All Forum Posts by: William Glass

I have been educating myself on my local market for a year and a half now and have a couple of buy and hold deals under my belt that I acquired in the last 6 months. A colleague of mine is interested in getting started and a mutual friend of his connected him with an agent/investor who had a listing in the Fort Myers area. He asked me to tag along as I have a bit more knowledge than him to help him vet the opportunity since this would be his first investment property. The listing agent has had the contract on this property since the first of the month but has not started marketing it or listed it on the MLS... A red flag from the get go. This agent gave some "off the record advice" about homesteading. What he said "off the record" is very illegal telling my colleague to homestead the property with FHA financing and then not actually living in the property in order to get the best financing terms. He said, "the longer you can keep the utility bills in your name the better."

He pretended to not know the exact rules/regulations are for FHA, but any investor or agent worth his salt knows FHA financing is for primary residences only and would never advise anyone to do something illegal like misrepresent their intent for the property. I was shocked that he would say that to us and I understand why real estate investors get a bad rap. It's because of instances like these.

Additionally, after going and pulling comps for my friend the property is about 40% above the fair market value and an absolute joke in terms of the rental and sales comps he mentioned in person. 

For anyone just getting started be cautious of people like this in the industry. It is ridiculous that anyone would advise a new investor to commit a felony on their first purchase for better financing terms. I am happy to see this "investor/agent" is not a part of the bigger pockets community and is someone I've advised my colleague to avoid moving forward. BE CAREFUL and use your best judgement about people...

That is tough John! Hang in there and a good warning for investors to be cognizant for those not as familiar with Southwest Florida. 

Please send information on the opportunity to [email protected] - happy to connect tomorrow via phone as well. 

Thanks,
William

Hi Arelis, 

I am an investor in Fort Myers and have had similar thoughts. I bought a piece of land for development in Fort Myers and found a builder and lender, but instead focused on a few other deals. I have a piece of land I am waiting to develop and have spoken with a few different builders in North Fort Myers and the Cape. 

The downside to new construction development is the time it is going to take to build the property and having your capital locked up in the deal. 

Are you planning on flipping this property or keeping as a buy and hold? 

I think defining what your desired outcome is for real estate would be a good first step and help determine whether building a new construction investment property makes sense versus finding a different opportunity. 

Cape Coral is very popular right now and a lot of other people have the same idea as yourself in terms of building a new construction property. Have you started looking for land that is zoned for multi-family? I'd also be aware that there are a lot of assessments being done in the Cape so be sure to do your homework on if those are paid or not.

Hope that helps!

Hi BP,

Just a thought experiment and I'm curious if anyone has looked into investing in Tesla's solar roof tiles for LONG term buy and hold properties. I think solar is exciting and there are many benefits that I think alone warrant investing in Solar in some instances, but what I think makes Tesla's roof tiles a potentially viable strategy is the shingles themselves are guaranteed for life (assuming Tesla doesn't go out of business).... How valuable is never having to pay for a new roof again? Granted the cost of the Tesla roofs are steep and are at least 2X the cost of replacing a roof as is from what I've seen online. I'm curious to hear others perspectives and if anyone else has done this thought experiment also? 

If you have a larger commercial building or apartment complex where you have to pay for utilities it could be a viable option especially if Tesla has programs for commercial applications.

 If you haven't seen Tesla's solar roof tiles check out the video here https://www.youtube.com/watch?v=MQb_aTjZ4vA

@Account Closed thanks for your follow up. All of that makes complete sense and I appreciate your perspective. I didn't mean for it to come across as I was worried about losing a day's rental just curious how some people do it as I've heard at my local REIA how some investors do that regularly.

The current tenant is actually moving out the end of this week so it works out perfectly actually in the end. She didn't have firm timelines until this weekend but will be handing over the keys Friday which gives me time to get everything ready to show. 

Like I said this being my first time turning over a unit I want to ensure I do everything properly, but also efficiently. I appreciate your insights and will give an update of how everything turns out!

The more people joining BP means greater value in the forums. Awesome to hear and I'm sure it'll be over 1 million by the end of the year! :)

@Thomas S. That is very helpful I appreciate that advice on same day turn around. I work full-time, but can schedule a good chunk of the day on the 31st/1st to get everything squared away. Obviously want to skip vacancy time if possible, but want to deliver a clean and quality unit first and foremost.

@Peter Mckernan Thanks Peter any thoughts on what vendor you prefer to do background/credit checks? This will be the first time filling a unit and I've found a local vendor who does them. 

@Marian Smith That is a great point and I will be sure to write that into the lease. I am still refining what I want my lease agreement to include... There are a lot of things that I've seen on BP and heard at my local REIA meetings to include and it can be a bit overwhelming the first time around.

BP, I've got my first tenant moving out at the end of the month and I've already begun advertising the vacancy for August 1st. I've received in under 24 hours 3 inquiries and requests to view the property. I need advice on how to best manage these different requests and ensure that I can turn the unit as quickly as possible and have a tenant lined up. The property from my initial walkthrough is in very good condition and beyond cleaning and some minor paint & touch ups, it should be a simple make-ready process. That being said there could obviously be unforeseen repairs etc. or tenant could do a number of things on the way out.

I'm requiring an application fee and background check on all prospective tenants who are serious. Do I start that process now with those that are serious prior to viewing the property? Most everyone wants to walk the property etc. How can I ensure I have the quickest turnover time and have a tenant lined up to move in ASAP?

I also realize this is a good problem to have and maybe I should be asking for higher rents...Thanks!

I like that approach a lot Ray. It's framing it from the tenant's point of view in a way that has their best interests aligned in giving them ample time to find a place to live and not holding it against them for moving early. It sounds a lot better than doing cash for keys which from what I understand works well for many investors also.