All Forum Posts by: Ross Schneider

@Geoffrey Jones 

Your rough cap looks solid.  Getting $300-$500 a door is very feasible.  Excellent point about the schools. I would look into what @Paul Ewing said about the taxes.  Sometimes they are not always on TAD (nor are they up to date).  Also be careful about repairs.  I don't know if you went to look at the properties or are basing the numbers off of someone you barely know.  If those numbers are correct on repairs, you should have a nice cash flowing property.  

Hello Everyone! 

A little background: My partners and I started our company a little over a year ago.  We wanted to start flipping/holding, but we had extensive knowledge in wholesaling so decided to start with what we knew.  After we complete a large multi-million portfolio in East Texas, we decided to find more of those deals.  We then contracted one in the TCU area in Fort Worth, Tx.  We found people were wanting a property manager, and we thought, "Hey! We could easily do that for you." Since we live in the area it would be quite easy to collect rent and answer questions.  We also know a contractor who would be able to do maintenance and repairs for us. 

My question is to anyone with experience starting their own property management company, what is the best route to get this going? One of our close contacts is looking to get into the rental game and thought we might be able to manage his first rental in Fort Worth.  It would give us some credibility and we could build our clientele from there. We have always wanted to expand out of wholesaling.  This way, we could build some capital to help us start flipping and holding houses for the long term.  In advice (negative or positive) would really help.  We are just four young guys starting our journey to wealth.  Thank you! 

@Geoffrey Jones It looks like you are getting the houses and a great percentage. What are the taxes on the properties? Also, how do you determine what would be a good deal for you? Do you look at it from purely a cash flow stand point, or do you look at ROI?I don't know too much about these areas, but Katy, Tx is a market that is growing very quickly thanks to Houston and the oil market.

One of my partners is from the Houston area.  He said to be careful around Spring, there are some very good areas, but there are also from very bad areas (that's about all he knows).  

@Lance Stull welcome and thank you for your service! Any questions you may have, let us know! There are plenty of people who will be able to help you out! Best of luck.  

@Reggie Youngblood right now my partners and I are trying to work a large apartment complex outside of the DFW area.  Another good way is to start calling local property management companies in your area and see if they have any clients who might be looking to sell in the future.  Finding apartment complexes is not easy.  We did 65 houses out in Longview not too long ago. Those were referred to us buy one of my partners investors (just kind of fell in our lap), but we were easily able to find a buyer.  Since then we have shifted our focus to portfolio deals.  Like @Brandon Turner  stated, the spread is much bigger, but the buyers are fewer.  Let me know if you have any questions! Best of luck, Reggie.    

@Agustin M. is right about the contracts. My partners and I are all licensed.  We only used TREC contracts.  As a licensed TX realtor, I am pretty sure you HAVE to use a TREC contract.  Either way, the language is already laid out for you and is easy to use.  Anything you might need to add in the contract, you can do so in the Special Provisions section, or thorough a separate addendum.  If you decided to draft your own addendum, I would have a RE lawyer look over it for you.  

If you have any more questions, feel free to PM me or email me! I am in Fort Worth and would be glad to help if you need anything.  

@Jason Fang Can you see the % improved from the tax appraiser? If the property has been deteriorating, that could be why the value is declining.  

@David J. have you thought about still wholesaling on the side? Or have you just gotten away from that all together? 

@Tim Bishop 

I think it would be a good buy and hold.  I would pitch the property solely on cash flow. Leave appreciation out of the conversation.  Most smart investors in our area will already realize the appreciation factor.  I think you could find a buyer for this! 

@Tim Bishop It is going to depend on the condition of the inside of the property. If it needs tons of work, it will be hard to wholesale something close to retail, no matter how well the property is cash flowing. Most buy and hold investors I know are not only looking at cash flow, but potential appreciation of the property. You might have some luck trying to wholesale, but it would be tough. The numbers would have to be solid, and in an area where the house would be easily marketed for rent. All in all, if the house is renting for more than 1% of the ARV, I think you might have a good deal for yourself in the long run. I hope this was of some help!

Ross