All Forum Posts by: Brandon Vukelich

Already a lot of good feedback here.  Red flags for me that stand out on the financials are water, sewer, trash and maintenance.  W/S/T $3800/year?  Are the tenants being billed back a portion or on separate meters?  I would believe that Maintenance & Repairs would run at least double the $12k/year figure.  I see you intend to self-manage.  Not sure about your experience but 38 units is not for the novice landlord.  I'd find it hard to believe it is currently performing at a 14 cap but maybe you found a unicorn.  Best wishes on the decision!

I have three times.  I receive a confirmation that I will hear back within 24 hours but nothing.  I've been trying to email every week for three weeks.

Wondering if anyone else is having trouble getting a reply from BP support.  My BP sales rep has gone completely MIA on me.  No response in 3 weeks after several emails.  There is no phone number that I can find anywhere to any BP dept.  I'd love some help if anyone here knows how to actually reach someone at BP for assistance.  I'm just a lowly Premium member paying $$$$ per month.

Just to clarify...A "Realtor" is just a designation that any agent/broker can have as long as they pay the dues to NAR (National Assoc of Realtors) and their office is also a member of NAR. It has nothing to do with experience levels. Every state is different when it comes to Managing Broker, Designated Broker, Responsible Broker, etc. Here in WA we are all Brokers (although I still refer to us here as agents), then you can get your Managing Broker's License after two years.

Congrats @Amanda Thompson for starting your own PM firm!  I had one in Seattle for a few years, it can be brutal but I truly believe women are wired better than men for the biz. LOL!  I also use a PM in Boise for my 26 units, they charge 8 percent.  So speaking from experience on both sides, here's some feedback on your points:

- Extremely convenient for the buyer to not have to shop around for a PM company -- Not sure many investors wouldn't shop around if someone quoted 12% management fees.  Even if a pain for me, I would shop for a better rate.

- all the infrastructure is in place (tenant accounts, payment portal, maintenance requests, leases, etc) -- So you want to charge a premium for systems already in place?  If anything, that would lead me to believe the transition should be fairly smooth and easy.  Nice that you may not be charging them an onboarding fee but I don't see why the increased management fee applies to this aspect.

- I hand-picked these tenants. I have high qualifications, so none of them have been a problem at all. They're all on 12 month leases. -- Great!  So they are all great tenants, no issues or problems...shouldn't that equate to a lower management fee not a higher one since they are not on the "headache" list.  You could charge the buyer a higher renewal fee for retaining such great tenants but again, I don't see the justification for a higher monthly management fee.

- My husband's company does maintenance, lawncare, etc so we would continue with that as well (although extra charges for the new owner as far as repair costs, etc). -- Not sure I follow this point.  Are you implying that your husband does those things as part of (included in) the management fee?  If so, I would see value there.  If his company still plans to charge for maintenance and landscaping, still don't see 12% value other than you have a known, reliable vendor.

- The tenants know me, they know the system, it is a smooth transition with nothing changing except the person ultimately calling the shots. -- Same as above.  So easy transition and no increased work load on your office's part.  Again, not seeing the value in 2-4% above your competition.

- I do all my own marketing, social media, listing vacancies on websites, etc (we are at 0% vacancy) -- Many PMs can say something similar.  I'm not sure of your total unit count but zero vacancy may imply your rents are under market.

- I have intimate knowledge of all previous maintenance and the layouts/highlights of each unit, relationships with subcontractors, and honestly I have personal (PROFESSIONAL) relationships with each one of my tenants. -- That's fantastic but my solid PM would be able to say the same for most of that as well, although I don't expect them to have personal (pro) relationships with each.  

I don't mean to squash your perceived value at 12% but I believe there is too much comparable competition in a market like Boise to shoot that high UNLESS you can prove the value, financially, to the buyer.  If you can show you can get rents up 20%, then 12% PM fee is easier to swallow.  For example, when I bought my first apartment complex in Boise, the PM offered a flat rate until they reached a higher, target average rent, then the 8% kicked in.

That's the beauty of running your own business.  No matter what input you get from online, you're open to charge whatever you feel is appropriate based on the level of service you provide.  Best wishes in your success! 

Doesn't sound like a very good candidate to flip as your potential profit margin is too lean, so you're considering as a buy and hold?  Not surprised the seller is offering seller financing, unlikely to be many investors looking to buy a $100k 4plex in a town of 150 with a declining population.  You didn't mention any seller terms so difficult to offer much more in depth opinions.  I suggest you consider how large is your potential tenant base, what are the major employers around, are you planning to self manage or hoping to find a PM?  Also, I'm guessing a 1920 property needs more work than $50k such as plumbing, electrical, sewer.  Either way, the small town and declining population would be a NO for me.  Best wishes on your decision!

If you intend to be serious and professional about your wholesaling business, I strongly encourage you to contact a local RE attorney in your state to help prepare your Purchase & Sale Agreement and Assignment contract.  It shouldn't cost more than a few hundred dollars for the legal assistance.  There is a lot of liability when dealing in real estate.  You're not transacting candy bars or used computers.  If you don't know how to fill out or use either contract, I suggest you go back to the learning process before you start locking up properties and attempting to do a deal.  They are not just "paperwork" they are real estate contracts.  Otherwise, partner with another local wholesaler to help you learn the ropes.  Best wishes on your journey!

Look up the WA Real Estate Investing (WAREI) on Facebook.  Make your same post in there.  Tons of wholesalers in that group.  I wholesale but not offering to mentor at this time.  If you're looking for guidance on investing, I'm happy to chat but keep in mind that wholesaling and investing are not one in the same.  Best wishes in your journey!

Reposting my reply from similar post...about a year ago I met with Bailey-Foristell, old school father and son team, small office, long history in the area. I also met with Key Renter. Super tech savvy, manages in other OK markets as well. They both have their pros/cons, depends what you are looking for in a team. Send me a message if you need contact info for either. Good luck!

If I follow the issue correctly, sounds like you made a personal/investment purchase but still processed (uploaded docs, etc) the transaction through your company where you hang your license, correct? Whether in your name or LLC, or on/off market, may or may not be relevant. If so, your agreement with your firm should detail any exclusions to personal deals or not. Here in WA, we have an Independent Contractor Agreement that agents sign with their office. Each office dictates as it seems fit when it comes to an agent's personal deals. Some may say zero fees, some may have a minor transaction fee and others may charge more. My previous office allowed for personal investment deals to be excluded from fees but the agent had to be a member of the LLC in the deal. Hope that helps.