All Forum Posts by: Mitchell Luban

Good Afternoon Bigger Pockets, 

I am wondering if any of you are experiencing the city cracking down on you or your clients if you're an agent or manager for your rental certs? I know they technically only transfer if the cert was done within 90 days of the sale. However we have had a couple instances in which the property got purchased registered and then we took over management and in one case two years later the city is now wanting us to get it certified. Now I have always had my issues with the rental cert not running with the property but it seems like if when the property is sold and the new owner registers the property with the city as a rental shouldn't that be enough? The city then comes back 2 years later and wants a re cert done. Of course they are blaming it on covid and lack of staffing and catching up. I have talked to a few other investors who have had this thing happen with properties so just thought I would see what you guys are seeing. 

@Tecora White Like everyone else said. It is better to get to the bottom of this right away and move on. This sounds like a PM who won't last long. 

My suggestion move on even if the means getting new tenants in the property. I always suggest people meet with several PM's and find the right fit for them.  Find someone you can trust because they are going to be managing your investment. 

@Chris Stromdahl I have found that not every company is a good fit for everyone. Some of the bigger outfits work for some people some of the small Mom and Pop shops work for others. In my opinion what it ultimately comes down too is TRUST.  Can you TRUST that manager to make the right decision with what is likely your or others largest investment of their lives. Make sure your interests aline with your management companies. Especially being out of state it is important. I would be curious of the fees obviously. Do they have in house maintenance? What types of releasing fees are there? Who keeps extra fees? Etc...  There are several articles on here that have lists of good questions to ask potential PM's... 

@William Hunt I have a few great lenders in MI if you're still looking for a good option that understand the investing space and can read between the lines of what you're trying to do and offer the best product out there for what your trying to accomplish. Let me know! 

@Jason Majerle The city is becoming more open about it. Especially if you're living in the property. You would likely have no problems during that period of time. However if you left and wanted to continue to have it operate essentially operate as separate units it gets trickier without proper approval from the city. It gets into things like density and lot size and parking available for each unit etc.. 

@Jason Majerle used to play a little bit of basketball and your guys last name sounds familiar...  But anyways now I am a real estate broker I also have my own portfolio of properties and have some pretty solid connections for most things (insurance, lenders, handymen, property management, inspectors, etc...) Let me know if I can help get any questions answered for you. Congrats on making the decision to invest in real estate I don't think you will regret it.  

@Tyler Meyeraan Be a sponge, read everything you can, go to meetups in your area, read forums on here, listen to podcasts, find the guy in your city or state who owns the most real estate that will let you bring him to coffee/lunch and ask him smart intelligent questions. 

When I got started I got started by getting my license and just jumping two feet in. But having your license and being an investor are NOT the same thing a lot of agents don't understand that. But for me starting about the same time you did getting my license allowed me or gave me permission in my head to have conversations with these investors. 

Happy to help if I can shoot me a message if you want. 

@Bret Habura Blaine Marney is who you want. Message me if you want his info. 

@Greg ONeil It is common in my market for newer investors to pay higher points points up front and then interest on the loan amount. Normally we see 6 months interest only after that lenders will start charging additional points etc... Usually if you build a relationship with a lender and prove you know what you're doing and can "flip" their money quickly you can get your points and interest down after you have an established relationship. 

It is common in my market for people to pay around 1.5-2 points and 10-12% interest if they don't have experience etc. But just depends on the deal. 

@Bret Habura just catching up on some posts. Congrats on the property if you still need specific contacts for things let me know would happy to pass along contacts.