All Forum Posts by: Patricia Steiner

You can plug in any number you wish but when analzying a real deal, you'll want to actually KNOW what your estimated repair expense will be for at least the first few years.  This allows investors to make a more accurate offer for a property based on market and condition, plan for repairs/improvements, and to better utilize cash.  Some repairs will be unexpected of course but a lot can be determined through a simple walk-through of a property - and then fine tuned with an inspection.  

Glad you posted and even more so that you're practicing what you're learning.  Rock on...

@Michael L.

Just my take...it is an adult forum as you referenced but it is also a professional forum.  I'm not offended by your choice of word and I'm surprised that your post wasn't simply blocked - versus being edited.  What I can share is that the most successful people I know are master communicators. They choose their words in a way that if published in the newspaper or sent to their parents - would be the best reflection of themselves.  I've read your posts before...you're direct and concise - and articulate - let that be your lane.  And, let the edit go...it's just noise and not worth your investment of time.  

Best.

Geez...if evictions - fee free or otherwise - is the driver of your choice of PM, you've got bigger issues than the choice of PM.  I recommend rethinking this issue and presenting it to prospective PMs as "how do you ensure tenant quality to minimize interruption of cash flow, tenant turnover?"  "What is your accountability/buy-in when a tenant defaults - and when eviction is evident?"

Anytime you have cash flow interrupted, you lose.  Evictions are a loser's game.  Find a PM that will increase your tenant quality, manage to the lease to the 'nth' degree, and minimize disruptions/interruptions to your cash flow.  

You're running a business...find a PM who is committed to managing your empire.

Best.

You're 'dart throwing."  I see a lot of it here on BP.  Mentoring isn't the answer - nor is a real estate license or a podcast.  You need to figure out something larger:   what do you want to achieve, what do you want for yourself?  Forget the tasks - like house hacking...geez - really?  As a former wealth manager, I can tell you for a fact that wealthy people do things a whole lot different than those who are not.  They KNOW what they are doing, KNOW where they are headed, KNOW their business, and have a passion, commitment, and focus to multiple facets in their lives.  

Step back and figure out what you want to accomplish, what it is going to take to do it - financially, intellectually, emotionally - and decide if you're willing to do what it is going to take to achieve it.  Stop dart throwing - it will get you nowhere.  Expect more of yourself so you get more for yourself.

Best...

Delayed gratification...it and success are directly correlated. As a former wealth banker and investor - and owner of a private client brokerage firm, I can tell you that 'just because you want it' doesn't mean you should do it. Get yourself set-up for success first. I'm not telling you anything you don't already know or you wouldn't have stated your DTI issue. Pay down your debt, learn more about the BUSINESS of real estate investing (there is nothing passive about it), KNOW the market - not just what it appears to be, and talk to a few lenders to find out what the qualifications will be for you to get financing. And, as a buyer, you won't be paying commissions so add bench strength by having an investor-focused realtor on your side. There's a lot to do before you will be ready and poised to go. Building and preserving wealth isn't transactional. It takes discipline and self-control. Those who are wealthy do things differently than consumers. You get to choose which lane is yours...

It's the difference between those who are successful and those who are not...those who are, KNOW the business. They manage it, grow it, live it.  

And, then there are those who are not.  It makes me question why I respond to their posts; why do I care more about their success than they do?  

Thanks for sharing your observation.  It's spot on.  

What does the market command for commercial property?  Rather than choose an "reasonable" percentage at random, look to see what other comparable properties are offering.  There are plenty of online commercial sites that provide the landlord's terms so you can ensure that you get every dollar that your property in a specific market generates.  

I recommend that you speak with the tenants who leases are expiring soon to learn if they will be renewing or not.  Don't assume anything.  It's also a great time to ask what term length might work best for them rather than propose one; you have the last word on it but demonstrating concern for the tenant's business and needs builds loyalty as well as market intelligence.

Congrats on your first commercial property.  Do the homework to know what your market is commanding to maximize your return.  Best...

Warning...if you call Citizens, you have filed a claim - whether they fund it or not.  Just your inquiry is deemed to be a claim.  And, if it's a claim, there's a 99% chance you'll be cancelled and still have a 7 year claim filed history on the property.  Citizens has too many clients and is dropping as many as they can.  Unless it comes with a cost that is prohibitive, I recommend finding another way to proceed.  The insurance crisis in Florida is just that so proceed with care.  On a personal note, I replace old pipes on a "routine and regular basis."  My advice to you:  keep getting quotes.  Go nuts with it - because it usually takes 5 or more to finally get one that is reasonable.  

And, before you call Citizens, look at your policy and determine what percentage will be paid out.  You most likely won't get full replacement so know what it is before risking so much.  

Feel your pain...keep getting estimates!

Made you ask, made you look, right?  The biggest deception in real estate are photos - I've visited properties that looked absolutely nothing like the photos.  And, when a listing agent displays 35 photos, why go and see it?  You've seen it (or in some form of photo shopped, virtually staged, virtually landscaped form).  While one photo is not the best marketing play by any means, protecting the privacy of the occupants should far outweigh the right of someone to sit home in their pajamas and view not only the property but all of it's contents.  Realtors and investors need to mitigage risk while marketing their properties...one photo is not enough but you don't need 20 to generate interest while preserving privacy.  

Best...

Here's the real issue:  "Wood rot from fungi is dangerous because of how quickly it can consume the bones of a building once it has come into contact with them, destroying the strength of lumber and in turn causing cracks, leaks, and overall structural damage."  (End).  I see it a lot and depending on how far it has spread, it can be costly to replace the siding/wood and seal it.  It literally consumes the wood.  What caused it in the first place needs to be resolved and that is moisture.  And, often times, that's the bigger problem to resolve before curing the wood fungi problem.  

Termites and wood fungi - there's a moisture problem.  I'm relieved that your deal didn't go through...you don't need to start off with these.  Fingers crossed your next deal is the real one.