All Forum Posts by: Nate Garrett

We have set criteria and we (the PM company) approve the tenants if they meet the threshold. If the tenant is borderline because of a specific issue (rental history, criminal record), we may ask the owner for a go/no go on the specific issue.

Just something to keep in mind: if you, as the owner, are the approval authority, it is highly likely that you would get named, along with the property manager, in a fair housing lawsuit. Fair housing law is a complex and constantly evolving body of law. Are you keeping up with it? 

In my mind, the less contact you as the owner have with a (prospective) tenant, the better for your sake. Take your time finding a good property manager, then let them do their job and take on the risk.

Hi @Connor Simonds 

I agree with @Chris Simmons   and @Judah Hoover  - limit your downside risk as much as possible while you're starting out. If you can get control of a property for a small amount (either contract earnest money or option deposit) and then look to assign the deal you will reduce your risk and if you have a good deal, you should be able to find a buyer.

You will make mistakes when you're starting out - underestimating the cost of repairs, overestimating market values, etc. If you can limit your downside risk during this "learning phase", you have a better chance of making it through to the "productive phase" where you have the knowledge, connections, and skills to (fairly) consistently make money in real estate. Just remember, every person that has achieved success in real estate started out in the "learning phase". 

Best of luck, let us know if we can help!

@Marco Morfin 

The market rent on that property is about $950 / mo. We manage quite a few newer construction 3/2/2s in Claremore.

I would also list on Craigslist if you have not done so already.

Regards,

Nate

@Chris Simmons 

The appraised value at the Sheriff sale is frequently not an accurate representation of the value of the property. They are drive-by appraisals and frequently appear to be influenced by the judgement amount so I take the number with a (very small) grain of salt.

That being said, the property will not, under any circumstance, be sold for less than 2/3 of the appraised value. That is Oklahoma law.

The "No Bid / No Sale" occurs when the bank does not enter a bid and there are no other bidders willing to pay 2/3 of the appraised value. The property simply rolls to another auction to attempt the sale again. 

I believe the plaintiff can petition for a new appraisal if they feel the appraised value is too high and preventing the property from selling. 

Several years ago I spoke with a plaintiffs attorney regarding a property I was interested in and told them the appraised value was much too high for any investor to pay 2/3. It had no bid for a few auctions and then suddenly the court case showed the property was re-appraised for a lower amount. I then bid and purchased the property. I'm assuming the plaintiff (bank's attorney) had asked for a new appraisal to be conducted.

If you have additional specific questions regarding the process, the best source of information is the sheriff's office civil desk (918-596-5684, [email protected]) or to ask the plaintiff's attorney directly. I have found both to usually be very friendly and willing to answer questions regarding the process.

@Bruce Froman

Good to hear you didn't buy into the hype at the Fortune Builders event. I think the only fortune that's being built at those events is the one belonging to the guy on the radio haha.

Hope the deal with your family works out. If you want to share some general info on the deal, I'm sure you'll get some good feedback from others.

As far as Tulsa is concerned, I think the majority of investors are sticking with buy and hold vs flipping. I have a few friends that are prominent rehabbers in the area and they are finding it harder to find flip candidates due to significant interest from the buy and hold crowd driving prices up.

You can still find attractive buy and hold deals, it's just taking a bit more effort than it did a few years ago. That combined with low mortgage interest rates means Tulsa is still a very attractive place to invest.

Best of luck!

Hi @Bruce Froman 

Welcome to BP!

I think you'll find Tulsa a great market for REI.

How are you thinking of getting started? Which property types / areas of town are you looking at?

@Sam Sendgraff 

You probably won't find 2% in significant numbers anywhere besides North Tulsa.

1.5% in West Tulsa, Midtown, and East Tulsa, and possibly older areas of the suburbs.

1% for newer construction or updated older properties in the suburbs or south Tulsa if you get a good deal, although that is getting much harder to do.

Completely agree with @William Robison - a 2% property might look like a cash flow machine on paper, but can easily become a pig in the long term. There are people doing it successfully, but they typically do all the management themselves and specialize in that niche.

@Joshua Dorkin 

I understood that - I should have said that I don't see the value proposition for property managers or for investors.

To clarify, my question is what need would a BP property management certification fulfill for investors that isn't already met by finding a property manager who is NARPM or IREM certified?

@Account Closed 

There are already several professional designations and organizations available for property managers as you alluded to:

National Association of Residential Property Managers

- Residential Management Professional

- Master Property Manager

Institute of Real Estate Management

- Certified Property Manager

These are well-recognized designations from reputable professional organizations, especially the CPM which has fairly extensive requirements. What additional benefit would a Bigger Pockets designation offer a property manager? I'm all about bettering the industry, I'm just not sure I see the value added in this case.

@Chris Simmons 

You will likely have to run everything through the brokerage's trust account. That is why you won't see many big-name brokerages allowing licensees to conduct for-fee property management activities. Property management trust accounting is a different game entirely from sales and requires a lot of oversight to do it right. That's probably why it makes the managing broker nervous.

I have never done PM under a big-name brokerage so I don't know how they would handle the specific questions that you are asking. You will have to iron out the details with whichever broker you hang your license with.

If you have problems with them allowing you to do for-fee property management under their license, you could do a few things:

1.) Get your license, hang it with a big-name brokerage and wait the 2 years required in Oklahoma to get your own broker license, then start your own company.

2.) Partner with a licensed broker (or someone who's eligible to get a broker license) and start your own property management company now.

3.) Purchase an existing property management company with a licensed broker in place.

Hope that helps.