All Forum Posts by: Mark Updegraff

@Ying Gong pick up the book "the housing boom and bust" by Thomas Sowell.  It sheds a lot of light on the problems of places that have extensive land use restrictions.  I think focusing on areas that are more A-typical will be your best bet unless you're a local expert.  From what I know about that market I would be looking elsewhere.

Good Luck!

In my experience every market is going to vary.  A lot of investors run the same pro forma no matter where they're investing, and it simply doesn't hold true.  It is a good starting point but the reality of the investment is more closely tied to micro nuances due to location.  IMO investing very close to major employers and higher level educational institutions is the safest bet.  When you get into periphery markets or smaller towns the supply / demand ratios can vary dramatically.  Getting historic performance from owners via tax returns usually sheds a lot of light on the reality of the asset's performance (you would be surprised how difficult this can be to get).  The advertised listing rarely resembles the tax filing, and I find this discrepancy is greatest in tertiary markets.  I would recommend new investors position themselves in an area where they can control vacancy, select respectful tenants, and get something that doesn't need much repair.  Otherwise, there are too many wild cards that WILL surface.  Also, tax returns are not everything, especially since we're only looking back 3 years on something where averages are calculated over a MUCH longer period (30 years).  Seeing is believing.  I think the best thing to do would be to come view properties in the areas your targeting, and then see some similar products in more expensive markets.  You'll be able to tell how much you need to spend to get the better tenants in properties that have less deferred maintenance. As my father always says.... "You get what you pay for"

Just sent you a PM.

Talk soon!

Mark

@Jack Forrest We offer full service real estate management and have many out of state clients.  You should get yourself familiar with the particulars of land lording so you can talk intelligently when speaking to potential managers.  I recommend Leigh Robinson's , Landlording: A handy manual for scrupulous landlord and landladies who do it themselves.  It is an easy light read and give you lots to consider and a peak under the hood of management.

@Matthew Drouin is correct in that you want a PM that leases in your area of choice.  We often take over city clients that have used management companies that don't do city properties.  They sign up thinking it will be a breeze and the suburb management companies just can't fill city units.  Working with clients that have switched due to horror stories is common.  Just this year I've hear of one company that brought a previous employee on site, that had no workers comp after starting their own roofing company.  Roofer fell off the roof, and now the landlord is getting sued in court... nightmare.  I also took a client who gave me her log in to her owner portal for management of 6 units.  They were all vacant all year, AND had thousands of dollars of invoices.  Can you say, robbed blind??  I have no idea why she tolerated it so long, but there it was plain as day.... 

Landlording is all about crossing your t's and dotting your i's.  Don't skip any steps, and if you don't know, ask!  Make sure you understand liability and make sure you verify that you're covered rather than take someone's word for it.  And rule number 1, ALWAYS be PROACTIVE!

Westfiled is a solid house & has new roof since I saw it.

Welcome Joshua!

     Rochester is a fantastic market to achieve your goal.  

To your success!

Sincerely,

Mark

Welcome to BP!!  Good luck on your journey.  Where will your first investment be located?

Cheers,
Mark in ROC.

Found my first deal on the MLS in January (great time to be looking as winter has crushed the seller's spirits before the spring market arrives).

Bank Financed it with BoA 10% down (BoA was a nightmare to deal with)

I recommend MB financial for local investors:  @Jerry Padilla has your back there.

They don't have a seasoning requirement on rental income and you can get 2% seller's concessions on a multi.

@Phil Kurumunda I think that focusing on the wrong aspects actually impedes success as an investor. 

I work with a lot of landowners, and they are not created equally.  Some waste so much time that they never make any money.  They think negotiating small percentages on properties and seldom coming to terms is a wise move.  It is not.  Money is made regularly on the real estate market.  By focusing on pinching pennies these investors loose more in profits by not advancing as quickly as they could.  

This same rationale holds true to management. Good management is the cornerstone to success as an investor.  Having a dedicated team of professionals who's full time job is to insure owner and tenant satisfaction is what drives the rental market rates.  We place better tenants for longer terms at higher rates and bring up neighborhoods through careful tenant selection, consistent maintenance, and delivering the best service in the industry.  

Tenants prefer solid management, and the best tenants desire the best management even if it comes at a cost.   

Cheers!

Mark

As my father always told me: "You get what you pay for."