All Forum Posts by: Jon Pitcher

Zilllow can tell you what rents others are asking in your area - basically gives you a ceiling but not a floor. You can see the price history and days on market, which is helpful. Our MLS has some rental data. I also use rentometer - sometimes it's accurate and sometimes not. You can also have someone drive the neighborhood and call on the For Rent signs.

This is a package of 5 occupied, performing single-family rental houses located in El Reno, Oklahoma.  I am the broker for the sale and the manager of these properties.  Four of the properties have existing tenants, all of whom are current on rent.  The fifth home we have approved an applicant and she should be moved in by March 1.  The total rent for these houses is $3,225 per month.  The addresses and rents are:

1003 W. Rogers  - $575

715 Sunset - $600

809 Sunset - $800

720 N Miles - $650

415 N. Barker - $600

These are old (1930s or even older) houses but have had some updates.  All have central heat and air and washer/dryer connections.  My company took over management of these properties in October 2017.  We are in the process of doing some cosmetic inspections and taking photos of these properties.  Contact me for more information.

Pictures are 415 Barker and 1003 Rogers

Here is a link to some stats I pulled from MLS:

http://mlsok.stats.showingtime.com/infoserv/s-v1/T...

This matches my impression of what has happened in Edmond - steady appreciation from 2012 through 2015, then a downturn starting in early 2016, and now it has started to pick up again.

@Account Closed

I know of a couple of local banks that will lend for rehab projects if you have sufficient credit, income and down payment.  The loan to value will be lower but the rates are much better.  Shoot me a message if you want contact information.

@Justin Greenfield

I recommend you reach out to @Rhett Tullis.  He manages properties for several BP members and has a good reputation.  He manages commercial and residential.

Feel free to contact me if you have questions on the legal side.  I have experience drafting and negotiating commercial leases.

Here is a link to the Oklahoma residential lease form that I use.  I created this based on the form the Oklahoma Real Estate Commission publishes, but I cut it down to a more reasonable length and added a few provisions:

https://www.biggerpockets.com/files/user/JonP22/fi...

And here is the OREC form:

https://www.ok.gov/OREC/documents/Residential%20Lease%20%2811-2015%29.pdf

@Dylan B.

I recommend using separate entities for your flip business and your rental business, for tax purposes.  You want to make sure the IRS treats your rental income as passive income, and if you sell a rental, you want long-term capital gains treatment.  Having both flips and rentals in one entity may cause confusion.

I accepted your colleague request, I will send you a message.

@Dylan B.

What legal work specifically are you needing?

@Mike Evans

You might consider the 506(c) private placement rather than a 506(b).  With a 506(c) you are restricted to accredited investors only, but you are allowed to generally solicit.  And the 506(c) gives you more flexibility regarding your paperwork and disclosures.

@Account Closed

You are correct about a skip tracer, and in a lawsuit all of your assets are going to be found in discovery. But some potential disputes rise to the level of preliminary research by a potential plaintiff without ever involving a skip tracer or a discovery process.  Sometimes plaintiffs do research on their own before talking to their attorney.  Or the potential plaintiff might not want to pay for a skip trace.

So yes, get a good insurance policy.  But in my opinion you should also take advantage of other low-cost asset protection strategies, even if they are not bullet-proof.