All Forum Posts by: Robert Wodogaza

Welcome to BP @Mack Perez.  You've joined an invaluable resource here on BP.  I personally have not done wholesaling, I am a buy and hold investor, but as @Anthony Thompson and @Christian Allen said, there are several HOT areas right now in the greater Providence area.  It would be best to do your due diligence and really research the areas that are hot, or up and coming right now and concentrate your efforts there.  Unfortunately the hot market around here has led to an overpriced housing stock that is skinny of inventory at best.  But if you are doing wholesaling and market the right areas you should be able to turn up some deals, it just may take a a lot of work to do so. There is a lot of competition in the wholesale market in this area.   

The other thing I would suggest is to look into where the dollars are being spent on infrastructure here in the greater Providence area.  There are several projects going on, or that will be going on now and in the next decade that will really do some good things for the area as far as growth and the need for housing.  Again, really do your Due Diligence.  

Definitely join some REI groups like RIREIG in RI and The Black Diamond Group in Worcester, MA. You will meet so many great people in this business and that will in turn turn up leads and properties as well.

As a buy and hold investor I have found the last year to be very difficult to find good deals on multi-families as there is very little out there in good condition and everything out there that is for sale is so over priced that it's hard to make the numbers work as an investor.  We are seeing the same situation and same sale prices as we did leading up to the 2008 housing collapse.  Not that things will collapse, but the prices are around where they were in 2005-2006.

Good luck with your venture and I hope to meet you at one of the RIREIG meetings some time.

@Steve Bracero, I would be interested in this group, please PM me and I will get you my email.

@Christopher Sullivan, welcome to BP.  As @Anthony Thompson said, this site is an amazing resource for all things real estate. Listen to the podcasts, get involved in discussions of interest to you. Also as Anthony said, there are some fantastic investors groups such as RIREIG here in RI and Black Diamond REI. At the meetings you will meet people from all facets of this business and get some really great leads and perspective.

Good luck in your investing and hope to see you at one of the REI meetings.

Rob

@Russell Lavoie, I would suggest looking into attending REI meetings. There is a great group that meets in Waltham & Worcester, MA. They are called "The Black Diamond Real Estate Investors. It is a great way to meet people of all facets in this business from all over Massachusetts and Rhode Island & Connecticut.

@Alexander Zurn, I agree with everything that @Anthony Thompson said.  Also I would add that reading the Rhode Island Residential Landlord and Tenant Act law is a HUGE MUST.  There are many things in there that will affect you legally if not followed to the letter of the law.  You can really get yourself set up for a law suit and a lot of expensive legal fees and fines.  In this case, If the elderly couple is over 62 you only need to give 60 days notice of a rent increase, not 90.

I know it may sound harsh and uncaring, but you need to think and act like a business owner.  That is all this is, it's a business and that's it.  If you let emotion play a roll you will regret it over and over.  I learned the hard way many years ago, now I run my business with no emotion involved and can say that things run much smoother with a lot less headaches.  As the saying goes, "No Good Deed Goes Unpunished".   

@Raymond Hill, as Jason Martins suggested I would attend the RIREIG that meets the third Thursday of each month in Warwick, RI. There you will meet people from just about every aspect of REI in the surrounding area. You have already made a BIG step by getting on BP. This site is an invaluable tool to education, meeting other investors and a world of other resources to help you grow.

@Isca Harmatz, I am local to my properties, they are around 25 minutes from where I live so my situation is much different, I thought you were looking there in CA.  If I had to manage properties in a different geographical area, I too would probably have to use a property management Co., but I would try and fly there and spend a week or two trying to make the most of my time setting up a team on the ground there and talking to the local real estate offices and other property owners to see if they had any recommendations.  Keep researching and if possible, take a trip out there and try and establish a relationship with people there that could look out for your interest and maybe police the PM companies.  A second or third set of eyes is always good.  One of my friends was paying a property management company to manage his 6 unit next to one of my properties, they were charging him each week to do the landscaping.  I go by all of my properties once a week, I had to call him to tell him and text him pictures of the grass which was a foot high and there were weeds and garbage all in the shrub beds.  He never drove by so he had no clue they were not doing this stuff.  Needless to say this is typical of PM companies out here, the stories are endless.  My point being that if and when you find someone, try and have another set of eyes watching their work.

@Michael Rogers, congratulations, your finally where most of us are working to be.  Good luck going forward and keep us posted on your success.

@Isca Harmatz, there was an interesting blog back on Dec. 11th by Eric D. titled  "8 Reasons Why Using Property Management Is a Waste of Time".  you should look it up and give it a read.

I am not sure about anywhere else, but here in RI property management companies have a very bad reputation as falling far short of expectations and nickle & dimeing you to death.  Generally they charge between 8%-10% of total rents, 1 months Rent to place a person.  But they also charge for lock changes, any maintenance costs, eviction costs, etc..   Basically your 8%-10% is for them to answer calls and collect rent.

I personally do not have a management company and would not hire one do to all of the bad things I have heard on BP and in my area investor groups.  I have worked hard to set up systems and team members to allow me to manage my properties with little effort and it has worked out great.  I am continually improving on them and things just get better as I go.  There is the occasional bad experience with something, but saving  8%-10% + Fees is far worth it to me as it adds up very quickly as you accumulate more doors in your portfolio.

@Chris Prefontaine, welcome to BP.  I believe you and I have met at the RIREIG in Warwick, RI.  I was just reading your group email this morning about you and Nick watching Chevy Chase in Christmas Vacation.  This is a great place to meet others in our field and to learn and help others. as well.  With your experiance and knowledge I believe you would be a great resource to many on this site.

I look forward to hearing from you here at BP.