All Forum Posts by: John McCormack

Hi Jim,

I think I may have seen you at the BP Meetup that Jon Huber puts on at Gizzi's.  I've been absent for while back trying to attend regularly again. I believe Lori (my wife) has alreayd reached out to you but I have alot of info I could share with you in you'd like.  Feel free to give me a shout! 

Hi Moosa,

I'm in the same boat in determining that now as we've been priced out here in South Florida (currently have 3 properties - a house hack duplex, a long term and a short term vacation rental) I'm also starting my education on that with David Greene's "Long Distance Real Estate Investing" which is referenced on BP quite frequently, so that's probably a great first step. 

Also, just do a search on BP for "out of state/area investing" and you should get a lot of hits.  Things to maybe look for I've learned could be:  household income, median home price, job growth, industries, school/education ranking, percentage of renters in area, unemployment rates etc. 

Hope this helps!

John

thanks @Kenneth Garrett @Brian Pulaski @Kim Meredith Hampton

I think I excluded a very important piece of information which is this is NOT an adjuster from the insurance company (apologies) but a separate company that takes a percentage/cut of payout obviously. We only met with this person as it was a recommendation of a great plumber we just used. Soo, that probably changes your answers in that regard.  Below is a link for the company:

Phoenix Claims

John

Does anyone have experience in this...

Hot water heater is in the kitchen.  Water heater leaked. Has caused minor damage to surrounding cabinetry.  

We already have plans to demo and renovate the kitchen in 5 weeks along with other home renovations.

Insurance adjuster says he can possibly get us a paid for kitchen now because of this water heater leak.

Would like to hear about anyone else's experiences with situations like this and/or advice.

It sounds like there is a lot of red tape?  How long does this process usually take?  Can we still use our current contractors.  Can we begin the work before reimbursement is finalized? Our start date on our renovations is not flexible because we have already planned to relocate during the process.  

Any and all advice is appreciated.

Hi BPer's,

Wondering if anyone can recommend a good E&O provider for PM purposes? It doesn't have to be located in South Florida obviously but would prefer recommendations from people who currently use them. Thanks much in advance for any help you can provide!

John

Hi BPer's,

Wondering if anyone can recommend a good E&O provider for PM purposes? It doesn't have to be located in South Florida obviously but would prefer recommendations from people who currently use them. Thanks much in advance for any help you can provide!

John

Thanks for the info @Patrick V. and yes, I've been keeping an eye on for quite some time now and know about all the VR PM options our there from VC backed co's to smaller shops. One thing I will say (or simply think/my opinion) is that the VC backed larger ones will never be local and like most real estate, whether it's buying or selling and VR PM...that you'll always have a better experience with a local expert. 

I'm also now evaluating software like "Liverez", "StreamlineVRS" and "Kigo". Are you using any particular you like? 

Hmm...good point in regards to the luxury rentals. I'm guessing simply larger booking rates, more money, less or more work? Although, corny type website for larger luxury properties may not fly for that type of clientele.  Ideally, we would like to be picking up more properties for ourselves and also not just accepting any property for the VR rentals as we'd want to maintain a certain standard of home.

So are you still doing this now or on the side? I've love to see some of your sites etc if you'd care to share? Thanks much again for the info! 

@Wayne Brooks  thanks for the info and yes, that's exactly the way I understand it as well. So again, do the same commision splits that apply to purchase and sales apply to the management income as well? Thanks much and how was the Meetup @ Gizzi's? 

Ok, so here's my question...but first a little background. I'm a newly licensed RE sales associate. We currently run our own VR and 2 long term rentals with intent of turning duplex we're in now into a VR as well. I obtained the license specifically because it was required to manage short-term/VR properties for third parties as you would be accepting a commission/percentage of booking income. Obviously, I would need to work for a broker and all funds payable would have to funnel through them.  However, I've been to a few brokerages and have some mixed answer in regards to:

- will broker take a commission split on this side business if they don't even handle property management? (some have said they aren't interested in that, some are)

- would be doing 100% of the work to bring on homeowners into the program. most brokers said that whoever I bring on is mine whoever they feed me (sales) leads are theirs

- 2 firms said they are only interested in commissions on properties I sell or buy for others not this property managment aspect I'd be bringing with me

I guess I'd like to know if anyone is in a similar situation as me and how you're handling commission splits with your broker in regards to short-term property management?

I come to the all-knowing massively experienced forum members for their help and guidance once again! I'm on a fact finding mission to determine the best way to start a new company for short term rentals and trying to determine the best practices to do so.

What is known thus far:

- I have to have a RE license in order to manage properties for third parties when accepting commissions for bookings. I have obtained license and in search of broker to hang license.

- I have to work under a broker for 2 years before I can apply for my brokers license in state of FL

- I have to split my commission profit with broker and all funds/payments must be made out directly to the broker

- the percentage commission I negotiate with property owners is my decision

Determine best path to form Vacation Rental Property Management company being aware of my new status a sales associate

- can I start my own business entity to establish and brand my VR management company now, or would/should I just wait the 2 years, get brokers license and then do so. Concerns: time wasted building future company and not having the company name/business/brand out there first. In FL, I believe RE sales associate can form business entities for tax purposes but it must specifically be the name of the person such as: John Smith, LLC. I do not want to brand the business with this name

- type of business entity to form?

- amount and types of insurance to carry? E&O, separate commercial liability?

Any suggestions for approaching RE brokers who might be interested in forming a relationship based upon our future VR Managment business

- after working under broker for 2 years and then deciding to part ways what is the best way to retain properties brought on by myself. Is this and up-front individual conversation with each broker during interview process to find out more?

- again, spending 2 years building up a rental portfolio which we anticipate to have healthy returns and under the banner of the broker, how would one part ways amicably.

Future Goals

- not necessarily to bring on as many properties as possible. We value quality over quantity and working with owners/investors who “get it” and are open to our input and control in order to help them succeed as we are VR owners/operators ourselves.

- residential sales/buyers agent for out of state visitors who may transition into snowbirds and/or 2nd home investment properties

We’ve already spoken to attorneys and it seems we have “very good questions”. Some research has already been put into this but we wanted to get a sounding boards from others who may have already gone down this path. We value everyone’s input no matter how small or large and being a part of this community! Thanks much for any help you can provide and we look forward to your answers!