All Forum Posts by: Phillip Bradrick

@Matt Zothner Great question. I’d also recommend looking at their pricing structure. Most PM’s in the Raleigh triangle area charge an upfront leasing fee which covers their initial cost of marketing the property but starts you off with a large bill. From an owner’s perspective, I much prefer a flat rate pricing model so that both the PM and owner have the same goal. A quality long term tenant. A leasing commission essentially gives an incentive to the PM when the property is turned yet cost the owner even more at that point.

As to your question of how long it takes to fill a property that will be as much dependent on the time of year and the location/condition of the property as the PM. A property listed for rent in Jan vs May will certainly take longer to rent. I’m happy to fill you in on the details of the Property Management company I work with.

@Brett Bowers great to hear about your search for an investment property. Did you grow up in the Wake Forest area? If so I would recommend working all your friends and family connections and let folks know what your looking for. I’m an investor and live in Wake Forest and am also a real estate agent. The market is so hot right now that it’s very hard for a first time home buyer to get an on market deal. If it’s in good condition and area, most properties at drawing multiple cash offers at or above asking price. If there was any way for you to find an off market deal through a friend, famil member or acquaintance that would give you a big leg up. If you hustle and stay focused on your goal you’ll find something. I hope this helps.

@Steve Mcmahel congratulations on the new home and your first rental. I think that is an ideal approach for getting started. You’ll have to keep me posted on how it goes!

@Debbie Good question, I’ll jump in on this because I’ve owned investment properties in the Youngsville area for years. It is a growth market which in the last couple of years has really exploded. Although prices of homes aren’t as high as in Raleigh it’s still a great area for rentals and the long term appreciation potential is there. I would certainly recommend it as an area to focus on.

@Sanders Great questions. In this market it will take creativity and persistence to get into an attractive investment property. Looking in areas on the out skirts of the triangle market that have growth potential would be my recommendation. Youngsville, Knightdale, Clayton and Fuquay Varina are markets where you can still find properties that aren’t at the top of the market. The other thing I would think about is that to start with much of the value of your first rental is that you get in the game and gain credibility. Once you get your first deal the ones to follow will be easier because people will see your track record and know you have experience.

@Jehu Hairston welcome to BP and the Wake Forest / Raleigh area. My wife and I have lived here for the past 12 years and love it. It’s been a great place to live, raise kids and invest in real estate. I’m happy to be a resource in any way I can as you try to land some deals.

@Nathan Mckenna you bet! Send me a message and I can tell you more about our company’s management process and point you to a couple of other good property managers in the area.

@Aviv Harkov great to hear about your opportunity. I’m an investor and am based out of Durham and know the market very well. Feel free to connect and I’m happy to be a resource and point you in the right directions to get the deal put together and running smoothly.

@Nathan Mckenna. I guess that all depends on your definition of “good”. I think the challenge of online reviews is often the fact that “good” property management companies will sometimes have unhappy tenants because they are enforcing the lease and protecting the owners interests. This can lead to tenant retaliation in the form of negative reviews.

Word of mouth from other investors is the best method for finding a quality property management company. The other factor is getting familiar with the different fee structures. The company that I work with has a flat fee structure which cuts out the leasing commission and makes the revenues from the rents much more stable. It also doesn’t incentivize the PM to have more turn over.

In a post Covid19 world where evictions are much more difficult, proper tenant screening is a vital component of a good property manager and will save you tremendous headaches by weeding out less than excellent tenants.

@Antoine Basquiat great questions and break down of a deal. At the price of under 30k per unit I’m guessing you’re looking well outside of Raleigh. If it’s not I’d look at why it’s priced at that price point... is it due to being in a high crime area where it would be challenging to find stable renters?

I am an investor and work with other investors in a management capacity so have seen a lot of properties in both the low and high end markets. What I’ve seen in the markets with rents under $500 per door is generally your management and repair expenses will be a higher percentage of your total cash flow and can eat up a lot of your profits. Appreciation of rents in the rural markets will also be lower which can limit your ability to create value by increased rents and profits. I would really look at whether you can make a case based on other rental comps that you can draw enough higher rents by improving the property to offset the additional work / maintenance per unit.

As to the question of when to raise capital partners, it seems to be the proverbial chicken or the egg question. In my opinion the key to finding money is gaining credibility and a track record and leveraging that to establish investor relationships. I got started doing just one sizable assignment deal and through that process it caught the attention of one of my friends who expressed interest and eventually became my investing partner. Getting more experience that theory and analysis is a huge key to opening the door to funding. But as it’s been said many times, if the deals good enough the money will present itself.

Hopefully this is helpful. Feel free to connect with me and I’m happy to assist you as you work towards your goal!