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All Forum Posts by: Donald Hatter

Donald Hatter has started 7 posts and replied 35 times.

Post: New PRO in Houston, TX

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23
Welcome.  I am an active real estate agent, and investor here in Houston. I buy mostly new construction single family homes and then rent them out.

Post: Demo Company In Houston

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23

I am considering purchasing a home from a family member.  There is a 1400 sq ft home that I believe needs to be demolished so that I can build another on the same lot, which is in a great location.  Does anyone have recommendations on a local Houston based company to use? Anything I should know in evaluating options?

Post: Free Lease Form

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23
Quote from @Gustavo Delgado:
Quote from @Donald Hatter:
I did not know that. I thought they were only for licensed realtors.  That would make it easy.  How do I delete my post? (sorry separate note)

 TAR (Texas Asso. Realtors) are only for realtors. No need to delete post, can be helpful to others.


I always use a TREC form for leases, but I will find the appropriate TREC form to supply

Post: Free Lease Form

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23
I did not know that. I thought they were only for licensed realtors.  That would make it easy.  How do I delete my post? (sorry separate note)

Post: Free Lease Form

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23
Jason, thanks for your feedback. I was able to find a solution that looks about right.  I am a local realtor but trying to recreate the forms we use wasn't as easy.  But it was only a "free" solution because she could do it within the free trial window.

Post: Have you leased to a company who subsequently used your home for short term rentals?

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23
Quote from @Michael Baum:

Hey @Donald Hatter, too much risk on your part IMHO.

No way I would rent a property to a arbitrager for market rate. Like @Daniel Tanasa said\ 25% above market.

You should look into doing a STR yourself if you are interested.

I am not a huge fan of STRs, but I also have been lucky enough to get above market rate renting to individuals. So ultimately it will be the decision of my client (I am their realtor).

Post: Have you leased to a company who subsequently used your home for short term rentals?

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23

One of the units is furnished and they have been doing STRs and not making a ton of money given the hassle.  With this new model the company would pay market lease rates, and of course all of the paperwork and insurance policies would be in place.

Post: Creating an LLC (to do or not do)

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23
Quote from @Daniel Tanasa:
Quote from @Donald Hatter:

I have just under five rental properties and I understand the legal benefits of creating an LLC (married to a lawyer). I am wondering for those who have an LLC for their rental properties if they are purchasing properties with the LLC or if they are purchasing under their name and then transferring to the LLC? Eager if it is any easier or better to purchase directly under the LLC. Really asking those who have a limited number of properties.


 Hey Donald,

The best mortgage terms you're going to get are going to be when you buy a property under your name (although DSCR loans are very close to that now). Because of this reason my first 10 deals I bough them under my name and then transferred them to the LLC. After that I am buying everything in my LLC now.

I hope this helps. Good luck!


Thanks!

Post: MTR beginner Qs thanks!

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23
Quote from @Miguel Del Mazo:
Quote from @Xiang J.:

Just about to start monthly MTRs, A few quick questions:

1. Do you usually screen tenant (credit score, income etc) just like the LTRs? Or do you look at corporate letters and collect whole rent (1-3 months?) and let it go?

2. How to post on VRBO or Airbnb for MTRs? Do you set min stay as 30 days and that’s it? What about their dynamic pricing that could result in difference vs FurnishedFinding?

3. Any other good platforms to post ads or insurance relocation etc websites?


thanks a lot!


 1. We absolutely background, credit and eviction check every prospective resident that does not book through an Airbnb-type platform ("OTA"). We use Avail.co to manage our rentals' leases, rent collection and checks. We let prospective renters know what our criteria are prior to them paying $55 to be checked. That way, they don't waste their money if they know they will fail. We have a modest security deposit collected up front along with 1st month's rent and the cleaning fee. As soon as we can, we'll prorate rent to the end of the month with the residents permission, so that now they are synced up with all of the other payments depositing near the 1st of a month. 

2. The dynamic pricing for the OTAs has been hit or miss for us. I would suggest setting "instabook" to "off", allowing one of the more flexible cancelation options, and having a minimum stay in line with your local ordinances. Offer a significant discount for 1 week and 30 day stays (after setting your daily rate to accommodate the price drop with discount). To increase views, go into your listing periodically and lower the daily rate for the week or two after you have an expected vacancy, but increase the nightly rate after those two weeks so that you are still getting your target monthly rent. This encourages guests that will best fill your units back to back without sacrificing your over all monthly rent. 

3. Definitely learn about and post to furnishedfinder.com. It's not a booking site. It's a matchmaking site where you will have to reach out to prospective residents, background check them and create leases. ALE solutions, united corporate housing and alacrity are large companies in the insurance relocation space, and it is useful to go to their site and let them know you exist. Each site works a little differently. 

Best wishes


Can you tell me more about your experience with Furnished Finder?

Post: Creating an LLC (to do or not do)

Donald Hatter
Posted
  • Investor
  • Houston Texas
  • Posts 35
  • Votes 23

I have just under five rental properties and I understand the legal benefits of creating an LLC (married to a lawyer). I am wondering for those who have an LLC for their rental properties if they are purchasing properties with the LLC or if they are purchasing under their name and then transferring to the LLC? Eager if it is any easier or better to purchase directly under the LLC. Really asking those who have a limited number of properties.