All Forum Posts by: Peter Mckernan

I would go into the city, do not give them your address... Say this is something that I saw this place listed on like, or thinking of buying a place.. Then enter your situation, and see what they say. If it does violate city code they can for sure tell you to take it down or tear it down to the studs then put it back together in the right way per today's city codes. 

https://www.reiprintmail.com/

this one is good, I have not used them but they have been highly recommended from a lot of people. 

If you accept someone for lease, and collect a security deposit, and/or first months rent. That is when I would turn off the listing and not accept anymore tenant apps. 

If you are getting to a place with multiple apps, and all of them look the same what I would do is to start to ask for an increase in rent if that is the case. I would ask for a higher rent, and do almost a multiple offer situation as you would in sales. 

If an agent brings you a tenant and you are listing this place on your own.. Do not pay them anything, you are not governed by anyone so you do not have to pay anything. If you were licensed and putting on the MLS, a different story.

There is a "but" to this one.. If you are in a situation where you are waiting a long time to get a tenant, and the only person that comes in to rent it is with a realtor and the realtor is asking for a compensation that might be a time to adjust your thoughts on paying a realtor. 

You need to have a lined out Operating Agreement (OA) if you are fully partnering with the person within the LLC that you have formed. If you are doing a JV, and putting both LLCs on the title, and flipping that way... Have the JV agreement be drafted by an attorney (same as the OA). Get it dialed in like this was your worst friend and then get it signed.

The reason I saw that about the worst friend, this is because you need to know deals with money and partners can go south and go south fast. Keep your head on a swivel on any partnerships. There was a lady that just posted a month or two ago in this same thread, she was asking about helping get out of what mess she got into. She explained that it was a flip with her best friend(s) and they did not get a written agreement before doing the work. Now after all the work is done and they listed the property the people want more money than they agreed to at first. Get it in writing. 

Joey V, the numbers were coming from not knowing their market, not knowing what the tenants asked (did not give Dan a number) for from them on a lower rent, and not knowing the full situation. The only thing he stated was the rent was a little lower than market currently. It was an example, so the numbers are bad because there are not true datapoints here. The point of the post was to show that there are different angles to look at the situation. I was not giving tangible math to go off, but I did see you did a little math on those numbers.. Quick numbers I like it! 

Well, it depends on the market to be honest.. The market in certain areas are experiencing this a lot more frequently these days. I would check your market rents for that model/bed-bath etc. Also, how long have you been on the market? That is another challenge too, sometimes the markets adjusts and you sit on the market for longer too which gives people the impression they can ask for a lower rental amount.

Depending on what the market looks like, this might be an option to accept something lower in rent. I would run the scenario of siting on the market for longer and not getting these people as tenants, and what the market time is to rent out. How much will that cost in holding costs compared to getting one of those tenants in and getting $20, $50, or $75.00 cheaper. It might be a higher margin of income for the year if you take that renter verse waiting another 20-30 days to get a renter in the place. 

So there are a lot of sellers that come to real estate agents and say... I can get this for my house, and then the realtor goes, these are the comps you can get X for the property. The owner does not like that so they find someone that just says yes I will list for whatever you want.. 

This may or may not be true in your case, but if you are pushing numbers to meet an exact number for cashflow... or breaking even you might be making the wrong move..  

Hiring a GC unless you are going to eventually get your GC license is a time and money saver. A solid GC that will be at the project every day and handling any unforeseen issues that were not seen on purchase, managing the guys and getting permits done will save you so much time and money. I know that this is tough to think about when the GC could be taken 15-30% roughly of the project cost for their own business, but that is a number that you need to build into your numbers when running the analysis on a property. I would hire one and do for my flips. 

An example of this... I was remodeling a place (primary) almost three years ago. I was using a licensed contractor. We did not pull permits on the remodel and a neighbor called the city on us. We got red tagged and the projected stopped. The contractor that day went to the city and sat for SEVEN hours to get permits pulled while getting everything completed with the city to start the process again. He also met the inspector each time they came out and also made sure that the project did not get significantly delayed (before permits 6 weeks projected finish, after permits only took 2 extra weeks).

You can take it out as wear and tear for the property since it was still on the property and the tenants caused the damage.