All Forum Posts by: Michael Smythe

@Erwin McClain many investors want to do this for the extra income, but PMCs do NOT want to do it because those same investors won't pay enough to make it worth all the extra challenges.

@Elena Scott you are obviously dealing with Class C/D tenants that don't care about their credit or legal ramifications. These types of tenants often do this because they don't want to save in advance, so they take the rent owed to you and use it to put down on their next home.

Recommend you do a better job of communicating to the tenants that you will pursue every legal collection option if they don't pay last month's rent.

Also, why are tenants NOT staying with you? That would avoid this issue altogether!

@Dee Mandrekar recommend you start a new thread with title, "Southwest San Antonio PMC Referral Needed"

Not many will see your request here.

@Alex Kouame Send proper state eviction notice. Doubt you'll get your rent.

@Sarah Ali great question!

Answer is you do all your homework ahead of time.

Can't believe how many new investors buy a rental and then post here asking how do they market it, where do they get a rental application from, do background checks and they also need a lease.

That lack of thinking things through will eventually lead to their failure.

@Jonathan Greene wow, slamming all PMCs in general?

Let's do the same with agents!

Since they are solely transaction based and don't have to deal with tenants after they move in:

1) Many are only interested in getting their commission and moving on
2) Many think they are doing everyone a favor by working with a lease client, because they could be making so much more working on sales transactions
3) Many complain about screening processes as they only see them as:
---Potentially costing them their commission if their client isn't approved or finds something else during the process
---Slowing down their commission payment
4) NEVER allow an agent to screen a leasing prospect as they have a conflict of interest!
Funny Example: once had an agent complain, "why are you treating this like a mortgage, it's only a lease?"! Best part, their client was self-employed and submitted fraudulent tax returns (yes, we proved the fraud with an IRS Form 4506).

Even though ALL PMCs were slammed in this post, we're not going to slam all agents. Some of them take leasing seriously and do a great job. 

Many PMCs also take their job seriously and do more than just put rentals on the MLS. They syndicate to websites the MLS doesn't and even manually enter properties on websites that don't support syndication (at least we do!).

@Serena Ivaldi If you have your RE Broker's license already, why do you need a sponsoring broker?

@Jake Fleming you should speak with an experienced attorney about raising capital legalities, so you don't get yourself in trouble with the SEC.

Once you know what you can and cannot do, you should use the Classifieds Forum and also post on Facebook, etc.

@Carlos C. in our opinion, the only real reason to put your properties in an LLC is for anonymity.

Many investors screw this up though, by using their own name and address as the LLC Registered Agent:(

All risk can be mitigated with enough insurance. 

Due on Sale Clause - FNMA started allowing transfers to single-member LLC's several years ago.

Additionally Insured: if you push hard enough, most insurance companies will agree to add PMC. Otherwise, just get a different company.

All we can contribute is to check the HUD website for the certification requirements.