All Forum Posts by: Peter Mckernan

@Samantha Hopkins

There are many different property management companies out there, and a lot of them charge a big lump sum once the unit is rented out, and this could be anything from the costs of listing it on the MLS to the hourly rate of their agents to assist in getting someone into the property.

The good thing is that there are other property management companies out there and hopefully in Houston there are some other options. I can see that #1 is something that is negotiable; however, the company may not be willing to move on the other topics due to the ability that they have of getting other clients to agree to those charges.

#1 is the only item that I can see you being able to talk them down from, but the other items may be set in stone.

Hello @Account Closed

Welcome to the site! There are many different lenders out there that provide hard money and different rates and terms. For example, there is a company in the Inland Empire that offers 8% for 105 days upfront. The company asks for 80% of ARV. Also, after 105 days the price increases to .089% each day after that. They do not charge junk fees and no points. After six months they will start foreclosure if it has not been sold.

This is just one example of a company, but the company can change those charges any way they see fit for their business model. You will be paying what the company asks of you. If there are no fees, you will be making it up in the interest rate, or the upfront costs.

Good luck! 

Hello @Cosmo Lee

Welcome to the site! This site will give you a wealth of knowledge on investing and real estate investing strategies that will increase your net worth as you mentioned in your post. BP has a great community and the community is always willing to help with any questions you have. Everyone hear thrives on helping others out.

I'm located in Orange County as well and get a wealth of knowledge from this site. Good luck and hopefully you can build that net worth through real estate investing including your mutual fund investments.

@Logan Jones

That goal is great to have and it can be done. What needs to be done from you to accomplish that goal is to create capital, create creative financing, and create a few great relationships that would turn into partnerships. These three pillars would set your goals up to be accomplished.

To create more capital, work a side job (i.e. real estate agent, property manager for a friend, working within construction to get house construction knowledge). All these things can be worked on during your nights off, or on weekends off. 

To create creative financing you could take to the seller of some properties and work with them to give seller financing. Another way you could work on creative financing is to see what the balance is on the house you own (just a word to the wise, make sure you don't over leverage yourself on your personal residence). If you have a self-directed IRA you could speak to someone about utilizing that for your progression of your goal.

Now you will want to find a partner, or partners that share your same goals and have knowledge within real estate that can help you accomplish your goals, while you help them accomplish their goals. These partners could be found  at your local meet ups, local real estate conventions, or maybe you could go down to the rotary club in your town and find some people that are involved with real estate in your backyard.

Good luck! 

@Adam Pierce

I'm glad I was able to bring that one to your attention! Happy listening! 

Welcome @Nick Tiscareno

It sounds like you have narrowed down a search to figure out what you really want to do within real estate. That is always the hardest part once you get into the real estate investing world. Wholesaling is a good way to make money, bring in capital for the other deals you would want to get into down the road, and it helps with communication with great people that have been in the business for a long time and crush it.

I have not gotten into the realm of Wholesaling, but I hear it can be quite challenging, which is what you are looking for and with an ambitious mind you will be able to conquer the area of investing. You just need to keep the persistence. One guy that has been crushing it for a long time in Wholesaling that lives in Riverside is Aaron Mazzrillo. He has a great podcast, which was Podcast 37.

Good luck! 

I have a contractor in Redlands I use; however, he isn't as reliable as he started out and needs to manage his time and people better.

It's a recurring tread with trying to get contractors to the rehab, project site, or any location. If you find a good one, keep them and make sure you compensate them well to show your appreciation. You will just need to make sure you are managing them because they may not be giving your project the attention you like and you agreed upon with the contractor.

@Ann Marie Cox

Hey @Mark Totzke

I currently use Buildium.com and quickbooks. Both are great for filling 1099s. The CPA I use prefers Quickbooks for business accounting, so I typically keep two sets of books; one set is on Quickbooks and Buildium.com. 

There are many other programs that help with Tax filling, what it comes down to is your comfort level and preference. I have linked the thread below for a little more information on the topic! Good luck! 

https://www.biggerpockets.com/forums/81/topics/280...

Full-time Firefighter

Hey @David Fitch

Any other insight on the numbers for this property you bought to get a better idea on the cash on cash, ROI, and cap rate?