All Forum Posts by: Tyler Fontaine

Hey guys, Im an investor from RI. 

I own a multi and flip houses with the team i'm on. As I stack capital the goal is to increase my capital. 

That said, Tennessee has become one of my favorite vacation spots. Me and my cousin love the state. The vibe it has and things it offers. Plus it's generally America AF. 

Who do you know that I should know that can help me to start exploring options out there? Ideally looking to buy by year end.

Recommendations for property managers who do STR, STR owners who are having success, investor friendly agents out there, best locales and neighborhoods to do it in, etc.

Thanks :)

What up what up,

Im glad you're making some moves. Im curious your cashflow vs expenses. If your tight there then plan on personally stacking up reserves from your income to prepare for things that will go wrong. 

Regardless, there are things you should be doing as a new landlord. I'll rapid fire some things for you.

First, start researching how to manage a property/tenants and so on. A lot of this is learning how to work with and manage people effectively. (Your tenants, contractors, your business relationships)

You have already rented but make sure your lease has been used before and been put through the ringer. This should not be a quick random google print out. BP actually offers some contracts on the site.

Also, you want to make sure that the security deposit is held in the appropriate account based on what your local laws are. They vary from state to state. Some times it has to be in an interest bearing account, sometimes it doesn't matter, lots of times you cannot commingle other funds with it etc.

You should've done a "move-in condition statement" prior to tenant move in. Then a "move-out condition statement" when they vacate. That's the only thing that will hold up in court if there are issues with security deposits/property damage when they move out. 

I would say to be sure you start to study and learn the tenant/landlord laws in your area. It will help so that you know your rights and what you can actually do.  

Do NOT accept cash as form of payment for rent. No venmo, no CashApp. You should be using something that will keep track of payments, provide receipts, and easily accessible at any time. Apartments.com, RentRedi.com, Appfolio.com, and many more are available to you to do this. If you must accept cash for rent - go to staples and get a stack of invoices/receipts and ensure your tenant gets one every single time they pay you. Have them sign it if possible and keep your copy of it. Scan it and upload it so they are readily available and organized. If you do not do this and the tenant tells you, "I left the money in the mailbox... You took it, i'm not paying twice.", then you are screwed and it becomes and issue to collect.

Hey there, 

I can see where you're coming from. When I bought my first house-hack (3-family) I was nervous because my network wasn't as strong as it is now in order to tackle problems. You will grow into this with time for sure though. 

Buying a fully rehabbed property will cost you more up front most likely and you'll pay a premium. Generally your cap ex, initial maintenance, and "oh ****" costs will be low or nonexistent in the beginning. So, if the numbers work and you're happy with the cash-flow in the deal then you're good.

That said, you have to remember your network is your networth. Getting a property that needs the value add up front can be very beneficial for you. Higher equity up front, chance to pull your money out sooner to repeat the play, you gain a TON of experience in a short period of time. Partnering with someone who has the skills that you lack can be a great way to take down a deal like this. 

Get familiar with contractors, investors, realtors, and property managers. Any one of those thats good at their job will be able to get you referrals or help guide you through the process that you'd be going through. For example, our company is mainly property management but we have contractors, multiple realtors, access to capital/experience/knowledge - all in house. So our clients who buy with us don't have as much fear when they buy value adds/large projects. We can steer them through the whole thing even after closing so they can sleep at night.

 Yea, thats confusing to me. In my market it was fairly easy to at least get the intro with some agents who pointed me in the right direction to start interviewing brokerages. 

You could start with big box national brokerages in your area. KW, C21, REAL, Remax, Mott Chase, etc. They usually are letting almost anyone hang their license with them. However, they may have top agents/teams who are growing and recruiting. Those are the people i'd be trying to make contact with. Plus you can ask them who are some other big players in your area and they should be able ot give you guidance/make a warm intro etc.

Next, I'd focus on the investor groups and realtor meet ups in your area. Tell people you're licensed and looking for a brokerage. SOMEONE will definitely help you out and get you in touch with the right people. Also join the FB groups and ask around in those. It could be worth asking the school who got you licensed who they recommend and if they can make a warm intro for you.

Other than that, seriously just walk into some of these brokerages. Introduce yourself and see if they are hiring, know someone who is, etc. 

Thats good. Interview as many as you can. 

Ask them what kind of support can they offer?

Will someone help you with contracts?

Is there someone to help you "put out fires" on a sunday afternoon when you are in a time crunch?

Is there a niche that the agent/team focuses on in RE? Multi-fam Investments, Single Fam Homes, Commercial, etc.

Do they actively own and invest in real estate themselves or do they just do it as a job?

Does the agent/team continue to learn? What are they reading? Courses they take? Etc.

Ask yourself, Does this person live a life I want to live and operate a business how I want to operate a business in the future? If the answer is no - they aren't your people.

I have done deals just under that distance. Its challenging if you don't know what you're doing. 

A lot of the work has to be done up front so you can save time. Build a full and accurate scope of work - including securing contractors for it. Bang out as much permitting and municipal stuff that you can right away. Schedule material deliveries and ensure that the job site always has what it needs so you dont waste time. 

And most importantly, make sure your communication is 100%. Have proper expectations with your team. Make sure everyone is on the same page and the train is going in the right direction. 

Ideally you want a partner or someone who is boots on the ground there regularly for you. They check in often, give you updates, have problem solving skills. 

 I'd love to chat about this with you myself as I'd like to grow my business this way as well.

Your best bet is to find a team or agent who is very good to work under. They can guide you through the beginning stages so you can build a solid foundation. 

Sell Like Serhant I found to be one of the most valuable. 

Also the books; The One Thing; The Millionaire Real Estate Agent; Shift

It's always a good time to buy real estate. It just depends what it is. The best time to plant a tree is 20 years ago and today.

Buying a multifamily to house hack is a brilliant way to get into the game for a small amount of money upfront. Talk to a lender and see what your options are for financing given you situation. 

Figuring out how to buy property is worth it. Get in touch with an accountant or financial advisor. A team member I have gets income inconsistently as well. However, she has her income poured into her business, then she has her business pay her a weekly salary so she can show proof of income and have banks lend to her. If she needs extra cash, she just bonuses herself out.  

You can also see what it would take to become a private lender. Our team works with a bunch of regular people who have stacks of capital in a bank. They lend it to us for flips and other projects. They make a great return and it's pretty low risk for them.