All Forum Posts by: Peter Mckernan

No, this is something that could cause significant financial damage to your finances. I would be doing this on my own, with some AI help. For example, you can upload a credit report and prompt it to give you some of the stuff you are looking for in the report.

"How many times has this person be late on paying bills?" "What is the amount of revolving debt do they have?" 
Then I would double-check the work. This is where a lot of people get things wrong, they ask it a question, then do not double-check the work. You need to double-check all the work that any AI platform you are using. 

 Have the contractor assess before moving forward. 

Apps/PM management interface. There are a lot out there, the one you mentioned, Buildium, Yardi and Appfolio all come to mind as leading the industry on  the software for PM ease for owner and tenant. 

I always hit up yelp and get a few off there if no one is giving me a referral. You can look and the lower number of reviews (not starts), but the licensed vendors that have a lower count on reviews since those are people that are licensed but will not charge you an arm and a leg. They could quote the project right and they are lower in costs due to lower overhead. Of course the argument is that they might run away with your money, or do the job at a lessor quality. I would just contact three different vendors off yelp, then get references to call from them to see if you can vet their work (if they are installing for you). A piece of stone should run you $750-$2,000 depending on size, and material. 

Couple of things that you need to be thinking about.. You can always find a deal on or off the market, but the numbers have to be right to you. You need to make sure that they all pencil out correctly and not just hope that they are good, which is where a solid realtor in those areas you discussed with come in handy. 

The thing I would be thinking about too, make sure you don't go with the first person/agent you meet. Dig in and interview a few to make sure you pick the right one. 

At the face value of this, it might seem that there are many different ways a company can get in a place to rack up many different charges. Typically, the PM company will get stuff in writing that is anything over $500.00 or a certain agreed amount. This is for the ease and purpose of not calling you every month about something small that needs to be fixed. If you want to have the PM company to call you on every fix they can do that too I am sure. Some PM companies due uncharge on repair fees etc. so just read the contract accordingly. 

The access to your bank account, is just account number and routing number so that they can intake rent then send rent to you minus PM fees and any repairs in that month. This limits the amount of times you get calls, text, and interpret throughout the day/month for a possible minor fix on the rental. It is really for ease and "passive" income on your rental(s).

For your future use you can also start to use meetup.com and build a following there to use the platform for stuff like a zoom and meetups in your area. Also, as you mentioned the events page on BP. 

I agree with everyone below, you can have banks setup ACH or you can use a PM software service that gets stuff in and then send out payment via ACH

I would do this... Know an area(s) you want to do flipping or have a partner who knows these area(s) and can calculate them quickly. The process below looks like how you should take it on..

1. Take the area, and know the average price for sales for SFR, condos and townhomes.. This can be a 2 mile radius or a 200 mile radius.. Once you know what is selling you can breeze through them within 30 seconds. For example, you see one selling for 450K and the comps you know without digging in for that area are 625k.. You are looking more at a deal.
2. Once you do #1, now you take that property and look to comp it compared to real comps. SqFt within 200sf on each side (so subject is 1200sf I am looking at comps 1000sf to 1400sf). Also, I am looking at properties that sold within the last 180 days or sooner (sooner the better), and within one square mile. The other things I am looking for area lot size and bed bath count. If it is a 1 bath and all the rest are 2 baths that have sold for 625K, I am adjusting down for the subject property having 1 bath. But if you are 2 bath for your subject property I am not really adjusting a whole lot down for because all the comps are 2.5 bath. You need to know what has sold in that area finished fully remodeled. As mentioned lot size is a huge factor too, and you need to make sure subject prop verse comps are selling with/without pools/backyard BBQs etc. 
3. Know you know your out price, with all that data, and it is truly a 175K spread in this example, what is your estimate on Rahab costs, and if you have them holding costs? These are the biggest variables now. Of course, you can have change orders and stuff that comes up with the flip, replacing a condenser on an AC unit if need be, but that is something a full inspection will tell you and you cannot get that info from a lot of wholesale deals. So, you'll need to just confirm all this stuff when viewing the property, or reviewing the pictures. Also, know you will need some gap in there for the deal with these possible change orders.

4. Make the offer/confirm the offer with the wholesaler. 

I have heard many different numbers.. I would say that this number is 10 or above you should have a manager step in to help some of the units or all.. You can always negotiate with the PMs if you are giving them a lot at a time. Just keep in mind that you will need to do some deep dives to find the right ones.