All Forum Posts by: Richard Sherman

ANYTHING that asks you to pay for a "system" etc 100% you do not need.  10000%

 Sure, I would keep your options open.  Just be careful, like any partnerships vet out what happens when the S hits the fan (Divorce drugs, death, disinterest) etc...the FOUR Ds that cause issues.  Truly passive would be syndication, sounds like you want more involvement than that but not running it all yourself.  I always think your local market is the best place to start, some would argue otherwise, but I think you bring a lot of extras in areas you know well.

I WILL say you do not need to pay a dime to any coaches, gurus. Do you have any friends etc who are investors? They are good places to start or a local REIA MeetUp (just google REIA and meetup and see whats local to you.)

Awesome!  Keep it up, keep growing!  We had 16 units 2 years ago, and I had a goal to double each year, up to 65 units now, and closing on another 20 unit by the end of the year. :)

 I would still say you need to narrow it down, you want to be learning the markets ahead of time or at least have an idea.  Get on Marcus and Millichap research on different markets, TX is the size of France, you want to at least have an idea of some submarkets ...mostly because what makes sense and works in DFW WILL NOT in deep west TX etc.  The other thing is if you are that broad you might not get the time of day from brokers because they are not able to narrow down.  

No one can be an expert at all areas and a good deal in one is a horrid deal in another.  

@Chris Reichelt   The sound of crickets again...haha...I actually posted another topic on this when I realized this one was 2 years old.  Have not heard anything back yet.   I ABSOLUTELY have a tendency to be skeptical to a fault, and I know that, but whenever I start hearing things that make me feel like I am at a mix of an MLM conference and Tony Robins audiotape I start really wondering what is going on.

I agree...stay local at least until you have things under control and have some experience.  There are lots of intangibles in being local to properties.  I invest in both, but I think it is easier to make a bad decision out of your market than in it.  Remember, this is a long game, an OK deal now is a GREAT deal after a couple of years as your costs stay the same and rents increase.

Sure thing!  Usually, there is some kind of additional service option, but it WILL vary by state! Good luck and just keep up the pressure!  If you still have issues, spend a little on a good eviction attorney to help learn the process.

How many total units do you have in areas like this?  I have purchased some properties in Memphis that cash flow very well, my concern is always scale as I do not live there...and finding good PMs

@Todd Powell I know this has already been mentioned, and you know Oregon well, but make sure to read up on the current OR rules. Essentially, anyone can provide a letter approving anything..in Oregon, as far as I know, they could have a flipping Narwhale if they wanted one..I still require the letter, even if their pet dolphin wrote it for them. I put it in my file in case there are ever claims, insurance issues etc. https://droregon.org/know-rights-service-animals-r... is a good source for a summary. Sometimes when you ask for this (remember it is illegal to ask WHY they need one, we tell them DO NOT tell us why you need one, just that we need something for our file that it is a service animal. About 25% of the time they never reply back. The rest of the time they provide the info.

Of course, rents will have to increase across the board to accommodate for this and I hold everyone to a strict damage requirement, so if there is ANY damage it is coming out of deposits, and bi-annual or more frequent inspections (also good times to do routine maintenance.) People taking advantage of this are unfortunate, but it is the world we live in. Essentially, assume everyone has pets, use vinyl plank flooring and price rents accordingly.

+1-  100% remove it and @Victor N. is also correct, it could jeopardize your homeowners insurance.  WAY too many things to go wrong and the additional cost of inspections, cleanings etc.