All Forum Posts by: Kate Barry

What did you end up selling it for?  Was it a good deal for you?  What did you learn from the experience ?

Nice!! 

I think it sounds like a great idea!  I bought my first property in the same way - owner came to us as tenants and offered us the property.  I would recommend doing it seller financing though, come up with a structure that works for all parties and transfer title.  I'd definitely recommend doing your own underwriting for them - run a credit check, ask about savings, etc.  You'll want an attorney to structure the agreement if you don't want to use a Realtor, but to be honest with you the 3% to a Realtor who can structure the deal may be more cost effective than using a Realtor.  Just make sure you use someone who knows how to do that!  I do that a lot for my clients but I'm licensed in VT & NH.  If you need help finding a good Realtor who knows seller financing in your area just let me know I would be happy to make a referral.

Quote from @Jon Kelly:

Hi @Kate Barry you kind of answered your own question. You're investing in deals "that will require a PM." 

Another thing to consider is your personal taxes. There may be (and by "may be" I mean should be) tax advantages to charge a PM fee.

Thanks Jon!  Thanks for the clarity on how a bank will view the deal.  It's an interesting property - its a commercial building that includes a 3 unit Multi, 50+ storage units, and a deli/market.  Yes I was kind of hoping to get some feedback on the tax advantage part of this strategy...

Hi All

I am a Realtor as well as investor, and we have a property management company as well.  I am looking to invest with partner on some potential deals that will require a PM, and I'm wondering what the pros and cons are in terms of the financial strategy to charging management fees when partners are involved.  I'm considering just taking more equity of the property in exchange for managing it, but I wanted to ask the community here what else there is to consider when doing this.  The plan is to refinance in 5-7 years, so my thought is that its better to show more cash flow without having the 10% management fee on the top to be able to do this. 

Good question!  Following... 

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Join us for a fun and casual networking event for all real estate professionals as well as real estate rookies. We are here to answer questions, make connections, and help you achieve your real estate business goals.

Open to the public, RSVP is not required but is appreciated. Email me [email protected] for more details.

I do think the housing market is changing and honestly I could not be more relieved. As a Realtor I saw so many people make horrible investments just because they thought this 20% price increase year over year would keep happening. It was like people lost their minds. They thought it was going to be so easy to buy STR properties in our Vermont ski markets and so it didn't matter that they were paying all cash, $100k or more over ask, with waived inspections and waived appraisals. Properties that have major deferred maintenance or need all new septic systems.... and they didn't account for the fact that there is no one here to manage and clean these properties for them. If you didn't use a seriously qualified Realtor who understands the STR business and was able to advise you on your investment- they are actually going to be seriously screwed. They have no idea what their costs are actually going to be, and if they were over estimating the income and under estimating the expenses (VASTLY!! I mean, do you know a new septic will cost 40k?? that 90% of homes are heated by oil??? That VT is also going to tax the absolute last drop out of you??) I think next year we will really start to see the turn in full force when these types of investors have no choice other than to sell at the end of winter/beginning of spring 2023.