All Forum Posts by: Matt Castle

Couple ideas: 

• Consult an international finance attorney to make sure you're not breaking any laws both national and international helping these investors "get their money out of China". 
• Consult an securities attorney to find out how to legally pool international investor funds into one or more entities that you plan on managing.

Then it's just a matter of identifying what you want to invest in. Multifamily and flips are very competitive right now in >% of the USA. 

Since you're new, there is no shame whatsoever in partnering with experienced investors or merely being the conduit for the foreign investment funds. You could even hire someone else to manage the operational side of the equation taking a fee along the way. 

Point is this: you in an enviable position and you have A LOT of options. 

If you will eventually have the sums of $$ you're thinking, it's probably best to diversify across the US in multiple markets and in multiple asset classes (single family, multifamily properties, short term rentals, low income housing complexes, etc.). If you have any other questions, my DMs are always open. 

Best suggestion is right here at BP forums. Careful, though, it's a horror story. 

I've been around vacation rentals a long time, and as far back as I can remember, full service vacation rental companies would charge 30%-35% of gross rents plus maintenance, upkeep, etc. 

Depending on the quality of the company, as I'm sure each one has +/-, but what you pay for is the peace of mind and avoiding the hassle of ownership responsibilities. 

If you're an avid DIYer and don't mind investing a few hours a month into accounting, scheduling, etc., paying 20%+ or more probably isn't your cup of tea. 

If you want peace of mind and about as close to passive RE income as you can get, the 20% is likely worth it to you. Most people who give 500k+ for a beach house aren't willing to unclog a toilet at midnight, or even call a plumber to go do it for them.

Real estate is like most other things in life: it's all about how much of your time are you willing to trade for the $$. 

@Shelly Higgins Very, but becoming less so b/c everyone wants one. 

Couple ideas but depends on your financing, zoning, etc. 

1. Build more units
2. Additional parking or drive under garages for tenants. 
3. Build storage for units or a new storage facility.
4. Use it as a park, pool, recreational area for your tenants.

 Absolutely. That's part of all leases. Basic cleanliness is a requirement, but for it to hold up, you probably need to warn them in writing at least once for this to hold up unless it's blatantly egregious. 

As was mentioned earlier, the more you say, the more can be used against you, so best not to say much if anything at all. 

Alternatively, you may simply want to inform them that you're raising the rent b/c, as the new owner, that's what you feel it's worth. If they stay, you get >$ and no rehab. If not, you've accomplished your goal of vacating the unit for rehab. 

@Stacy Preston Gatlinburg STR cabins are very popular right now specifically for the STR income.

Other than the Detroit foreclosure market during 2010-2013, it's as competitive market as I've ever personally experienced. Rehab-needed cabins listed at 250k+ are going UC within a week with multiple offers and well above asking price. Even manufactured homes under 100k have 5-10 offers with a week b/c buyers are bidding up everything that's remotely habitable. The listings are there, but be prepared for a tough fight and paying top dollar. 

I own single family properties and it's one of the better recession proof assets. Not THE best, but I like them over STRs. 

@Juan Arroyo

Hey Neighbor! We just moved from Oak Ridge to Knoxville. 

In TN, and most other states, you don't have to renew a residential lease but make sure you aren't doing it as some form of retribution. If the tenant(s) feel it's retribution for a prior act, it can end in litigation. 

If they're on a standard issue 1yr lease, give them 1 month minimum but I prefer 2-3 months. If they're month-to-month, it's a 1 month minimum notification. I always tell landlords to give tenants as much notice as possible in this scenario to minimize hard feelings. Especially if they have sub-optimal credit, have to rush to find a new place, etc., etc. It's hard enough to pack up and move within 30 days, in addition to finding a new place to live in a good economy. 

Same with trying to specify the familial status of tenants. That's a much bigger problem b/c it's a fair housing violation, but you could potentially be immune depending on how many rentals you own. Be very careful on this sort of thing b/c one mistake can be very costly. 

@Caleb Bryant @Greg Wa

Quick fix: go to Zillow, set previously sold homes to a max price of 100k or thereabouts. Exclude land/lots. Look at the map. By in large, that will be your Class D & possibly Class C neighborhoods. Vice versa, class A works same way just higher prices. 

If you want a downtown map, use rents as well. Lowest rents usually mean Class D. 

It's not an ironclad method, but works majority of the time. If you use it on rural areas, you'll need to specify what type of home you're searching for (stick built, manufactured, etc). 

Try to find the non-profit credit unions. They generally have the best rates. Don't know of any in Knoxville -- yet -- but I assume they're here.