All Forum Posts by: Lara Fobian

@Matt Michaelson

Valuable advice, thank you! To answer your question, these were the cheaper products he chose (current Home Depot prices BEFORE any additional Paint ProRewards bulk discounts) … Outside, Behr Pro e600 Exterior Latex Paint in Satin ($105 for 4.84 gallons) and Glidden Premium Exterior Latex Paint in Satin ($125 for 5 gallons). Inside, he used Behr Pro i300 Interior Latex Paint in Dead Flat ($89.98 for 4.84 gallons) and PPG Ultra-Hide Zero Interior Latex Paint in Semi-Gloss ($89.98 for 5 gallons).

To everyone else & Matt Michaelson …

Thanks so much for taking time to reply.  Others may add to this thread, but my CONCLUSIONS here are: Full primer is NOT the industry standard unless the customer specifies. And it’s really NOT necessary except in special cases, like over new drywall or stains, going from a glossier sheen to a duller sheen, or before going from a darker color to a drastically lighter one. Spot priming is fine in those cases if a smaller area.

And the paint-and-primer-in-one products may be more of a marketing gimmick; a primer-only product before paint may be best, but only when primer is needed. So the painter likely wasn’t trying to screw me over after all. I just need to be more specific in any written agreement, about what level of clean, prep, and prime I expect.

Opinions, please?

So I just tried out a new house-painter who bought the paint in the colors I needed, but I found out after he was done with the job that he only did SPOT priming over any drywall patches and other wall repairs. He did NOT prime the whole surface first before painting, or use a combo paint-and-primer-in-one product, like Behr.

This was for a complete repaint INSIDE AND OUT for a house I’m selling, not renting, and the paint was NOT going over bare drywall (or a flat sheen covering a high gloss sheen); it was simply a color change between similar colors and sheens.

The bid he provided did NOT include the words “prime” or “primer” anywhere, but I thought my instructions and expectations were clear, and I assumed where the bid said “paint” that it would be a paint-and-primer combo product. Since he went with a cheaper product, he made more profit for a lower-quality, shorter-lasting paint job.

So my questions for you are:

1. No matter what surface is being painted, and even if you’re selling and not renting it, do you ALWAYS expect your painter to prime all surfaces first (versus just spot priming) … or do you only expect full surface priming when it’s more NECESSARY, like when going over brand-new drywall?
2. To avoid miscommunication or deceit, what do you like to either have them write in their bid or put in a contract, that makes it crystal clear what your primer expectations are?
3. And in any rooms that have wall stains and odor from kitchen grease or cigarette smoke, do you like to also specify in writing any extra steps you expect them to take BEFORE painting those areas?

I know a painter should be professional and knowledgeable about doing their job right, but I think this was more of a deceptive move for him to pocket more profit.

I APPRECIATE YOUR HELP, THANK YOU.

Lara Fobian

Opinions, please?

I have a rule-of-thumb for how much interior and exterior house paint should cost in labor and materials per square foot, over surfaces in a decent condition. 

But if the surfaces need a good amount of repairs first, do you have a way to estimate a fair cost JUST FOR THE REPAIRS PORTION of the job? (assuming the repairs, texture, and paint are all done by the same crew)

Repairs like 1) drywall patches + texturing, 2) repairing cracks and drywall joints + texturing, 3) scraping off bad, flaky paint, 4) washing and/or degreasing surfaces that need it, 5) filling holes or divots, and 6) even trimming back any plants or tree limbs touching the house area to be painted?

I know this might be asking a lot, but I’d love to have a fair pricing rule-of-thumb for each of those specifics.

I APPRECIATE YOUR HELP, THANK YOU.

Lara Fobian

Anyone got ANY TIPS AT ALL to minimize wasting time with UNQUALIFIED and/or UNSERIOUS tire-kicker buyers that call you? (This is when working with retail / market-price house-buyers who need to qualify for a bank loan.) Like ways you can tell from that 1st phone call, from the way they answer your questions?

And if they object that, BEFORE they will apply for a loan, they FIRST want to meet with you in-person or see if they want a specific home, how do you answer that without sounding too abrupt or firm, thus becoming a Realtor they don’t want to work with, even if they DO end up qualifying for a loan?

