All Forum Posts by: Adam Craig

I told her today not to let the outstanding balance exceed security deposit - or one months rent.

Also I asked her about late charges and I was surprised to find out the PM gets the late charge? She said sometimes she takes the late fee, other times she uses it as a bargaining chip to get a late payment in.

Originally posted by @Ryan Murdock:

@Adam Craig Sounds like your PM is a little overwhelmed - it's and easy place to end up.

Everyone operates a little different but I always post notices the first possible day the law allows and then review the delinquency list weekly and address each tenant as we deem fit throughout that week - friendly reminder, not-so-friendly reminder, proceed with eviction hearing, etc etc.

Pretty rare we actually have to follow through with an eviction but we absolutely will when it has slipped past an acceptable timeframe and all other efforts have been exhausted. No drama, no hang wringing, just a fairly standard system.

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I have used 2 different CPA's and they all seem to think alike. Both prefer I max out my SEP IRA / HSA before putting the money into real estate. I put a nice chunk of cash into both but I want real estate to be my main retirement vehicle.

I have a rental property business with the BRRRR strategy. The accountant just see what looks like a crappy investment on my tax returns but dont they understand that its whats going on behind the numbers that make it a great long term investment?

Cash flow - mortgage pay-down - appreciation - tax savings - liquidity - leverage

These guys are a lot older/ more experienced, and I assume more financially sophisticated then me - So am I missing something?

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I completely agree. The tenants pay into a client portal online and I was surprised to hear my PM say she doesn't know who didn't paid rent unless she opens the client file. So rent is due by the 5th, I get my deposit on the 15th and she doesn't even know who is late until she prepares my statement on the 15th.

This management company has grown a lot in the past 5 years and I know all the managers are stretched thin. I think she simply doesn't have the time to be posting eviction notices every month... One tenant isint even late on rent they are $800 behind in water bills - it drives me crazy she let them get that far behind.

I will voice my expectations assuming they are reasonable requests and possibly test out a new company if things dont change.

Originally posted by @Ryan Murdock:

@Adam Craig Post the notices the second you are able. Be selective on which ones you actually enforce.

With 4 units roughly a month behind someone should be picking up the pace on their collection efforts and hopefully on the brink of at least filing for an eviction hearing. Still doesn't mean you need to follow through but it continues the process and lets the tenant know their days are numbered if they don't come up with some cash.

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I have 21 single family homes being rented and managed by one of the larger management companies in my area. Rents range from 1100-1400 so most of my tenants are solid and pay on time.

Last month I checked my statement and there is a total of about $4500 in late rent or water bills spread across 4 properties. My property manager tends to let them slide and usually they do catch up - we haven't needed to evict anyone in 3 years.

Does it make sense to be lenient on late rent or should they be sending vacate notices right away? How aggressive or lenient are your property managers?

I remember back when I was renting the management company would post a vacate notice if you were 5 days late no messing around. I feel like it sends a strong message that rent is due when its due.

Which tactic is best?

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Originally posted by @Account Closed:

In my experience, yes. I've purchased 2 properties through auction.com and have used my own title company for title insurance and to do the actual close. It should state on the property listing page buyer has the right to purchase their own title insurance if it does not delay closing. Just know you will be required to work with the title company that represents the bank as well. So your title company will partner with theirs to facilitate the close. After you win the auction, you will wire 5% of the winning bid to the bank's title company (not yours) and you will be credited that amount at closing.

It's confusing and a slight hassle but that's the price to pay for getting a great deal at auction!

I just received the contract that I need to sign. At what point do I let them know I am using my own title company? Should I hold of on signing contract so we can get mine in there?

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I just won an Auction.com property. I have been using the same title company to keep things easy for my hard money lender. I was told you always have the right to use your own title company - is this true on Auction.com?

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He said he said one is worth about 140 and the other one was worth about a hundred. If this is something you would be interested in Nathan can I pass along your contact info to him?

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I can ask but he said assume traditional bank financing is not an option. He used to sell mortgages back in the early 2000's so he understands what it takes to qualify and I assume he exhausted all his traditional financing options.

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All Forum Posts by: Adam Craig

Adam Craig has started 263 posts and replied 568 times.

Post: Property manager gripes - not aggressive with late rents.

Post: Why dont accountants understand real estate investing?

Post: Property manager gripes - not aggressive with late rents.

Post: Why dont accountants understand real estate investing?

Post: Property manager gripes - not aggressive with late rents.

Post: Property manager gripes - not aggressive with late rents.

Post: Can I use my own title company on Auction.com

Post: Can I use my own title company on Auction.com

Post: Friend needs help funding the rest of rehab project - 35K

Post: Friend needs help funding the rest of rehab project - 35K