All Forum Posts by: Will Fraser

I'll second Nathan's thoughts above.  In A or B properties you should absolutely change these as quickly as possible (and bonus points for doing this prior to a tenant complaining about it).  

In lower tier properties it comes with a territory.

Either way, fixing problems with quality parts and workmanship will bless YOU and, to some degree, your tenants, too.  Especially with smaller items like faucets, don't hesitate to do things that make your life easier and their experience better.

There is far too much variation in what people call "cashflow" to have a standardized profit margin here, but in general I would say that if you have accounted for industry standard and market specific vacancy, repairs, maintenance, management, taxes and insurance and you are profiting 40% after debt you're sittin' pretty!

If the 40% is pre-debt service then you might be running too lean.

Hi @Catherine Javier, I treat mid-term rentals much like long-term unless they come from one of the STR gateways like Airbnb or VRBO). If they come through anything else then I will have them complete our standard application process and ensure that they don't have a history of hoodwinking or anything like that.

Indeed, as Allan laid out it is rare to see high levels of conversion with cold email marketing BUT I'd argue that is primarily due to our approach.

We instinctively think, as @Keegan Van Kooten outlined above, that we should lead with us (who we are, what we can do for them, etc).  The problem is that they DON'T CARE.

It's not personal, they just don't know you and we don't tend to care about anyone we don't know.

The sticky wicket is this:  how can you make a highly clickable email that is a) more likely to be read than average and b) about them and not you?

Short, sticky subject line, small batch or 1-at-a-time sends.

Cultivate relationship over time and warm them up before you ever talk about you and what you want.  Focus on them until they care about what you want OR just sell them on what they want and make sure it checks your boxes.

Indeed.  You CAN hire a handyman or contractor type to do a lot of the things that Nathan calls out above, yet at the end of the day the trick is how to compel them over and over again to act on your behalf in a way consistent with your best interest.

It's a rare situation to find, train, and retain a contractor to do such things and do them well.

It's quite common to find a savvy, well-train, systematic Property Management company who can do these things well, and they should add other value to your investment journey, too.

Agreed with the above!

This may fall under tenant abandonment protocols, which will be spelled out clearly in your states Tenant Landlord Law.

Well said by Nathan, Drew, and Steven above!

You might also lean into Stessa and see if you can ride them up.

Stessa is an integral piece of my investments and one that I recommend to my clients on the accounting side, and they are apparently trying to break into the PMS (not that one . . . Property Management Software) space and are already allowing rent collection for low or no cost.

Yessir, you've got it!

In essence it's best to understand a Purchase and Sale Agreement as a two way agreement.  The agreement will lay out all the terms and need to be agreed on by both parties. 

Then the ONE party, namely the buyer, will need to execute the EMD requirement in order to continue the agreement.

If this ONE party doesn't perform, then the other party is not held to the contract.

Now, this doesn't mean that a seller won't allow it (either an EMD from a different entity, a late deposit, etc), but they wouldn't be obligated to allow it under the contract.

Like most things good open communication usually takes care of this.  You can explain the issue with the title company and listing agent and most of the time that will remedy any confusion the seller might have.

Hi @Zac Boelkow,

(all prudent CYA statements go here, ha) It really seems to come down to what you are wanting to accomplish with the structuring.

In states that allow series LLC treatment it is a very favorable effective risk-reduction move, so if that's your primary goal then it may be the right move.

Otherwise states with stringent business privacy laws (Wyoming, among others) a well-structured holding co. can give the owner BOTH legal protection AND privacy, which tickles the fancy of many a wealth-builder.

A brief consultation with a savvy Asset Protection attorney would do you well here.  I have a few I can recommend if that would be light.

Hi @Stephen E Drew, the most straightforward approach would likely be to consider 1/3 of the purchase of the new property "boot" and the other 2/3 a valid 1031 deferment.

Boot is any portion of the proceeds of a sale that is "taken out" of the deferment exchange or otherwise doesn't qualify.

For example, person A sells farm and buys an apartment building of greater value and daddy want a Caddy, so he goes and buys himself the whip of his dreams.  All of the amount spent on the vehicle is boot and (assuming the purchase of the apartment) followed protocol then it would be a qualified deferment.

I'd recommend talking to a CPA very familiar with 1031 exchanges and talking through this strategy with them.