(Is the trick with that to keep following up via a drip email campaign or automated texts or something, thus building and maintaining a relationship without investing time until they’re ready?) One idea of mine is to invite them to the next Open House, so they can tour the house with the competition, and meet me, without me making a separate appointment with each buyer lead???

ONLY IF YOU LIKE DETAILS:

I’m not used to all the calls from first-time homebuyers who either AREN’T serious, or ARE serious but don’t know if they qualify, and when I email them contact info for recommended lenders to apply through or call, then I never hear from them again.

I know wasting SOME time is unavoidable, but I was thinking there may be certain “homework assignments” I could give them to do (like gathering together and emailing their last 2 months of pay stubs), or “magic” questions to ask them, or ask them to pull their own credit report and let me know if the numbers are over a certain amount.

I also want to minimize wasting the time of my LENDERS, although I know that’s part of their job description, too.

Appreciate the advice, thanks!

What’s the best type of Kilz primer (or other primer) to use on a bedroom’s walls and ceiling to permanently eliminate or cover up a smoky cigarette smell from someone who smoked in a bedroom?

I know some of the smell could also be in the carpet and pad (which is being REPLACED), so should the concrete subfloor under the pad also get coated in the same odor-blocking primer?

I’m curious on the general consensus.

Thanks!

Lara Fobian, Investor and Realtor

Hey Robert,

Hopefully I can help with some of your questions, plus give some unsolicited advice I like sharing. ;-)

First of all, CONGRATULATIONS on getting started in real estate investing, on your recent refinance, and on your acquisition of that chunk of change! That IS a nice chunk of money, but be careful because it can disappear rather quickly with a few poor decisions. One mistake I made due to having enough money to spare when first starting: My chosen marketing method for getting motivated seller leads was direct mail, and I spent a small fortune on that without really tracking and evaluating the marketing ROI, tweaking accordingly, and trying a different version. Plus I got leads but didn't know how to convert or close most of them, so it felt like money down the drain! Remember there are tons of ways to find motivated sellers that, in terms of money, are either free, cheap, or free initially that you don't need to pay for until you're putting it under contract.

In my PERSONAL OPINION and experience, of the 3 qualities that a real estate investor can have (time, experience, and money), I feel that money is actually the LEAST important. If a deal is genuinely a deal, then the money will come to it or the money can be found. In fact, it could even be detrimental because it can lead to being a cocky lone wolf who doesn’t need to seek out more experienced financial partners for their more seasoned opinions and calculations.  And since newbies lack experience and are so hungry to “get the first deal done,” it’s easy to calculate overly optimistic numbers just to make a deal work.  Trust me, I speak from personal experience.  

On to answering your questions…

I’m an investor and Realtor in the Austin area, and it’s probably similarly hot like your area. It IS more challenging to get a deal. However, do bear in mind that houses that are selling for 10-15K over asking price are being sold to RETAIL buyers from sellers who could afford to spend the time and money to get the house in tip-top shape to sell and who have the luxury of waiting for the sale to close. So even in hot real estate markets, INVESTORS can get deals below market value, if they know the tricks of the trade.

In Austin, the rental market is strong in correlation to the strong selling market. But because Texas has no state income tax, our property taxes run higher. The property tax values have been jumping up dramatically over the past few years where, even if you have the equity and appreciation here, the cash flow might not be as strong as you’re hoping for. That being said, it could make more sense to you to buy for low to moderate cash flow but strong appreciation, versus the other way around.

If you want buy and hold rentals, I’m hoping your idea isn’t to tie up all your cash in ONE property, but rather to get your own traditional investment loan or creative financing from sellers.

Another consideration is many speculate we could be nearing the top of a real estate market cycle, with a dip in home values expected when you could pick up some better deals. So it may be wise for you to get yourself educated for a bit first and put the money into a low-risk liquidatable investment or savings account for now.

Lastly, I swear BP isn’t paying me to promote this book, but I did recently buy and listen to the Audible version of the BP Publishing book by David Greene, Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties, which you can find on the BP Store or Amazon. There was a lot of valuable info in that book, and I strongly recommend that you check it out. And if you’re short on time like I am, I recommend the Audible version to listen to when you’re doing relatively mindless tasks like getting ready in the mornings, driving, cooking, etc. I’ve become quite obsessed with Audible books for knowledge.

