All Forum Posts by: Matt Nico

Lokesh,

I would go with a partner who invests in Tampa. You be the money guy and he is the boots on the ground guy. If that person has a great agent (Or is one), you should be able to find a deal pretty quick. And your partner would be invested in the deal with you. More incentive to get a good one.

Hope this helps,

-Matt 

 I think it might be easier than you think if you explore the forum for a while and get to know some people. I'm sure you can link up with someone who just needs capital if that's what you want to bring to the table. If you need help finding a deal, I would suggest picking a few markets in particular and then going to that local real estate forum and browsing around. I am in the Orlando FL one a lot because that's where I live and invest.

-Matt

Hey Deepak,

I actually just responded to a forum post similar to this so I will respond to this one in a similar way....

Since you only have 1 investment property, I would say that you are a bit newer to the real estate game. If I were you, instead of trying to find a turnkey provider, why not try to find a partner? $150k-$200k will go a Loooooooong way in almost any other market than the bay area. In my area in Florida in particular, that could get you 3 very nice cash flowing rentals with some appreciation upside.

I would definitely consider a turnkey provider, but I would also look for someone more experienced than you and partner up. You provide the money, and the partner could specialize in bringing the deal and being the boots on the ground person. Not to mention the knowledge you stand to gain.

Hope this helps.

Happy Housing,

-Matt

 Hey Derek,

I would recommend a good CPA. Depending on what state you are in the CPA can take care of setting up a corporation for you.

I'm not sure if you even need an LLC this early in the game to be honest with you though. I would just put the property in the 3 of your names and get going. Worry about the paperwork after you pull the trigger.

Hey Sanjida,

Just a thought, but if you are a first time investor, I would consider partnering with someone who has experience with the boots on the ground part of the business in their particular area rather than go with a turn key provider. 

I'm sure some turnkey companies are fine and the property will cash flow, but the person who cares the most about the property is the person that owns it. If you co-own with a partner and they manage and find the deal and you bring the down payment, it could be a match made in heaven and they are just as invested as you.

I give you this advice because I am in a similar situation.

Happy Housing,

-Matt

 Hi Stella,

I actually had the same exact problem with being self employed after leaving my W-2 job. Here is how I overcame that:

I would look for a seller financing deal. I was 100% up front with the seller from the beginning and explained to him that because I am self employed, I couldn't get a loan right away. In your situation, I would offer a few thousand over the purchase price + Interest if he carries the mortgage for a short time.

I ended up doing a short-term seller financing deal where he carries the mortgage for up to 18 months. This lets me get into the house with a cheap down payment and do my rehab. Once the properties rehab is finished I'm going to be looking to refinance instead of a purchase. Banks are more willing to work with you on a refi than a new home purchase, and I have pumped up the value of the house already.

I hope this helps,

Matt

@Blake Mitchell

Couldn’t agree with you more. Love where your head is at.

My leases say “1 person per room” specifically for the girlfriend / boyfriend situation you described. I had that happen to me years ago and made the change.

I also have a parking plan and assigned spots in 1 property i have where the parking is tighter.

I give an 8 page lease with every common sense thing. “Common Sense” is totally different to young college kids.

-Matt

I love that allowance for the electric too. I might actually try that out myself.

Alec, I use a nest thermostat on my houses. The tenants vote on what they want the AC to be at and I set it, and then lock it. It lets you look at the AC usage and all that on your phone too which is cool. 

 

@Alec Hilliard

Love the strategy Alec. I have 3 houses right now that I rent by the room. I bought all of them as a 5-bedroom and turned them into 6 bedrooms. I manage them all and here is what I can tell you about renting by the room:

1. I keep all my tenants on separate leases. It creates too many problems when 1 person cant pay. No need to get any other of the roommates involved. Literally the first line of my lease says "You are renting a room".

2. Make sure tenants clean. I have it set up where I split house chores into 6 pieces (for the 6 bedrooms). Each tenant is responsible for 1 job only. So 1 person is in charge of the trash. One is in charge of the fridge. You get the point. This way, if 1 part of the house is messy you just look who's job is it to clean that area. It avoids the whole pointing fingers crap.

3. ****Please for gods sake dont worry about what their credit score is.******

Think back to when you were 18 and leaving for college.....Did you or any of your friends even know what a credit score is, let alone know how it works? Young people have no or bad credit...Its mostly nobody's fault. Nobody in school taught them how to have good credit. It is your job to sit down every tenant you have and go over the lease. Make sure that they understand that you are the landlord and you expect payment every month. Not paying will result in an eviction.

              ^----Also what I just said above about not worrying about a credit score.....I probably will get a lot of negative feedback on this subject. For 99% of people, they rent an entire house out. Its important to understand the demographic of people that you are renting to....New adults just getting started in the real world. Your strategy of doing a cash-flow value add is amazing and incredibly smart. Dont let group think of "You have to have tenants with good credit" deter you.

If you need any help or guidance, feel free to PM me. I have a lot of experience in this.

Happy Housing,

Matt

Hey Dubeaux,

Cool topic.

I wake up at 7:45 am. I do calls and emails until around 10 or so. Then I go to my property and work on it all day until around 7pm. Then I come home and eat dinner and spend time with my wife, and then I go to bed around 11. 

Work is tough in the beginning. Its hard managing your own rentals until you get to the point where you can pay someone to do it for you. For myself personally I am doing the rehab as well so its extra time-comsuming.

-Matt