All Forum Posts by: Dave Rav

I like this.  It seems like a smart idea.  Wondering how it stacks up VS hiring a local manager (not a PM)?  What I mean by "local manager" is someone onsite that you can trust.  Obviously, the trust part is key.  Dont want them to be too close to the tenancy relationship-wise...

How long does your "loop" take to complete?  You say you hit 5-6 communities across a 4:52 drive in one day?  That sounds daunting.  I would realistically envision this taking a few days' time, with likely hotel stay overs and the like.  (which may not be too bad, honestly).  Say you had a rotation of 3 people completing this.  If you go monthly, thats once every 3 months (4x per year, per individual).  Honestly not too bad.  Keeps the pulse on your business.  Am I missing anything here?

We self manage, but our properties are closer to us and we dont have as many (just sold our furthest MF property this year, which was 1.5 hour away).

Definitely alot of experience on the forum.  I'll PM you.

Awesome post!  Improving the quality of life for the tenants, and most importantly, the children.  Good stuff.

And dont forget -  Your road also increases the value of the property (at sale or upon refi)!  There is likely no direct dollar-for-dollar return on rents, save for maybe attracting a slightly higher grade of tenant.  

Very sorry to hear the news.  It does sound like the closing attorney interfered resulting in less-favorable terms.  From what I gathered, this was your closing attorney (or related to your side of the transaction, as you said seller was not represented).  I would 1) meet with them and express your marked displeasure.  2)  Probably never use them again.  

Though highly common with institutional loans, personal guarantees are not an "always" affair.  Just because the attorney practices this way, doesnt mean they just assume.  You are their (paying) client and they should definitely run things by you.  And given that, you would hope they have your best interests in mind.  

We have executed seller financing transactions without personal guarantees - it can be done.  

Thank you @Courtney Urbanek.  It does appear you are trolling all NREIG posts on the forum.  But please dont take that the wrong way, I'm just making an observation.  

Unfortunately, NREIG has lost my business for good.  I started out quite happy, but as I mentioned in prior posts, several issues began to arise.  You mention "how far [the company] has come", however my positive experience ran like a bell curve.  It's almost like new ownership or top leadership came into play, and did a very poor job.  At any rate, basic business functions were not handled correctly.  This resulted in alot of time and resources spent on our end (time is money).  The degree of errors were inexcusable.  The proper way to handle things would have been to correct all errors asap and issue an appreciable credit to my account.  Neither occurred, nor was offered.  So, that brings us to the feedback you are seeing.  Perhaps this feedback should be shared with top corporate leadership of just how important and mission-critical it is handle customers properly.  Reputatation is important.

Thank you and have a great day. 

You may want to think twice about NREIG.  They have gone progressively downhill with customer service over the past few years.  And I'm not even talking about claims, just basic procedures like billing and renewals (I fear how a claim would be handled!).  We moved all our assets from them over a year ago.

See my post in the Insurance Forum from a year ago

 The company has gone downhill last 2-3 years.  Lots of turnover, which indicates likely poor leadership, bad culture, and other internal companies issues.  I think the company grew, and did a poor job managing that growth. 

I fired them from insuring our entire portfolio over a year ago.  Not only do they lose revenue from my business, but now they have to spend marketing dollars to earn new business.  Its always easier to retain customers, but thats on them.

Some questionable activity may have been done with your account.  You might have to mail them a letter, if you cant get in touch with them.  Might be a good idea to shop your policy, and take your business elsewhere.  Best of luck, Chan.

Greetings Tyler! I've been involved in REI for almost 15 years. Though unfamiliar with the STL market, I am happy to discuss mentorship and how my experience can work for you.

Please send me a PM if interested.  Thanks!

@Richard F. Thanks for your comment and suggestions.  I agree, a structure from the 1970s is not ideal.  However, we are willing to run numbers, execute initial DD, and give it a shot.  To address some of your commentary:

Plumbing - no known or reported issues.  But yes, if we get that far, we plan to inspect water/sewer.  That includes obtaining a date of service.  Thankfully, there are no large trees on the property (only at the perimeter), so roots shouldn't play a role.

Electrical - again no known reported issues.  But we plan to check out those panels.  If they're dated, we will account for that in our offer.

Roof - A date was not provided, though will revisit.  From pictures, our estimate is roof is 14-18 years old.

Exterior - is all concrete block or brick.  Only maybe 5% of the exterior is wood (trim, etc)

HVAC - 50% of the units are 2 years old or newer.

Maintenance labor - thanks for your input.  Agreed, established local team is likely most cost effective.  Cost is a major consideration here.  But maint is a necessary evil and must be factored in.  I also like what you mentioned about notifying me of unexpected discoveries (larger, potential deferred maintenance items) during planned work.

Best!

-Dave

Hey group!  Wanted to ask about ideas for keeping up with regular maintenance on an 80-unit apartment building in SC.  We are currently vetting the property for purchase.  Accurately capturing the maintenance expense is of importance.

Property is actually comprised of 3 buildings next to each other (centrally located).  Age is 1970, but about 35% of the units have been renovated within last 2 years.  This includes new HVAC, some plumbing, kitchen upgrades, and cosmetics.  I do not believe any roofs have been replaced.  

Primary questions are:  Employ a small team of gen maintenance handymen?  Employ a maintenance sup and hire a few part-time folks to assist?  Other ideas?  Any feedback is greatly appreciated.

Thanks!