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I've kicked around the idea of purchasing a rental property on and off for a few years now. Financially, I'm getting close to the point where purchasing a rental property could be feasible. However, I don't know the first thing about actually owning a rental and I'm guessing it's not nearly as easy or straight forward as the shysters on late night TV would have you believe. I'm hoping there are a few rental owners who can give perspective and advice to someone looking to move into rental property ownership for the first time. Things that might have caught you by surprise when you were first starting out or things you know now that you wish you had known from the beginning. The OP is criminally light on content but I'm hoping that just by having a place to discuss rental ownership good discussion between the experienced and not-so-experienced will help fill in the giant gaps.
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May 8, 2013 14:54
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Thanks for the informative replies. In my own case this would be a long term investment that I would want to hold onto for at least 10 years and possibly expand later. Lets say I was ready (or thought I was ready) to sit down and find my first rental property. What resources should I be looking at to figure out if I'm actually ready to purchase or not? Books I should read, websites I should be aware of, local organizations I should drop in on, etc. With regard to figuring out the cash flow, what kinds of expenses should I expect? I'm guessing the mortgage is the biggest regular expense but what kind of numbers should I use when estimating the emergency fund and basic repairs? How do I determine if a property is likely to have a positive cash flow or not?
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May 9, 2013 00:20
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Things are starting to look a little clearer now. Thanks for everyone's efforts. I saw a discussion on the BiggerPockets.com forum where you should estimate roughly 50% of the gross rent in operating costs for a property. Does that sound about right to folks here? That seems awfully high but the people over there seem to trust it and if it's a solid rule of thumb it makes evaluating property a lot easier.
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May 10, 2013 15:14
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I saw a a discussion regarding section 8 and one of the posters uses a simple rating scale to determine if they will except a tenant or not. Something like, "bad referral from previous land lord -1 point. Bad referral from 2nd previous land lord -7 points. Working for same company for 2+ years +3 points." etc. If the tenant falls below a certain threshold then they don't get to rent the property. Don't know if it actually offers them any protection if they're called on it but it seems like a good way to rate potential tenants, section 8 or not.
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May 11, 2013 01:48
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I found a decent resource for new and potentially new rental owners at http://www.biggerpockets.com. They have a Beginner Real Estate Investment Guide that provides a good summary of some of the different aspects of how to get into the business and get yourself setup. They have other useful guides like Estimating ARV (which stands for After Repair Value for folks like myself who didn't know) and a bunch of other useful guides in their Learning section. No magic bullets here but plenty of useful information if you're trying to figure out how to get started.
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May 16, 2013 13:01
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Always happy to get more input. Since I don't have any experience myself reading the thoughts and opinions of others who have made the jump is extremely helpful. Four Finger Wu (or anybody else), do you have any specific recommendations on literature to read? As you pointed out the amount of noise in this industry is appalling and trying to sift through it to find actual information is brutal. As I've done more reading I'm starting to get a better idea of what to look for when it comes to actually purchasing my first property. What I'm not having much luck tracking down are good tools for putting hard numbers together. I've come across a few excel spreadsheets for sale (yeah right) that claim to do this for you but that's about it with one exception. The exception is http://www.finestexpert.com/ which on the surface seems to do a lot of the number crunching and takes into account a lot of variables. But again, lack of experience leaves me wondering if it can be accepted at face value. Does anybody use this site or have any similar resources they would recommend? Something else I've been trying to hunt down is a local landlord association. I'm in a city that is large enough that I would think there would be one here but I'm having no luck tracking one down. TouchyMcFeely fucked around with this message at 01:40 on Jun 10, 2013 |
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Jun 10, 2013 01:37
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Blackjack2000 posted:What kind of number crunching are you trying to do? I only estimated PITI (you can make your own spreadsheet for that) and compared that to anticipated rent (you can estimate vacancy and maintenance if you want, I didn't, I just tried to make sure the margins were fat enough to absorb that stuff.) rejecting any property with rent < 2% of purchase price or a bad Rent minus PITI result (Trenton has high property taxes so it kills a lot of otherwise good deals.) Maybe I'm just trying to make it more complicated than it really is. The properties I was looking at work out to be less than 2% so they wouldn't be a good starter anyway. For these low cost properties that you purchased, did you buy them outright or were you able to get a mortgage? If you did get a mortgage were there any special rules or stipulations due to the fact that you were buying rentals or because the purchase price was so low?
