All Forum Posts by: Payton Pearson

Listed two units for 775 apiece in one of my properties. They had a wait list of 30 people trying to get in. Did the appropriate tenant screening procedures and filtered out many of them. Beyond that, built into the contracts are fees for pets. One of the tenants had 2 pets, bringing their rent up to 835/month.

But the listed price is the listed price. Make it a year contract (unless you really want stability of long-term tenants), and re-rent later for whatever the market is saying it's worth.

I was looking at comps for this property I rented out, and 775 was actually pretty much in line with what I was seeing, but it was next to the best municipality in my area, and very desirable. Could have asked 850/month no problem.

The ritzy part of my location, Oakwood, has banned short-term rentals.

1.06% is sufficient to make it work, especially if it's a good area. The rest you can leave to appreciation and inflation. A mediocre deal now will be a knock-out 10 years from now due to inflation and appreciation.

@Roger Smart The property has comps in the 850's per side. We had a wait list of 30 people trying to get into the property at 775/month, so we definitely can increase the rents significantly. However, at this point, I just wanted to get it stabilized with tenants.

There's a built-in 2.2% per year increase in rents due to inflation.

@Sean Morrison Definitely. I need to start going to the network events more often for my local area. I already have individuals employed, but not in a well-built system yet. They're just part-time contractors and managers and whatnot.

Thank you Jon Reed. I'll work through that. So I take it there are many lawyers that specialize in creating LLCs and carrying out this process then?

So I have been investing in real estate for about 18 months now, and as per my business model and aggressive growth structure I have now five properties under my belt--totaling 13 units. As such, the time has come to where I need to start seriously thinking about how I'm going to scale my real estate investing business.

So how did you guys do it? What mistakes did you make, what good choices did you make? Generally, how did you go about it? What I'm thinking about right now are:

1. Get an LLC started -- how did you guys do it?

2. Scale my property management partner's company.

3. How to manage all the different tenants and their leases -- account manager, property manager, etc? How long can I manage them myself before I get swamped?

4. Partnering with the right people.

5. Advertising and networking.

6. Scaling my lead finding system.

So yea, what do you guys think? How are you scaling? How did you scale? How are you thinking you're going to scale? I'm looking forward to your thoughts.

@Jeff C. I haven't tried the hard money lending side of the house yet, primarily because I'm not necessarily flipping, nor looking to take on gigantic renovations projects for BRRRRs. I am doing renovations, but nothing that would necessitate taking on such risk.

My strategy involves buying properties that have good bones and are in fairly good condition (more or less rentable), and doing long-term rental investing. I will eventually delve into the more complex projects, but at this point I am at 5 properties for a total of 13 units. I'm scaling as rapidly as possible, and I'm looking for other people of a similar mindset.

@Remington Lyman Thank you!

I had horrible tenants dumped on me by a previous owner of a property that I owned, solely for the purposes of ensuring that the loan process completed properly. Not only this, but she woefully under-rented her property to these tenants (she was kind of a slum lord).

A couple months later, one tenant is buzzing my phone off the hook, calling the police, and constantly demanding work be done on his unit, while paying what amounts to pennies to live in the nicest area in Dayton, Ohio ($460/month). This is what I call a champagne appetite on a beer budget. Another one of the tenants starts smoking in his unit and then just up and says he wants out of the lease. Due to the fact that he's paying $450/month for his unit, I oblige, and let him out of it no contest.

These stories pale in comparison to some of the stuff others have had to deal with, but I can tell you they were not fun.