Anyway, Austin is our long-term home, and I know good people in San Antonio and other parts of Texas, too, who I can refer to you. So let me know how I can help in the future? BEST OF LUCK TO YOU, ROBERT! (keyword: LaraAnswers)

(If you prefer to skip the details, I've underlined the key points below) ... One of our tenants (“Tenant Alpha”) wants to renew his Texas lease for a second year and move his two adult brothers in to replace his (now-ex) wife and (now-ex) father-in-law, who all moved in together about a year ago. Please, I need help deciding what to do about the brothers as the potential new tenants…

THE POSITIVES: Tenant Alpha owns and runs his own busy company as a roofer, and his two brothers work for him. The brothers’ income is guaranteed as long as Tenant Alpha keeps steady work coming and pays them. I assume that if the brothers flake out on paying rent and/or any utility bills, Tenant Alpha could potentially withhold it from their paychecks, I don’t know. Tenant Alpha has great rental history for the past year in this home and also from before moving in, and he makes EXCELLENT income where he COULD afford 100% of the rent on his own without help.

THE NEGATIVES: Tenant Alpha is not a U.S. citizen, but he has an ITIN number. Tenant Alpha’s two brothers are not U.S. citizens, they have no social security numbers, and they might not even have ITIN numbers … so background checks and/or negative credit bureau reporting is impossible. They also have no bank accounts, no tax returns, and their pay stubs or other proof of income is pretty informal since Tenant Alpha may pay them under-the-table through his company. The biggest concern is they have almost no rental history since moving to the U.S., and the little they do have is BAD, where they stopped paying after 3 months and still owe a few thousand dollars in back-rent to that landlord. I haven’t yet found out why that happened??? And I strongly suspect that Tenant Alpha ALREADY let his brothers move in a few months ago, without first getting our permission and approval of the new occupants, which may be why they stopped paying rent at the other place.

CURRENT QUESTIONS AND CONSIDERATIONS:

This house will remain a long-term rental buy-and-hold, and since there are a lot of things that make these tenants undesirable to most landlords and lenders, I believe they likely won’t be able to find anyone else willing to sell or rent them a place … which means they’ll likely stick around long-term and pay timely. Tenant Alpha has already proven a good rental pay history, and he makes enough income where he COULD afford 100% of the rent on his own without help.

1. So I’m not sure whether or not to allow the two brothers to move in or not (or to ALLOW them to stay if they already secretly moved in without permission, which I’m not happy about)?  If they're not allowed to stay and/or move in, then I could lose Tenant Alpha if he chooses to move out and not renew for the second year (so the 3 of them can find another place to rent together).
   
2. If I do let them move in, should we name them as tenants obligated on the lease or just as occupants, making Tenant Alpha the only tenant? If they’re added as occupants instead of tenants, then they wouldn’t get to piggyback off their brother’s assured continued good rental history.
3. If they’re added as tenants, they do NOT meet our rental qualification requirement standards, so I’m not sure how to avoid trouble there making such big exceptions … or maybe the rules are different in a roommate situation like this, since we can’t market the remaining tenant or roommate spots to the public, to move in with Tenant Alpha?
4. If they’re added as tenants, and if Tenant Alpha later wants one or both of them to move out, I believe it’s harder if they’re occupants vs tenants. As tenants, I think they can be evicted down the road for non-payment of their share of the rent (assuming Tenant Alpha covers the difference and provides proof to us of the brothers’ non-payment).
5. Typically when making any exceptions to our rental qualification requirement standards, we expect a double security deposit, a qualified co-signer, or both. Recommended here, or no?
   
6. I already have a security deposit from Tenant Alpha’s move-in equal to 1 month’s rent, so to collect a “double security deposit,” I assume the max I could collect from the brothers is another deposit equal to 1 month’s rent and NOT one equal to 2 month’s rent???

Thank you in advance for any expertise you can provide!

Lara Fobian, GRI

Investor (Home Freedom Properties)

Realtor® (StepStone Realty LLC)

“Solutions-Based Real Estate”