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Jun 10, 2013 13:58
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Sounds like renting condos can have a number of problems a single detached house wouldn't. Sounds like you went through an absolute nightmare. Something I've noticed in the immediate area I live in is the number of rental properties are much higher than I realized. There's been quite a few foreclosures over the last 5 or 6 years so I'm guessing people are losing their homes and they're being bought up by landlords. Even homes that were empty for years and in less than great shape (one had a large tree limb fall through the roof in the middle of winter and sat that way for days before someone put a tarp up) have sold and are now occupied. Right now within a block of me are 3 empty, foreclosed houses not for sale, 3 empty houses for sale (I think were foreclosed on before) and maybe 2 or 3 that are empty with rental signs up front. The available rentals usually only stay empty for maybe a month or two before they have tenants. Granted I'm in a pretty old part of town with homes built in the 1950s and 1960s and prices for some of the properties are below $90k. It's interesting to watch this all happening around me.
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Oct 15, 2013 14:11
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I lived in a townhome with an HOA for a couple of years and couldn't get out fast enough. There's a wide range of how HOAs are operated, from really great to complete rear end in a top hat, but I wouldn't want to a own a rental property that fell under an HOA. The level of trouble they can cause for really dumb stuff is insane and, unfortunately, perfectly legal. For folks located in major metropolitan areas (like kansas in San Fran) I don't know how you would get into being a landlord let alone owning your own home. The wad of cash you would need to even think about owning a second property blows my mind. One of the many benefits of living in flyover country I guess. edit: Looks like landlord problems are the same everywhere, even Croatia. TouchyMcFeely fucked around with this message at 13:59 on Oct 16, 2013 |
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Oct 16, 2013 13:12
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I'm bumping this old thread because I'm potentially facing a promotion/relocation and need to try and figure out what to do with my house. Unfortunately I'm not sure I could sell my house for what I paid for it but I think I could rent it. I'm not underwater, thankfully, and I think I have enough equity to not be considered a risk for a buy and bail. My monthly payment, as it stands now is $666 (  ) which is less than 10% of my yearly gross income. The only other debt I have is a student loan which should be paid off within a month or two.The house is a little on the small side as a 2 bed/1.75 bath but sits on a 1/3rd of an acre and has an unfinished 1300sq ft basement. Looking at other rentals in the area I think I could get $750 a month which would be enough to cover the mortgage and the property management fees. The house is in good condition, the only major concern being the age of the furnace. The roof and A/C are both less than 5 years old and the appliances are all good quality and in good condition. Ideally we would like to move to our new city, spend a year or so renting ourselves and then buy a new house. Is there anything I'm missing here or that I should be aware of? I understand the risks associated with being a long-distance landlord but I'm looking for info specific to the "rent the old house while you buy a new one" situation.
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Dec 6, 2013 14:32
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SlapActionJackson posted:So after the property management company takes their 10%, you will have a whopping $9 in monthly positive cash flow... so long as the property is never vacant, never needs maintenance, and never needs you to pay to acquire a new tenant. And that's before you consider the taxes - the quick summary there is that unless your monthly depreciation expense (0.3% of the structure's value - excluding land) exceeds the principal portion of your mortgage payment, you will have net taxable income and owe tax at your marginal rate. Your $9 won't cover that, so you'll have to pay it out of your other income, too. The numbers are bad, no doubt about it. The bigger problem is that I'm not sure I can sell the place. Within 2 blocks in any direction are 5 or 6 empty foreclosures some of which have been for sale for over a year. I owe $108,000 and think I might be able to pull $125,000 with the way the neighborhood market looks. If I weren't surrounded by foreclosures I think I could pull closer to $140,000 due to the unusually large lot size and improvements made. The dilemma I face is do I take the risk of the house sitting empty for months while I wait for someone to buy it (considering the time of year, the harshness of winters here, etc), paying everything out of pocket, and likely end up selling it in for a lot less than I'd like out of desperation or do I put it up for rent and have it (mostly) pay for itself while the market improves. In an ideal situation selling it would be the best option, no doubt. But if I can rent it out for a year or two, even if it ends up costing me a bit in the end, I'll be in a much better position to sell and get some of the equity back. I could go the other way and try to sell it for $145k, willing to accept $135k (what I paid for it 8 years ago) and then rent if it doesn't sell but that seems likes a riskier approach since I'll have to float the home, hoping things work my way in a buyers market and hope that nothing happens to the house while it's sitting empty. That seems like an awful lot of hoping compared to just flat renting it out.
