All Forum Posts by: Tim Delaney

You may want to start with the BP agent finder for those markets and then work with them to find good PMs and lenders.

They have definitely become more challenging since rates have gone up. Without any cash it is unlikely unless you can find a 100% seller financed deal (they do exist, I just did one a few months ago). But even then you still need to have cash available. Right after I closed on that one the insurance company demanded I make a couple thousand dollars of repairs. The other way I fund deals with none of my own money is using a private lender that I have years of experience and relationship with and/or using HELOC and other business lines of credit. Bottom line, it's not impossible, but definitely challenging for someone just getting started. Network, network, network. Show up at as many local meetups as you can to possibly meet the right seller, lender, or partner.

The companies you will find in the lender finder section of BP are probably mostly companies as opposed to a private person like you are referring to. The best way to find that is networking. Go to local meetups, search these forums for people that have mentioned that they do private lending and attend other RE events.

Congrats on the sale of your business! Since you said you are selling your building I’d argue you already have been a real estate investor. Also, coming from running a business just think of RE as a business (which it is), the numbers have to work and your investments need to fit into the big picture.

 Just remember not to do a 12 month lease if you find someone this month or next! I usually like to start it shorter to be safe if I need to end the tenancy, but I know some people opt for the longer 14-15 month leases.

I am not a PM, but I do self manage about 50 units. My first question for you would be what your experience is? I could be wrong or out of line, but I feel like this is a field where you really need some good expertise/experience to know how to address the variety of crazy situations that will come up. Maybe you already have it, but I didn’t see it mentioned. If you don’t, maybe work with or for an existing company first for awhile?

 Just tell her to be the most inefficient, slowest worker possible 🤣.

Not sure how far the houses are, but could she do drivebys of each one every week as well?

I'm not sure if you are planning to buy more, but I think if she becomes an agent then her time looking for properties would also count. Definitely double check that though.

I'm in Buffalo. It happens this time of year. Especially with the way the holidays fell and at least for us some pretty heavy snow storms.

I try my best to have leases end between April and October. Preferably May-September. But occasionally we have issues and tenants need to be asked to leave or just decide to disappear in the middle of winter and it sucks.

The worst part is I find the quality of tenant interested or willing to move this time of year isn't the greatest either - often times there is a reason they have to move right now since most landlords don't like ending leases this time of year.

Either lower your rent or just hang in there.

Why not take his name off the LLC and put it in your name now while the LLC has $0 of value (or whatever nominal amount your articles of organization or operating agreement say that you contributed)? Then you own the LLC and can transfer the property into it.

If you transfer the property into that LLC the way it is then technically you just gave your friend ownership of the house proportional to his ownership of the LLC.

I'm not an attorney, so take that with a grain of salt.

Does she handle all the tenant communication? Hiring lawn care? Maintenance scheduling (I realize it may not be frequent)?

To get those hours, maybe turn one or two into medium term rentals (you want the average stays to be over 7 days so they don't fall into STR status) which would give her more to do, particularly in the first year of furnishing them and getting everything set up.

Alternatively, she maybe she could manage the properties but also get her RE license and try to sell a house or two a year - go to lots of open houses or run them for other agents?

Just ideas, talk to your CPA to make sure you are doing it properly.