All Forum Posts by: Luca Giani

Hi everyone,

I'm a real estate investor based out of state and I'm currently facing some challenges with my property manager. I would really appreciate any advice or insights from those who have been in a similar situation.

This is our second investment property, and the first one is also managed by the same property manager. The process for the first property was super smooth, which is why we chose to work with them again. However, this time around, things have not been going as well.

Six months ago, I entrusted my property manager with hiring contractors and obtaining the necessary permits to get my property rented. Unfortunately, the process has been much slower than anticipated, and we are still not ready to list the property.

Additionally, the costs have significantly exceeded our initial expectations, and the property manager has not been very responsive or clear about why this is happening. Communication has been a major issue, and I'm finding it difficult to get timely updates or clear answers from them.

Given these challenges, I am losing faith in their ability to manage the property effectively and am seriously considering switching to a new property manager.

Has anyone experienced similar issues? How did you handle it? What steps would you recommend I take to address these problems and ensure my investment is managed properly? Any advice on how to find a more reliable property manager would also be greatly appreciated.

Thank you in advance for your help!

Hello everyone,

I'm a real estate agent assisting a client who is trying to list an Accessory Dwelling Unit (ADU) for lease on Zillow. The property was purchased with my assistance as a buyer's agent, and an internal ADU was constructed after the purchase. However, when attempting to list the ADU for lease, the property is currently blocked on Zillow. We've contacted Zillow for assistance, but the issue has not been resolved yet.

Has anyone encountered a similar situation or have any advice on how to proceed? Any help or guidance would be greatly appreciated. Thank you!

Hello everyone,

We're currently in escrow for a property and recently received the inspection report, which highlighted some concerning findings regarding the plumbing. Specifically, the report mentioned: "The pipe appears to be restricted due to organic build up. Flow is restricted. Areas of the pipe are not visible. Recommend cleaning and re-inspection by a plumber. Openings or inconsistencies noted in sewer line. The condition of these are more significant than normal. We recommend further evaluation by a qualified licensed plumber."

Given that we're in the midst of the escrow process and considering the possibility of needed repairs, I'm hoping to gather some insights from those who might have faced similar situations. Our decision to move forward will depend, to some extent, on the cost of potential repairs.

If anyone has encountered comparable issues during escrow or has navigated negotiations considering plumbing repairs, I'd greatly appreciate any advice or experiences you can share. Understanding how these findings might impact negotiations or what steps you would recommend taking would be incredibly helpful for us in making an informed decision.

Thank you all for your time and input!

@Chris Seveney

Older home and it was discovered in the crawl space

Hello everyone,

I'm seeking some advice and guidance regarding a situation I recently discovered in my property. It was revealed that the ductwork was improperly made, and unfortunately, this issue wasn't addressed in the inspection report.

I'm wondering about the potential coverage for damages caused by this improper ductwork. Does anyone have experience or insights into whether such damages might be covered by homeowner's insurance? Additionally, I'm curious about the potential responsibility of the inspection company in such cases. Should they have identified or reported this issue during the inspection?

Any advice, past experiences, or expertise in dealing with similar situations would be greatly appreciated. Thank you in advance for your help!

Quote from @Michael Smythe:

You want to be careful with partnerships - you can run afoul of SEC regs.

Have you thought of soliciting your network for private lenders? Many will have IRA's they can convert to self-directed and lend you funds for investing at 100% LTV. You just have to offer a decent interest rate.

 Thank you so much for sharing Michael!

Quote from @Nicholas Ruscio:

Hey Luca,

Congratulations on successfully leasing your rental property in Detroit. I would continue to implement the BRRRR Strategy to grow your portfolio.

BRRRR Strategy: Continue with the Buy, Rehab, Rent, Refinance, Repeat strategy to recycle capital and acquire more properties over time.

When adding an investor it is important to outline the level of involvement this person will have alongside contributing funds. Typically a property management company will take 8-12% of all property rent collected. If each of you are splitting the property 3 ways you could argue that you and your original partner keep 70% of the revenue while the investor keeps 30% due to the fact you will be running the property. 

Please feel free to reach out with more specific details about the property and we can work together to find a loan that best works for your team. 
Thanks

Hi Nicholas,
our was a very minimal rehab so not much to refinance to recoup some capital. 
thanks for sharing your idea about the 70-30. 
Also I see you are a lender so if you have any experience with clients similar to me I will be more than happy to hear it.

Quote from @Sloane Kraftsow:

Thanks for sharing this Luca! Let's connect.

 Thanks Sloane. Send me a DM if you have some interesting solutions for me.

Hello everyone,

My business partner and I have successfully leased our inaugural rental property in Detroit, specifically in Warren. The property is generating a promising cash flow, and we are eager to acquire our second one sooner rather than later. We might even secure a third property. However, as we aspire to scale our business and expand our portfolio, we are seeking innovative ideas beyond our current resources.

One viable option that has been playing on my mind is involving investors in our partnership. This approach could inject additional capital and expertise into our venture, paving the way for accelerated growth. I would greatly appreciate your insights on how best to structure such a partnership.

Alternatively, if anyone has other creative strategies that have proven effective in scaling a real estate business and increasing the number of properties, I am all ears. Your valuable input will be immensely appreciated.

Thank you in advance!

Quote from @Cameron Moore:

It is recommended that you secure the necessary coverages through a DP3 policy. To minimize the cost of insurance, it may be advisable to consider increasing the deductible levels. However, it is important to note that this strategy entails assuming a greater degree of financial responsibility in the event of a significant loss and may limit your ability to file claims for medium-sized losses. It is essential to carefully consider this trade-off before making a decision.

With regard to coverages, @Greg Kasmer is dead on. Deductibles are the most influential trade-off for cash flow and those other coverages are immensely important. 

 Thank you Cameron!