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All Forum Posts by: Mark Derby

Mark Derby has started 9 posts and replied 29 times.

Post: What is a good deal for a private investor

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

So, I've read a bunch of the search results but can't seem to find anything that answer's my question:

What is a good deal to offer a private investor. I'm looking for 30% of up to $700K, basically to fund down payments. From an investor's prospective, does it make sense to put up a down payment and own that percentage of the property, risk and all. You get 30% of what it produces after all expenses.

I'm assuming there would need to be some sort of exit strategy or buy out provisions written into the deal, such as no buy out for first 5 years but after that, it's at appraised value?

What are the common arrangement that you have used either as silent partner or general loan?

THIS IS NOT A SOLICITATION - NO OFFORS PLEASE!

Post: I'm having trouble finding tenants...

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

I built a website, which was incredible easy to do and inexpensive to host, where you can find interior photos, all information about the property and the rental requirements. I put an add on Craig's List with just the specifics and a note to see the website for additional details. Anyone who just responds through CL, I direct to my website, to see the photos, review my rental requirements and let me know if you're still interested. Most don't respond. The ones that do, I phone screen. The only place that you can find my cell phone is at the bottom of my rental application, which you can view on the site. I have had a couple leave me messages on my cell after reading the rental app. This helps to weed out a lot of the unqualified responders.

I put an ad up on Friday night at 10:30 and had 27 responses by the end of the day Sunday. Of the 27, I've phone screened 8 and will only be showing to 3.

Post: 2 family vs 5 family requirements - MA

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

Thanks Jon and Marcia!

I'm a Sr. Project manager in a high profile market so fortunately people skills, conflict management and writing and managing policy / procedures are my life :-)

Post: When does the 2% trump all and when to let it slide

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

I'm in Massachusetts where things aren't cheap. I can't imagine ever getting close to the 2% rule on an acquisition. Maybe I've got it wrong:

Total monthly income from the property / 2% = purchase price. ??

My up/down 2 family is at 1.12% and it's positive by $1200 per month, assuming no maintenance...

Are there any applicable situations where this rule holds less weight? I'm looking at a deal that would be just just under 1% but its a completely renovated 5 family, roof, windows, utilities, vinyl siding, etc. Again, assuming no maintenance, it would be positive by about $2800 per month and pay almost $6000 in equity.

How low would you go?

Post: 2 family vs 5 family requirements - MA

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

I'm looking at a 5 family that is about to hit the market and was wondering what the different requirements are for things like fire alarm, trash service, etc. versus a up/down two family house.

Other than 60% more tenant BS to deal with, what are some of the other considerations?

Post: FIrst tenant screening help

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

Thanks Everyone. I'm moving on from the Pitt Bulls.

Can you specifically mention that "while we can't accept a pet deposit, your security deposit will cover pet damage and any cleaning costs necessary to remove any pet odors"?

Post: FIrst tenant screening help

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

I listed my first floor apartment for the first time last night on CL and immediately got many inquiries. Some just replies that they want to see the apartment. I directed them to my website where they could see interior photos and review the rental requirements (screening process). None of those people have since responded.

I received several that contacted me both through the CL ad, followed up buy contacting me via my website and left me voice mail on my cell phone. My cell phone can only be found on the rental application available on the website. These few I called today and conducted prescreening. Several of them made it on to the showing. Of these, two were interested.

The first: Single mom with two young kids. She has a full time job with stable history and has a voucher that covers the entire rent with plenty left over for utilities. I was very comfortable with her personally. She was direct, always made eye contact, new what she wanted, wasn't shy about asking questions, etc. Seemed like a solid character. She brought her boyfriend who also seemed fine but said he would not be on the lease and would not be living there.

My website says that I must meet everyone the that will be on the lease, including the pets. She told me on the phone that she had a dog but showed up with two large pit bulls. I've read the recent thread on pits… I'm a dog person and actually have some training and behavioral experience ( I have a huge great date that sleeps in the bed but that's story for another time…) I understand the Pit breed and stigma. They were both happy calm dogs but she said that she has had a terrible time finding a place because of the dogs and is just looking for a de-leaded place for her kids to live.

The 2nd: A young woman, maybe mid-upper 20s. Well dressed, drove a new Explorer, same character, stable job as a dental hygienist and bartender at a very nice restaurant. She said it would be only her and her sister and they were just looking to be closer to down town where they both worked. She brought a 13 YO FM german shepherd which she disclosed on the phone. This was a sweet old dog that did not raise any safety concerns, with me anyway.

I need to see what my insurance says about dogs or breed specific before proceeding with either of the two. My concern is more with the pits and upstairs / neighbors feeling threatened, etc.

I haven't seen either's application yet so who knows what will turn up in their history. Neither claimed to have an issue with the firs last or security or ability to make rent.

Based on what I've learned so far, who's the better tenant? Garanteed voucher money with pits or young professional women with a sweet old Shepherd?

Post: Tenant anonymity

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

Thanks everyone. I agree that the security of protected people is very important and that tenants have rights to privacy.

My questions was about the legality or tenant right to know in this particular case vs. anonymity and should the lease contain any specific language. I think you've all contributed to a complete answer. Thank you.

Post: Tenant anonymity

Mark DerbyPosted
  • Real Estate Investor
  • Plymouth, MA
  • Posts 29
  • Votes 0

It's a state funded transitional housing provider that uses the place to provide housing to women who need to get out of abusive situations.

The housing authority is my tenant and the women placed there are only there for a shot time while the authority can place them in a more permanent location. It's hardly ever occupied but they pay on the first every month.

I have no interaction with the tenants what so ever and they are surprisingly strict with screening, given the situation and put up with no shenanigans what so ever.

The organization is small and their quota is already full. I'm hoping to have them take the first floor too but all of their other units are with one other landlord and he's not parting wit them. I wouldn't either...