All Forum Posts by: Peter Mckernan

I would push the PM company on making sure they abide by the laws of the contract, if not... Then I would find a new PM company; if someone is subletting and you have a clause in your lease stating you do not allow that then you can kick those people out for breach of contract.. Or if you know there are more people in there, you can either charge those people higher rent or ask them to leave excluding the people on the lease. This is all on the PM company to handle this stuff, which is who you hired to do their job and you are currently paying to do their job correctly. 

It is normal to get inspections done, and if they ask why.. You can always say we wanted to make sure that the smoke and CO detectors are working along with other stuff (appliances if you cover those). 

I don't think you need a full inspector/inspection company to go out there.. That is a little too much, but to do a walkthrough is always great as a landlord or a PM company that you have in place. 

This is a bad move, I would give them only one option to pay at the first, and if they keep doing this move to start to evict them, or get them out. People that have this trend tend to not get back on track and will continue the move towards later rent or just doing this till they cannot afford it (not pay, or move out abruptly).

When doing flips and you want to add sqft to the property. I look for properties that have some easy areas to add it. For example, if there a small back patio with the roof line hanging over the patio and you do not need to add/extend the roof that is a great move due to the high costs for adding a bigger footprint to the roof while adding the framing etc for more sqft.

I would double up confirming numbers (days on market-DOM). Call another couple property management companies in that area where your property is and ask them for the amount of DOM this house should be on the market till rented. I would also call some realtors too to see what they say about the DOM. That will give you a better idea if this company is working or not working hard for you. 

Nice! Congrats on looking to get into flipping.. I would reach out to some people on BP who are in that area you are looking to flip in, and also go to some meetups in that area too. The people that are on the ground there flipping are the best people to talk to and learn form on your journey as a flipper. Those people will give you good pointers, what the properties are you should look out for and stuff you should avoid. The boots on the ground as everyone says are the people that have the best knowledge for you to be successful. 

This is a try many things and test, and then check your KPIs. If you have one marketing tool that is giving you 1.25 return on your investment and then you have another one giving you 2.25 return, and then the other one is giving you a 1x return I would cut the 1x and focus on the other two (mainly the highest return one then the next). This is a systems and KPI thing for you. Keep it up! 

I would highly recommend to stop cold texting, there are many people I know that have large lawsuits against them for the cold texting for properties.. These are to the tune of 180K to 500K. That is one thing I would stop doing. 

Yes that seems like a no go... Unless they are sending a cleaner or something each month to tighten up the place and make sure it is looking good for the showings. Are they also getting a lease out fee too (a commission to get someone into the place)? 

I do this different ways on different deals. It really is what you see if fair on both sides of the page. There are things that the agent will be doing for you while managing it that you will be happy he is and the other side of it is that there is always some thoughts after a few deals the split should be different etc. 

I would talk this through with them, and see where they want to be on split and how you want to be on splits. Commission taken into consideration. 

If I do smaller splits on my deals with a partner, then I will take a bigger commission (standard) commission. If I have a larger split with the partner I will be open to taking less to bleed into the pool of funds. Whatever you do get it in writing so that you all can come back to the paper it is agreed to if stuff goes sidewise. 

Yes, MLS, you need to be very pinpointed with your numbers.. Have gotten some clients on market deals and with the expanding inventory the numbers have gotten thinner quickly.. The first one for one of my clients about 7 months ago got him a 30K return, and now those numbers are thinner off the numbers of that same deal if it was happening today.