All Forum Posts by: Elliot Shoener

Sweet. I assume you are getting into real estate to off set taxes.  That said, start slow. 

By the way in case I didn't mention it, start slow.  Buy 1 property, preferably a house hack.  Get your feet wet with renters and managing a property for others. I would not recommend hiring a PM as you need to get in the trenches to understand the business.  This will ensure you don't get take advantage of.  Also, get your Real Estate lice. Use an agent for your first few properties, but you'll want to source your own after your 5th property.  When I started i bought 1 and waited 10 months to buy number 2 and 3 . The following year I bought 10 and so on.

1. read as much as you can

2. get your lic

3. buy 1 and see how it goes for 6-8 months

4. then begin to scale at an even pace. 

I had a cleaner and was paying about $150.  They were not doing well.  I spent a few sessions with them going over everything I expected and even offered to compensate more if they felt it was needed to get the all the extra things I needed done, done. That said, there was nothing needed, but I still presented to them with the idea "I was being picky" but was willing to pay for it. 

Well long story short, even more money didn't help. If you are not detail orientated, you just aren't going to get it done.  There is no amount of list you can make to ensure a cleaner will complete all to expectations as everything can't be put on a check list.  I

I have found a great cleaner now that I pay $200 per clean.  I pass that along to customer.  She is so good, I normally bonus her here and there just to say thank you as it would be terrible if I lost her.  I find a good cleaner is the only thing that determines the 5 start ranking.  My current cleaner will even go to the store to pick up any supplies, will paint, fix small things etc.  amazing and I keep paying for it.   

In summary. Keep searching for a cleaner and consider what increasing your price may do to your reviews, if it will increase your bookings, and if that is worth it to your bottomline.  I am willing to pay more, to ensure 5 start reviews and a consistently fully booked cal.

Davin, can you do your 9 - 5 work as a 5 to 9?  If not, do something in the trades if you are handy at all.  People pay big money for summer cleaning.  It's not fun work, but that is why people pay for it, no one wants to do it.  Also, Uber - Delivery is an easy one too.  If you live in the city, can you drive a few hours after work before returning home.  

Hey Kelly. We are primarily in ATL and have 87% occupancy rate on our Lake Lanier properties.  As the economy pulls back, I feel people are still opting for vacations, but closer - quick get aways.  We are still buying around Lake Lanier.  We have some properties operation on a 100%+ cash on cash return per year.  

We're not buying... yet, unless it's crazy good deal. Until the Fed stops increasing, the market will continue to get soft.  By definition, the Fed will keep raising rates until they stop growth.   To buy now, even if a deal works, is just putting capital into something that could be in a much better deal in 12-18 months.  Deals will only get better, builders will offer even steeper discounts in coming months.  Builders have to close on projects already underway. That said, builders also have great rates, as they locked 18 months ago.  So we are waiting for steep 10%–20% discounts on homes, locking at 5% with builders lenders. Meaning, wait for the builders home to be completed.  when the builder can't move it, they'll drop the price significantly just to close.  Use that lower price and the builder's lender to secure a house under market and at 5% investor loan.  If you can buy 3 or 4 at a time, you'll get better discounts.  We just picked up 4 units in ATL subs at 5% rate and 50K (15% discount) off last sold comparable. 

You need to make a decision if Real Estate is your gig.  If houses are expensive where you are, you may need to move to more a cheaper place.  As a young real estate person, I would find a home with as many bedrooms and with the best bedroom to bathroom ratio as possible. Meaning a 3/3 is better then a 3/2, but a 3/2 is better than a 2/2 given the price is similar.   You can put down a modest 3.5% to get into a home. Then rent out the other rooms. Allow those roomates to pay the mortgage.  This is not ideal. But if you live uncomfortable now, you'll live comfortable later.    Make sure you can afford the mortgage without roommates, but let the roommates pay the mortgage. Not being able to afford the mortgage is your landmine. If you mess up your credit you are done.   If you do this every 2-3 years, buying a house, rent out rooms, live in it while you save for next house, buy next house and rent first, repeat on second house etc. You'll wake up in 10 years very happy. 

Ah, many courses will sell you on "no money down" real estate. It's possible, but very hard to come by. Think thousands of calls and 1 deal per year.  You can lock up a house via owner financing. You give the owner a few thousand and assume their mortgage.  What most people do that I find is work with an experienced investor as a "deal finder" or wholesaler.   You make thousands of calls and find a good deal. You present it to a investor who will buy it from the seller and give you a nice chunk of cash, say $10K.  You do this 1 time per month. At the end of the year, you'll have made 100K and can use your experience as an wholesaler, along with 25% to 40% down, to buy your own home.  Rinse and repeat. If you buy a fix and flip, you can get the 100K return plus net.  In real estate it's all about the capital.   This topic is an hour conversation. hit me up if interested. 

let me help, junk in, junk out.   Meaning, how clear where you with your real estate agent about what you wanted.  If you specify your buy box with them, and expected cash on cash return, they should adhere to this.  We closes 100s of deals with investors per year in the Atlanta area.  Some of our investors want $0 cashflow, some want 10%. Some want new properties, some want fixer uppers.   When a person calls us to say I am an investor send me properties, it's common we will send them varying options as most new investors has no set buy box.  With our experienced investors, we know exactly what they are looking for and can often write an offer for them to sign before even presenting a property to them as we know they'll buy.   Be very clear with your Realtor what you want. If they keep sending you junk, they are not a real estate investor friendly agent.  Keep in mind, agents are sales people. Unless they have references, a strong history or working with investors etc. they could just be telling you they know.  I would start any conversation with an agent with 1. Do you work with investors 2. What do you look for when presenting a deal to a investor like me 3. Do you have access to off market deals 4. Do you have access to creative funding 5. How any investors are you working with currently.   The last question is critical to you get a good deal.  This is most important thing I am going to say. We currently have a roster of over 50 investors actively looking many all cash.  If we get a new investor, they are normally at the bottom of the pile. Meaning, if we find a good deal, we will normally send it to a person that is ready to buy within minutes and that we've developed a relationship with.  If we were to call you with a deal and you said, hold on let me get back to you in a few days, you'd find it hard to get another deal from our team. In Atlanta, deals are on market and off market within hours (still in March of 2023).  So we need our investors ready, financing lined up, and ready to pull the trigger within the hour.  If you are not ready to move, the best deals are going to those who are. So consider where you are in the pile.  Nothing wrong with taking your time. But you may need to close on a few okay deals, before be presented with a home run.  

Don't overthink it. We stay at 90% occupancy, and I often don't get back to a guest after they book for hours. Many automation platforms claim you need immediate response etc.  I find a more personal response goes a long way then an immediate blanket response that the guest knows is automated. Nothing screams "I don't care" like an immediate response.   I spend an hour each night going over messages. I tell guest who book to text me.   Yes, I know what you're thinking, that is way too much work.    We run 12+ properties.  I'll let that sink in a bit.   We create great guest instructions located inside the app, and use the same template cut and paste but then simply add a small note to it. For example....  Excited you're bringing the kids and dog to our cabin, they'll love it! then insert temp response.  Like I said, I spend no more then .5 hour per day (with all the properties), are a super host, and hold a 4.9 Star rating on all our properties.  Ditch the "tools" and keep the money in your pocket.

You can fix anything in your own property/investment property. The only issue I can see is IF there was an issue with the fix. For example you fix a faulty light switch but then the house catches fire.  You'd be on the hook.  Hiring a licensed person shares some liability with that trade. That said, I fix most of my properties and other than that I have a skilled handyman which is not licensed etc.  Just know the risk. A good liability insurance policy may be the way to go.