All Forum Posts by: Dock Newell Jr

Property management commission rates can vary in Houston, Texas, depending on several factors, including the type of property, the services provided, and the property management company. However, as of my last knowledge update in September 2021, the typical commission rate for property management in Houston ranged from 8% to 12% of the monthly rental income.

It's important to note that some property management companies may charge a flat fee instead of a percentage-based commission. Additionally, the scope of services included in the commission rate can vary. Some property management companies offer comprehensive services that cover everything from tenant screening to maintenance, while others may offer a more limited set of services.

To get an accurate and up-to-date estimate of property management commission rates in Houston, your friend should contact multiple property management companies in the area, request quotes, and compare their fees and services. This will help them make an informed decision based on their specific needs and budget.

I'm from Florida but not well-versed in cap rates. Florida law regulates hard money lending differently than traditional mortgage lending. To my knowledge, there's no specific rate cap on interest rates for commercial loans made by unlicensed hard money lenders. 

Search the community for investor-friendly attorneys. That's probably your best bet if this thread doesn't get traction.

Good luck!

Hi Fran,

Based on some listings I've had in the past, some agents or sellers will use pictures before the tenant moves in. That's not to say that some of those listings are not scams. The best way to find out is to either work with an agent or ask the seller if you can do a walk-through. Due diligence is critical in situations like these because  you have to ask yourself, "Why are so many landlords selling?" You're on the right track. Let me know if you need any help!

Hi Miles,

It's great that you're offering your services as a wood flooring contractor and expressing an interest in investing in real estate. Networking within the real estate community can lead to valuable connections and opportunities. I'm not in Michigan but in a small market of real estate investors. I want to offer some encouragement and things I've learned. Join local real estate investor associations, use online platforms like BiggerPockets, and market your wood flooring services through a professional website or social media profiles. Attend real estate events like conferences, seminars, and workshops to build relationships and network with investors. Also, offer expertise in flooring and how quality can enhance property value. Partnering with real estate professionals like agents, property managers, or investment firms to connect with clients needing renovation and flooring services could help big time. Lastly, Building a referral network can help grow your client base by encouraging satisfied clients to refer you to other investors or property owners.

I hope this helps! Good luck!

Hi Mohammed,

That's a difficult position to be in. Understandably, you want to address the situation if only to maintain the safety and comfort of your tenant and other residents is valid. To address a homeless encampment, contact local authorities, inquire about community policing programs, collaborate with the HOA, and consult with city resources. Maintain open communication with tenants and encourage them to report any suspicious activity or safety concerns. Consult with a local attorney specializing in landlord-tenant or property management issues for legal guidance. Stay informed about local ordinances and regulations related to homelessness, as these laws can vary by city and state. Contact the city's housing or homeless services department for guidance on handling the situation. Maintain open communication with tenants and seek legal consultation to ensure the safety of residents.

Hope this helps!

Hi Andrew,

Real estate investing is a complex and rewarding endeavor, especially in areas with lower property prices like Southern Illinois. To make informed decisions about the potential profitability of your investment, start by researching the local market, understanding current conditions, property values, and rental demand. Factor in all costs, including purchase price, closing costs, renovation expenses, property taxes, insurance, and ongoing maintenance. Consider the type of property you're interested in, as the costs associated with renovations and repairs can add up. Calculate the total investment required and compare it to the potential resale or rental value.

Decide whether to flip the property for quick profit or hold it as a rental for long-term income. Get accurate estimates for renovation costs from contractors and have a clear scope of work to avoid unexpected expenses. Evaluate the potential profit margin by considering the after-repair value (ARV) and subtracting all expenses.

Pay close attention to the property's location, considering factors like safety, school quality, and proximity to amenities. Real estate investing is a long-term game, requiring careful planning, budgeting, and a good understanding of the local market. Remember that profitability in real estate investing depends on multiple factors, including property selection, strategy, and market conditions. Perform due diligence and conduct thorough research to make informed investment decisions.

Good Luck!

Hello Evan,

It's great that you're considering this duplex as your second property, and it's wise to approach it with caution, especially given the foundation issues you've identified. Here's how I would approach this situation:

Assess the extent of foundation issues and hire a qualified structural engineer or foundation specialist to provide a detailed assessment of the damage, causes, and recommended repairs. Factor the cost of repairs into your budget and return on investment calculations. Ensure the seller is willing to address the foundation and replace the roof before closing, with an explicit written agreement specifying the scope of repairs, who is responsible for covering the costs, and the timeline for completion.

Reevaluate the deal by considering the cost of repairs and rental income, ensuring the property meets your investment criteria and aligns with your long-term goals. Consider financing options, such as renovation loans, and consult a mortgage broker to determine if these options are viable.

Insure your property's long-term sustainability by checking with your insurance provider to understand if foundation issues may affect your coverage. A well-repaired foundation can be a good investment, but ensuring it's done correctly is essential.

Finally, plan for ongoing maintenance and inspection of the foundation to catch any potential issues early.

Your decision should be based on a comprehensive understanding of the property's condition, the costs involved, and how it fits into your investment strategy. If you're satisfied with the inspection results, the quality of the repairs, and the potential return on investment, this duplex could still be a viable opportunity. However, if you have doubts or the repair costs significantly impact your budget, it may be wise to reconsider and explore other investment options.

You're very welcome! It's great to hear that you're ready to take the next step in your real estate investing journey and that you've overcome the fear that can sometimes hold us back. Fear of making mistakes is common, especially when analyzing deals, but it's important to remember that learning from those experiences is an integral part of growth in real estate.

Remember that every real estate investor, regardless of their level of experience, has made mistakes along the way. It's how we learn and grow in this field. So, don't be too hard on yourself if you encounter challenges or make errors in the process. Over time, you'll gain confidence and become more proficient at analyzing deals and making investment decisions.

As you continue your journey, keep reaching out BiggerPockets community and other's for advice, support, and inspiration. We're here to help you along the way, and I wish you the best of luck as you pursue your real estate investing goals. Keep that positive mindset, trust your knowledge, and stay committed to your vision!

Dude! If you'd like to get connected Pint's and Properties is the place to start. @Shane Lafleur is the host and can get you hooked up. 

The meetup was designed to build a community of like-minded people, motivated to crush it in real estate. We collaborate over beers, share knowledge, and network with those on a similar path, while expanding our knowledge base together.

Not stuffy, zero sales pitch, and good vibes only.

 Pints & Properties

Hello RaShandra, and welcome to the BiggerPockets community! It's wonderful to see your enthusiasm for real estate investing, especially as you look to embark on rehab projects and explore the potential of the VA loan for investment properties. Here are some insights and suggestions to help you get started with military investing:

Using a VA loan for an investment property can be challenging, as VA loans are typically reserved for primary residences. However, there are a few options to consider:

If you plan to live in one of the units, you can use a VA loan for a multi-family property (e.g., a duplex or triplex) and rent out the other units. This is known as house hacking and is a strategy that some military personnel use to invest in real estate.

Another option is to use a VA loan to purchase a fixer-upper as your primary residence. You can then live in it while renovating, and once the renovations are complete, you could refinance or sell the property as an investment.

If using a VA loan isn't feasible for your investment property, explore other financing options like conventional, FHA, or private lenders. Please be sure to speak with a mortgage broker or lender to talk about your specific situation and explore financing possibilities.

It's excellent that you're actively seeking a mentor and connecting with local investors. Building a network in the real estate community can provide valuable guidance and support as you begin your rehab projects and real estate investing journey. Remember to continue learning and researching, as education is key in this field. Best of luck, and enjoy your journey into real estate investing!