All Forum Posts by: Steve Morris

If you PM me, I can send a place that does sub-meters - I do NOT make money off them, but have clients that have purchased.

They are submeters for each unit.  You install them on the cold feed to the water heater.   I did it, but you need to have the skills to cut the line and install these or a plumber friend.  

The theory is that if A uses 2000 gal and B uses 4000 gal that B gets a pro-rate 2* A.  They service them now via WiFi so you'll need some kind of link.  I'd strongly recommend it since, in Portland (and prob other places), city water is a profit center.   They can unilaterally raise rates instantly without getting approval from a utility board.

Anyways, at $100/month/unit (in Portland) you're pushing a month's rent/year for water/sewer alone.  The idea is to use LESS water.  

That's the problem with flat rates, at $50/unit/month, that's $50 if you don't use a drop or if you run the water day/night.  With submeters, more you use, the more you pay.

thoughts on PM software instead of a company?

There are some out there that do a good job.  I'd make sure that they have some provision for storing paperwork (leases, notices, rent increases, etc.) since you need good paperwork to protect yourself.

However (and I'm not advocating for PM companies), you'll now take on:

1) Day-to-day tenant issues

2) Maintenance

3) Lease-up and rents

4) Making sure all bills are paid and rents collected

I don't know how much that is worth to you in terms of $.

"Mr Morris, I believe every state requires anagent hang their license with broker..."

OK.  I don't know PA law.  In OR/WA, I'm a principal/managing broker and can hang my own license alone.

"So... is it super unethical or illegal to modify a bank statement to look like we have 80k in an account to secure a deal?"

Umm, called fraud.  You (and any co-conspirators) get found out and big trouble.

For good reason since that kind of BS caused a lot of problems in 2009.

Redfin and Trulia and Zillow are worth what you pay for them.  They take the "average" sales price and force-fit it to every house.  So if your prop is in better shape or great view or layout, doesn't matter.

Unfortunately, any good comps come from pay-for services since it's not cheap to maintain good info.

Using MLS is OK, but you usually need to be a broker and there is a fee for the firm. However, most of the investment info is what the brokers put in. On a lot of resi brokers, you get GIGO (garbage in = garbage out).

Now, if you want something a bit more accurate, you can always subscribe to something like CoStar and they let anyone (I think) buy it - However, get ready to pay something pretty substantial per month.  I DON"T WORK FOR COSTAR SO PLEASE VERIFY WITH THEM.

Am NOT a prop manager (am a broker), but a GOOD PM:

1) Knows the rules and paperwork govt requires.  Dealing with govt and good paperwork/records is your best defense

2) Take care of the day-to-day stuff so you can focus on the big things.  They handle the midnight toilet calls.

3) Spend time telling you what the market is so you don't have to do research on things like rent.

I understand there is a wide range of latitude in PM companies (just like brokers), but a good PM is definitely worth the fee.

"Ultimately my question is how do I go about saying this to a realtor without being rude."

1) Tell them what you're looking for.  Tell them you are qualified and have the funds and aren't there to jerk them around.

2) If they find you a deal, you'll let them write the offer and they can have the commission

3) Be nice to me and if I find a deal, I'll let you write on my behalf.

If that's not enough, get another broker.  Not everyone is a grifter which is how I see exclusive buyer contracts.

"He says there are no real estate investors that borrow money to do so that are still around 10 years after they begin their journey. "

Well, if Mr Ramsey said that, then I call BS.  Almost every investor of any size uses the leverage of OPM.

I understand Mr Ramsey is going after the 80% that abuse/misuse credit and dig a hole.  For those people, cold turkey is probably best.

However, if you can borrow a dollar at x% and invest it and make >>x% why wouldn't you?

"Number one reason to get your license IF you plan on investing in real estate: access to MLS."

Well, kinda disagree. If PA requires you to have a managing broker supervise you, you can learn how deals get structured and take advantage of their experience. Saves you from screwing up deals at first. In addition, he should have E&O insurance.

Why not just write your questions here and benefit all with the responses?