by: Jon Kelly

@Samuel Nyu I would find a property manager ASAP because it appears you may not be ready or capable of being a landlord. 

@James Sloan who cares? Are you basing your goals / decisions off of what other people are saying? If one person says they have 20 doors and another says 1,000 will you change your business plan accordingly? 

The real answer is: most people will include all doors they are associated with whether they own 100% or 5%. It's about bragging rights, attention and promotion. Would you rather listen to someone with 20 doors or 1,000? Probably 1,000. 

@Jacob Laginess what's the 25% fee for? what justification do they have for charging it? 25% seems egregious on top of the fact it's not in your PM agreement. 

You never want to be quick to drop someone (agent, PM, accountant, etc.), but I would at least interview 2-3 other PM companies to have them on standby. 

Why'd you get the book in the first place? Which step are you having trouble with? 

1. Buy - find a property, make an offer and close on it

2. Rehab - fix it up 

3. Rent - place a tenant

4. Refinance - go to a bank and take out a loan 

5. Repeat - see step 1

@Pouya Banki difficult to say what's "standard" without considering PM compensation. Are you paying your PM 5% or 10% of rents collected? If 5% then I wouldn't expect the level of service you're requesting. If 10% I would expect close to the level of service you're requesting. 

This is a relationship business, just like most things. If I were you on this size project I would've asked for multiple bids and their recommendation based on prior experience. Hopefully you hired the PM due to their experience with tenants and connections to trades people. Their recommendation is valuable to you and they should be able to provide it. 

Asking the PM to fill out a spreadsheet you created was likely a turnoff. You can do that on your own time if you want that level of detail. 

@Hugh Thompson I don't have personal experience with them, but I believe they provide B2B financing. I don't think they lend against real estate, but they provide business purpose loans... 

Why would anyone ever pay money up front for a loan? The only money you should be spending with a lender before closing is the appraisal fee. If anyone asks for origination, "underwriting", "processing", or other fees ahead of closing then run away. 

What do you need financing for? I'm a lender. 

@Prashanth Suresh do you know how quickly you can find out this information? Maybe 2 minutes??? 

Use Zillow or other MLS sites and look for recently sold homes and houses for rent.

@Ivan May it depends on the lender you're working with. Most lenders will have a list of approved appraisers or Appraisal Management Companies (AMCs) they can order from. You should reach out to your account rep at the lender to discuss appraisal fees and opportunities to reduce the price. 

$1,025 is very high for a single family property... $700 is more in line with market... 

Reach out to me on your next deal :) 

@Nick Kenrick I'm offended by your post. Have you even been in a position in life you've had to rent? Some of us didn't always have an option to buy a house right away or live comfortably with mommy and daddy until we had enough money. 

I'm thankful for the landlords that provided me an opportunity to rent a property.

(edit: I reread the original post 5 times. I'm still not sure if the original post was real or if he's trolling all investors)

@Cole Baker speaking as an investor and a lender it's just like any relationship: add value. Make it worth the lender's time to work for you and advocate on your behalf. I like to ask myself, how does my account rep get paid? By closing loans. They don't get paid to chat, send quotes, or educate investors. They get paid to close loans. With that in mind, I suggest the following: 

1. Be open and honest - tell the lender your goals. What type of properties, location, price, etc. do you plan to invest in. How many properties in year 1? How many properties by year 3 or 5? This will help the lender guide you into the correct products. It will also determine how much time they devote to you

2. Communicate - if a lender sends you a quote provide feedback. Even if your deal fell through tell the lender so they know they didn't waste their time. Tell your lender if you think it's a strong or weak offer 

3. Pay your bills - the quickest way to make a lender unhappy is to miss your payments :)