All Forum Posts by: Brandon Kamm

This is really just salt in the wound. We use them as they have branches in Memphis and california, where we have many clients. The new thing, despite me sending over checks to deposit for 8 years now every month is to send them back as " they can't read the written words but just the numbers and they have to read both" Now sometimes my handwriting is doctoresqe but give me a freaking break, just a complete lack of giving a flip about your customers.

"If I could do it over again I would have talked to property managers in Memphis, or fellow long term hold investors who do NOT have anything to do with the sales side"

Full disclosure - I am part owner of Revid Property Management in Memphis, we manage about 1,000 units. I work mostly on the investment sales side now, but ran the PM company for 7 years.

The statement a poster made above is the one statement you need to have burned into your brain.

There are many good investment deals in Memphis, there are also many deals I see where i look at location and "expected returns" and just laugh. They are nearly impossible to obtain. I have lived here 33 years and have been in investment real estate for 10. i cant tell you how many stories i have heard of owners coming to us after they have already purchased something and its gone downhill.

I say this as a broker and owner of the mgmt company, DONT just take their word for it. Come to the city, drive the area day and night. Interview several PM companies, ASK FOR REFERRALS.

Memphis is a tough market when it comes to managing tenants, there are many good ones, but there are more than enough problems with collections, evictions, theft, vandalism, to go around.

If you do choose to buy I would recommend using a brokerage with a PM company, with this they should be accountable for the tenants that they put in place. I cant sell you a "house with 20% return" and then a three months later talk about bad hot water tank, late rent, eviction, etc. WHile these things happen IMO a management company can be accountable for some problems that arise and at a minimum can waive mgt fees, leasing commission, etc when things go wrong to help offset the cost.

Would love to hear other thoughts on this topic from everyone.

G.R.I.ZZZZZZZZ

He should have ssi paperwork that will amounts received each month. Also get her paystubs for 2011.

We have had scenarios like you have described many times. How much is rent?

Odds are they will pay rent for most of the time, but leave your place looking like a war zone.

Mitch,

Question on your requirements. What do you consider reasonable, around for a long time with a few dozen properties. How would a pm be able to survive on that for that period of time.

Mel,

As a pm, you should expect to be kept in the know of material expenditures, tenant issues, and to have calls /messages always returned in a time frame agreed upon by both parties. I can't respond to everyone the second they call, but if we are in agreement from day one that anytime you call you will hear back that day I should uphold that. A pm should be able to justify any expense that is incurred for any reason, but should not be expected to inform you every time a dime is spent. There should be a threshold that you will be informed of before it's spent, emergencies excluded.

7% is a fair number, half months rent on a new lease is a fair amount, maintenance is where companies will differentiate, talk with several and find the most cost effective for you .

One of the biggest problems I am having lately is showing a duplex or quad only to find it filthy. Nothing you could hold them liable while living there such as damage, or anything broken, but rather clothes everywhere, trash on floor, unit being filthy. This is no one specific but a generalization. When showing the units and walking in it is a huge turnoff to a buyer. Great payment history, don't bother anyone, but live in a pig pen. How do some of you handle this.

Not to hijack Chris's post but check out rent manager for software it has been very useful for us.

You will want to check with your state RE board, most likely yes you will need to have a brokersnlicense or work under one and the property management waiver on your e&o insurance.

This is your only option, assuming ou want to be on the up and up. A word of caution though, may brokers won't mess with it for liability reasons. They don't want to be on the hook for pm nonsense that you run into.

We had to deal with this starting up in 2004. We found anindependantbbroker broker who we joined up with.

Sharina,

Welcome this is a great site for information, check it often.

Working in Memphis re for about a decade now the best advice I can give is to know the neighborhood. Don't be rushed into a deal, be patient and you will find a good one.