All Forum Posts by: Rob Jones

@Jeremy H.

I have my maintenance person inspect each one of my units every 6 months.   I like to phrase this to the tenant as a "property health check".  The reason I phrase it this way is so they can be assured that I am not attempting to come in there to judge how clean or un-clean they keep the place.  What I am attempting to do is make sure they are living in a safe and secure place.  They pay me each and every month to live in a place that is safe and secure and I have full intent to deliver on that promise I make to my tenants.

Currently seeking to establish relationships with Hard Money and Private Lenders that lend in North Carolina.  The operative word being "relationships".

A little background....

My wife and I have 3 buy and hold SFR's in Greenville, North Carolina and will be coming to a crossroads with our DTI soon. We both have great credit scores, great W-2 income, and virtually no debt(one car loan and one student loan) but the mortgages we have on our rentals and the rent rate we have on the apartment we live in bring our back-end DTI to 41%. Conversely, if there are any traditional lenders(i.e.-banks and CU's) out there that will lend on the deal as opposed to personal DTI, I'd love to start building a relationship with you as well.

We are also exploring the possibility of doing some BRRRR in the near future so a relationship with Hard/Private Money lenders will be of huge importance.

At the moment I do not have a deal on slate, I am simply wanting to establish a relationship.  My wife and I have a strategy to acquire 4 properties this year(we've already acquired 2), 5 next year, and 7 the following year.  We have a clear strategy and an even clearer plan to execute on that strategy. 

@Edgar Claudio

Lucky for me, I lived in the area I invest in in North Carolina for virtually my entire life.  All of my friends are there so I did most of my networking/built most of my relationships in that city.  Because of this I have a close friend that offers to show the units for me when I am in the process of acquiring new tenants and he was able to get me in contact with the handyman I use for all maintenance.  

In order for me to give you an accurate tip that would be pertinent to your situation I'll have to ask if you are from North Carolina?  Do you have friends/family that could help you if you decide to not use a PM company?  If you are not using a PM, my most important tip is to properly screen your tenants.  Ensure that the individuals that are renting from you can fully and completely pass your application.  If you get someone in there that you are uncertain about just to fill the place, you will definitely run into problems.  Great tenants are worth their weight in gold!

Any other questions feel free to send me a connection request!  Hope you are staying safe up in Orlando.

@Donnie Martens

Glad to help.  Best of luck in all of your future endeavors!  Make sure you are absorbing as much information on these forums as possible.  There are a ton of extremely intelligent and experienced investors that are willing to give you advice free of charge.

Good luck!

@Donnie Martens congratulations on taking the steps needed to educate yourself and further your investing career!  Deal evaluation is a great way to get familiar with your area, the expected rents, and the types of available properties.

On the surface the deal seams plausible. With that being said, I would highly encourage you to validate your rents with actual individuals and property management companies as opposed to using Rentometer. Rentometer is just an algorithm and it is not exact by any means. As a next step I would encourage you to get a better idea as to what a 1600 sq ft 3/2 house rents for in this area. Until you know a realistic number for your rent your ROI's, CoC's, and cash flow will be skewed.

Also, if you have enough for the down payment, might I suggest you use that to begin paying down your personal debt, then wait to purchase a property until you close to or fully debt free.  This serves multiple purposes.  This looks very good to a lender and shows financial responsibility which could lead to a better interest rate, increasing cash flow.  Paying down debt improves your credit score as well.  Finally, you'll be able to realize more cash flow if you are not having to use that cash flow to pay down personal debt.

I look forward to hearing more from you!

@John Johnson does this college have a graduate program?  If so, having that grad program could increase your likelihood of getting better tenants.

I invest in a college town and I have noticed that when I rent to grad students it is much, much easier than renting to the undergrads.  Typically the undergrad students party more and are more destructive because this is the first time in their life they are un-managed(meaning no parents around).  The grad students are older and more mature and focused on excelling in school meaning they party less and are more mature.  

I have a full time job as well and self manage 3 SFR's. I live in Florida and all of my units are in North Carolina so this adds a degree of difficulty at times. Luckily I have a really trustworthy handyman and all of my tenants pay me through Venmo or the Cash app so I don't have to be present for much.

The biggest factor for me is screening.  I can have piece of mind being out of state when I know that I have properly screened the families living in my units.

@Delmas Edwards

I wouldn't say there is a "standard upgrade" in a rental property.  All properties differ.  One thing I can say is I wouldn't do an upgrade unless you know, for a fact, you can recoup your investment and get a return in the amount of rent you get on a monthly basis.  There is no sense putting granite counter tops in a unit when the market does not see that as a necessity. 

@Nathan Gasti

I would, without a doubt, request a copy of the rent roll and the property expenses from the past 3 years.  

The rent roll is an accounting ledger that will give you a better idea as to when the tenants pay rent each month, how much they pay(hopefully it's the full amount), any amounts that have yet to be collected, security deposits, and any other miscellaneous fees.

The property expense report will give you just that, the expenses of the property. The reason you'll need to see accurate expense is so 1)you can properly calculate your NOI, 2) you can see if there are any deferred expenses and 3)you can get a better idea as to what kind of existing owner you are dealing with.

I akin detailed accounting in a property to a used car owner keeping his original service manuals and service receipts.  An owner who is diligent in keeping his/her income and expense accounted for is, more than likely, and owner who takes pride in his/her investment.  Hope this helps

Good Afternoon BP!

Lately I've been thinking to myself and thinking out loud(mainly to my wife) about bringing some of our friends and family into our real estate ventures.  My family and my wife's family have seen what real estate has been able to provide for my wife and myself and I know they are interested but I am having a difficult time getting them to "bite the bullet" and go in on a property with us.  At this point I'm not sure what's holding them back and, to be honest, I should probably just ask them.  

In your past experience, what has been the tipping point when attempting to get a family member to do a JV or partnership with you on a deal? Was there anything, in particular, that you did or said that really got them to see the light? I've thought about getting my portfolio together and showing them the numbers but I'm not sure if that would even matter. My parents are getting ready to retire and I want them to be able to have some extra income in retirement and I don't see any better way to do that than to invest in real estate.

I look forward to everyone's feedback!