All Forum Posts by: Adam Bartomeo

@Logan Howell Mostly, yes. Most partners want to know that you have a very successful history before they hand money over. But, there are folks that are willing to take more risk because of your relationship - family, friends, acquaintances. 

I would suggest partnering with a more experience property manager to help you expand. You aren't realizing that the top reason that an owner wants to work with a PMC is because they are not local. Handing out flyers and going to networking events is a VERY slow burn and not a good use of your time. 

In the past we would follow @Greg H. but in todays market we would not. Today, we hold the tenants 100% accountable for their mistakes. No one forced her to sign the lease, she did it of her own free accord. In our lease we have a lease break fee that states that the tenant can cancel at any time with our without notice for a fee of double rent. We would not allow the tenant out of the lease without some sort of penalty.

I do both but prefer to have a cash partner because my CoC return is infinite.

First, to get out of your first 2 flips without losing money is great job! Most investors lose money on their first flip, at a minimum.

Second, there are 3 main numbers to review - purchase price, expenses, sales price. You would have to tell us where you went wrong. Based on your due diligence you failed on one of these three numbers. Most new investors fail when buying. They do not buy low enough and this is likely your problem. They also do not stick to their budget or do not anticipate unforeseen expenses. Lastly, they overestimate the sales price.

Tip, I have used hard money one time and one time only! I realized that the hard money lender made more than anyone on the transaction. If you were able to go in cash you would have saved about $25,000 in expenses.

We get multiple bids ONLY if we do not have a trusted vendor in place or if the repair is an unusual repair (ie, pool resurfacing, cage rescreening). For most repairs we have already negotiated and have built a relationship with a trustworthy vendor. If an owner want multiple bids for these types of items then we kindly ask them to handle the repair process.

The owner has to be on the lease but due to the power of attorney to PM can sign the lease instead of the owner.

You would have to find a company that doesn't follow the traditional model of property management. The non traditional model is were the duties are split up by category - maintenance, leasing, accounts payable, etc. As these companies expand or contract they often have part time roles.

When we first started I would contact rental owners through Craigslist. I didn't have a ton of success but over 4 years we have done well with the couple of owners that we found. 

We use FB market place a lot. It is in the top 3 of our lead generators. 1 our website, 2 Zillow, 3 FB