All Forum Posts by: Kristian Sexton

@Tanya Maslach Does your lease agreement speak to this? I know our lease agreement specifically states that if a tenant reports a maintenance issue that ends up not being an issue at all it's the tenant's responsibility. 

@Monish Anand My top recommendation is to begin by contacting property management companies in each target area. It's important to vet these companies thoroughly. Most property management companies are licensed realtors with extensive experience working with investors and providing valuable insights into their local market. In my experience, allowing these professionals to guide you can be highly beneficial, as they are likely to recommend properties they would be comfortable managing. Since they are responsible for maintaining the relationship with you after the transaction closes, this approach adds an extra layer of confidence and security to your investment.

Hi @Fredrick C. Oesterle! We assign a point system to our applicants. If I had two applications they would both know that I had two. I would also let them know they are ranked on a point system based on our application criteria. Take the emotion out of it, and just base the two applications off of facts and your requirements. 

@Iliana Herrman while your local market may feel safer there are also markets that will withstand market downturns and appreciate. Your first invesment may need to be trusted out of state. There are definitely markets that allow Class A properties, and still cash flow! I'd love to chat. 

Hi @Elijah Quinones! Find yourself a good mentor. Before you build a pipeline you have to get your experience in sales conversion and knowing how to find the right product for any client you may encounter. 

I would say your first year is just for drinking from the fire hose, even if it means taking a larger split and not earning as much commission. It's worth it. 

I'm happy for you. Real Estate is rewarding, and challenging. Hang in there. 

@Emily Mohr We use a form called Notice of Adverse Action. It is a legal form that allows you to select what criteria they did not meet on the application and what background software we use. Sometimes a simple denial causes more questions in my opinion. 

@Nitesh Chand Does your lease agreement with these tenants include verbiage for if you sell? I know our lease agreement does. I would reach out to the Property Management Company because their portfolio of properties includes the investors that own the properties. We sell with tenants in place all of the time. It makes it much easier to entice an investor if it's already got a guaranteed tenant in place. Does that make sense?

Hey @Richard Bautista there are a couple of things to consider here. Where did you find this agent? Did you give her a price limit? 

What doesn't sound to good to be true: 

-A team behind her: I myself sell to investors and run a Property Management Division for y company. This is a huge selling point to a lot of my out of state investors. We also have pocket listings like the one she is mentioning but I would ask to see some comparables to make sure the price she's asking is what it's actually worth. Chances are she's double siding this deal. 

What I would do: 

1. Ask for references from past clients

2. Obtain her company information: 

-Name so that you can review google reviews 

-How many Properties they manage: I would want to know what their portfolio looks like. 

-A copy of the Property Management Agreement and Lease Agreement. 

3. Fly out to see the property in person: I never discourage first time investors to come out to see the area they are investing in. 

I'd love to chat more about this in depth if you want to direct message me. 

Speaking from a PM perspective if you were going through an eviction process they probably assumed that the tenant would just leave the property. 

In Alabama the utilities being turned off is a sign of abandonment so we would not have put it in our name. We typically make calls every couple of days to see if the utilities have been cut off. This method is a little riskier and requires more work from the Property Manager. 

I would assume your Property Manager was trying to protect the property from any damage or lapse in utility services so I not think they were at fault here. 

@Brady Ascheman 

To make the decision strictly from a Property Management standpoint you have to calculate your vacancy cost and cost to acquire a new tenant to know if a rental increase is even a smart play. April is a safe month to "play the market" if you will, because the market starts picking up as a whole then but, a good reliable tenant to me always seems better than making a few hundred more a month. Have you thought about meeting it in the middle and just raising it $50.00, so $900.00 a month? This would allow her to feel more comfortable with the increase, and to still meet the 3x rent requirement. 

Another thing to consider is are you basing the 3x rent on her initial application? When tenant's get raises or switch jobs we don't always know. So you could also approach it from that angle.