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All Forum Posts by: Will Fraser

Will Fraser has started 33 posts and replied 2893 times.

Post: Applicant With a Co-Signer

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

Hi @Thomas O'Donnell!

A co-signer is usually attached to a lease with an addendum that names them as a guarantor.  

Since this person becomes the functional backstop for the lease, we require them to submit an application just like the tenant would.

Post: Str Market Cities: 200k-400k

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322
Quote from @Nate Sanow:
Quote from @Will Fraser:

And as further demonstration of why many (or most) STR owners in tertiary markets (like OKC, Tulsa, Wichita, etc) are seeing a diminishing return please see this conversation. Many MANY cashflow junkies have seen that with $12-15k up front they can 5x their cashflow and they have brought a flood of STRs to markets that have poorly defined tourism economies.

It will be interesting to watch this unfold over the next 24 months.  Most of all I would hate to be a mid-tier hotel with poor amenities in these markets!

 @Will Fraser you make an interesting point. It's something I've processed almost subconsciously without your exact articulation. I'm bullish on OKC and Ttown I think they are great markets and I have owned properties in both. I think that they mirror as parallel's with different dynamics (eg OKC has a pro sports team, tulsa has tons of arts and music) but I also feel like they both have a ceiling of expectation. That's a ceiling continuously being raised… like "raise the roof" style lol … but it is slow and steady… what I'm saying is to echo your point, I'd be nervous if anyone locally had 50% or more of their portfolio set up as an STR. Even then a healthy mix of the mid term rental approach to attract 30-90 day stays, MTR not STR would be my personal primary approach. As an observation, the numbers don't look that great there after factoring in added costs of utilities and house cleaners let alone furnishings, and the liability of your time. That's largely my opinion but it's also just something that I sense.


 You're exactly right, Nate!

I was talking to a stager ally of mine about a flood of STRs that she has been setting up for clients and she said "oh Will, that's not even the half of it.  We did about the same number in 2019 that we've done in 2022 but most of those freaked out during the *RONI and pivoted into long term rentals.  But in the last 4 months we've been on a blitzkrieg with OOS investors setting them back up here."

The thing that really gets my boots to shaking is the idea that many people are going into properties at a basis (purchase + renovation + furnishing) that ONLY works with STR numbers.

When the winds come and the waters rise (metaphorically) and the returns compress (as they certainly will with a capital intensive investing style like STRs) then folks will be obliged to lose money in our markets AND A-class long term rentals will see compression, just like in 2019-2020.

BUT I'd argue that if you are going to lose money on a property, there are better places to lose money.

Post: Looking for a real estate agent for a home in Hialeah

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

Hi @Apkesh Kumar,

What you are describing is a Property Manager.  

Though you can find real estate agents who will be "yes men" and women and will agree to find you a tenant for a fee, you'd be wise to understand that this is moonlighting.  You will rarely get gold from a moonlighter, but rather a PM company lives and dies based on their ability to place and manage tenants, find and manage contractors, and handle your money well.

Go with gold my man,

Post: Tax-free Material Purchases?

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

This is a great reference-point @Nathan Gesner!

How did you share a link with the relevant text in the article already highlighted?

Teach me your ways guru!

Post: Property management in Little Rock, AR area

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

Hi CJ!

The trouble with so many of these franchise PM companies is that they are a revolving door of suck.  C'est la vie!

I've found the crew at Eagle Rock Realty + Property Management (formerly Pinnacle Property Management) to be savvy and solid.  

Post: Need help figuring out refinance situation! Please!

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

And do not view getting a profitable (or even a break-even) repetition under your belt as a failure.

Assuming your appraisal numbers are solid then you should safely net $320k from the sale, not factoring the payback of the bridge loan.  This should be able to make you whole, and then some.

This is a heck of a lot better than my first "short term financing + gnarly reno + shifting markets" rehab project.

Repetition breeds mastery, so let it do it's work 

Post: Philadelphia Rental License

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

Howdy @Chris Lin, welcome to the BiggerPockets forums!

This sounds like a perfect question for a savvy PM in your market.

Try texting with Stiletto Property Management and see if they can offer some skilled guidance here.

Post: New duplex with inherited tenant

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

Good thoughts here!

Be mindful that tenants, all people are subject to change and your mileage may vary.

I will usually adjust rent rates to market value (the true market value of the unit in the current current condition unless there is a large upside to renovating) and keep the tenant on a MTM lease.  I'll explain to them that this is for BOTH of our interests and gives us an opportunity to get to know one another and make sure we're a good fit together.  Also explain that you're not in the vacancy business and that vacancy is a lose-lose, and you're not trying to boot them.  

This usually gives me the security of having a quick out in case my mileage varies drastically.

Post: What is the #1 Barrier to Buying Your First/Next Property?

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322

For me it's making sense of the numbers.  This would be far from the first property for me, but somehow I'm still coming up blank when running numbers at the current asking prices paired with the current cost of debt.

I suppose the good news is that offers are (relatively) free and the stability of real estate as an asset makes it a great place to park cash, so it's really a lead-flow issue.

How about you @Suzanne Player?

Post: CRS Temporary Housing

Will FraserPosted
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
  • Posts 3,019
  • Votes 2,322
Quote from @Cesar Egas:

@Will Fraser So far it's working out great. Their 6-month lease will come to an end at the end of February. 


 Awesome to hear!  Have you had regular eyes on the property during their time their? 

How has the process of communicating with tenants, receiving prompt payments, etc gone so far?