All Forum Posts by: Patrick Bergin

Ginn and Patrou would be my recommendation. 

 https://www.ginnpatrou.com/

Not only must you refund the deposit at the end of the lease, but there is also a lot more administrative work on the back end such as keeping the deposit in a separate interest-baring account and keeping track of that for the life of the lease. Think of how cumbersome that is for a 100 or 200 unit property. In my opinion it’s much easier just to take the fee and be done with it. 

There’s a company called Assurant that you can use to help mitigate your risk. They offer surety bonds so in the event a tenant causes damage  to your property and doesn’t want to pay you aren’t left having to pay out of pocket. 

https://www.suredeposit.com/Public/default.aspx

Using move in fees is a great way to generate additional income and I personally like it for a couple of reasons. One, it can be a lower barrier to entry for a tenant. For example say the deposit would be equal to one months rent but you make your move in fee half of that, the tenenat only has to layout half of the cash they otherwise would have upon move in. Second reason I like it is because it takes away that question of whether or not the tenant is going to get their deposit back at the end of their lease; the tenant doesn’t have to be thinking about it the entire duration of their lease. Now of course they’re still responsible for any damages and repairs.

That’s interesting he’s been to court over it. I think the key is in the terminology: “fee” vs “non-refundable deposit.” 

My experience with them is the same as the previous people have said. Well worth every penny. Always willing to help and truly care about you being successful. Would join a hundred times over. 

Hey Jake, 

Looks like you're off to a good start. A couple things that stand out to me: I would break out your CapEx reserve from your general maintenance. The CapEx should be reserved for just that - capital expenditures, things such as new AC, roof, water heater, etc. and the maintenance line should be used for monthly maintenance like fixing a leaky sink or general repairs. Be sure of your taxes; they will go up from what the current owner is paying so simply looking at the tax record and using the current tax amount will leave you surprised when you get your tax bill. City of jax has a simple, yet handy, calculator for this that can be found here: http://cojapps.coj.net/tax_calc/

Lastly, you could add directly to your NOI by self managing if you're up to it. Being single family it would give you some good experience without too much headache, and if you just remember the tenants are people and want to be taken care of and you provide good service you'll be good.

Shoot me a PM with your email address and I’d be happy to share the underwriting template that I created and use. 

@Robert Peeples two different strategies, but both can be rewarding.  My suggestion would be to do some research, get educated enough to be dangerous, and go from there.  As Jack said, prices for buy and hold in Jax are high, but there are still deals to be found.  On the fix n flip front just be mindful of the market as the housing market has seemed to have plateaued, at least for now.

That's make it happen right there!  Solid way to close the year.  How's the re-positioning going thus far?

I read that same article. Interesting approach they’re taking, but makes sense with new construction and existing home prices being so close. 

Yes our next one is October 23

Hello friends!

Join us September 24 at MiMi's cafe at the St.Johns Town Center to connect with like-minded people in the multifamily space.

We are grateful to have Gino Barbaro, of Jake and Gino, to be our speaker at our meetup on September 24.  Gino has appeared on Bigger Pockets and also hosts a top rated multifamily investing podcast on Itunes.  Gino, along with his partner Jake, have grown their portfolio to over 900 units in just 5 years.  He brings a tremendous amount of knowledge in creating and developing relationships, underwriting deals, and creative ways to finance deals. 

Join our group on Meetup.com and RSVP at http://meetu.ps/e/FMzC3/GSCQr/f

Look forward to seeing you there!

Best,

Patrick Bergin