All Forum Posts by: Patrick Roob

Hey there @Chris T.!

I could not agree more on the sales gimmick comment!

I am actually very happy I had paid for the new unit! In talking with and building a relationship with the lead installer, I was able to learn that he does subcontracting work on his own, outside of working for a company! A background check has been ran, references were called and 1099 pay was negotiated. I will test out this subcontractor on a couple small jobs before anything larger, however, things seem to be lining up in my favor!

Thanks,
Patrick

Hello @Davinder Toor!

I see that I am certainly late to the game in contributing to this post, however by some luck, I have stumbled across the thread!

Although I'm located in Northern Illinois, my family has used a subcontractor called Potter the Painter on many occasions, for painting and remodeling. They're located in the Milwaukee area themselves, and personally have investment properties as well, possibly allowing them to relate and understand your needs a little better. They may be an option for you, and they could be one more company to have quote jobs. The owners name is John, and I will send you a private message with their contact information. Let them know I sent you, and they may provide lower quotes based upon multiple jobs we have used them for in the past.

Let's connect, and please stay in touch! 

Thanks,
Patrick 

Hey there @Rogelio Rosales!

My keyword alert for "Round Lake" Went off for this post, SURPRISE!

Congrats on moving forward with the BRRRR strategy! I recently just closed on a four-unit row home in Round Lake Beach (right down the street) using this same strategy! I am not a wholesaler, however, My Realtor @Liz Lita is phenomenal with working on crunching numbers and finding the right property! I have known her for 15+ years, and she is located in Round Lake herself!

She has REI experience herself, and has been investing in properties for 20+ years. If you would like, I would be more than willing to put you in contact with her, and she will treat you like family. She worked with me for over a year on my four-unit and is now working with me on a SFR to purchase for a buy and hold. She understands the investor language, how to run numbers, what to consider in analyzing properties and much more. I would not recommend anyone else.

Please feel free to message me and I can pass her information off to you, or vice versa. Additionally, as we're very close on the map, please feel free to connect with me, and lets stay in touch. If there's anything I can help with let me know.

Thanks, 

Patrick

Thank you @Robert Leach!

I had decided to go ahead and pay for the unit replacement rather than the warranty.

Thanks again!

Patrick

I could not agree more, @Tyion Bridgeman!

Show the Realtor you're serious about the investing game by closing on a couple doors, before ever expecting an incentive from them.

Patrick

@Marc Edwards I am glad I could help!

My personal opinion is that I would not request any "kickbacks" or incentives from the Realtor until you have done one or two deals. Show them that you're serious about investing first, and give them some motivation to continue working with you. At that point, if they know you're serious about buying, they will be happy to "partner" with you and offer a "kickback" on any deal you do with them.

Good luck!

Patrick

Hey there @Marc Edwards!

I definitely understand your concern in finding the right "partner" for looking at properties, as I am the same way. When it comes to finding a new attorney, sub-contractor, agent etc. I often spend a lot of time researching and requesting referrals from family and friends (often too much time causing paralysis by analysis). However, the nice thing about Realtors is that there are SO MANY out there.

My suggestion would be to start with what you know first. Post something on Facebook, LinkedIn or any other social media you may have and ask for referrals. The last time I put that question out on Facebook looking for something simple, like a DJ, I had 30 different people referred to me. Once you have a few people you trust or respect offer their suggestion, give those referrals a call, and see what they could offer you. It is important to find yourself an agent who has experience with investment properties, or owns properties themselves. These agents better understand ROI's, Cap Rates, investment Comps, 70% rule etc.....

Personally, the agent I use @Liz Lita is a family friend who I have known for over 15 years on a personal level. That being said, it was easy for me to judge who this person was on a personal and professional level. Once you do a deal or two with the person you decide on working with, try to negotiate an "incentive" for that agent to continue working with you, which on the other end is also an incentive for you to keep using them rather than receive your own realtors license which would entirely push them out of the picture for future commissions. An example me be to continue using them, after a couple deals, if they offer you a 20% of their commission portion. Which means that if the total commission on a sale is 5% split between the listing agent and the selling agent, you would receive a check from the agent you work with for 1/5 (20%) of their portion of commission that was split.

Although this could be hard to believe that anyone would take this deal, consider it an investment on both ends. Meaning you have an agent who knows you're serious about buying properties, and they have a buyer (yourself) who is more inclined to go through them, as they offer a "kickback."

This negotiated "kickback" could also be taken into consideration when buying, selling or even listing units for rent.

Thanks!
Patrick

Hey there @Robert Leach, thanks for the response!

I have heard from a few people that, due to proration, if your A/C unit is 15+ years old, the warranty is essentially worthless. Do you have any personal experience with warranty companies fighting claims due to this?

Thanks!

Hey everyone!

First of all, thank you in advance for your suggestions and words of wisdom!

6 Months ago I had purchased my very first investment property (4-unit row home) and I am continuing to struggle in deciding whether to purchase a home warranty on the units or not... Long story short, I have purchased a four unit which was built in 1999 (17 years old) which has all original equipment. Although the furnaces are still in good working order, the AC units are on their last leg.

In my area, a home warranty will cost roughly $2,400 (600 per unit) Which should cover issues with appliances, HVAC and other miscellaneous areas not worth mentioning. Because each A/C unit is R-22 Freon, if one unit goes, I would have to spend roughly 3k-4k  (per unit) for a replacement as R-22 is no longer available per EPA requiring a complete replacement including the coil located in the furnace. This is more costly, as it's much more labor than the simple replacement of an exterior A/C unit. 

Although the cost of a home warranty would cost less than one A/C replacement, I have been reading many horror stories of warranty companies being very difficult to work with, charging additional fees, deferring payment and work and finding any means of not holding up "their end" of the warranty agreement. What are your thoughts?

1.  Do you recommend paying $2,400 for a warranty when one A/C replacement is 3k - 4k?
2. Have you personally had any good/bad experiences with a home warranty?
3. Do you recommend a specific warranty company?
4. Do you have any experience in warranties being honored in the Northern Illinois or Chicagoland area?

Thank you very much!

Patrick