All Forum Posts by: Victor Patel

The tenant would pay the landlord stated on the lease agreement. That could be you personally or an LLC. Also, be sure to notify your insurance company that while you are still living on the property, you also have tenants. I would get that done before any tenant moves into the basement.

Evan,  

As a local broker, I’ve assisted many clients with the entity transfer process, often referred to as a "drop and swap." It’s a straightforward process that offers benefits to both buyers and sellers. Sellers can avoid paying transfer taxes to the county, while buyers are spared from facing significant property tax increases.

However, it's important to note that lenders typically only approve these loans for properties with five or more units. Properties with fewer than five units are classified as residential, making the loans ineligible for sale on the secondary market through Fannie Mae or Freddie Mac.

I would choose the agent who suggested the higher price. If there’s not much activity after about 30 days, you can always lower the price. It’s much easier to adjust the price downward than to raise it.

The agent with the higher price likely has a stronger understanding of the local market and property values in that area.

Managing a rental property can be challenging, especially if it’s your first experience. My advice? Start local. Being nearby allows you to stay hands-on—you can see, touch, and fully immerse yourself in the process.

There’s a lot to learn, not just about managing rentals but also about overseeing property management companies.

Handling tenants and maintenance can feel overwhelming at times, but starting with a property close to home gives you the opportunity to gain valuable experience. Once you’ve mastered the basics and feel confident, you’ll be better prepared to explore long-distance investments.

I’m not sure where your property is located, but it’s likely that you won’t be receiving rent anytime soon. The eviction process can be lengthy, costly, and may result in getting the property back in poor condition.

To avoid this, you might consider offering a "cash for keys" arrangement. Start by making a low offer to the tenants and see if they’re interested. This approach could be the fastest and most cost-effective way to regain possession of the property and prepare it for new tenants.

4o

Try calling Spring Valley Bank (513)-761-6688.  They are very investor friendly.  The larger banks in Cincinnati tend to be time wasters.

I’d avoid flat-rate fees if possible. With a flat fee structure, if you have a vacancy, the property management company has no real incentive to fill it quickly. In my market—Cincinnati, OH—most property management companies charge around 10% of the collected rent, plus a fee equal to one month's rent for finding and placing a tenant. Some may also charge a small fee for lease renewals.

As a real estate broker, I’ve come across a lot of property management companies, and honestly, most have been disappointing. When interviewing property managers, make sure you ask plenty of questions, thoroughly review their management contract, and request references.

A little due diligence upfront can save you a lot of headaches down the road.

I recently invested $60K with a local hard money lender who has been established in the area for decades. He's got a solid reputation and is an active member of the local REIA. To clarify, I didn't invest in a "fund," but rather purchased a note for a specific fix-and-flip project. The note is for 12 months. The flipper pays 12.5% interest to the lender, and I receive 10% of that. The lender does charge the flipper 4 points upfront, and the note represents 55% of the property's ARV, so I'm not too worried about needing to foreclose if it comes to that.

The lender uses his own capital for initial funding and then sells off the notes after that. He’s not a pushy salesman, and I’ve got a business partner who has worked with him for the last 10 years without any issues.

As for your situation, I wouldn’t say it sounds like a Ponzi scheme, but I’d strongly recommend meeting with the fund sponsor in person and asking as many questions as you can. I tend to ask the same questions multiple times over a period of time to see if I get consistent answers. If the answers match, you’re probably in good hands. If they don’t, that’s a red flag, and I’d be out of there.

Hope that helps!

Congrats!  That is awesome.

Starting my own firm was surprisingly straightforward, thanks to the lessons I learned from past failures. By the time I launched, I had already established a solid reputation in the Cincinnati market. My motto, "Honesty, Integrity, and Accountability," has always been my guiding principle—not just in business, but in my personal life as well. I am deeply grateful for the challenges I've faced, as they have shaped me and brought valuable perspective to my journey.

4o