It's a common misconception! That's because the majority of debt is agency debt (Fannie/Freddie) and they are very strict. Portfolio lenders generally have a lot more flexibility and therefore have different terms.
Do you have a property management company on the ground that you use for all your properties? If so how did you find a good company in the area to work with?
I do not, I self-manage. I use my agent to help me get a tenant in place, then I manage it from there out. I'd find a PM the same way I found my agent — calling a bunch of them and "interviewing" them.
I am curious if any issues ever come up do you have companies you work with in the area? For example if there was an issue with a leaky sink do you have a plumbing company that you know and trust to go do the work?
Yes, exactly! At first, we built a strong relationship with our agent and then leveraged his relationships. He already had all the contacts we need (plumbers, handymen, roofer, painters, landscaping, etc.), so the first time we needed any of these people, we just ask him for the contact, then we handle it from there. The second time we need that type of professional, or anytime after, we just work with them directly without going to our agent first, assuming we had a good experience (which we always have, because our agent uses these people himself and has vetted them already).
The numbers are impressive but I thought you have to put down 20-25% down on rental properties?
Nope, not with all lenders! I found a lender that would do 15% down (85% LTV).
I was under this impression as well.
It's a common misconception! That's because the majority of debt is agency debt (Fannie/Freddie) and they are very strict. Portfolio lenders generally have a lot more flexibility and therefore have different terms.
Do you have a property management company on the ground that you use for all your properties? If so how did you find a good company in the area to work with?
I do not, I self-manage. I use my agent to help me get a tenant in place, then I manage it from there out. I'd find a PM the same way I found my agent — calling a bunch of them and "interviewing" them.
I am curious if any issues ever come up do you have companies you work with in the area? For example if there was an issue with a leaky sink do you have a plumbing company that you know and trust to go do the work?
Yes, exactly! At first, we built a strong relationship with our agent and then leveraged his relationships. He already had all the contacts we need (plumbers, handymen, roofer, painters, landscaping, etc.), so the first time we needed any of these people, we just ask him for the contact, then we handle it from there. The second time we need that type of professional, or anytime after, we just work with them directly without going to our agent first, assuming we had a good experience (which we always have, because our agent uses these people himself and has vetted them already).
How in the world did you buy a property almost move in ready for 12,000
Haha, I think we discussed this via a different medium already.
Hi Robert! What was the aftermath of this property you purchased with your partner? Did you rent or sold ? Or how is it going ? Thank you
We rent it out — we buy all of our properties at rentals!