All Forum Posts by: Will Fraser

Here's a question about your question:

What is the role of a PRE in your area?  

IMO they are clunky systems because they don't get paid to be smooth.  IF they charged a fee monthly then magically they would have motivation to improve the user experience, but without that it likely doesn't make sense for them to spend a cool million overhauling their system to be more user-friendly.

The most efficient way by far is to . . . . 

Let your PM handle that mess.

 Hey Scott!  Another thing relevant to consider that builds off of Sheila's words above is that "luxury" and "expensive" are very relative concepts.  If $850k is 2x the median sale value for your metro then you may have a devil of a time leasing it well, though it is still possible.  However if it is 50% of the median sale value you may rent it with ease.

When you are considering a lease-purchase option sale you're really looking for a certain buyer, who has certain motivating factors.  IF $850k is relatively expensive for your market then you may not like the prospective tenant-buyers you find.

However selling using seller financing in a high interest rate environment can be attractive to the opposite end of the spectrum from the tenant-buyer side.  A shrewd business owner looking at the opportunity to buy on a 6.25% interest loan when the prevailing rate is 7.25% may gladly bring 25% down and be tickled pink here.  

Clarification here good sir:  you laid off your job or you well laid off from the W-2 job?

Good news, if you have a home free and clear then you have better options than you would otherwise! 

What is draw to wholesaling for you personally?

Howdy @Virginia Stees!

My two cents from a bit down the road is this:

- Let the horse guide the cart, the dog wag the tail, and any other relevant aphorism . . . . The concept of setting up your management company and building this empire you're envisioning is AWESOME and you may well be there someday . . . a year from now or thirty.  That's awesome!  

However . . . prove it.  To yourself and to the stakeholders and vendors in your life.  Many are the ambitions of people and FEW are they who come to fulfill them.  instead of starting with a grand master plan to build a company in a specific way, I'd recommend running hard for some time in a niche that you believe is an overlap between your head, heart, and hands.  If your wrong you'll sense that in the feedback loop of joy, energy, etc in the midst of doing the work.  Then you can pivot into a different niche and test your theory.  OR if you love it, double down, then double down again, and again until you've built a bridge or garnered enough momentum that whatever horizontal expansion you do is likely to succeed.

Hire a competent and shrewd manager for your early rentals and watch their systems from the inside.  Learn from the standpoint of a client and if you decide to build a management company around your properties you'll have a well rounded exposure and an understanding of what they did well.  Mimick that, improve on it, and build the thang!  

OR you may find that your niche X fuels you and the energy and vision it takes to run the management side would be a mismanagement of your resources, and your PM adds value to your niche and you love the synergy you have there.

Could be either one, and I find that far too many people start down the former road without ever giving thought to the latter.

 Thank you, sir!

@Jack Miller as a fellow OKC investor I want to throw some clarity into this conversation.

Multifamily itself is known for nice cashflow, BUT that is almost always referring to larger properties thanks to some great economies of scale you can achieve when you have 48 or more doors in one place.

In practice you can expect small multifamily properties in OKC to cashflow LESS than SFR or duplexes thanks to a few factors:

- Downgrade in tenant class -- you WILL experience a downshift in your tenants.  A properties will bring B tenants. B properties will bring C tenants, and so on.  

- Lack of stickiness -- small multifamily properties do not have the size, space, or scope to offer amenities, which is the thing other than price that makes people stay in a shared wall/shared floor/shared yard situation for longer than they have to.

- Code becomes a bigger and costlier deal -- all of your properties will be squarely considered commercial and NOT residential, so when you pull permits to do substantial improvements you'll *get* to install a sprinkler system, etc

- (speculation here) More susceptible to property tax hikes 

As for me and my house, we have chosen to buck the conventional wisdom and stick to SFR and small multi's (doubling down on what we know and are skilled at) until we can jump to more sizeable mutlifamily properties.

Could be excessive, or could be cheap.  It really depends on the work that was done.

Did they have to move the entire houseful of contents?

Did they have to store ^^ contents according to local Landlord Tenant Laws?

Did they have to do ozonation treatments or any other extreme odor remediation?

If there were enough pests to merit a treatment and re-treat, was there really 0 damage?

I could see $4,000 as a fair price for clearing a hoarder's pest invested mess up and getting the unit to rent-ready, but I'm POSITIVE you could have it done cheaper.  That's always the case . . . always . . . but the bliss is that IF your PM is working in integrity and if they know their local pricing then it should be a light and trust-laden thing to know that IF they paid that THEN it must be the going rate.

IMO

 Do you get those gift cards at a discount on CardCash or at Costco by chance?