All Forum Posts by: Niv Nissim

@Niv Nissim

Sorry I read it wrong you are the borrower I thought you were doing the lending

Private lending and conventional lending are pretty much all the same documents

The difference is who lends the money.

The terms are created by the lender and realize private lending terms will typically be significantly more expensive than traditional lending

@Niv Nissim

Yes there is a lot of paperwork involved

Check out some of don konipol posts on this

If you have never lent before I would be very cautious as you need to do an excellent job underwriting the borrower

 In Cleveland you will be told what you want to hear from the GC'S . ( I have done 1ks of renos/ repairs out there ) Sorry to inform you , but you will more than likely be ripped off. DO NOT give them a penny upfront. It took me years to get a trustworthy team.

Good luck  

 Nobody is going to walk a property for a what if. If you already owned it sure. I have about 30 guys and do about 150- 170k a month in reno/ repairs, A typical rental turn takes a week. Also, it seems you are trying to do business there without a team, NOT a good idea, it will not end well. 

@Niv Nissim

We can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

Even if someone give you a referral, don’t make the mistake of assuming the PMC will meet your expectations, just because they met the expectations of the referral source.

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

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