All Forum Posts by: Kyle Gatesy

Thank you for all the information. I really appreciate it!

It sounds like there are mixed reviews on negotiating rates and fees with PMC. At the end of the day, it's a business decision for both sides. 

@Drew Sygit How would you structure an incentive with avg rents? Maybe a bonus amount if rent avg X after 12 months?

Yes, this is my first time using property management and I appreciate all the feedback so far. Thank you so much. I'm a broker as well so I completely understand what it's like when clients want to negotiate my commission. 

So @Drew Sygit and @Scott M. are you saying in the future I should never negotiate what a PM is offering in terms of fees? 

Yes, they usually charge 10% and a bunch of fees. We are at a straight 9%. 

Again, I'm just looking for any thoughts on how to set terms with a property management company that will incentivize them. 

I will closing on my first multifamily property in a few weeks and we are narrowing down our property management options. My preferred candidate met us at a 9% price point and I'm comfortable with that. However, I am looking for ways to structure an agreement with my property management to incentive them to 1) do a great job of maintaining the property and 2) max out the rent potential. Does anyone have some wisdom on how to do that? What kind of terms could be used to incentivize my property managers?

Thanks,

Kyle G

Thanks Rick, that makes sense. 

Do the terms that I posted seem reasonable? Does anyone have thoughts on that?

I love that idea, thanks Jefferson!

I have my eye on a property with a single family home + carriage home for $360k and I am looking into private lending to avoid a 25% down payment for an investment property loan (that is what I have been offered by several lenders with a 780 FICO). I found two private lenders on FB and this is what they offered me: 

Lender 1) 100% LTV, 4% apr + 5 points

Lender 2) 100% LTV, 5% apr + 2 points

Both defer payments for 3 months and no prepayment penalty

My question is this a type of loan that is commonly used? I have listened to a lot of BP Podcast and I don't remember hearing about loans like this. I can't tell if I am nervous about landing my first deal or if there are true red flags with these lenders?

Let me know if you need any other info and thanks for your time!

Kyle G