All Forum Posts by: Michael Peters

Double check fair housing but if you have under 4 rental properties you should be exempt.  I would definitely recommend following fair housing in the future to avoid these issues and if you intend to keep growing your portfolio.  Your best case of action is to cut off communication and keep a record of everything.  Nothing you will say at this point will make the situation better.  I would also recommend changing your lease to state "no animals" instead of pets.  You are fully within your rights for denying them for dishonesty especially if you had other qualified candidates lined up.

Stick to your requirements and don't bend to be nice to the new neighbors.  If she hits all the checkboxes you could have a long term tenant.  Since you live nearby you can also evaluate the condition they keep their home in and if she would treat yours the same.  If the 3x income is the only hold up you can get her parents to cosign to make sure you are covered.  Don't be afraid to say no if it doesn't work out.

@Mark Tanner I'd recommend taking a look at Goodall Properties based out of Waukee.  Full disclaimer I work there but I'm not involved in bringing on new owners.  Feel free to DM me if you have any questions.

If you planned to sell it as a single family residence that is the traditional route.  You can also see if the agent can keep it as a pocket listing only showing it to serious buyers or market it to investors only.  Regardless if the agent is interested in selling the property they would want to do a market analysis and could document needed repairs to get the most value out of the property.  This could be done while tenants are still in.  You don't want to wait until their lease expires and then start from square one.

Sorry to hear about your troubles.  Anyone representing you can inspect the property with a 24 hour notice and set of keys.  Do you have the tenants contact information or is that being held by Reedy?  If you have a realtor they will need a key to conduct their business anyway.  Notify Reedy that the realtor will be to their office on X date to get a copy of the key and the tenants contact information to ensure they receive notice prior to a property visit.  If they do not comply follow through with the advice above on the Certified Mail Notice.

Yes I would agree.  To clarify I negotiated a discounted monthly property management fee not a commission.  

With the discounted management expenses and no commission on the deal I was able to decrease the cash left in each deal giving our fund the potential to add another 2 properties to the portfolio.  This allowed me to receive a 25% stake and still increase the return for my partner over a commission and standard property management fee.

Thanks @Chase Keller!  Appreciate you taking the time to look at it.  Settled on a 25% equity share as a contractor/finders fee and a separate management compensation that we are both happy with.

Hey BP, I've been working in PM for over 3 years, handling turnover and acquisitions, and personally have one successful BRRRR under my belt. I have a potential money partner looking to get in on some more rehabs and management deals. I would be responsible for vetting the properties, acting as general contractor for the rehabs, and placing tenants. The biggest hurdle is getting the quantity of deals due to the hot market but I do have access to off market deals with my company that I can leverage with patience. I have two specific questions.

1) The current plan calls for 5K commission per property.  I flirted with an equity stake which is a better return in the long run but I plan to leverage the commission to pursue a personal deal.  Does this seem like enough of a return for the time and effort required?  My gut is telling me no but I also don't want to lose an opportunity.  On the flip side if I have an equity stake I would have my employers blessing to self manage which I could potentially leverage.

2) I would love any critiques on the deal outline below. I'm not anticipating a perfect BRRRR and am targeting a $250K AMV single family. I also have an outline for $300K AVM to be flexible with the tight market. The intention would be to refinance in roughly 5 years to purchase additional properties with the equity. We have $300K to invest and based on the figures the funds could be recycled into upwards to 13 properties in a perfect world.

Great timing I've also been curious about local groups.  I unfortunately have a hard 8AM start time at work but would love to join the Gilroy's group.  Is @Mitch Colluzi on BP to get in touch with?

It sounds like the photos they presented you of the closets were used to help justify the full repaint.  Was it presented as they were repainting closets.

Yes, you typically get different/cheaper pricing for deferring closet repaints.  I typically just handle walk in closets in the Master during a normal repaint.  Trim and doors are definitely extra.  Though the PM should have at minimum repaired any holes left by the tenants.  What happened to the funds withheld from the deposit?