Forum Replies Created
- Scott No Mates wrote:From my limited knowledge in this area, the sign out the front serves a number of purposes: advertises the place is available for rent, not just for drive-bys it is for the neighbours to 'tell a friend', advertises the letting/selling agency. Sure, there may be some risk of vandalism but what's insurance for afterall?
When I'm managing properties for my clients, my #1 job is protect their investments the best way I know how. All the decisions I make for each and every property are based on a risk vs reward basis. The risk involved in KC of leaving yard signs out, far out ways any reward that the investor could realize. Again this data was compiled primarily in the KC market and obviously does not reflect other markets.
We can purchase vandalism insurance in KC, and it's not a real expensive option. I purchase builder's risk policies on all my renovations, to protect from this very thing. I usually can get a 6 month policy for around $500. The trick with insurance companies however, is the more you file claims, the quicker they are to get rid of you. The insurance companies have an interconnected database that they all can retrieve the data they need to determine how many times you have filed claims. If you essentially get blacklisted from insurance companies, your left with no insurance protection or having to buy it thru the state at a rate that would probably choke you.
John
I honestly don't think any US Bank can create an account with any overseas money, without proper ID. I am not an attorney, but I think the Patriot Act has alot to do with this.
I have an Australian/UAE client, and he had to come to the states and present all of his identification.
John
As a US turn key provider, I would throw caution to any company asking for a "membership" fee. There is no reason to join any club to buy a house or an apartment building. My experience has been if they are asking for a "fee" upfront, you can bet they are brokering the deal, and want that money upfront just in case they can't get that house to the closing table, before it gets sold.
My suggestion, find a company that actually owns their inventory, chances are they WILL NOT ask for a membership fee, and will have every reason to be 100% truthful with you, as they have their own money invested in this house, and they need to sell it.
I'm sure most of you know this, but here it goes anyway.
Most of our LARGE counties have all property information online, and it is free to view. Keep in mind some counties, like mine, can take up to 6 weeks to record new data, even though we close with e-filing (still havent figured that one out yet), so the results might not be immediate. Simple solution, ask for a copy of the HUD statement.
John
Thanks again for the reply!
Some tenants do in fact drive neighborhoods, as my exit polls point at around 15% of them. I base everything on a risk vs reward, and in a case where 15% of tenants use this method to find their homes, I don't see the reward being better than the risk.
If the property is being marketed correctly, there is no need for yard signs, so that risk can be eliminated.Unfortunately, I see the same stories and in fact am experiencing that same scenario right now with a client. She bought a house here, thought she had bought a "turn-key" home, just to find out the renovations were never done. I am helping her track down the company execs and we will be pursuing criminal charges.
John
JLH,
Thank you for the reply!
I added a couple "buts" to your thread.
jayhinrichs wrote:Nicely done,and for the reason's you post I would never buy a home in the US that is above the freezing line, in other words has constant cold weather and subject to frozen mechanicals.. I did some stuff in detriot and it was a night mare.
the other issue is buyers will look at nicer bigger homes thinking they are great, but the tenants look at them as costing them way to much money to heat and cool. I would somewhat disagree with this, as alot of families in KC, have more than 3 children, and per Section 8 guidelines and state law, once their children reach a certain age and they are of the opposite sex, they must have their own bedrooms. I rent out 4&5 bedroom homes, actually just as quick as a 3 bedroom home. I just purchased a 5 bedroom home, I am 3 days into the renovation (as of this post), and I already have it rented to a Section 8 tenant @ $975. In some cases the tenants just simply don't have a choice, they have to rent the larger homes.
This poster has some very good and honest feedback for you all. he is not big with only 84 units but he is very accurate on what he is describing. I am a "small" PM by some standards, but in Part 3, I will reveal what I found out about the "large" PM companies. Stay Tuned, it will be an eye opener.
I would venture to guess that 50% of the Aussies or more buying through there off shore buying services do not make any where near the returns based on property management issues. I 100% agree here. PM in the states and more specifically KC, can be a problem. This is why I spent 2 years investigating PM's to determine what was going on. Outside of the companies that were just blantantly ripping their clients off, most of the problems I found, are what I have been discussing in these posts. When an investor finds that one company that operates like a PM should be operating, the returns are enormous. It's not hard to come up with the numbers, purchase a property fully renovated under 40K, rent it for $700-1000, based on number of bedrooms, and with property taxes being almost irrelevant, in KC anyway, this should leave a "net" cash flow of around $575-875 per month.
I know US investors do not. Thats why our truewholesale.com model is exploding.
JLH
Alex,
Thanks for the reply.
I know JP and Shane very well, as we do some business together.
I agree with you on the credit scores and I should of clarified that a little better. I don't concern myself as much with the score itself, as this is just today's reality. I'm more interested in civil judgements that would appear on there. If your waiting on tenants with over 700 FICOs, you are going to be vacant for a very long time.
Wishing you the best of luck!!
John
