All Forum Posts by: Steve Rozenberg

I think real estate like anything runs in Cycles 

statistically I have always learned that real estate runs in a seven-year cycle it goes up it goes down and then it goes sideways.

There's a lot of reasons obviously why the market is what it is today and there's a lot of economic emotional and influential drivers that are keeping what we are seeing at this current time a

 but just like the way it is today it will change either for the better or for the worse and there's two things I can guarantee

The market will go up and the market will crash at some point in the future. When that happens where it happens and to what extent is like trying to guess the weather

I think what you will find is that while these areas can provide some great opportunities in cash flow. You will also learn that they can be very time-intensive and heavy on maintenance and operational duties

It's not that these are deals that don't work, it's that these are deals that require a certain type of business model if you are looking for a type of hands off passive income these are not those types of properties 

typically these are properties that require a lot of work a lot of effort and when it's all said and done only works in massive volume that you have Crews running and doing all the work or you have to be involved

To me this is not a passive form of income this is a job, nothing wrong with having a job but make sure you clearly identify and understand what you're doing

I have learned that the biggest reason people do not achieve their goals is one word 'Action'... 

The reason people do not take action is because of pride and ego. 

This normally stems from not wanting to look dumb in front of other people that they dont even know, and the truth is the other people dont really care because they have their own problems in life you have to remember that once you have a clear definition of your why you are doing something and you create a burning passion to accomplish that anything can happen the reason you're not taking action in my opinion is probably because your why is not strong enough and it's not compelling enough to get you off the couch to take some action

It's like people that say they should quit smoking, they know it's bad for them, they know they need to.... but yet they don't. 

Until they find out they have lung cancer in 6 months to live and then they decide that there should becomes a must.

You have to ,on your own create your own MUST, and then and only then will the action start taking place

I would also suggest that you need to write it down a gold not written down is just a dream

First thing I would do as others in here have stated is figure out "WHY" you are doing this. Once you know that and you know your end goal then you work backwards. The goal has to have a finite destination and time limit on it.
For example you may say your goal is 20 houses in 20 years (paid off) earning $20,000 per month.. (20,20,20 goal).
Now you know where you're going and the timeframe for this to happen. From here you can build out your strategy, for example here you would want to have the 20 properties purchased the first 10 years so that they can use the final 10 years to pay themselves off. This means that you have to buy 2 properties per year which means you have to close on a property every 6 months which means that you have to find a property in 3 months to have it on the market and rented the following 3 months.
And the properties need to have a final cashflow of $1,000 per month after all expenses are paid. This will dictate where you purchase and look for properties based on that number alone.
My point is that you always start with the end in mind and work it backwards, this creates the strategy (Buy and hold, flip, Wholesale, Notes) which will be driven by the tactic (SFR, MFR, Mobile homes, Short term rental etc)
I always coach people and explain that the property is actually the last piece of the puzzle not the first.

Hope this helps

I would suggest for PM companies in your area go on narpm. Org there you will find some of the top property management companies in your area and that would be a good start

It is very important that you make sure you take the time to interview and have candid conversations with a PM company. Let them know your strategy, your goals and what your business plan is to ensure that your business plan aligns with theirs and you can both work towards the same goal. If they are not aligned then simply keep looking till you find one that is.
I used to own a company that managed almost 1,000 single family homes before I sold it.
Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.

Questions to Ask prospective management companies

1. What are your average days on market for vacant homes?
2. What is your average rent amount for all properties managed?
3. What is your average work order cost for the owner?
4. What is your average make ready cost for the owner?
5. Are all my invoices uploaded to my owner portal?
6. How do you advertise your vacant units?
7. Do I receive video of my pre and post make ready?
8. Do you have a setup fee?
9. Do you upcharge on maintenance?
10. When do you make owner payments? How often?
11. Are you a Certified Property Manager?
12. Are you a member of NARPM?
13. What is your Guarantee?
14. Do you provide move in and move out reports
15. How many pictures do you take of the property prior to tenant moves in and after the tenant moves out
16. Do you get weekly reports when the property is vacant what prospective tenants are saying about your home
17. Do you provide monthly newsletters to your tenants
18. Do you hold investor education classes to help me become a better investor
19. Do you have single point portfolio based management services?
20. How many properties do the owners actually own themselves?
21. What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits
22. How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

You have to remember that Partnerships are equal sided meaning you are providing some sort of value to the partner either through Sweat Equity through knowledge finances Etc

I would suggest that if you are thinking of a JV route you really think about what it is that you have to offer and how you are actually adding value

I would also suggest that if you are thinking of the JV route you find out what value are they adding for you meaning if it's just money that's fine but what interest rate are you paying what are the rates and what are the expectations of the return and could you get the same thing from a bank?

Any kind of partnership is great when things are good discussing when things are bad and when things happen how they will be handled whose job is to do what task and Duty are the things that most people need to discuss but never do which is why most Partnerships end up failing or end up in some form of lawsuit or litigation

Congrats and welcome, I am from Houston as well. My suggestion is that you focus on finding out what your end goal is in your final destination and based on that you create your strategy in your criteria and what you want to buy 

the other thing I would also recommend is start associating and meet like-minded individuals that you can connect with either physically in town or through digital meetups start understanding your area start understanding the different markets and start seeing if those markets will help you get to your end goal

I would say that after you decide on your goals and have a clearly defined strategy to achieve them. And you now know what type of properties you need to help you get there with clear criteria, then you contact investor focused agents and clearly explain what types of deals you need to have for your goals.

Be as clear and concise with what you are looking for so that they can help you achieve that goal. If you do not know what you want, how can you expect them to get you to your end goal

Invest your time and money in educating yourself. Gather more funds along with education. Do not get into this business if you are not educated and not funded for all aspects of what can go on.

You may try to be an intern of someone who is doing what you want to do and you get your education while you offer your sweat equity to them. This makes it possible for you to learn real hands on from experts and they are getting something in return for their time.