All Forum Posts by: Grant Shipman

There were changes made to this issue w/in the last couple years. They concern being able to transfer a title into an LLC w/out the due on sale clause being enabled to be exercised by the lender.

 ah gotcha. you are doing graduate student housing.  cool niche. i've mainly stayed in the non-student niche although i have plenty of student who decide to rent.  Are you doing MTM leases? I'd be interested to hear what are the keys to your success so far. 

This is cool to hear!  Some of my houses have niched and others have been setup with a niche (like senor living or sober living).  Other of my houses have remained non-niched and thrived.  I was struck by how you said it was a lot of work. What PM rate (i.e. 10%) would you think makes this extra work worth it to a PMC? 

 Cool to hear about your experience. I've seen operations like yours that off a lot of DFY services (i.e. cleaning).  I think this can work when targeted to a higher net income niche of people who don't want to clean up after themselves nor work-out how to be a household- Barcelona, San Fran, & London are excellent locals for this.  How's your turnover look and what are your lease lengths if you don't mind sharing.  Have you tried households that mostly self run with the tools/context that the PMC give them?  I'd love to hear what your conflict resolution system is between house members (what tool do they have to solve their own conflicts?).  This has been our secret sauce and greatly reduced turnover. 

 Cool to hear. What is the average tenancy of your renters and how are you trying to reduce this.  In my experience, stable/mature coliving households are based on low turnover. 

Coliving or Rent-By-The-Room rental properties are known for high turn over, tenant drama, and property damage.  Who else wants to join with me in setting a new standard here?!  Over the past 22 years I've refined how to manage coliving properties borrowing from the wisdom/tradition of subcultures who have done this for centuries.  It's clear to me that if there is high turnover, drama, property damage it has nothing to do with the type of rental strategy but the quality of its execution.  Who else is with me here?  Please share thought, questions, challenges, etc.  Time to turn the tides! 

@Alexis Johnson

Start down the road. Worst case scenario you find out the numbers don't work yet and you've learned and grown and made good contacts.  Best case scenario you buy a great property with solid cashflow.  High upside now down side.  I'd encourage you to speak with at least 5 lenders to see what they can do with you.  Find a lender to tell you what you can do not what you can't- it's their job to help you navigate the loan world. Don't put up with lenders who don't give you their best. 

If you want their best, give them your best by doing the following:

1)  Create a secure online folder (like google drive) w/the following documents: pic of your drivers license, previous 2 tax returns, previous 2 months bank statements, previous two months pay stubs, screen shot of your credit score (like from creditKarma or something). 

2) Call up a lender. If they seem like they are worth your time, ask them if you can share your online folder w/them for them to briefly look over and give you real options for your real situation.  Tell them if there's a chance, then you are happy to fill out their online loan application.  Filling out loan apps can take a lot of time, so save your time by having them glance over your documents in the online folder first.  (hint- if you are using google you will need a gmail email account they use). 

3) Share the folder w/the lender. Remember to share "view only" and keep this folder secure, as it has your important info on it. 

4) You might even be able to share the folder w/them while they are on the phone w/you when you initially call. This depends on their schedule. 

5) Even if you've found an amazing lender, repeat the above steps with 5 lenders. 

Pro Tips: 

-ask the lender good questions and take notes so you can compare the lenders by looking over your notes later: How many loans did they close last year? How many loans have they closed so far this year? Are they a mortgage broker (you want a mortgage broker)?  Will they give you suggestions on how to qualify for loans that you currently don't (i.e. getting a cosigner)? 

When you decide on a lender, ask them for realtor recommendations. You want someone that they recommend and work together well with.  These two will be your key team. 

There's my best thoughts for you. Go live your day dreams! 

When a Downturn challenges a Creative Hustler

 Thanks!  I thought I had read all the comments, so I'll go back an re-read. Thanks again Zack :) 

There's a lot of discussion/learning on what is a recession compared to a correction and if we are in one. 

Ultimately, a recession only means to you what you make it mean.  

During a strong economy, many people can make money as long as they are good at selling.  During an economy's darker times, is when those of us with solid businesses will stand out and excel. 

It's also a time when those of you/us who want to start or buy a solid business will stand out and excel. 

ps- by "business" I mean all of us with rental properties.