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Dec 7, 2013 13:24
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Bloody Queef posted:Beneficiary of the trust would be an LLC, which I would be the sole owner of. Anyone want me to make an effort post about this? Please do.
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Feb 3, 2014 04:27
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Where I live the presentable side of the fence should be on the outside. Whichever side has the hardware is the owner. That said, plenty of people don't follow that rule so your best bet would be to see about splitting the cost.
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Feb 16, 2015 02:41
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Ribsauce posted:I don't like the idea of taking a credit card payment either. I will look into those. Thanks Doesn't that also prevent your tenants from using a debit card to make the payment as well? I would think the old sales meme of "don't make it hard for your customers to give you money" would come into play and you would want to accept every form of payment under the sun.
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Apr 5, 2015 12:21
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Ribsauce posted:Is there a way to allow debit cards but not credit cards? Would the fees be lower? I can see the argument, particularly against the fees, but if a tenant is in a position where they have to put rent on a CC card they're in a bad spot regardless and potentially facing an eviction either way. I guess I'm looking at it more from a position of convenience and saved time for both the renter/landlord. Payment is fast, you don't have to deal with going to the bank and depending on how you setup the transaction (say through Wave or a similar invoicing system) tracking payments is super easy. I would also think record keeping would be a lot easier in terms of tracking who paid when, if a payment was missed or late, etc. No room for arguments about when a check was mailed or if they handed you cash on this day vs. that. I'm not a landlord at this point but it seems strange for such an important part of anyones finances to not accept the most prolific form of payment around.
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Apr 5, 2015 14:53
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BEHOLD: MY CAPE posted:The other thing is you really don't want to give your tenants the ability to chargeback their rent if they're unhappy about something or want to skip out on their lease Isn't there the possibility of them cancelling a check as well? I would think skipping out on payment would be the likeliest indicator that there's a problem as opposed to making the payment then trying to reverse it after the fact.
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Apr 6, 2015 00:51
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Whelp, it's finally happening. The wife and I are in the process of finding a new home to move into and we're going to convert our current house into a rental. We found a guy who's helping us look at properties and is helping us work through the transition who has 12 rental properties in a neighboring town. Really stoked and terrified!
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Aug 19, 2015 14:57
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Mercury Ballistic posted:Quick reality check here, please tell me if I am stupid or not. You're down $13,000 in the first year? Is that a typo and you meant $1,300? If you want to keep the property there's a couple of options (and certainly more than I can think of). The first would be to raise the rent. Another would be to refinance the remaining balance of the loan out another 30 years. If you've paid down enough of the original loan and haven't used the house as a piggy bank then you may be able to see quite a bit of savings on the mortgage payment by stretching the remaining balance out. Making this transition myself, I learned that what you would spend to improve a house you live in vs what you would spend to make a house acceptable for a tenant can be huge. The house we live in (and are going to convert to a rental) is a 2 bedroom, 2.5 bath home with an unfinished basement. Initially we were thinking that we would hire a contractor to finish the basement and make it a 4 bedroom 3.5 bathroom unit, meaning we could get higher rent. What we realized is that the increase in rent would not offset the cost of the renovation and that we would be better off leaving it as a 2 bedroom. Digging into the numbers deeper, and discussing further with our mentor, we found that we actually only needed to do a few things that would cost less than $4,000 to address. The majority of that cost being carpet and linoleum work we can't do ourselves. I regularly hear that the standard process of buy and hold landlording is a slow money game (and happens to be the game I'm trying to get into). You buy and you hold and just like any investment you minimize the expenditures while maximizing the profits. That doesn't mean you have to be a slumlord but it also means that you don't spend $40,000 when $4,000 will do. If you're really interested in landlording there are likely things you can do to make the property profitable or use that rental property to leverage additional property to offset the costs of this unit but if it's not something you care that much about you're probably better off selling it and focussing your energy elsewhere. edit: Also, be certain on your numbers. You should have a separate bank account specifically for your rental so that you can track the income and expenditures. You can setup a free account on Mint specifically for your rental account and track all of that along with a rough value of the house. TouchyMcFeely fucked around with this message at 15:29 on Aug 23, 2015 |
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Aug 23, 2015 15:24
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I'd also recommend talking to a CPA but I would think that by having separate LLCs, if someone sues the LLC you only run the risk of losing the value of the property owned by the LLC as opposed to losing everything owned by a single entity. That said, your/her mentor probably has good arguments on why everything should be kept together and by increasing your insurance you help cover yourself in the case of litigation. But again, you should be speaking to a CPA to make these kinds of decisions. There's a lot to deciding one way or the other that should be discussed with a professional.
