All Forum Posts by: Matt Pastier

@Bryan Ju I would wait in the future until your property is fully ready before renting or showing the property. It eliminates a lot of issues. If I’m understanding the situation correctly, I honestly don’t blame them for not paying yet. For all they know, it could be longer to get cleared, and now their money is tied up.

Once it is approved, don’t give them the keys until they have paid you your first month and deposit and the money is in your bank account. If they stall at that point I would get another renter. I always get a “deposit to hold” which is equal to first months rent and becomes their deposit. They sign a form that says if they decide not to rent, I keep the deposit to cover my lost rent, holding costs, etc.

@Brett Sayers I agree with @Anthony Wick on this one. My wife and I also self-manage and don’t shy away from letting prospective tenants know that. Most renters have experienced the property manager that isn’t responsive or worse. We want to build a brand that is competitive with the big companies by producing a great product that is backed by great service. In my opinion it’s definitely a positive that has worked well for us.

We’re careful to keep a barrier between us and the tenants though. We use a Google voice number so if it ever got ugly with a tenant they don’t permanently have our personal phone numbers. We also have a PO Box so that we’re not giving people our home address for checks. We don’t connect on social media or anything that connects them with our personal lives.

We’re also not bothered by having to tell someone no. I completely understand there are investors that do not want to be in that position and feel more comfortable as the property manager instead of the ultimate decision maker (owner). In those situations it might be money well spent to just hire a person or company that can handle it for you. Pretending you’re not the owner is not going to eliminate the need to have uncomfortable conversations.

@Justin Tippens Good for you and keep learning! To be clear, you absolutely can get a refinance loan if you have a primary mortgage. It’s not the primary mortgage that’s the problem. It’s whether or not your debt to income is ok.

@Kyle Falkenstein I vote for LVP. Flooring is one of the most expensive items. You’ll pay more money up front for it, but you’ll save in the long run.

@Justin Tippens It might, but it’s hard to say without getting into the details. Assuming good credit, income, payment history, etc., your debt to income ratio will be a major factor. My advice, if you haven’t already, is to call a bunch of local banks and mortgage companies to see if they do refinances on investments and what they offer. I found that they can really vary from one to another, and some won’t do it at all. Once you’ve found one that has the product you are looking for, have them do a preapproval so you will know for sure. It will be a hard hit on your credit, but I’d rather have that than find out I have money stuck in a property because I can’t get approved for a loan. Hope that helps.

@Jason Mayers Most banks are going to make you wait 6 months if you want to cash out based on ARV. You should definitely rent it out and get cash flow while you wait.

@Travis Johnson Welcome Travis! Good luck to you! You’re at the right place to get started.

@Fred K. No that’s not normal. Like any other profession, you’ve got people who will be responsive and others that won’t. I would try to get referrals from other investors in your area. The danger with using ratings is that sometimes you are just seeing agents who do high volume. That doesn’t necessarily mean you are going to get the time/attention you need. Get referrals and then tell them exactly what you’re hoping to accomplish and what’s most important to you in working together. Good luck!

@Jay Garrison She sounds like she is pretty comfortable fighting her landlord on minor issues, which makes me think it’s not the first time. Did you call her previous landlord(s) and do a thorough background check as part of the application process? The best advice I can give you is to stick to your lease. If your lease says rent is due on the first, and she insists on paying on the 15th, hit her with late fees if that’s in your lease. Some tenants will test you to see how serious you are about enforcing your rules. Tell her there’s nothing to discuss and refer her back to the lease she signed.

@Shane Elias-Calles I agree with @Lori Greene. You need to understand the fundamentals, and you can get that for free on BP or by buying books. Once I started taking action and bought deals my knowledge grew exponentially. I don’t know this person offering his services, but even if he’s great $3600 almost covers the closing costs on your first deal so personally I’d save the cash.