All Forum Posts by: Omar Merced

Hi Michael. How's the deal going? I am planning a trip to Alabama in the next couple of weeks and wanted to know how things went. I was/am (it's complicated) a regional manager and if I were to purchase something in the area I have some ideas on how I could possibly help. Just a thought.

Hi Samantha. You see what you started here? Great post. Love it.

Asking the wrong real estate agent about investing in real estate is asking a poor person about making money. I'm also an agent and I can tell you that I was investor first and didn't value agents as much as they should be valued. There is a lot of stuff that happens behind the transaction and a good agent is what I call "a manager of chaos". Some investors are so worried about the commission that they do not look at the bigger picture and see the money that there is to be made. I think if you come from a place of abundance and not scarcity you'll have a better experience. Now, I didn't hear the conversation that she had with you but she could have been concerned with the returns if you were doing a buy-and-hold. So maybe, she was trying to help you. The point is she is probably not the right agent for you. You should look for someone that is also an investor our works with investors specifically. There's no such thing as bad renters only careless landlords. Thats not true there's some horrible renters out there but I just wanted to say that. But that being said it's all in the screening and a good property manager. You can do it alone but once again it is an area that is undervalued by most investors. I was also one that under valued property managers until I became one. Now I feel that they are probably one of the most important if not the most important person on my team. As far as your LLC I wouldn't worry too much about it for now. You just have to start doing, taking action and as you go along and learn you'll seek competent advice from real estate professionals that will give you the best options for your structure to best protect your assets and tax consequences. Take your advice from those who are successful and learn from those who are not. To quote Dave Ramsey normal is broke and in debt. Unless these people that are asking the what-ifs are successful real estate investors I would take their advice with a grain of salt. Hope this helps and good luck!

I love Las Vegas, but I live here so I am bias. That being said I'm active here and the multifamily is expensive and the returns for me are way way way to low. I'm active in other markets with much better returns but it is very comfortable for me because I was a regional property manager and it's what I do/did for a living. Why did you select those markets? Because they are relatively close? If so I would look again. There is a lot more bang for your buck out there.

Hi Carolyn. You'll need to look at your management agreement and see the terms of your contract. After that it's pretty straight forward, usually a simple letter. They usually require at least 30 days so just make sure you follow the contract. If they push back for some reason you can present your evidence. When I managed property I would never work with anybody that wasn't happy with my service. I only had one person leave and in my opinion he was crazy. Anyway, depending on your new property manager they usually can handle the rest up to giving the actual notice to the old PM and facilitating the transfer of deposits and other payables such as taxes, common electricity and so on. They will notify the tenants of the management change and payment address and/or methods in writing and thats about all. I used to do all of this for my owners and I would usually end the conversation with the other PM by saying "it's not you, it's them" most of times I would get a laugh. Hope this helps!

Hi Lauren. I must urge a lot of due diligence on your part to make sure you get the best return. I personally love multifamily. With that amount you could leverage an apartment community that would easily surpass the returns you are looking for. Good luck.

Welcome to BP. No worries we all have a first day. It's not always what you know but who you know. I would recommend to start with going to all the REIA meetings there are here. IF you have bought those courses and seminars you probably need to start doing what they instructed. Just do. You are going to make some mistakes and that's ok. In REI your time is not necessarily worth the same as the a more seasoned individual and right now you are asking with little value add. In the beginning unless you are a superstore the paydays are far and few in between but as you learn more you will make more and more. There are different ways of getting started but it might look like this.

Birddog. Find the properties and pass it to a wholesale. Usually there is a marketing fee.

Project Manager. This one is almost never mentioned here but as a project manager you would oversee the rehabs and other miscellaneous projects that the REI mentor has for you.

Wholesaler. This is where most of the people want to start but it's not as easy as most people think or make it sound. There is a lot of work that goes into finding the right deals.

Fix and Flipper. This is where the rubber hits the road. Forget what you saw on TV flipping ain't easy. It's not rocket science but it does require some smarts to make it come in on tim end on budget.

Buy and Hold. These are the long term investors. They are looking for a certain return. This could include multifamily (my favorite).

And then you have everything in between. The point is that yes there is a lot to learn but the more you learn the more valuable you are to your team. If you bring deals they will show you what they know and get you more and more involved moving you up until you are ready to venture out there in the real world all by yourself like a bird. Spread your wings and fly bird, fly

Hope this helps. Hit me up if you have more questions. We can talk about your goals and I'll help as much as I can.

Wishing you success,

Omar 

I wanted to make a big correction. Airbnb has been around for a few years here. Sorry that definitely changes things. So sorry.

Hi Fatmir. As a previous manager I completely understand your situation. I remember vendors coming in time and time again presenting their products or services and trying to get my business. There are a couple of obstacles you'll have to overcome. The property manager is the door but the leasing agents and maintenance super are the keys.

First, people have to like you. I think this is true in all aspects of real estate. 

Second, your product or service must be as good and as inexpensive as the product they are currently using. It doesn't make sense even though you're likable to pay more for a product or service although in the long run that might be the case. You might have to prove your self by providing that product or service for free in order to get in. 

Third, have a plan. I remember the vendors coming in and not having a good presentation or being unorganized or their brochures were a copy of a copy of a fax. In today's age a clean and crisp paper is not much to ask for. Also, make sure you have the proper licenses that are required for your trade and area. 

Fourth, be persistent. I know vendors that would come in once and I would never see them again they are not getting my business. Some of the larger companies only can use a national vendors because of bulk discounts. Those might be very difficult to get in to.

Fifth, once you're in ask for referrals. A warm visit is always better.

Last but not least. After you are in come up with a plan to continue to visit and talk manager/owner. There were times where after they got our business they never followed up or called and asked how things were going eventually another vendor would come in and get their business. Usually, apartment owners budget for activities. If you donate some small items ($25 gift cards) they really appreciate it. I used to throw the biggest pool party and my vendors would donate almost $1500 in give aways. You have to be top of mind.

By the way I had a vendor that used to bring us coffees, pastries, and even lunch he eventually got our business. Hate to say this works but it does but more importantly his product was good and it saved my owners $1000s. Win win.

Hi Chance. Thank you for your service. As prior military  I remember bouncing from assignment to assignment. I think you are headed in the right direction however some words of caution. First managing property for other people usually requires a license not sure about NC so you'll have to look into it or someone will post shortly to correct. Just because you have a property in one area it doesn't necessarily mean that you should continue investing in that same area. There are thousands of people that have properties out of state and our managed by competent property managers. A good property manager is one of the most important people on your team along with a good realtor and handyman/ General contractor. If I remember from my younger days Myrtle Beach was a kind of spring break Area. So you actually should be more concerned with the area then managing out-of-state. If you indeed like the area you might groom your resident to be your bird-dog/ project manager if you wanted to continue your growth in the area. To find a good property manager in your area one thing that I always do is ask for referrals from other investors. Interview about three, You'll find that they're are some that will definitely want the long-term steady business versus the ups and down of vacation rentals. At any rate, just do. Also, I'm a big advocate for multi family. I believe they make the best investments. Good Luck