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Sep 2, 2015 02:05
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FlashBewin posted:I talked to a CPA. Explained my situation, how things are set up now (Condos in LLCs, LLCs owned by INC) And he said that how i have it set up is how they recommend other people to do. Can you tell us why it's setup that way and why the CPA recommends keeping it that way?
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Sep 4, 2015 15:58
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FCKGW posted:I'm toying with the idea of moving out of state and buying a duplex or two in the next 5-10 years. Would it be better to buy outright or take a regular loan? I would probably have enough to buy one outright and finance another, or finance one or two in addition to a regular SFH. Depends on your philosophy regarding debt but there's no right or wrong answer. If you pay cash it's yours and your cash flow will be much higher but you are out the cost of the property and your money is all tied up in the house. If you take out a loan, you can keep your cash and your tenants will pay off the loan but your cash flow will be significantly reduced. Personally I'm happy to keep my cash liquid and have someone else pay the mortgage. If buying a $200,000 only costs me $40k I am a happy guy.
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Sep 19, 2015 03:32
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Ribsauce posted:Good info and good policy. That's a really good policy and good on you for putting it in place. I don't think it gets stressed enough that landlording is a business just like any other. Just like you can't expect to pay your bills late and not incur a fee or penalty you should setup your contract the same way. It lets the tenants know exactly what happens if they fail to meet the terms of living in your home and gives you a policy to point to and follow when they don't.
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Sep 21, 2015 01:03
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Dragyn posted:Ninja edit: we can't even take a pet deposit and the security cannot exceed one month's rent. I ran across someone who mentioned that you should never call it a "Pet Deposit." They said that they charge a "Pet Fee" as an upfront charge and a "Pet Rent" rate of $25 a month per animal. Their argument is that Deposits are refundable but Fees are not. Also that having pets in the home requires a higher level of cleaning so it pays for that service once the person moves out. I don't know if the guy who made the argument had ever been challenged on the wording or not but it might be an avenue you could look into.
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Sep 21, 2015 14:17
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That's fantastic news. Glad to hear you should be able to fill it quickly. On my own front, I've been trying to find a property that will at least cash flow for a couple of months now. So far I've only found 1 that wasn't a total overpriced poo poo hole but someone made a higher offer. Going out again tonight to look at a few more. Fingers crossed.
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Nov 6, 2015 20:13
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Under contract for my first rental property. It's a cute little 2 bed 1 bath and should cash flow about $200-$300 a month. Little terrified at this point since poo poo just got real but excited to finally move beyond the shopping stage. Since I only have a single property, I'm thinking about using rentalutions.com (which is free for a single unit) for my applicant screening, maintenance requests, rent collections, and general property management. Anybody have anything good (or terrible) to say about them?
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Nov 18, 2015 16:48
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As I'm getting close to closing on my first rental I'm interested in resurrecting the talk about advertising available units. I'm in Utah and folks here don't use Craigslist as much as they do a local news classified section. However, the housing section of the classifies is outsourced to a company called Rentler that is trying to be a landlord services company. I'm not too interested in using them for anything other than advertising but I don't know if I'll have that option. So other than craigslist, how else (or where else) do folks advertise an available unit?
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Dec 10, 2015 17:59
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I'm confused by your first post. You gave your landlord notice that you're going to be moving. If you're moving before the lease is up you're still responsible for paying rent until the lease ends. Unless there's some release in the lease agreement you're still on the hook. You might be able to work with the landlord to get an early release or a discount on what you owe but that is at the discretion of the landlord. If you're not breaking the lease and you're moving after the lease is up then there's any number of reasons why the landlord isn't looking for a new tenant but that's their problem and not yours.
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Mar 4, 2016 14:55
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We opted to allow pets and just have a higher than normal rent and deposit. Whether the tenant actually has pets has no bearing on the rent and it avoids the issue of them trying to sneak one in without our knowledge to save money or avoid a no-pet policy. We also came to realize that the number of "service animals" in the world today makes having a no-pet policy really difficult. In Utah, pet rules don't apply to service animals so you're likely to end up with a dog or miniature pony whether you really want one or not.
