All Forum Posts by: Todd Groom

ahh I did not know there was a set business for this. We just use a really good agent. So far everything we have purchased was turn-key. Well if you can call it that. I have come to learn buying from these types of people just throw lipstick on a pig and say its turnkey. But Jenna Utly 813-549-4885 Is a beast of an agent. She a bit to handle and you better be ready to buy because she will send you exactly wehat you want and quick. She moves quick too none of this la de da. Shes on your side and will hang around long after the deal helping get things taken care of. Def reach outt o her if youre looking for turnkey stuff. She works with a lot of middle eastern and asian investors buying all these up as well. 

@Felix Stone I’m confused why you’re so worried or they are worried about using their names? You don’t announce to everyone you’re the owners just say you’re a manager. This is what we do and they never think twice. I have tenants always saying, I wish I could talk to the owner about....xxxx.. and the owners standing right in front of them. I just say I’ll get the message to him or I’m not sure he’s up to that but I’ll let him know. This is what most owners do.

@Heather Hanoskso let me clarify the higher rate increases. I don’t want to sound like a bad landlord.

The tenants we raised $100-200 a month are HUD rents. So HUD is taking the majority of the increase and the tenant is only paying $15-30 more per month. We always look at the tool for landlords for hud and raise to the market rent. With HUD you can negotiate.

For the life of me I don't understand why landlords don't like HUD. The selection process is the same as any other rental. The same background the same credit checks. The same application and showings. The only difference is you're Guaranteed the majority's your rent no matter what. Also it takes an average of 6-10 years for an applicant to be approved. If they are evicted they loose HUD immediately. They also have annual HUD inspections to verify the property. And if you have any issues you just message their caseworker. No one is allowed to move in with them, any parties or issues are handled. I'd rent a million dollar home to a HUD tenant if I could lol. And HUD pays market or above. So always keep hud in mind as an option. Ignore the nightmare rumors. Those are landlords who didn't do a good background and credit check.

@Simon W. In Florida the lease dictates the late fee agreement. Florida law says the lease states the late fee and Florida has no limits. But if you leave it blank and it doesn’t say, “unless otherwise and the %” then there’s zero late fee. That’s why we have to honor any of the other landlords late fees. We have 5 doors that’s pretty high so we will lower them once their lease changes. 3 of them are $100 on day 6. To me that’s high.

Keep in mind the daily late fee rate will only go on until eviction. And in Florida that can be as soon as a few days after it’s past due.

You can evict a tenant in Florida by the second week when things are running like clockwork. I hear they are behind now because of the flood of evictions so maybe end of the month.

@Heather Hanoski just remember the IRS, local government and insurance companies don’t care about covid. You’re rare will increase no matter what. So you must also be comfortable loosing money if you do not at least match those increases. Also like mentioned look at your local market.

You can Use Rent-o-meter and rent.com etc to get an idea of where you are, where everyone else is and what kind of availability is in your area. Keep in mind people are not moving right now so there is a shortage of available units in most cities. Here in Tampa most places are rented in all of the areas we own in. We have had a few tenants tell us they are moving at the end of their lease only to change their mind. They always think they can get something cheaper until they look. So we have raised rates on everyone most by as must as 10-15% to keep up with taxes and insurances rates that are insane. I’m actually going to be disputing some insurance appraisals that went up 33%. So watch that as well.

Good luck though. If you look and don’t see anything in the area they are renting and your other rates are going up then raise it. If all else fails and there’s nothing avail in your market then it won’t be hard to fill it.

Every time we buy a new multi-family property we inherit the exhausting leases (we do not believe in evicting tenants just because we purchased the property and are against it). Each owner seems to always have their own late fee system in place. We have yet to ever see the same system. So just wondering what system you use and why?

Our current system is a mix of everything. Rent is due by the 5th day at 11:59pm. As of the 6th day they are charged a $50 fee. Each day that it is not paid an additional $15 fee is charged indefinitely until rent is paid. The reason we chose this method is it pushes the tenant to get the rent paid as soon as possible. We used to charge a flat fee of $75 but found once the fee is there tenants don’t care. They already know it’s in the past so no sense paying.

The other rents we have seen were, flat fee $100 as of 6th, A flat 10% fee, flat 5% fee and one where tenants were charged $50 on the 3rd then $20 a day after the 5th.

What’s you’re late fee structure?

@Bradley Sriro what do you mean? Like you’re looking for a management company or a Realitor?

@Dan Heuschele thanks for actually answering his question and not just screaming no with nothing valuable added.

If a property has cash on cash return and cash flow that meets your requirements then you do you. Use the tools here that have been provided. I’ve found they are an awesome starting point before even going to see a property. Just gives me an idea of where we need to be with repair cost, closing, and so on.

Maybe look in other markets? I’m in Florida and we don’t have enough money to grab all the awesome deals here. We have purchased 14 doors since March all 12-25% cash on cash with great cash flow. And there’s lots more to be had in the area. My dad just snagged a 25% cash on cash and once he closes adds new a/c and does the refi he will have $0 in it with $600 -$700 cash flow AND $40k equity. The deals are still there.

Also check out BP new page where they look at other markets.

@Michael Plaks are you an agency or self employed? In shoot you my email get some info. I’m one of these people that just have no idea if I’m getting everything I need lol. Cause I’ve been steered so many ways while doing all this.

Like at first I was told stay away from an LLC then now I'm learning it's like almost mandatory to try and protect yourself. Then I'm learning every day about tax credits I didn't even know I could use like the interest off every property which is a lot in the end. Then I was watching a thing the other day about credits if we pay the utilities with HUd where we could make more money back then what they even pay if we pay utilities. Just all sorts of stuff it's so much info. So I'm hoping to find an expert in HUD, tax credits in general, etc. also here's the kicker. I have a second private business that's not realestate. It sort of runs separately because it has partners and is in the healthcare industry. So I'm hoping I can separate them but maximize my write offs.

This new election is going to effect me if Biden wins. So sort of preparing for that also.

I’ll DM you.

@Michael Plaks are you able to recommend anyone in Florida. Things went a little overboard and when we planned on one unit in March now closing on numbers 5 and 6 with a total of 15 doors so far. Buying them faster than we can set the business up.

So we are in dire need of I guess a CPA and businesses specialist to make sure we are set up correctly. Currently I’m tracking and logging everything with Stessa and Cozy. There’s just good deals to be had so grabbing them while things are good.