All Forum Posts by: Wiley Strahan

@Drew Sygit they use propertyware

@Gabriel Graumann Great questions. Well we looked at other PM companies in the area but the cost to change was insane. For our portfolio each of the companies wanted at least $8k for admin fees so it didn't make any sense for us. In general, we have found that PMs in cleveland are very expensive when compared to other markets we are in. As far as level of service, its improved slightly only because I am on top of everything constantly which isn't sustainable but is what is needed now. We did sell a couple of the duplexes which werent worth the energy we were having to put in. We have found that capex is much larger than anyone is saying it is especially in second or third tier markets. The yields of the past aren't happening today especially paired with Cleveland increasing taxes on average 50% during this latest cycle. 

Overall documentation has been key and same with having much larger reserves. Didn't quit the day job and don't plan to but plan on acquiring slightly newer product to prevent some of these issues.

 Thanks for the comments! What I would love is a report showing when work orders were openend vs when they were quoted as being done vs when they were actually finished. I can tell you there is a large delta in those numbers which is causing occupancy to dip unnecessarily.

 Definitely somewhat of a delegation issue but no one really to delegate to. Unfortunately a lot of the decisions that are being made by PM are just not the right ones (costs of repairs, what to repair vs replace etc) so it ends up being me jumping in to manage them. If I let them run loose it would probably be 5k-10k a year in unnecessary costs.

Also the work does come in spurts so it isn't consistent. We could use a VA or something for part personal part work but would need to dive more into making that make sense.

 Thanks for comments! Very helpful. Do you manage all of your properties yourselves? We are out of state so have a PM company but it's hit or miss especially on the accountability. 

As an update, we did sell some of our properties mainly due to a change in strategy (the return on headache was not worth it for the small buildings) so things are a bit easier. We are probably going back into acquisition mode here shortly but want to shore up things before that happens.

I also spent the last few months building out a centralized notion to manage all the document, to dos, etc but have pulled the trigger on VAs as the cash flow isn't there yet to support someone full time. I feel like we are in a bit of a dead zone where its not enough work to justify but too much to handle at certain times especially with refinances coming up all. 

Hi,

We are looking to refinance a small commercial multifamily building we have in Ohio out of a bridge loan that we used to renovate the building over the last couple of years. The loan amount would be between 900k  - 1M which means it is just under Agency guidelines (know fannie goes lower but I don't think its worth the headache). Would anyone have any recs on location banks, credit unions, etc that would look at a deal like this? Its completely stabilized and some subsidized rent tenants. This seems like there is a large gap in the market for this type of loan.

Thanks.! 

Hello BP Community,

We have grown our portfolio quite a bit over the last few years starting from 4 units in 2018 to almost 50 without outside investment and in multiple states. I run the business and manage the PMs but its too much for me to handle in addition to a day job. I have tried to operationalize it as much as possible with Notion and Trello but things are still falling through the cracks (SOWs taking too long, units not being listed, etc.). Some of it is definitely on my PMs but I feel like I can be even more on top of it. Any advice on what systems/principles work best? We have looked at VAs and that model but I wanted to take responsibility especially as we stabilize some of the bigger projects. 

We have a similar door count to you and I laughed when i saw passive and self managed but i understand how you mean it in this context.

I would tell you as much as retiring sounds fun and all, if you don't have hobbies or even a small no stress job, it won't be a ton of fun. Have some friends that are in your exact state and two had hobbies and small families and love their "retired life". The other one has none of that and is circling the drain even though he has all the money he could need.

Agree with others here that you need to find what drives you. If you dont know that, highly recommend therapy.

@Matt Martin do you have an insurance broker? If not, suggest going through them.

Hope you negotiated the earthquake retrofitting into the price. On 9 units, depending on the scope, you could be in the 50k plus range or more. Unfortunately earthquake insurance is pretty expensive considering that if one happens most of these companies will probably go under.

Shoot me a message if you want to connect. Also based in LA and have some properties in the area.

Wiley

@Nancy Mascorro

Thanks for the clarification - there are a number of threads on here about CA investors looking outside of CA to invest. A states folks have been focusing on: Texas, Missouri, Florida, Alabama, Ohio, Illinois. I suggest reading up on BP as there are a bunch of threads on this exact topic.

@Bryan Findlay

Setting up an LLC is fairly easy but I always use an attorney for piece of mind. Attorneys can cost upwards of 1000 while filing yourself may be a couple hundred bucks. The process may be different based on the state you are in so keep that in mind. You simply need to identify a name, file your LLC with the state (including your agent of service), get an EIN from the feds, create/keep some fairly standard documentation, and pay your taxes.

Here is a resource you can follow: https://www.nolo.com/legal-encyclopedia/form-llc-how-to-organize-llc-30287.html