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Mar 23, 2016 01:03
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Oh god, so much going on right now. I'm in the process of purchasing my second rental unit. Similar to the first, it's a newly remodeled 2-bed 1 bath. I don't know why but the purchase process seems to be going so bad compared to the last one. Every time I turn around some other road block pops up. On top of that, we had a major wind storm rip through our area.. It knocked over part of the POS fence that was in place. I need to replace the fence but there's also a tree that the previous owner built the POS fence around. So $600 to get the tree removed and who knows how much for the new fence. All the tree and fence company's are swamped due to the storm so I'm at least a month out before any work can start. The tenants are still kick rear end though so that makes it better.
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May 6, 2016 19:30
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So after our last attempt at purchasing rental property #2 fell through we've found a winner. Even though this property isn't far from where we live, this time we're going to use a property manager. For those of you who use a property manager (or used one and dumped them for whatever reason) please share with the rest of us your stories and tips/tricks to working with 3rd party management.
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Jul 26, 2016 23:06
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poopinmymouth posted:Haven't used a property manager, but what happened with rental property #2 (the first one)? Can you describe the one you got? Size/cost/rental income/location/etc? anything you feel comfortable with and how you picked it, curious. The one we ended up not getting had some pretty significant sewer issues. To have the sewer line repaired likely would have cost more than $10k but the seller claimed it was fine and wouldn't budge on the price. Too bad cause it was a really cute house in otherwise great condition. The one we're getting close to closing on now is another little 2 bedroom 1 bath. It was built in the late 1800s but the electrical and water systems have been updated recently. What really makes it awesome is that it still has the original 12 foot ceilings. It's pretty small at around 700 sq ft but the high ceilings and very large windows make it feel a whole lot larger. In the town we're working in we're getting properties less than $100k. The one we're working on now we'll get for $68,000. With a few fixes here and there we should be into it for around $71k-$72k. Mortgage is going to run us $344 a month including taxes and insurance and we should get $700-$800 a month for it. The one we have now we bought for $99.5k. Mortgage runs us $470 and we get $850 a month for it. That one was fully renovated and was in great condition. We're buying properties in a town north of Salt Lake City. It's actually really funny because if you ask anyone from Utah about the area they'll claim its a post apocalyptic poo poo hole when in reality it's just a town where the "not white people" live. That being the case there has been a hug influx of young people and companies taking advantage of the low property prices and using the commuter train to get back and forth to Salt Lake. quote:We've decided to try out having a roommate here in our primary residence. We've been renting our guestroom on MrBnB, but ran the numbers and a long term renter would be twice as profitable, and we wouldn't have to clean the room 2-3x a week. To start we have a 3 month contract that either of us can call it quits afterward. I'm mainly not sure how having a permanent roommate is going to change the dynamics of the house, so we want an out should it prove to be too much. I don't know why but I really find the idea of an AirBnB property appealing. The town we're in is less than 30 minutes from 3 good sized ski resorts that are seeing more traffic every year since the major ones near Salt Lake are getting so much more expensive and crowded. Maybe we'll try try to find a condo for our 3rd property and go that route with it.
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Aug 13, 2016 14:19
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BEHOLD: MY CAPE posted:If I were you I would put a lot of thought into how much work an AirBnB property is likely to be compared to long term renters. For sure I will. It's something I'm curious about but I haven't done any real research into. There's certainly decent draws to this town in terms of skiing and the Sundance Film Festival. Looking at the prices of similar houses this time of year (what i would consider the off season), 4-5 nights rental would cover the mortgage for a month. That's ignoring additional expenses like management and utilities, etc. but those are incredibly appealing numbers at first glance.
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Aug 14, 2016 04:15
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So it turns out I have a drug problem with the house across the street that is causing my current tenants an undeserved level of stress. Thin not only dealing but 4 shootings in the last year as well. I'll be talking to the local police department to see about getting one of those mobile camera units setup on the street but I'm also thinking security system with outside cameras. Anybody been in this type if situation and able to resolve it or have any thoughts/experience with security systems/providers?
