All Forum Posts by: Russ Olivier

Have you always been curious about Real Estate Investing? Or do you already have 1 or 2 rental properties, but aren't quite sure the best way to manage them? Sign up today for the September 16 Seminar "The Rental Property Workshop". Only $29 per person or $39 for two. This nuts and bolts workshop focuses on the basics of real estate investing and managing rental properties. You'll learn how to:

- Analyze real estate opportunities

- Create positive cash flow from rentals

- Find and fix up rental properties

- Find and keep great tenants

- Work with vendors and contractors

- Strengthen your retirement strategy with rentals

- Take advantage of the tax benefits of real estate

My partner and I have over 20 years in real estate investing and currently own and self manage 26 rental properties in DFW. We both quit the corporate world to focus on our passion for real estate and we created this workshop to share our experience and show that anyone can own and manage rental properties. Sign up today at www.souptonutsandbolts.com

The Rental Property Workshop September 16th from 1:00 - 4:30 at The REC of Grapevine 1175 Municipal Way, Grapevine 76051

Have you always been curious about Real Estate Investing? Or do you already have 1 or 2 rental properties, but aren't quite sure the best way to manage them? Sign up today for the September 16 Seminar "The Rental Property Workshop".  Only $29 per person or $39 for two. This nuts and bolts workshop focuses on the basics of real estate investing and managing rental properties. The 3 1/2 hour seminar will help you learn how to:

- Analyze real estate opportunities

- Create positive cash flow from rentals

- Find and fix up rental properties

- Find and keep great tenants

- Work with vendors and contractors

- Strengthen your retirement strategy with rentals

- Take advantage of the tax benefits of real estate

My partner and I have over 20 years in real estate investing and currently own and self manage 26 rental properties in DFW. We both quit the corporate world to focus on our passion for real estate and we created this workshop to share our experience and show that anyone can own and manage rental properties. Sign up today at www.souptonutsandbolts.com

The Rental Property Workshop September 16th from 1:00 - 4:30 at The REC of Grapevine 1175 Municipal Way, Grapevine 76051

Great idea @Bart H.!

I've had this happen to me several times.  The only other bit of advice I'd recommend is make sure all applicants know (and it's in the lease) that the rental is "as-is".   I sometimes will allow a renter to improve something in the property, but they have to pay for it.

Hi James, I'm a landlord in Dallas so may be able to help.  We don't give renewal notices that far out, since, as someone else already said, a lot can change in 90 days, especially in this market.  We general will go out 30 days and give the tenant a few options ... a rate for a standard 1 year extension, and a bit lower than market rate for a 2 year extension.  We'll also give them the stats of the rental market in their area (specific to the subdivision if possible) with links to currently available houses.  Finally, sometimes we'll agree to lower the rent to slightly below market if they agree to make some repairs that are needed on the house (ie maybe repaint [we supply paint] if we trust their skills).  This has worked as a win-win for us in many cases.   Hope this helps!
 

I'm considering investing in some Hard Money Loans with a DFW company DHLC.  Anyone have any experience with them?  Can't find much on BP.  I would have 1st lien and Mortgage and Deed would be assigned to me and filed.  I've done a bit of this in the past, but any other advice on investing in this type of vehicle would be appreciated as well.

Yep @Nick B. you got it.  The deals they are doing look pretty good, and I actually have done some work with one of the principles in the past, but I'm just not sure I'm comfortable with the 15% up front structure.  Did you find other sponsors in the DFW area doing similar value add deals with a better s

Yeah great questions .. yes there is additional 1% for LTL, 1% for concessions and 1% for bad debt built in, so a total of 8% economic vacancy I guess.  This is all in year 2 when the property is theoretically stabilized.  And this does increase 50 basis points per year after year 2, so ends up at 9.5% total in year 5.  The property as is, is showing a 7.5% total economic vc rate now.  This may all be reasonable given the current low vc rates around here, but just not sure.  

Thanks Michael!  You're right, but there is some value add in the deal, but it's all on the rent side.  Occupancy is super hi but they are planning reno and increasing rent ~13%.  I do get concerned about them being able to keeping vacancies low with raised rents (they are increasing vacancies in year 1 up to 15%, but then dropping the down to 5 in year 2 .. that may be too aggressive).  Thanks for all the help!

Good point .. it's a Class B in a Dallas suburb (Irving), and they are buying it at a 7.5% cap.  Seems to me they are getting a good deal as I thought cap rates in this area were closer to 5 or 6.  The property is pretty good shape from what I can tell from the outside.  I'm touring it Friday.