All Forum Posts by: Michael D.

Unfortunately not, in a couple of ways:
- The guy you referred me to didn't respond to my email, but I haven't tried calling yet (so not his fault yet either).
- The listing agent doesn't seem to be the least bit interested in getting my offer on the place, and I can't figure out why. I've behaved like a retail investment buyer, and she would double-end it. Maybe she's running out of room in her wallet.
- I haven't had time to do a better job myself, by calling your contractor buddy or trying to find somebody else to make the offer for me.

Good sales people make a lot more money than you could hope to make in real estate for quite a while - if ever. The reason to get into real estate is that once you have the income stream no one can take it from you and you're not trading time for money the way you do with a job. Try growing your sales career while you learn RE on the side. Don't let inertia keep you in a job that's not working out. Try looking passively for another sales gig, particularly one that gets you out in front of business customers.

Follow up:

- Is it legal for a bird-dog to simply sell leads for a fixed price, and without any contingency on closing?
- Is it legal for a bird-dog to accept a percentage fee when a transaction closes?
- Is it legal for a bird-dog to assign a contract for a fee?

I think we're all suffering from a failure to properly define what bird dogging is.

Can we start from that point? Otherwise we can't hope to have any kind of agreement or constructive argument.

Other things to consider:
- What specific things are only legal for brokers that bird-dogs sometimes try to do?
- What are some things bird dogs do that we can all agree are legal?

It's going to be hard to find a [regular] lender willing to provide a loan that small, or to value the property any higher.

Just to call out succinctly what Steve just said:

Taxes and Insurance should be on the EXPENSES side and figured into the NOI - not lumped in with your debt payments.

Now you're talking! I hope it works out.

Evictions are going to happen occasionally, even with proper screening. You can make any arrangements you want regarding application review and the screening process. I let my manager handle all that for me though.

I don't see the point of changing PMs for just the houses that have had evictions. Either the manager is doing a good job or not. If so, then let them do it. If not find and new one for all your houses.

If you don't think the property manager is doing their screening well enough, then you should ask them to change what you don't like or find a new manager.

Remember that the PM might be intentionally choosing a little more risk, rather than letting the property sit vacant longer. If you'd rather shift the equation to longer vacancy with lower risk, then maybe the PM will do that for you.

Thanks Uwe. Would you mind sending over his contact information?

That doesn't mean you can't use leverage. You could invest all $1.2 Million into $5-6M worth of real estate - and it doesn't (even shouldn't) be all in one property.

A lot of people on this forum are buying heavily discounted real estate from individuals who thought they could get a better cap rate by self managing. Don't use the little guy either - he's not invested in the job and won't do a good one. You'll be the one who's really doing the work.

Try to find a full service manager with 100+ units. Be willing to pay a higher percentage of rent (8-10%), but MUCH MUCH less on repair surcharges and other fees. Zero is common - it should really be a straight pass-through. A quarterly "inspection fee" is just plain dumb. So is $150/mo for "advertising." These guys are heavily incented to keep your property vacant as long as possible, and when it's full to have as many repairs as they can think of.

I have lower income rentals and pay around 13% for good management (10%/mo, plus 1 month rent to start a new lease - worth every penny) - but the worst thing is having your management company incented to have more repairs.