All Forum Posts by: Rob Toste

Hi Bigger Pockets,

I am trying to "sharpen our pencils" so to speak when it comes to proper reserve amounts for rental properties and I am having a difficult time finding concrete answers to this topic. I have searched up and down the forums but I am only finding topics that discuss reserve amounts for "PITI" and some other smaller maintenance items. To me, those items are a lot more simple to save or reserve for.

The difficulty that I am having is when it comes to larger items, such as New HVAC and knowing how much to put away given its useful life when a property is acquired, Painting a property, new roofs (along with determining its useful life), redo of blacktop for parking lots (especially older properties).....these larger capital expenditure items are a lot more difficult to determine in my opinion aside from putting money away for unforeseen maintenance items or vacancy. 

Also a little context I am more so talking about commercial real estate (single or tenant office/restaurants/shops properties) and multifamily properties rather than single-family dwellings. 

Hi BP,

I Currently am a Managing partner of a company that owns and manages Real Estate. I am looking to bring the property management aspect of the company to the 21st Century and would like to hear how others are running their companies. We currently have a system of keeping track of rent payments but it is not that great for Commercial property management (our only investments are commercial properties). The software is really for Storage unit book keeping and we use it to manage the properties as we also manage our own storage facility. This may be some of the issue and we may need to look towards a better software system.

One of the other areas I am looking to improve and would like advice and guidance on is how to Lease properties/ screen tenants without hiring a broker (becomes expensive) to do this for us. Screening is the big one really as we are unsure of how or what to do when screening tenants due to the fact a broker has always done this for us (hasn't seemed to work that well in the past)

The next area of improvement is billing to tenants for CAM charges, also how do you deal with maintenance on the buildings if it is not triple net, even if it is triple net how do you place urgency on the tenant to initiative to make the building an A or B class building if that is how they received it.

Thank you all, sorry for the rant but just looking for advice and input. Would really appreciate any discussion. Take care.

@Atiq Rahman hi atiq,thanks for reaching out. shoot me a direct message and I would be happy to chat with you. 

So i have a decent amount of good buyers lined up not I just need to find deals, but want to get all my ducks in a row first. And most of these homes I can't purchase my self anyway (not enough personal funds) which is why I am wholesaling.

@Dylan Vargas Thank for you responding so quickly thank you. So does that mean that I get the property under contract, open up escrow, then find a buyer. Or do I get the property under contract, find a buyer then open escrow? If thats the case how does the time frame stated in the contract for the date of close of escrow effected?

Hello Everyone, I had a question about the closing of a wholesale deal that I haven't found the answer to here on bigger pockets. 

.Once you find a deal and get it under contract do you first take the contract and Ernest money to the title and then try to find a buyer or do you find a buyer then take the contract and earnest money to the title company.

.Also what happens if it is the first case scenario as stated above and you find a buyer on the last day of the due diligence period and then that buyer needs a due diligence period, what happens from there.

. Also how does it work with the communication with the title company, say you deliver the documents to the title company and then they don't hear from you for entire closing process. what happens. could someone walk me through the closing process and the possible scenarios around the closing of a deal.

I would really appreciate it, thank you.

@Dominic Bouchard That would be great thank you for the assistance I really appreciate it.

Hello all,

I was wondering where you all got your contracts for wholesaling (particularly in California). I recently spoke with my attorney and had him draft a contract, and he made it long and dense and not the most simple. I understand he wants to protect me but I don't think sellers would be too comfortable with it. I was looking for something that basically has clause that touch on me only being liable for my deposit if i do not execute, stating a due diligence period, clause stating that I am an investor and am not representing them in anyway ( i have my real estate license), a contingency stating that the title must come back clear in order to go forward with the deal,  and any and all other clauses that play in my favor given I need to back out. Any help is greatly appreciated. thank you.

@Shawn Ackerman thank you for the feedback. i really appreciate it, definitely answered my questions  You wouldnt by any chance have a contract that i could look at would you?

Thanks for the reply Ellis,

1) I found a contract and i will just confirm it with my attorney.

2) So the earnest money is added on top of the funds going to the seller?

3) also since I will be with my attorney about the contract I will bring up the possible rescission of the back end buyer. Otherwise do you know of what normally happens when that happens in a wholesale deal?

4)If the pay off is larger than the offer, what ends up happening from there? Or should a wholesaler stay away from those homes completely?

I appreciate the help again, thank you.