All Forum Posts by: Michael Ryland

@Bernie Granier I think it all comes down to finding a good property manager. I know that’s not always easy. But I like the idea of interviewing your PM to try to get an idea of how they operate and what their philosophies are.

My best friend is a retired police officer who started his own property management company. We fish together quite often so he conducts business on the boat and we have many conversations about his business. He’s always talking about taking care of his owners. The scenario you described about PM’s operating in a way that allows them to place tenants often in order to make more money is certainly possible but those PM companies will destroy their reputation......and there are a lot of them out there that have already have this reputation.

My friend wants to take care of his owners because he’s building his business and prides himself on finding and placing good tenants. He doesn’t want to be dealing with bad tenants not paying, evictions, finding another tenant etc......it’s not worth the headache even if it is profitable for him. I know not all businesses operate this way but that’s why everyone says finding a good manager is key. Good luck

@Michael Conrad the slumlord comment certainly pushes my buttons. I’ve had many conversations with my realtor/property manager about this very thing. I want to do this right. Integrity is important to me and I want to be a reputable landlord.

@Caleb Heimsoth I agree with your point and after telling some close friends and family I told my wife .....okay let’s not talk about it anymore. And there are definitely those who we chose not to tell knowing what the reaction will be. It wasn’t meant to be boasting we were just excited about getting started.

@Branden Hampton the negativity doesn’t dissuade me at all. I just brush it off. But it’s almost predictable what one might say.

My wife and I are just starting out and now have two rental properties. We are excited about these opportunities so we can’t help but tell those who are close to us. We were sitting down and sharing all of the not so positive reactions and we couldn’t help but laugh at all of the similar comments from different people in our lives. Fear and caution is by far the overwhelmingly common response. I’m sure all of you have had the same responses but I thought it’d be fun to share.

“Ok. Be careful. You remember Ron? He bought 30 properties in Texas. He over leveraged himself and lost a lot of money.”

“Maybe just buy one property and see how it goes first before you buy another one.”

“Wow that’s ballsy. Are you sure you want to take that risk?”

“Wow. I wish I could do that. I wouldn’t know where to start. I’m proud of you.”

“Since when did you become Richie Rich?” (It’s not my money it’s the banks money and I’m making money on the bank’s money.)

“You’re going to be a slumlord!!” (No I’m not. I hate that everyone says that.)

“Oh cool. I could totally live there when I can’t take care of my place any more.” (No mom you can’t. Sorry it’s business.)

Share you’re best responses. Especially the funny and ridiculous ones.

Gary Keller’s book The Millionaire Real Estate Investor says “Anyone can do it....Not everyone will......will you?”

@Kornkot Dechanukul I agree with @Ned Carey when he says go with your gut. You’re data looks good but data alone can be misleading. I also believe talking to a property manager is a great idea. In fact talk to a couple of different property management companies. A property manager will give you insight as to what the rental market is really like.

Here’s the link the the video for analyzing rental properties.

https://youtu.be/T_7vhsSBi7c

@Kornkot Dechanukul I just bought my first rental last month and just got my first rent payment on the 1st. I am in escrow with the second rental now. So time will tell if I made the right choices.

I spent about 6 months learning everything I could about the area I wanted to invest in. I subscribed to an email version of the local paper(I invested out of state in the KC area) . I had several conversations with friends and family in the area. And I would often check on homes for rent in the area. This gave me an idea of what was available, how many rentals were available, and what the competition was like.

All the signs of growth were there. Businesses were hiring, a new hotel and conference center were built, etc.

Then I calculated everything and was very conservative with my estimations. Math is math but you have to be realistic when inputting your expenses. The numbers made sense. I was patient and passed on a couple of houses and then stumbled on to my first property via a family friend. It was an off market home and had been a rental for several years. The owners were in their 80’s and had decided they didn’t want to be land lords anymore. It was nicer and cheaper than anything else I had looked at up to that point so I bought it.

There are several videos on BP about analyzing a deal and of course there’s the BP calculator. Good luck to you

@Sondra Tapper I’m not sure where you’re at in your analysis but I started by studying the area where I wanted to invest. I signed up for the local newspaper and had many conversations with friends and family who lived in the area. I was looking for signs of economic growth big employers hiring more employees, a new hotel and conference center was built, etc. I had heard there was a demand for rental properties.

I don’t think being patient is a bad thing. If you don’t feel right about a property then pass and move on to another. Do your math and plan for the worst case scenario when factoring in your expenses. Math is math and it’s hard to argue math as long as your being realistic about your inputs. Find a trustworthy realtor or a local property manager and ask their opinion as well.

As a police officer I worked with informants. I always asked: “What do you know? How do you know it? And why are you telling me?” I think that last question is the most important and it relates to real estate. When inquiring about a property I often ask why are they selling. The answer may help you in your decision making. My wife and I had many discussions about different properties and deals. It helps to have those same discussions with others who will give you an honest opinion. I’m also new to this so I’m no expert but some of these small things helped me push through the uncertainty. I just bought my second rental. Both properties were rentals before and had great rental history. One was from an older couple who had been renting the property out for many years. They decided they were too old and didn’t want to be landlords anymore. This additional information may help you in you decision making process.

There are many far more experienced investors on this forum who would be willing to offer advice too. Good luck

@Long Trinh I called a few banks and asked around. I explained that I was going to buy several investment properties and the bank was willing to do a mortgage for $55,000. They said since I had planned on doing more than one property they said they would do it because they wanted my business. So just tell them

up front about your plans and I’m sure you’ll find some that will be willing to work with you. Good luck.

@David Wagner Great question I’m trying to figure out how I’m going to purchase my second one. I could go with traditional financing with 20% down but one of the properties that I really like is a foreclosure so that’s gets a little more complicated. My wife and I have been discussing the different possibilities all day and I haven’t decided what is best for us right now. I’d be interested to see the different options that people recommend.