All Forum Posts by: Account Closed

@David Sisson There are so many different situations, it is impossible to cover them all. However, some specific examples would be:

1. Bathtub surround – install a single form fiberglass rather than flat wall plates with seams. Water leaks behind the seams, and the seams come apart.
2. Light fixtures – solid, rust proof metals (especially for moist areas such as bathrooms) rather than coated or plated (or plastic) fixtures.
3. Add an extra bracket or two (or three) for banisters and ensure that they are secured directly into the 2X4 framing behind the drywall
4. Ceramic tile in the kitchen (not linoleum) and ensure the subfloor is properly installed (otherwise you have cracking of the tile)
5. Do NOT use low flush toilets (the rate of clogs significantly increases) you need the water to move the particulate through the pipes.
6. Use semi-gloss paint, never flat and use muted, off-white colors that do not fade so patching, rather than painting entire areas can be done.

These are some basic steps that can be easily identified. However, in each circumstance, you must consider the material that you use as well as the complexity of the project. Keeping things simple and solid is the key.

@Matt R. I work very closely with my attorney. 

@Paul T. In all of the projects I look at, virtually no one sets aside sufficient funds for capital expenditures. Renting in low end areas means you must purchase at low end prices. In addition, careful consideration must be taken on what types of materials are used in making improvements. You cannot afford high end materials for low end rentals. However, you also do not want to purchase substandard materials. I like the phrase “takes a licking and keeps on ticking” (from Timex commercials). Use of sturdy materials (although not necessarily the most aesthetic) generally works better than spending on lower quality materials which look nicer. No matter what, you need to balance expenses against expected income.

@Jay Hinrichs @Ndy Onyido If a tenant wishes to lease from me, they must have their employer deduct rent. Employers already offer to perform deductions for their employees' paychecks for a variety of reasons: debts, taxes, child support, medical etc. On the employers end, rent has never been an issue. 

@Odie Ayaga I am glad to have joined this forum, and I will look forward to seeing your story as well.  P.S. Thank you for catching the typo :)

@John Warren I do manage all of my properties. 

I grew up in New Jersey and bought my first property at 18. I didn’t really understand how real estate transactions worked, so I went to the court house and watched several transactions occur. As time passed, I found my first property that was going into foreclosure. I contacted the owner and purchased the property using a quick claim deed. I resold the property before the bank foreclosed on it.

I bought my first rental property in the 90s. I made the purchase in Baltimore. This was my introduction into low-end properties. This is where I realized how large the opportunity and returns were for low-end rentals. Many people do not want to deal with the headache or know how to deal with the headache of managing a property in rougher neighborhoods, so they let these properties go for incredibly low prices. Row houses, in Baltimore, are generally priced at less than $30,000 a piece, but this of course can change across various neighborhoods and blocks. Rents will generally range from $800 - $1,300 a month.

Many people do not want to go into these rougher neighborhoods, but I felt no problem. I have never been assaulted, attacked or even approached while working in rougher neighborhoods.

The most common issues that come with managing properties in rough neighborhoods is that tenants do not want to pay rent. But there are of course solutions to that. When dealing with a prospective tenant, I usually perform an in depth background check and collect copies of IDs/social security cards. If the tenant is employed, I make sure that their employer gets involved. I have the employer and the tenant make an agreement with me that for as long as the tenant works for that company, they will deduct their rent from their paycheck and pay that directly to me. This way, I do not have to chase anyone down for rent.

Working in lower-end rentals require owners/property managers to be more hands on. I speak with my tenants multiple times a month. My tenants typically do not know about HVAC systems or how to make minor repairs, so I have no problem going out and taking care of the issues. Some owners refuse to do any sort of maintenance for delinquent tenants, but I believe this is wrong. Whether or not you are behind on rent, if you have an issue, we will come in and address it. My tenants also change their numbers frequently. I do not know why that is common, but you need to adjust and make sure you are in communication with them, no matter the circumstance.

To those looking to get into real estate, I say to do your research and do not take risks that you cannot afford. Working in the lower-end can lead good returns, but there is no point of taking risks if your credit and finances are not where it should be. An alternative to those who lack money, or good credit, I would recommend you join a partnership. Because I have a strong balance sheet, I typically take all the risks with my partnerships. My partners are set as limited partners, meaning that their liability is solely based on what they put in. The benefit to me taking all the risk is that I will take 10% of the top in addition to the returns I get from what I put into the partnership.

In my career I have owned and managed over 100 properties.

I wish everyone good luck who choose to dive into real estate! The journey may be long and tough, but it is worth it. Feel free to contact me with any questions, I am open to help. 

Hello everyone,

I have worked in real estate and finance for over 30 years. I worked for J.P Morgan Chase Bank and Monarch Bank before starting my own property management, brokerage and investment firm.  I want to start an online show where I can answer questions live and discuss various real estate and finance topics. I get so many daily questions that I think its best to share the answers online.

My questions to you all are, what platform do you believe is better to host the show? Youtube, facebook, instagram live, podcast, etc.

What topics would you like to hear?

Please provide me your feedback, whether positive or negative. Let me know your thoughts or if you have further questions.

@Jeff Kehl Unfortunately, I am not in the Virginia market. I focus on the District of Columbia and the Maryland suburbs. I do not want to give you an answer that is not backed by my own experiences. If you have interest in the D.C., Montgomery and Prince Georges County markets, I can provide you with an answer. 

@Tyler Kastelberg My biggest pain point in the business is finding quality workers. Contractors tend to start a relationship on a high note with reasonable prices and quick responses. However, once the relationship develops, the mentality changes and prices go up and responsiveness declines. I find that I must regularly rotate contractors to maintain quality work at reasonable prices.