Finally, I get a very competent and helpful commercial lender, that says "look, I'll get with my residential loan officer and we'll go over your options" (I had sent him every road block I had gotten to at this point).

Us flippers don't stand a chance competing with this segment.

Remember the audit is there but the big x factor is the lawsuits.E and O quotes higher rates for property management.Even if the landlord and or the tenant or BOTH are at fault they almost always blame the real estate brokerage.Sometimes it is merited and many other times it is not.So to run a property management company you have to be very meticulous with everything.Many investors are out of state so they will want turn key management (one stop shop).Rates will depend on what type of asset and the size.When you go to IREM there is different training for different classes and sizes.For example the scope and management on a 20 unit apartment building will be very different from a 200 unit complex.Generally for apartments fees are 8 to 10% for 50 units and below and 50 units and above 5 to 7 percent of gross rents.Retail can be as low as 4% management fee.Houses you will be competing with low ball agents who are having a hard time selling real estate.The problem for landlords is once the managers start closing real estate sales they could care less about the rental.This is just like many agents doing bpo's now and when sales pick up they will dump doing the reports fro 50 bucks.If you want to be serious about management do it full time.In my area for houses the most reputable companies charge about 10% plus half of first months rent for houses.It's not about what you charge but what you provide for that fee.You will get landlords trying to squeeze the management fee because they overpaid for the property.That is not your problem when taking on rental property.I don't do property management but one of my broker friends manages over 400 homes with 10 property managers for his company.He likes the residual income it provides.He also land sales off of it as a side benefit.

Originally posted by David Rey:He said it's no brainer but this property will get at least 10 offers from cash buyers. which effectively pushes me out of the running. all I got is about $100 for EM.Any seller who has 10 competing offers is unlikely to accept one from a wholesaler (or anyone who has contingencies in the contract).

There is a difference between core urban centers and suburban to rural areas.In core markets is where recovery starts to happen first.It takes a much longer time for suburban to rural areas to recover.Most purchasers are not including rent increases for B or C product for the next 2 to 3 years in their cash flow analysis for purchase.What most apartment players I talk to are concerned about is increasing utility costs for commodities and upcoming inflation in the market.There are not many deals to be had in my core market but more in the suburban to rural areas.For class A core market product most definitely CAPS have gone lower and demand is higher.Developers for class A space aren't stupid.The ones I have had meetings with are in a holding pattern to time the market just right to build the ground up development.They are waiting for more liquidity and better terms to build and more pent up demand to lease up phases of their project faster.If they started building too much product right now it would impede their balance sheets too much as a company.Typical developers build 250 to 300 units at a time in my area and map out 2 to 3 sites in the area for phases 1,2,and 3 built over a 5 year horizon.So I wouldn't get to overexcited.

If I have 100,000 I can turn that 100,000 into so much more than 115,000 in a years time.The other item is in many states where they start the interest rate high and bid it down you will be competing against institutional bidders whop will bid the rates down low.So tax liens and sales can work and you can even land a property occasionally but along with everything else is not a magic bullet.

Happy Wednesday BP,

Im a newby so please bare with me..

Today I put on offer on a REO for the asking price (the bank just dropped price by ($25K), $5K earnest money, waving inspection and a 5 day close. I did this k...

In this property value range, it is about volume.In addition, you may also be competing with rental investors who may have a long-term strategy.

Not everyone has the same resources to compete and very few people have the resources early in their investing careers to fund all of the growth they want.

.@ Dave - I agree daytime in the winter months could be a problem, but I would hope after semi-annual investing that I would have a team competent enough to help while I'm not present.@ William - How did you go about building your team?