All Forum Posts by: Andrew Fingado

@John Moore Well put. The PM company has a system. If they are a reputable company they know what they are doing. I wouldn't interfere.

Small handyman type jobs are probably within your reach of learning how to do. Anything larger, I would get a licensed contractor to avoid legal problems. It can always help knowing as much as you can about Real Estate Law. Know a good Real Estate attorney, and do not hesitate to ask questions and call if you run into a problem. I know it might be expensive but believe me it is worth it in the long run. Better yet, make a friend who is a Real Estate Attorney and invite him over for a BBQ every month.

Property management could also be something that you can do on your own if you want to save money though. Word of caution though, knowing local/state/federal laws first is key. The reason people hire management companies is because it can be a pain in the you know where, and often times people have to hire one because they screwed up so bad trying to do it by themselves. With constant changing laws and litigious tenants, there is a reason it's an in demand industry investors pay good money for.

I would also suggest buying some Real Estate textbooks, particularly ones focusing on management and law. The same kind used for those studying for their salesperson/brokers licenses. Read them cover to cover and take the tests.

There is always money to be saved, just be careful you are not taking on a task in which you don't know what you are doing. It WILL come back to bite you. But, things like prepping a vacant unit that was left messy, fixing leaky toilets, etc are things that will probably save you a lot of money in the long run.

The more you know the smoother your experience in Real Estate investing will be.

Are you a current investor or someone just starting out?

@Peter R. Let them know there is a new sheriff in town. I know it's hard, but business is business. I think your thoughts are in the right place.

@J. Martin Good question. I have been to few seminars on how to obtain zero vacancies. Personally, I would rather have at least a few days in between but I have known many landlords who have done the less than 24 hour turnover shuffle with success.

My personal opinion is not without reason. In the past I have had tenants often say they would clean up their unit and make it look as good as new, and all their stuff will be out by "so and so" time. Or, I do a walk through a couple weeks before hand and then upon move out I realize there is a major repair needed (meaning incoming tenant may not be able to settle in right away).

So now the new tenant is expected to arrive in 4 hours and the place is not ready. Some incoming tenants are understandable, but others take this as an inexcusable error and then the tone is set between management and tenant from there on out. Not a good first impression.

However it sounds like you are already familiar with two of the three incoming tenants because they already live there, they are just switching units. I'd be most worried about the incoming one, since you may not have developed a good rapport yet.

However, there is no right or wrong answer. Everyone does it differently. I always err on the side of caution even if it means losing a few bucks.

However, I also think if you get along with the current tenants doing the switch, it does make good business sense and probably worth the risk. Having a handyman on-site is a great asset, one in which you will surely find out the hard way if he ended up moving out.

I think you are doing the right thing for the circumstances. Go for it!

Had a great time last night with all you guys.

@Joe Glass Great meeting you and hope we can talk more soon about your investment plans.

@J. Martin Great finally meeting you in person. We need to definitely talk more about Richmond investments and management strategies in the future.

@Troy Fisher Nice talking with you and I hope everything works out in Cleveland. Keep me updated on what you are doing out there because I am thinking about doing the exact same thing you are.

@Joe Budka Don't know if you are an active member here or not but I look forward to future discussions with you and finding out about your CPA.

@Kevin Young Good talking business with you, good luck with the properties and my number is always available if you ever need my management services or advice.

I know there's a bunch of you I didn't get a chance to meet, but hopefully next time one of these meet ups happen we can chat.

Matt,

Welcome! I am right across the bridge from you. A lot of bay area folks here lately. There is a meeting this Thursday. J Martin is the one who is organizing the whole thing. You might want to go if you are available.

Getting a solid night's sleep helps limit how stressed you feel. A bad day will feel 10X worse if you are running on little sleep.

I also recommend watching Seinfeld.

Someone else said watching sports helps.

Not if you are an Oakland Raiders fan.

@Jeff Wagner Absolutely services can be purchased a la carte. At least where I am from. I own my own property management company in Northern California and I offer two services:

1. Leasing only

2. Full service management.

A lot of the other companies around here do the same. For my leasing commission, I ask 1/2 of the first month's rent. Lease renewals are usually around 1/4 of monthly rent (unless it is a very expensive property and I will reduce it to a flat rate).

There are a lot of folks who only want leasing service. I'd call a few management companies in the area and ask if they do it, I'd be shocked if they didn't.

I allow applicants to give me a holding deposit if they are serious about the property I am showing. The deposit moves them to head of the line. If their application is approved they get the place and it is applied to first months rent. If it is not approved they are refunded the deposit. If they back out they forfeit the entire deposit.

My deposits typically run between 20% and 40% of the monthly rent, depending on the interest and rental price of the unit.

I think holding deposits are extremely necessary to weed out the "lookey-loos". It saves me a lot of time doing tenant screening. Most of the time the applicant who gives me a holding deposit is qualified, serious about the place, and is the one I get into the unit. I seldom take more than one holding deposit for this reason.

@Amit M. You got it right. I bought my first house 2 years ago at the bottom of the market in a good area in Richmond. Since then the price has nearly doubled. I plan on doing a cash out refi to invest.