All Forum Posts by: Brian Corbett

I run my business the way your new PM is running your contract.  We charge 10% monthly management only when rent is paid but not if it is vacant.  We do have a $250 leasing fee but charge nothing for renewals.  We also make ABSOLUTELY NO money on any kind of repairs.  The way I see it, that is a complete conflict of interest.   I am sure other PM's on here would not want me to say that but it is true in my opinion.  

What part of NC?  I am in Greenville, NC and Goldsboro, NC areas

If you haven't signed any agency agreements/contracts with him, then you are not obligated in anyway to use him moving forward.  It sounds like he is commission hunting instead of being client driven.  I bet if you doubled your budget he would increase his presence in your life which is the wrong way to be as an agent.   Just move on and find an agent willing to do what you expect and need as an investor.  Someone that is not only knowledgeable about the sales market but the rental market as well. 

Welcome Matt!!  Good luck on your endeavors as it sounds like you are off to a great start.  My advice would be to find a property manager that also represents investors in the purchase/sell of properties in whatever area you plan to invest and try to develop a relationship with them. Not all realtors understand real estate investing, beleive it or not. 

Keep plugging away.  If you have watched videos, listened to podcast, and done research from seasoned investors the you have heard countless times that it is a numbers game.  If you get anything in Wayne or Pitt county areas let me know. 

Hey Pro Members,

I have done a couple of deals recently with family members and friends that have loaned capital for down payment, closing cost, and rehab.  I have the loan for the 1st mortgage in my name, so that is my "skin in the game."  The plan is to cash out refi after the seasoning period required by the bank and give my investors there money back plus agreed upon interest, points, etc.  So far this has all been based on trust and a handshake, which for me is better than paper.  

I have come across a couple of new investors looking to take advantage of these great terms and get their money working for them.  I need some sort of document that we all sign and have notarized prior to closing clearly setting expectations and terms of the deal.  Does anyone have anything they can share?

I would definitely utilize the input from a local investor once some solid numbers can be provided.  Every market is different, so a deal that would work in SoCal may not work here in NC

All could be true and I certainly don't intend to sound as if it is a negative thing for a PM to profit from maintenance.  I do not profit from it and don't plan to until I can justifiably be cheaper for the property owners than the discounted rates from our vendors now.   The theory is that PM's who mark up vendors invoices by a small percentage (5-10%) do so for those reasons and are in turn still cheaper than what the owner can get himself, but in most cases in my market that is certainly not true.  I have seen invoices charged by these PM companies that are grossly overcharged for services rendered. 

If a PM does mark up and is in full disclosure, then it could certainly be beneficial.  Just find out what the mark up is and what a typical invoice may look like for basic services.  Example:  Leaky faucet, Outlet change, etc. 

IF market rent is truly $1000/month and she is looking a $100/month discount, then I would approach her with her lease, payment history, etc. and explain that you can and should be getting $1000/month but since she is a good tenant based on her payment history and you both want the tenancy to remain that you will give her a $100 discount to stay in the unit for a total rent cost of $900/month with a newly signed lease.  If she wants to stay month to month the rent will be $1000/month.  It is most likely much more expensive for the tenant to move.  

Get them to sign a basic document explaining the "locked out" procedure and cost to tenant for this service.