All Forum Posts by: Ryan Moore

Originally posted by @Rico S.:

Good day @Ryan Moore,

Why do you prefer a PM rather than managing it yourself? 

Hi Rico, I'm currently looking into it because I'm new to REI and need the time to learn more about it. I don't want the first few months of my first rental experience to be so hectic with learning laws/management, etc. I don't prefer the 'trial by fire' method when it comes to investments.

Originally posted by @Scott Weaner:

@Ryan Moore Why not self-manage? You are giving up a big chunk of cash-flow, especially if you are in the area.

 I would love to save the cost by self managing, and I have confidence that I could do it.  But with closing in a month, working 9-5, and 2 kids under 2, I think I'll stick with a PM for the time being.  Every month I see that money go elsewhere will be my motivation to learn all the ins and outs.

Hi, I'm closing on a multi-family 4-plex in Phoenix and I'm starting to research property management companies.  I've noticed that some charge a flat rate vs taking a percentage of the total rental income.  The flat rate charges I've seen so far seem to push my estimated monthly PM expense up to 13 - 15% of monthly income.  A couple questions:

1) 13-15% is a high expense ratio for PM correct?

2) Are there benefits to doing a flat fee manager vs one that takes a percentage?

I'm under contract to purchase my first property, a 4-plex multifamily here in Phoenix.  I'm submitting the BINSR tomorrow to the seller, and I was curious about strategies around what to ask for.  The property purchase price is right down the middle for market value I feel.  A roof repair is needed and I'm including the estimate to fix.  Also, there are some plumbing issues, along many little things like faucet leaks, stove burners not worker, ac air-flow not working properly, etc.  Should I just list all items from the inspection report on the BINSR and let the seller sort it out? Or should I let some little things go and only leave on big ticket items?  Thanks

• Is it common practice to put a contingency on asking for a specific amount of financial data?
• How about asking for financial data specifically early on in the contract before things like an inspect need to get ordered.
• Will a seller provide any financial data before being under contract?

I am under contract to purchase my first multi family rental property here in Phoenix. I asked for the financials and was given a statement for the 2015 year. Problem is that it only has July through October. And just for those months that shows the net operating income of -11,000. The owner has had the property for almost 3 years. I would assume I can expect more than just three months of income/ expense statement correct? Is this pretty lousy for the seller to give me just this much info?

I really appreciate you taking the time to help!  Too bad I wasted my entire Saturday just staring at these numbers :-)

Originally posted by @Chris Mason:

 Those closing costs are sufficiently high, across the board, that you're obviously including things that have nothing to do with the lender selected. 

Correct, I just chose the Total Closing Cost and the subtracted some items that I knew were too high (i.e. home owners insurance misquoted)

Please update your "est closing cost" to ONLY include Section A and the appraisal fee from page 2 of your LE.

For P#2 & P#3, I was told that going to 4.875 I could subtract ~$1400 origination fee, and if I went to 5.125% I would get a 700 credit

I guess I didn't fully understand all the different sections.  They all varied with the different information they had in them. (i.e. option title insurance is $1,150 for P & $173 for S.

So from what I'm understanding, I can basically forget about everything else on that sheet except for Section A + appraisal since all the other numbers will ultimately be the same no matter which lender I choose?

@Christian Bors@Chris Mason

Great input from all of you.  Here's the curveball.  The lender who will be the best to work with, the one who has asked me about the short and long-term goals and has discussed with me about how to go about financing future properties was not the two lenders I was talking about, but the 3rd lender (who didn't have lowest rate or lowest closing).  As you can see in the chart below, lowest rate goes to D (my credit union who I just had a random mortgage officer), lowest closing cost w/ regards to a low rate is S (a broker who was very easy to work with and answered a lot of questions), and P is the lender I spoke about above.  P provided me the 3 different options.  I would really love to work with P. 

 Loan amount is 138,750.  I'm not 100% sure what you mean with ability to deliver but both sides, me and them will come through with the deal