All Forum Posts by: Matt A.

I wouldn't be so hard-lined NO on that one. I have in fact paid more (not a lot, but some) and bought a FANTASTIC deal! Appraisals are nothing more than an opinion thats based upon either NOI (5+ unit commercial deals, not much opinion there but CAP rates play into what one thinks its worth), or comparable sales or 'like' properties in the general area (and somewhat recent too).

Couple times its been nothing but "Hooey" to me... couple years back I bought a duplex - by luck of the draw the seller got a HORRIBLE appraiser (and appraisal), I got one HELL of a deal! As it was low (and I always use an appraisal contingency) I was able to significantly lower my out of pocket and buy price. THe seller NEEDED to sell at almost any cost... hours from crunch-time I was ready to walk, so the agents put in a little commission and I ponied up a few thousand. Today this duplex nets me nearly 1500 per month! (and I "overpaid")

Last week I got another "okay" appraisal on a rehab project. While it didnt come out with tons of room for a complete cash-out refi, the relationship i've developed with my team (including my lender) allowed them to figure in the INCOME that my stuff produces.... THey allowed me to borrow more than the appraisal based on comps.

I use them as a sanity check.

If they sue your absolutely going to find out how comprehensive your liability coverage is!

Sounds a bit like a shakedown to me, but then again if I went for rabies vaccination and this was my cost you can bet Id be looking to get reimbursed.

@Mike R. - "some significant problems" has got to be the UNDERSTATEMENT of the year!

Really comes down to how big you are, and how fast your growing. Currently I use Cozy.co (I had used Erentpayment - got REAL lucky that I didn't get burned too) for a dozen units. As were growing much faster now I need more automation, so were evaluating several other management packages... all of which have electronic rent collection capabilities (and screening, etc.) If you looking for quick and easy rent collection Cozy has worked well for the last year. They are tad slower than erent, however its completely without cost to you or your tenant (unless they use a credit card). at 5 days... if you want to pay they will get your money in 3 business days.

I would seriously consider all the players out there - many could be built on the same "shifting sands" that erent is... and just haven't shifted yet. I was fortunate to spend some time a year ago with @Lucas Hall in Knoxville at a multifamily conference, and he addressed this topic for several hundred people very candidly. (I know there is a recording of it on the web... just cannot recollect exactly where though). If your smaller and looking at good & solid rent collection https://cozy.co might be the answer for you!

@Nathon Norberg - THere is/was a private Facebook group of folks that got together on this and may have found a lawyer to take the case (I believe its under "erentpayment discussion group").

I got very lucky and was able to have one tenant take alternative action, otherwise we didnt get beaten up with the debacle. I immediately switched to paper checks for a couple months till we found Cozy as well (interestingly I was in Knoxville shortly after the erent issue and met @Lucas Hall at Jake Stenziano & Gino Barbarro's investment weekend. He spent some time explaining the back-end and what made them different to a large crowd as well. (In full disclosure, Im NOT a ecommerce guy, rather a technologist - but I do know enough about the back-end systems to understand that erent had nothing in house... they were completely 3rd party vendors for everything and when one of those 3rd parties had an issue the entire house of cards collapsed)

Don't have any answers on your out-of-pocket loss other than condolences... Cozy (while more basic than erent) seems to be working well (and the price is right too... takes 5 business days though for "free" processing). We have grown significantly in our unit count so Im getting ready to look at a more robust service in the very near future myself. For 8 units cozy is great though.

Good luck

@Jocelyn Canfield, Ive been doing commercial paper with Embassy myself for awhile now... about to bring another one to them as well - albeit rates have crept up a tad lately.

What kind of terms are you looking for on commercial? I have done both 10 & 15 year fixed term on a 30yr amortization with embassy.... and only seen something longer once you get into large agency debt. In short, Im pretty happy with 10 years and when I can get 15 on commercial paper its a bonus!

@Steve Babiak - its been a few years since I was at DIG.... quite a number of years I guess. Thanks for the clarity.

@Ramsin Jacob - there are a few like you out there... If you have a list or contacts in my area, send them my way!

Ive got a decent agent at the moment - she really has taken the time to understand how we analyze and proceed through our process. (for example, its all numbers... if they dont work we dont proceed. Ive bought properties 'sight unseen' - once the offer is accepted THEN ill go and see it. Of course we have a couple of contingencies that will get us out if the place is beyond what we want, haven't pulled that rip-cord yet however!). She has 'templated' our standard offer criteria, I can get paperwork to a seller in 20 minutes! she has blank checks that we have signed - ernest money is a snap! She has honed in on what we want, where we want it, and our style. She's learned how we cash-flow a property, and what Im looking for in the 'hidden' numbers that arent listed.

Its been a bit of an education process but she has now closed a few with me - one in fact that went so fast her daughter was with her and simply asked, "mom, what just happened"?.... well honey, he just bought the house... and he WILL close in 2 weeks! "mom, didnt Matt just buy a house down the street last week"... yes honey, he did!

"Mom, you need a couple more people like Matt". 

Brought a tear to my eyes.... I see another budding investor once this kid grows up a little bit.

Read - read LOTS... this site is a good starting point. You might also look into the group "DIG" in the Philadelphia (Ft Washington if memory serves me) area.

The resources are all out there, I would suggest asking specific questions that let others know that you are at least looking to involve in a BRRR and aren't looking to shortcut one. Once you get through some of the materials, you'll find that the answer your question posted above is right in front of you. Here you'll find a community thats willing to steer you in the right direction... but you've got to take some action yourself.

Good luck & hope to hear back from you soon!

Im beginning to see similar behavior from my contractor - wants more upfront, I've called out a few "obviously shoddy" things and started to get the "well that's a change from the contract - I don't think so.

I've got a few recommendations from Home Depot - one guy in fact that has done a couple previous jobs for me (one complete rehab of a unit, then a smaller fix-up job, and I've got him on a two unit rehab right now. Im starting to see that he isn't managing his business worth a darn, is obviously understaffed and overloaded at the moment, and is taking a few serious shortcuts that I simply wont tolerate. We had a blowup yesterday when I called him out on unfinished work that's supposed to be turned over to my painters in two days! In his mind its done, but when things are obviously missing (like trim, insulation, even sections of floor) and he feels that's complete... yeah, Im starting to have a little agida! 

His frustration is now "Im done with you (meaning me) after this project is complete".... methinks this might be a two-way street assuming we part mutually adn the job is completed.

Not going to name andy names yet as it hopefully will rectify itself, but I will post pictures, and all supporting materials for the world to see if it doesn't.