All Forum Posts by: Nathan Faselt

I wanted to get your thoughts and experiences, Do any of the property management companies you use or work for flout the bills for the properties they manage and charge a small fee on that capital?

I was under the impression that most management fees were supposed to be separate from the capital expenses of a property.  They PM is acting as a bank kinda so idk,  Has anyone else experienced something like this? Is it common practice among property management companies? 

I would love to hear your thoughts and experiences on this topic. Do you have a property management company that flouts the bills and charges a fee on top of that capital? Or do you run a property management company that you work for that engages in this practice? Let's start a discussion and share our knowledge and experiences with each other.

Thank you in advance for your insights!

I've found a lot of helpful information on this forum, and many of the comments here are spot on. However, I believe the effectiveness of collecting debts and delinquent payments depends on the area/state you're in and various other factors mentioned by others. as well as strategies to lesson the likelihood of this happening and how to get the money once it dose. 

If you end up having a successful strategy for tracking down money owed, I'd love to know your secrets and hear about your success rate. There are many BP users who could benefit from your expertise and would be willing to refer you their claims. You could potentially collect hundreds of thousands of dollars and take a 50% cut from my friends alone. It could be a lucrative side business for you, as it's clear that many landlords simply turn a blind eye and move on. The opportunity is definitely there if you can figure it out.

1. Down Payment Assistance Programs: Many states and local governments offer down payment assistance programs that provide grants, forgivable loans, or low-interest loans to help first-time homebuyers with down payments and closing costs. You can check with your state or local housing agency to see if you qualify for any such programs.
2. Employer Assistance Programs: Some employers offer down payment assistance programs or employee loans to help employees with home purchases. You can check with your HR department to see if your employer has any such programs.
3. Borrow from Your Retirement Savings: If you have a retirement account like a 401(k) or IRA, you may be able to borrow against it to help with a down payment. However, this option comes with some risks, so it's important to consult with a financial advisor before going this route.
4. Gift from Family or Friends: Another option is to receive a gift from a family member or friend to help with your down payment. However, keep in mind that there are limits on the amount of gift money you can receive without it being subject to gift taxes.
5. FHA Loans: The Federal Housing Administration (FHA) offers loans that require a lower down payment than conventional loans, typically 3.5% of the purchase price. However, FHA loans do require mortgage insurance, which can increase the overall cost of the loan.

I yeah, that too many posts are often just saying I am new to this market or looking at investing here. Maybe there should be more like groups for local areas rather than forums,  many of the BiggerPockets community comes to the forums to seek out complicated issues and look for experience and others history with this topic. I guess you could make an argument by talking about the specific market in details our who is active there can contribute some value.  

Also are you saying more people should just vote if they are not going to share anything besides I agree, good point, bla bla bla, ect?   I personally Believe the votes seem under utilized by the community. 

  I also appreciate the comments  @Chris Mason on the spamming and ways to reduce this finding ways to have others connect. 

I agree with @Bill B.. We have briefly looked into it but it seems like you can come ahead on your own, especially when you can start negotiating purchase power with suppliers for the Frigidaire example. You may be able to get 15-20% OFF buying 3. And being diligent about what is tenant responsibility when something breaks then charging them, which they can get back on their renters insurance that is required always helps the bottom line. We have also looked into requiring residents to have a policy in place with companies like https://www.sayrhino.com/ that covers the cost of the security deposit or turnover costs for tenants. For prospective tenants, it can be attractive with no upfront deposit, and for us, we can get paid out for the turnovers with less deposit disposition headaches. I think the catch is that it only covers damages that are considered beyond normal wear and tear. For smaller issues like cleaning and light paint, we are still exploring options.

I know a few companies that are fairly large and self-insure the whole building basically (roof, fire, etc.). They have the power of numbers on their side to just set the money aside for what they pay in insurance, and if something goes wrong, they handle it on their own.

In my understanding, it may be easier to apply for an ADU first if you already have a home on site. However, if you're referring to a new development, the process can take some time depending on your city and may not be possible at all. If that's the case, there's a new trend I've been seeing where you can build a "nice single-family home" and create a large shared living space with a shared kitchen, while all the bedrooms have their own bathrooms. This can provide an opportunity for shared living/rooming house rentals.

It's important to review your local code to ensure compliance. In most cities, there are no requirements for interior remodel inspections or reporting as long as it's not a massive addition to the home. Only the new construction inspector may need to review the project. so i would think your kitchen would be good.

There is already a lot of really good information on this forum about low-income investing. My two cents would be to start by researching local programs at the county, state, and federal levels that provide funding for these types of commitments. You may be able to access grant money upfront or a 0% loan, tax relief, and other benefits.

However, as @Nathan Gesner mentioned and I agree it is a kinda dumb and rigged syteam where very few people in the world really want to solve the problem. AKA {they lose their job}. A significant portion of the available funds and units are held by larger organizations that have the resources and experience to develop new construction projects and leverage their numbers for cost savings. While it's important to keep this in mind, it's not the only way to approach low-income investing.

Non the less, In the meantime we can utilize the available programs to the best of our abilities to provide low-income housing. By staying informed and being proactive about seeking out funding opportunities, we can make a difference in our communities and help to address the critical shortage of affordable housing.  I hope to join you in this real estate nietch and grow a profitable business that help many communities.

best of luck

https://harvesthosts.com/. and Hip camp / Airbnb (unique stays / experiences ). Comes to mind for some market research ideas to build off of.  I would like to hear more about you thoughts I have a friend that may be interested,  what state or county are you thinking about?  

I wanted to post about the Italian program for for rule town to give away houses for 1 euro it been for while now. Has anyone In the BP community participated in the program? If no-one has yet this community seems like the ones to take advantage of find value in it, or if there is any value in the program. If you have done it I would love to hear your story, renovation cost, STR, sale value, second home?

https://1eurohouses.com

https://www.case1euro.it/

I personally would say that coded lock doors and cameras done for cheaper in with Arlo cameras with coin op.

@Richard F. asked good questions how many units and and why monthly charges?