All Forum Posts by: Mark Whittlesey

Does anyone have a portfolio lender they can recommend that services the Phoenix area? I am looking for a blanket loan on 4 free and clear SFRs.

Thanks.

No, not really. You work it out with your tradespeople if need be and charge your tenant service calls for frivolous complaints. And if you want, you can have the tenants call you first then you refer them to your tradesperson.

But the reality is this:

1) Most of the time you WILL be having a tradesperson go out to the property. I mean you did tenant screen, right? So you have good tenants.

2) The tenant and the tradesperson are ultimately going to have to get together on the phone. That is the only way they can make an appointment time that works for both of them. So you might as well just save yourself time and hassle and get them together as soon as you can.

Anyone else noticing rental instability lately?

I assume it is just "noise" but it does seem like the last year I have had a lot of turnover in my SFRs compared to the previous say 5 years.

You should be able to get higher caps on parks.

I have seen as high as 18.. though you probably didnt want THAT one.

One piece of advice I have is understand completely how the utilities work.

If there are utilities "in the park", you may have some responsibility "from the road to the trailer".. even if you don't own the trailers.

For example.. the city may be responsible to the edge of the park. But if a sewer line breaks inside the park.. is that on you? If so, it can get pretty expensive.

Right now I am working with a company called Equity Build.

They do all kinds of brokering of multis, rehabs, new construction.

Mostly in Chicago. But more recently in Houston.

So I have a small piece of one note. And I am working on buying out another investor on another deal.

It CAN be done. I did it for a long time till I just got tired of dealing with it.

You are correct that relationships are absolutely key.

You must find a handyman, plumber, electrician, HVAC person, attorney that you can trust and who are reliable.

Then all you do for repairs is have the tenant call the tradesperson. The tradesperson bills you direct.

The biggest challenge is going from tenant to no tenant to tenant again. Tenant doesn't pay and you can get the 5-day done.

Then you can call the attorney and get the eviction done.

Then do go straight to the sheriff?

What if the tenant just skipped? You spent all that time and money for no reason.

I guess you can get your guy to check for you?

How will you get it rented? Who will do the showings?

Those are the questions you need to figure out in advance. Once you get a tenant IN, it's not to bad.

GL

I took a seminar on this.

Ty is correct. I could not get any asset manager major banks to talk to me. They all said that all their REOs are listed. Told me to check the MLS.

I did get one smaller bank that I could reach but sadly all their loans were govt insured so every property I asked about was in the process of being transferred to Fannie/Freddy/HUD/etc.

I stayed in touch with a few other people from the seminar. Same results.

IMO, this is just another of those real estate concepts that sounds great on paper but does not work in real life.

I had a realtor friend who rented to Snowbirds. He made enough in 4-6 months to let it sit vacant the rest of the year.

Which he pretty much had to do.

It is very management intensive- he did it himself. And had to be rented furnished.

If you are going to try to reverse the seasons, I am not sure how much luck you would have.

The Phoenix market is very solid for rental SFRs but that is for the traditional year long lease.