All Forum Posts by: Justin Brown

I’m not sure where I heard it, maybe on one of Brandon’s podcasts, but the advice was to look at every line item in your budget as an investment and not an expense. At least on the personnel side I have seen that to be true! For my team each one of them is 100% moving us toward our goals and we are growing as a result. It’s been fun to then see their salaries as not just paying for someone to fill a role but as investments in the future of our organization! I then look at them in a different way, as people to encourage and listen to and not just boss around. 

Very cool! Both great markets! The 1.5 hour hike is tough, but would be great to meet you in person one of these days!

Quote from @Drew Sygit:

@Mark J. You could also look for a partner/investor to buy you out over time.

Regarding PMC's, most of the horror stories are based on:

1) Selecting the cheapest PMC
2) Unrealistic expectations
3) Lack of engagement by owner with PMC

Below is our advice on screening PMCs:

Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.

Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

https://www.biggerpockets.com/member-blogs/3094/91878-how-to-screen-a-pmc-better-than-a-tenant-part-2-communication-and-docum

https://www.biggerpockets.com/member-blogs/3094/91879-how-to-screen-a-pmc-better-than-a-tenant-part-3-the-management-contr

Heartily agree with Drew! 

Maybe I missed it Mark, but did you mention where your portfolio was? Maybe we could provide some recommendations depending on the location! 

I would agree that from that distance away it’s taking the fun out of investing for you. If you pay someone to handle the PM, track the hours you save and the stress of it. I bet it will free you up to go do more things and get more deals, so though you might want to see it as an expense for 8-10% id think of it as an investment in yourself and your next deal! 

For February we have a special guest that I am excited to introduce. Is he a wholesaler, a teacher, a virtual assistant or maybe he isn’t even real at all, just a highly skilled AI bot! Find out the answers to all these and more when we host my good friend Luis Vanderhorst.

For December, we'll be joining forces with other Lehigh Valley Real Estate Investor groups for a festive holiday party.

Reservations are required so please make sure to RSVP by scanning the QR code below or by clicking here.

For November, we have a special meetup planned for you guys. We will switch things up from the normal format as I bring in my man, Michael Cone, to help me out. This is not one you're going to want to miss! I know we say that every time but seriously.

We also need your help!!!! With Thanksgiving around the corner, we are going to continue our tradition of Friends-Giving by asking you all to bring a dish or side to share with the group. Please text me what you're bringing so the Light House team can plan accordingly. Looking forward to seeing you all there!

Parking is available in the small lot behind the office. Once the lot is full, ample street parking is available near the building or by West Park. Do NOT park in the lot across the alley from ours. You will be ticketed and towed.

LOCATION UPDATE: We got invited by The Hamilton at Grand Plaza to host our meeting in Allentown's newest condo development project. We thought this would be a fun change of pace and get the creative juices flowing by seeing a near-completed project like this! Drinks and pizza will be provided.

The Hamilton at Grand Plaza
835 Hamilton Street, Allentown, PA 18101

Park in the spiral deck. Come down either elevator, walk towards Hamilton Street, hang a right, and go through the main double doors. We will be set up in the back of the lobby.

For October we have a special guest that I am excited to bring to the front. Self-proclaimed "recovering single family investor" turned large multi-family passive investor, our very own Ken will be sharing his story. It has been great to have Ken's experience with us in the room and I'm looking forward to hearing his story!

When: October 21, 2024
Location: Light House Realty LV
28 N 15th Street, Allentown, PA 18102
Time: 6:30PM - 8:30PM

Limited parking spaces are available behind the building. On-street parking is available once the lot is full. DO NOT PARK in the lot across the alley. You will be ticketed or towed.

Hey @Brian M.Yes it’s very block by block, especially in Allentown. Big change would be 17th street, west of that is class A, east of that is where it starts being downtown Allentown. 

Quote from @Gladys Cepeda:

Quote from @Sean Mcevoy:

@Ray T. I am from Yonkers NY but just moved to rockland county and I invest in the Lehigh valley. I bought a 3 unit on park street in between 6th and 7th street in Allentown last year. I’m closing on a 2 unit in Bethlehem in August if all goes well. I am investing for the cash flow now and future appreciation is a plus. If you want to chat more PM me. 

 Hey Sean. I am responding literally 4 years after this thread began. I did a search on investment properties in Lehigh valley area and this thread popped up. Funny bc Im currently interested in investing in Lehigh valley as well, and I also live in Rockland County Im in New City. Love it up here originally from Queens. so hello neighbor. Just curious, now that it’s 4 years later, how are your properties doing? Did it appreciate over the years the way you expected? Do you have any advice on what areas to focus on in PA and or areas to avoid? Im ready to invest and just need to narrow some areas of interest down. also can you plz refer me to your realtor? THANKS SO MUCH

I started reading this post thinking it was just started, then realized the thread had been started years ago! I was able to buy my portfolio of 22 units over the past 4 years and prices have gone up and are still going up. People who thought it was too expensive four years ago missed out on some good deals. I think like in most markets you have to dig, search and work hard but you can find the deals, and then again time will be a huge help. Happy to help anyone who is thinking about looking in this market! 

Does the phrase "Upset Sale" mean anything to you? While these annual real estate tax sales may cause tears for Pennsylvania property owners who haven't paid taxes for two years, they may also signal an opportunity for investors!

Our next guest is Attorney Frank D'Amore of Allentown-based law firm Fitzpatrick Lentz & Bubba. He brings a wealth of knowledge and experience with Upset Sales and all things PA Real Estate Tax Law (RETSL), having assisted a Lehigh Valley real estate investor in reclaiming every property in a multimillion-dollar portfolio at risk of being sold through Upset Sales. He also represents prospective investors considering Upset Sales, Judicial Sales and even Repository Sales. He recently published a downloadable guide to help property owners know their rights and investors understand the risks and rewards in each of these types of real estate tax sales. Get it now! 

A resident of Lehigh County and a devoted father of two, Frank is as passionate about his community as he is about the law. Outside municipal meetings and courtrooms, he is an unabashed lover of all things Disney and enjoys playing any of his many table-top games.

Join us for this special session as Frank breaks down everything you need to know if you're considering a tax sale purchase - bring your technical legal questions as we navigate the ins and outs of PA Real Estate Tax Sale Law!

When: September 16, 2024
Location: Light House Realty LV
28 N 15th Street, Allentown, PA 18102
Time: 6:30PM - 8:30PM

Limited parking spaces are available behind the building. On-street parking is available once the lot is full. DO NOT PARK in the lot across the alley. You will be ticketed or towed.