All Forum Posts by: Jaryn Pierson

Hi Maha

Question for you. Why take it over and go the mid term rental route? Why not take it over and lean into just being the landlord with traditional long term residents ?

 Hey Jennifer

I have some clarifying questions here. What exactly are the systems the house is running.

How many hot water heaters do you have in total and what do they run on ? (Gas or electric)

When you say radiators, what are we talking here. Big steam radiators? Smaller hot water baseboard radiators? And are they all being serviced by one big boiler, or do you have two boilers in the building ? And what is providing 'fuel' to the radiators?

Dane

Great question. The cool thing about working with partners is that there is no set structure and it is up to the investor and lender to find out what works best for each of them.  

Generally, people will invest with someone like yourself because they're thinking that they might be able to get better returns than the stock market, maybe they like the particular deal, or maybe they just really like you, the investor.

There is a book in the bigger pockets bookstore titled Raising Private Capital by Matt Faircloth that I would highly recommend. After you read that you will understand more why nobody gave you just a super straight answer, and the reason for that is, there just really isn't one.

Happy Investing !

Carmen

I would highly recommend the book 'Managing Rental Properties' by Heather and Brandon Turner. It is a quick'ish read and outlines everything you need to know to get started in the world of 'mom and pop' landlording.

Happy investing !

Hey Theiborh

Interesting situation you have on your hands over there. My guess is that you actually won't be able to get the loan with that many people on it but that is just a hunch.

Regardless, a few things I'd want really organized before going into any type of partnership like that . . .

- Get really clear on a 1 year, 3 year, 5 year, 10 year plans

- Get really clear on who's responsible for what

- Decide EXACTLY how you are going to pay for repairs

Buying anything with a group of family members is totally possible to succeed as long as you really prep yourselves on the way in. Where things will go wrong is when you need a roof and only one of you has the cash. What might be a good idea is to set it up with your own little 'HOA'. You each can set aside some money each month into a reserve account so you have some capital to draw on for repairs that affect the whole house. If you wanted to be really diligent, you could have a lawyer set up a contract for something like that for not much money at all.

Happy Investing !
Jaryn

Books

Multifamily Millionaire (start with volume I, definitely read volume II)

Managing Rental Properties - Heather and Brandon Turner

Shoe Dawg - Phil Knight (not real estate focused, but goes into struggles and how to overcome, plus a great read)

You've landed on BP which is a great start. All the BP podcasts are a wealth of knowledge and also inspirational and just easy to listen to. And then find a friend, one that is just barelyyyy ahead of you. Grow your portfolio's together, share best practices, and be of service to each other and your community and you'll be just fine.

Happy investing !

Yea the home visit is not something I have attempted and not something I'd be interested in doing. I understand the idea but realistically if somebody knows you're coming they're going to spiff the place anyways. When you get somebody who looks good on paper and they come to a showing, take a peak at their car, inside and out, that'll tell you everything a home visit will with much less invasion of privacy.

 Hey Nikk

Ideally as investors IMO taking out a loan to cover operating expense should be absolute worst case scenario. Ideally we set up reserves on the front end when purchasing and built out capex / reserve money into the initial cash required for the deal. 

Now, plans are great, but things don't go according to plan. I got a phone call last Friday from a maintenance guy at a property. It went like this. 'You sitting down'. me (yup). him 'You're boiler's cracked and you're going to need to replace it'. me(gulp). I bought the property 6 months ago and although it is 'stabalized' in most senses I blew through most of my reserve budget to get it there. LOng story short, the boiler is chugging away nicely right now, I didn't have to beg a bank for $50k, and I will continue to put as much money away as possible to be ready for whatever is to come, because oh man 'it' will come.

Happy investing !

 Hey Ursula

It costs the potential resident $35 to fill out the application including background check. They can then use this one time fee to apply for as many buildings that they want to for up to a month. If you are only getting 1% applications completed, I would suggest a tweak on your process a bit.

 - Are you getting your listing out in front of enough eyeballs?

- Is everything spelled out in the listing. Ie Pets / Smoking / Parking / Terms / etc ?

 - Did you get professional photos and professional cleanings done?

- Does the place look habitable? (shades / blinds / apt mailbox / lights / outside photos landscaped)

- Is the listing accurately priced? Being too far over or under can both lead to no active applications. 

Hope that helps a bit !

Hey Ursula

Great topic, simple answer. I'm not showing an apartment to anyone who hasn't filled out an application with a background and credit check.  From there, I set up appointments with anyone who has qualified.

Qualification equals income = 3x rent, credit 650+, no housing court issues, no violent crimes. 

I always try to set up appointments right around the same time, and take the first person who has a deposit to hold in my hands.  Very simple, very black and white. 

I'll get 50+ comments of 'when can I see the apartment' in the Zillow portal. I always just use the saved reply which is 'as soon as you fill out the application we can set up a showing'. Only 10% actually fill out the application. Saves ton of time on my end and weeds out the non serious residents.

Happy Investing !