All Forum Posts by: Nathan Gesner

The best time to plant a tree was 20 years ago. The second best time is now.

Get out there and find the next deal!

I suspect Pier 1 pays good money for lease and they have four years remaining so it sounds like a solid investment. However, if it were that easy, other investors would be clamoring to scoop it up.

What happens if Pier 1 leaves? Does the location support finding a replacement tenant soon and for the same cost? Can you handle 6-12 months of vacancy?

There are a lot of unanswered questions.

Start with the ARV and work your way backwards.

ARV is $166. You want it for at least 20% below market, which is $132,800.

You go through with a contractor and he estimates $20,000 in repairs so you pad it a little and say $25,000 to cover some undiscovered issues.

You offer the owner $107,800 and tell them this is your bottom line to ensure you can make the necessary repairs and turn a "reasonable profit." They can accept the offer and you get a good deal or they can reject it and you move on to the next one.

If you are trying to do a flip or a wholesale deal then you may need to adjust the numbers but the basics are the same.

You did the right thing by separating yourself and getting a restraining order. If the title is in your name, I would call the police and report the vehicle stolen. If that doesn't work, you may end up taking it to court.

This is obviously a bad relationship and you should never rely on your father to help purchase a vehicle, even temporarily.

Hire an attorney. They can usually give you a free consultation to start and that might give you an indication of what it would cost to get this wrapped up.

I definitely have a strong lease agreement but it doesn't cover everything. I basically say criminal activity can result in a termination of the lease. There's no need to spell out every possible scenario.

I'm managing 300 with Propertyware and don't see any real problems with the way they track maintenance or invoices. It's one of the best softwares for large companies.

I see your question in multiple areas. What software is your company currently using? Are you referring to receipts for expenses on the rentals you manage?

The pictures are too small so I can't see it well enough to make a determination.

You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!