All Forum Posts by: Phillip Gainey

First off, the best advice he gives is to hire only pms recommended by OTHER INVESTORS who have actually used the service.

The first PM fired, Lubin Property Management, was recommended by the turnkey seller I bought the properties from, Investor Nation. The second PM fired, Poplar Realtors (Allen Bailey), I found here on BP. Saw his posts, he seemed to be okay and know what he's talking about. I didn't seek recommendations from other OOS investors.

My current PM, Jim West at Reedy PM, WAS highly recommended by two INVESTORS here on BP. Both said the same thing. That he does a good job getting and keeping good tenants.

What impressed me about him is that within 3 days, I had two dozen photos of the property. He told me what I NEEDED TO HEAR. Namely, that the place is a mess. The first PM I fired, caused the mess by virtue of the tenants he let in, then lied about it. The second PM was not forthcoming about the condition of the property. Took five weeks to find out I needed a new roof! Incidently, when confronted today with the photos, he tried to tell my partner the huge pile of trash in the BACK YARD was probably dumped there by rogue trash dumpers who dump their trash at vacant properties! Basically got excuses and lies.

As for the other criteria. It's probably 50/50. But still, get refs from OTHER INVESTORS!!!!

PG

I bought a land contract on a property in Metro Detroit three months ago. It was a performing 8 year note with 7 payments made to date. Original loan was for 40k. I bought for 23k. 10% note with payments of $600. Owner occupied. My current yield is 15%. CMV is around 32k.

I thoroughly enjoy walking to my mail box each month to pick up the $564 check (svc fee is $36) without having to deal with tenants, toilets, and tranquilizers! I'd like to find more like this.

What is the best way to find similar notes?

I'd also like to look into selling notes like the above at a lower yield and pocket the profit.

PG

It's some of the best advise I've seen on this site for chosing/dealing with property managers!

http://www.biggerpockets.com/renewsblog/2011/02/25/hiring-best-property-managers/

Chris,

Tenants have been evicted, PM (Poplar Realtors) fired, new PM (Reedy Realty)hired. You don't get my point though. I had to fire two PMs (Lubin Property Management and Poplar) just to find out what the hell was going on with the property! The first PM wanted to leave the deadbeats in so I wouldn't find out about the property. The second PM just wasted my time for 2 months, and had the nerve to post on BP awhile back how he has to "screen owners". Took him 5 weeks to inform me I needed a 5k roof job!

Bad PMs need to be identified to make it easier for the next guy. Also, there are too many investors, especially out of state investors who really don't know what they are getting into. They need to be forewarned, and know up front they will have to be very proactive in dealing with PMs.

I've actually had a number of prospective investors in Memphis private message me so they could avoid the bad PMs I had to deal with.

Silvio,

Why did I buy rentals out of state? Good question! I shouldn't have. If this property was in my area a drive by would have caught the waist high grass. PMs dealing with out of state investors take advantage.

We're on our third pm. I am talking about the second pm. Our current (third) pm is the one who took the photos and informed us of what a mess the property was. Something pm's 1 and 2 never did.

And that's just the outside! Inside there were walls with african murals put on the wall with indelible ink! How nice. Should only take a half dozen coats of primer to cover up! Done by tenants placed by PM #1. The pm you recommended! They were evicted in June.

The current pm seems to have his **** together. First one so far. This is about average. You usually have to go through a couple PMs until you find a decent one.
PG

You own a rental out of state, you fire your current property manager after only 2 months. Your new PM emails you a couple dozen photos of the property to document the condition of the property when he took over. There is waist high grass, piles of trash in the yard. A total mess.!

Couple days later, you get a citation from the county board of health over these conditions.

Do you report the guy to the state board of realtors?

PG

N.D. probably is short for North Dakota.

Jason,

I understand.

What feedback there has been here about investing in Detroit is not good. You can do a board search.

I am from that area. I would stay out of Wayne County. Oakland County (less Pontiac) and Macomb County are better. Metro Detroit is cash flowing nicely. I hold a couple notes I bought at a discount on properties in the suburbs.

PG

They make money because they buy and flip. They are not left "holding the bag". They leave that for the hapless "investor" who buys the property left to hold.

From their standpoint, they can pick up foreclosures for really cheap, do a mediocre rehab, and sell for a big margin. And at the same time, tell you what a great rental area Detroit is. If you buy from them, ching-ching, they've just made their money, UP FRONT. You get to try to make your money down the road by being a landlord, in DETROIT!!!

Of course, they will try to assuage your fears by telling your these properties are in "good neigbhorhoods". But it is still Detroit. What is the eviction rate in these areas? Do people pay their rent?

Since I live several time zones behind the East Coast, I didn't know until I woke up and turned on the TV.

I wasn't surprised we were hit. The intelligence community was expecting it. Even some of the ever popular radio talk show hosts had predicted attacks by muslim extremists like Al Qaeda. The manner and scale in which it was carried out WAS a surprise and shocking.

Military bases near where I lived had very long lines (miles long) to get in. Pretty hectic times. The main thing on my mind was that I hoped they were already making plans to kill the bastards behind it all!

PG