Ask me about real estate investment?

[NapoleonDolemite]

What are your thoughts on the market in Northwest Florida/Panhandle?

[Mark1808]

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Ok Ive been working with residential and multifamily income producing real estate investing for sometime now and have a fairly good grasp on the subject. I work for a well to do RE investment company as well. It is actually the easiest and most straightforward way to make money IMO with little starting capital and bad credit. Ok now I sound like one of those infomercials...


Ask away...

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For a typical house, what are you paying and what is the monthly rent? What are your financing rates?

[Tien]

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It is actually the easiest and most straightforward way to make money IMO with little starting capital and bad credit.

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Was your paperman hit by a bus simultaneously taking out the satellite dish for your cave?

J

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If your referring to the subprime problems Haha very clever.

You obviously don't have a clue about real estate investment though because yes now more then ever it is possible to make a lot of money even with bad credit.

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There is no subprime problem, there is a credit crunch due largely to the questionable values of the securitized loans. Now is about the worst time in a long time for bad credit to take loans.

J

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Yes that is true. Not only is it the worst time it quite frankly isn't even possible to get a loan with bad credit.

There are many way to make money without taking out a loan. Become a bird dog, wholesaler, use hardmoney.

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So I do have a clue after all? I would add sucking [censored] to your list.

J

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No you have no clue.

There are thousands of investors out there buying properties without going out and getting a loan from a bank.

If you want to know how maybe you should ask?

[housenuts]

i'm ron burgundy?

[Tien]

What are your thoughts about hiring a management company and creating your own and training your own assistants to manage properties for you?


I am at a dilemna trying to figure out what is the best course of action for property management. I don't want to use a management company that eats up 10% of revenue and adds rediculous expense costs on top of that.

I am looking to hire an assistant and train them myself.


What are your thoughts?

[GittyUP]

Im sorry guys I am very busy today at work and I will answer these this weekend when I get a chance. Maybe bad timing for starting a thread like this but there will be answers...

[GittyUP]

What percentage of your gross income from your multifamily properties goes to expenses (not including debt service)?

I usually plan on 40-45% of cash flow going to operating expenses. It really depends on the property and my long term plan. The larger the property the closer to 45% or even 50% I shoot for. This is because of large maintenance or marketing expenses that might suddenly occur. I tell people that it also depends on how much capital they have to work with.

If someone is looking at their first investment property and don’t have much free capital then shoot for 50% as a plan. Any months that you spend less then the 50% of income on operating expenses should be put away as reserve capital for future unexpected expenses.

How would you go about hiring a salaried property manager for a large complex or several smaller properties?

Just like any other job position. Post an ad in help wanted classifieds/internet. What you’re looking for in a property manager depends on the scope of duties you expect. Are they simply collecting rents, answering phones, recording complaints, and forwarding maintenance issues to a full service maintenance company/man? Or are they signing/renewing leases, advertising, screening tenets, looking/ dealing with maintenance first hand?

The latter often requires a real estate license and should be compensated differently (often more but on a commission or salary plus bonus for filling vacancies) then the prior but will often be more professional and more diligent in their work.

What experience good or bad have you had with gross rent property management companies? Besides referrals from other investors, what criteria would you use to know if you're hiring the right company?

Never dealt with them. I have my own property managers.

What do you think are the pros/cons of gross rent managers vs. salaried managers?

Never used gross rent managers but I’d have to say that they work well when you have vacancies because they work hard to fill them (or should work hard). If you have few turnovers in rentals then gross rent managers will eat up income (5-8% usually) for doing little more then collecting rents, maintenance issues etc. The same can be achieved with a secretary type (salaried) property manager and much cheaper. Again see the above answer for the scope of duties you require.

[GittyUP]

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What are your thoughts about hiring a management company and creating your own and training your own assistants to manage properties for you?



I am at a dilemna trying to figure out what is the best course of action for property management. I don't want to use a management company that eats up 10% of revenue and adds rediculous expense costs on top of that.

I am looking to hire an assistant and train them myself.


What are your thoughts?

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Hire your own! It might be a headache in the beginning finding the right person and training but its well worth it. Often cheaper and easier to oversee daily operations and see whats getting done and what isn't.

[GittyUP]

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Best ways to find distressed properties?

Thoughts on tax deed sales?

In Southeast FL at this time, does it make sense to go after C or D properties (West of the turnpike) or are the deals still better east?

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The best way to find distressed properties is marketing. They're various forms but I use direct mailing. I know people who knock on doors, make phone calls, send personal letters, etc.

Tax Deed Sales--I don't buy this way but Im assuming its the same as a forclosure/auction. Basically your getting the property cheap due to a default on taxes (instead of mortgage). If you can get the property with no leins and clear title wya below market value then its a good deal. Period.

Right now there are deals everywhere. I only go after properties under 250k though. I just bought a triplex for 210k just west of the turnpike. Its renting out for $2900/m. Thats a 16% cap rate plus over 100k equity. I wholesaled a quadplex on US1 by the beach that went for 220k and rented out for $2600. Thats 14% cap rate.

Its much easier getting postive cash flow with lower end properties.

[GittyUP]

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What are your thoughts on the market in Northwest Florida/Panhandle?

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Thats the only part of florida I don't deal with. Sorry.