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Dec 9, 2016 15:13
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I wouldn't have expected requesting information about installing a security system to be such a hot button issue but gently caress me, right? The tenants have a legitimate concern regarding the nature of the neighborhood and the only way I can think of to mitigate the issue is to talk to the police (this is the same town I live in so helping to improve this neighborhood helps me as well) and/or to install a security system. This isn't like they're bitching about noisy neighbors or cars parked in front of their lot. There is a real safety concern that would impact not only these tenants but any future tenant as well. The security system idea is ours and has not been presented to the tenants yet but if I can make them feel more secure and keep them from moving all the better. Also, as TooMuchAbstraction pointed out, even if they do move out I can up-sell the home as coming with a burglary system which would help mitigate some of the neighborhood issues. I'm not looking to "fix" the neighborhood so much as I am looking to let the tenants (current or future) feel secure in the home.
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Dec 9, 2016 19:48
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BEHOLD: MY CAPE posted:Tell them no, you already have a set under prior agreement with your old landlord and you won't be removing them. There's no reason why they would really pursue forcing you to get rid of your W/D before the end of the lease. The only reason I can think of for doing this would be so the new owners can install coin operated units. Even if they wanted to be able to advertise "Washer and Dryer included!" as a way to raise rent, I don't know why you would bother in the middle of a lease. I also can't imagine that they can force a current tenant to remove their own washer and dryer and then hit them with a washer and dryer rental fee without the tenant signing something first. Either way, it's a poo poo move making that kind of change in the middle of a lease, legal or otherwise.
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Jan 13, 2017 02:46
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Has anyone used a turn key company to purchase remote properties? I had a nice hour long chat with someone from Norada Real Estate today and after seeing a decent number of positive reviews on Bigger Pockets I'm thinking of purchasing a property through them. Am I nuts?
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Feb 25, 2017 02:47
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It's the same as any other deal; due diligence, running the numbers, etc. The two rentals we have we got off the local MLS so it's certainly possible to pay retail and still cash flow. We're starting to get priced out of our local market but still want to pickup rentals in other markets. Not sure if there's a better way to do that than using a turnkey company.
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Feb 25, 2017 15:14
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I'm a bit nervous about the current market to be honest. When everyone is dumping investment money into real estate the prices go up, which causes the rents to go up, which causes renters to not be able to afford rents since their pay isn't also increasing and with that you have a real recipe for disaster. Many of these turn key companies are driven by a markets ability to sustain flipping but unless you're looking at a place like Detroit, the number of houses available for that type of transaction are limited and not really growing while the number of people thinking it's quick/easy money is increasing (screw you HGTV). I saw this where we used to live in Utah. When we purchased our first property the bad properties were incredibly cheap but by the time we were looking for a 3rd the prices for a meth contaminated house that had been sitting empty for years was pushing $100k. At those prices there's just no way for landlording to make sense and an owner occupier could do a whole lot better for less than what the rehabber is going to charge to try and make the deal worth pursuing. With that kind of market happening in a small town in Utah I can only imagine what's happening in the more metropolitan areas where owning property was already cost prohibitive.
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Jul 31, 2017 23:12
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Sounds like what you're describing is becoming a private lender. It's done all the time by real estate investors. It's usually called a "Hard Money Loan" and they're really common when a person isn't able to use a bank to purchase a property. I haven't heard the term "Mortgage Trustee" before so maybe there's some specific differences but being a private lender is a perfectly viable way to make money in real estate. I can't really recommend any resources as I've never been on the lending side before but searching for Hard Money Lender should help give you an idea of what you'd be looking at. Or you could go to your local Real Estate Investment Association (REIA) and you should be able to find people with experience on both sides. edit: Private lenders (who actually have the cash to lend and aren't dicking around with small shares through those sites listed before) will charge rates higher than a bank (sometimes 10%+) with much shorter terms (<5 years). Since it's a private loan everything is negotiable. TouchyMcFeely fucked around with this message at 23:40 on Sep 22, 2017 |
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Sep 22, 2017 23:35
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In my attempt to continue to give bad advice, I wouldn't rule out going into business with a partner out of hand. The real question is what do each of you bring to the table and do your strengths compliment each other? As the real estate agent, if he's good at finding deals, do you have the skills/time available to rehab the houses? Or would he be in charge of finding the homes and you would be the manager, etc? The flip side is also true, other than using him as a real estate agent, do you really need him after the purchase is made? What does he bring to the table for you that you lack? For example, I have a guy who is a real estate agent, that I'm friends with, who I use to find properties but we don't partner on ownership. We let him know when we're looking for a property, he lets us know when he's found one, he gets his 3% commission if we buy it and we take it from there. I think partnering can be useful for a variety of reasons but isn't necessary unless there's something lacking that the other person has.
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Sep 23, 2017 17:33
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