All Forum Posts by: Mike McKinzie

Why would this thread go over a cliff?  There are lots of good folks here on BP.  Without any order, I admire many but here are a few:

@Rich Weese

@JScott

@Ben Leybovich

This is the exact discussion I was going to start.  I bought a house in Texas last year for $155,000 and it is appraised for $195,697 this year.  If someone offered me that today, I wouldn't be able to sign the contract fast enough.  It is so far OFF, in my opinion.  But, all the Texas Property Appeal Sites say I have to be present for the appeal hearing.  That means airline tickets, hotel room, meals and other expenses.  If the Tax Protest Company can reduce my taxes by $1,000, and I have to pay them 40%, or $400, that is less than it would cost for me to travel there and do it myself.

What am I missing here that could cause a problem?

I seem to have read a couple of years ago about some insurance company providing a policy for ALL of your rentals, no matter where they are located.  With investments in six different states, individual policies are getting very pricey!  Does anyone have any referrals for such a policy/company?  Thanks!

http://www.forbes.com/sites/erincarlyle/2015/01/09...

LOL, BEST place to invest in Real Estate in 2015 per Forbes Magazine, Austin, TX.

Haha

Dawn

You are correct.  I had a credit card company drop a late fee, AFTER I paid my balance in full (I was out of town and was a week late paying).  They showed good faith AFTER I showed good faith.  And sure, Mortgage holders can do short sales, deeds in lieu, rework a mortgage, etc... but what will that do to my 810 credit score?  As the line from Cinderella Man states, "My heart is for my family but my balls are for business!"

@Dawn Anastasi, you have a great heart and the "deal" you made was to just change due dates on when rent was due, from one day a month to two days a month.  But let me give this scanario.  In October, 2013, my wife was bitten by a mosquito and contracted West Nile Meningitis/Encephalitis.  She is still on disability to this day and our annual income dropped by over six figures!  Do you think my Mortgage Holders, my car note holders, my credit card issuers CARE? Was I able to make a 'deal' with them?  Unfortunately, I was not and we are OK, but if we are to be REAL Business People in Real Estate, we can't be ruled by compassion.  Why are we still OK even with that large of a drop in income?  Because I am a hard rear end Real Estate Investor.  I take tenants to court.  I fire Property Managers.  I demand quality service at a fair price.  On the flip side, I make repairs in a timely manner.  I keep my word on whatever I promise.  I bend over backwards to help those in need.  I just don't offer free or discounted rent. I am like Wal Mart, who makes you PAY for your stuff BEFORE you leave.

Here is the ONLY deal that works,  EVICTION COURT.  The last time I was there, summer of 2014, the tenant brought in every last cent they owed, including all court and all legal fees.  And since then, they have NEVER been late, how is that for a "deal?"  They then KNEW what I would do, no question about it!

While price is an issue, SERVICE is key.  You MUST provide good communication with your investors and your tenants.  Having a website where tenants can pay rent and request repairs, and investors can get up to date status on what is happening with their properties is vitally important.

The fees you charge, the monthly fee, a new lease fee, a lease renewal fee, eviction fees, ANY fee that you charge must be clear and up front.  As an investor, I can't stand seeing 'mystery' fees on my property statements.

Some PMs have started to charge a "Maintenance Management Fee" which I think is total baloney.  If I get a repair bill for $200.00, lets say for unclogging a drain, fixing a toilet and fixing an electrical outlet, one of my PMs is now charging me 10% of that bill, $20.00, for making the call to the handyman.  And if I get a new roof for $5,000.00, they charge me $500.00 for a MMF.  I only have one PM that is doing that (I have nine working for me right now), and it will change or I will change PMs.  Which is a shame, because they are a really good PM in all other aspects (and I have referred over a dozen other investors to them).

So, be honest, be fair and provide quality service and investors will be knocking your door down.

I feel your pain.  I just fired one of my PMs December 31.  That is my sixth PM firing in the last 7 years.  Sometimes, you just have to do it!  NEVER, NEVER work a deal out with the tenant, you will have more headaches down the road, guaranteed!  In 35 years of owning rentals, I have NEVER seen any 'deal' work out.  100% of the time, I ended up doing an eviction after missing many months of rent.  I should have just done the eviction to start with and found a better tenant instead of losing 6-12 months of rent!

Brandon

I call me my mother-in-law who is the President of her Mutual at a place called Leisure World, a retirement community, think of a smaller version of The Villages in Florida.  She said the family is the first step.  But if you cannot get a hold of the family, you will need to contact what is called the "Public Guardian" who takes control over all the assets.  They may have a different title in Washington, but the Government has an office specifically for the issue of a person passing who has no heirs.  Between an attorney and the PG office, you should be able to get some good direction.