All Forum Posts by: Joe Norman

 In addition to Nathan's great recommendations, I also suggest verifying that the PMC is licensed. Maryland is one of only a handful of states that does not require Property Managers to have a license from the Real Estate Commission, although it is optional.

Also, selfish plug, I am fully licensed and run Blue Door Residential Property Management and am happy to speak with you. Feel free to reach out.

A solid property management team (or maybe multiple PMs if your portfolio is large enough) is a must for out of state investing. Be sure to do your due diligence and make sure the PMC is licensed (if required, it's not in all states) and insured. Get references, confirm their systems and SOPS are in place. Do everything you can to make sure you're hiring a solid partner who will protect you and your investments.

I really dislike the idea of borrowing down payment money. If you have money saved up use that, and if you don't then save up.

I'd give the current PMC the benefit of the doubt and assume they are just trying to do this by the books as opposed to dragging their feet, but otherwise agree with @Theresa Harris. Tell the current PMC to transfer the SD to the new PMC, that way they have a record of handing it off to a licensee (assuming PMCs are required to be licensed in your state) and are covered in case of a Real Estate Commission inquiry. They in the new PMC wants you to hold it they can deal with you on that directly.

I'm wondering why your new PMC won't hold the deposit though, have you asked them?

In addition I would add to make sure the management company hires LICENSED property managers. This is most important in states where licensure is optional.

 Thats my advice. Save for a larger downpayment.

We start the eviction process on the first day Maryland allows us to, even with tenants who are communicating with us and have a payment plan in place. You never know whats going to happen and want to have that option and the warrant in your files in case you need to act on it.

Personally I think you're making a mountain out of a mole hill here. Let the tenant take a shot at repairing it. If they do a good job then great, no problems. If they do a sub-standard job then hire a professional to do it right and dock their security deposit.

Nothing has changed for FSBO. Sellers (represented or FSBO) were not previously required to pay a Buyer's Agent's commission and still are not with the new rules. Most did, and most still do, but it was never a requirement.

Every state is going to be a little different in terms of forms and procedures, but expect any buyer who is represented by an Agent to include a request for you to pay some or all of their agent's commission with their offer just like they would have prior to the NAR settlement.

In addition to some of the great advice above, I would put some serious work into your personal household budget and building up a substantial (6 month) emergency reserve fund. Income fluctuates tremendously in most 1099 real estate occupations (being a Realtor included) so having that put away will be vital to your comfort and peace of mind as you get started.

(1) figure out how your minimum monthly income needs (this may change as you move to a different city and get out of college life, so estimates are fine for now)

(2) cut out everything extra until you've put away 6 months reserves

(3) live way below your means so you have extra money to save and invest

Good luck and congratulations!