All Forum Posts by: Michael Smythe

Agree that S8 often pays more rent than cash for Class D and some Class C areas. Definitely NOT Class A and rarely Class B.

We struggle with newbie investors that buy a Class B rental and fix it up real nice - but they've listened to some fake guru online about S8 and want us to put them in their nicely fixed up property. We'd prefer getting them a cash tenant who will take better care of the property!

OPINION: S8 program should only give voucher holders 6 years max on the program and require them to attend college or trade school to improve their income. Should also require financial literacy programs, so they learn how to budget, save and fix their credit.

I don't like my tax dollars supporting "free loaders" for decades.

@Samuel Guan first, don't PANIC!

Your PMC is recommending the path of least resistance, because mold claims could be VERY expensive.

Also, many insurance companies will NOT cover mold issues.

So, call your insurance agent and see if this will be covered or not.

At the same time, direct your PMC to get a professional mold test done to determine if there actually is a problem or the tenant is mistaken or exaggerating. 

Just be careful as the results of the test may embolden the tenant to ask for additional compensation.

@Thad Strobach

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

@Liz Zack recommend you check out options at NARPM.com

First, instead of fighting over deals like there's a limited supply, why don't we all create our own "abundance mentalities" - because no one on this thread has the infrastructure to handle EVERY possible deal:)

Secondly, I find it odd that agents are fighting against "off market" sales, but could care less that at least two-thirds of rental transactions are technically "off market" or "off-MLS" (no agents involved).

Yet, every agent licensing course covers the handling of rental leases.

Guessing that agents only get wound about this topic if a certain number of zero's are involved?

@Alex Johnson Not sure I'd invest on the west coast due to all the tenant-friendly laws!

If you are trying to pick a market, the logical process would be to:

1) Analyze their potential - which it seems you've done

2) Interview Core 4 team members and compare what they know, their approaches and how comfortable they make you feel. Just be careful of not falling for hype and be analytical!

3) Pick an area and ask the Core 4 member you spoke with to intro you to the other Core 4 members. Make sure they are all consistent with their knowledge, approach and professionalism.
---If one seems out of sorts with the rest, ask for more intros.
---If you can't assemble a cohesive Core 4, maybe it's time to go back to Step #2.

Also recommend you check out the Detroit market! There's a TON of online feedback about the city as we just hosted the NFL Draft and shattered the Nashville attendance record:)

We can also show you where there's a committed $3.5B in investment in Detroit.

@Stanley Smeltzer you should let fellow BPers know if LTR, MTR or STR.

@Nana Sefa 

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

@Oscar Lopez contact @JamesWIse with Horton-Wise.

@Joseph Ducharme congrats!

Just be aware of the HOA fee future.

Developers typically set the HOA fees as low as possible to get buyers in.

Once they turn the HOA over to a Board made up of actual residents, it's not a question of if, only WHEN HOA fees will be raised to where they should be.

This will adversely affect your cashflow, so you should plan for it.