Tag Archives: property management

Ep. 53 – Ken McElroy: Tips on Investing in Multi-Family Property

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ken-mcelroy-1Investing in multi-family property has its definite upsides. Investors who have considered multi-family investing know that it is an intimidating process: the stakes are much higher. Our guest this week has made calculated investments in multi-family properties…and it’s paid off big.

Ken McElroy may be the expert on investing in multi-family property. As founding partner of MC Companies, Ken oversees day-to-day operations of a nearly 10,000-unit portfolio of multi-family properties. With over 20 years experience in the field, Ken covers the key tips on investing in multi-family property.

  1. What to Know About Multi-Family
    1. Bigger is better
      1. Higher return rate than single-family
      2. Easier to finance
      3. Enables support staffing
      4. Does not require as many deals as single-family
    2. Requires long-term investing
      1. Unlike “flipping” single-family properties
    3. Familiar market landscape
      1. Single-family investors will recognize the similar processes in terms of due-diligence, lending and raising capital
    4. Multi-family debt market options
      1. Ken advises agency debt options for financing such as FANNIE MAE
        1. Tedious underwriting, but offers favorable rates and pricing
        2. Non-recourse
        3. Supplemental pieces available (not forced to sell existing properties before purchasing new ones)
        4. Not taxable
  2. Advice to Investors
    1. Due-diligence is key
      1. Track upcoming cities and neighborhoods
      2. Follow market trends and economic trends
      3. Tailor search for specific markets (e.g. retirees, single-family homeowners, renters)
    2. Real estate is cyclical
      1. Look to where the market is heading not where it is at present
    3. Good property management is a must for multi-family
      1. Use local, knowledgeable, responsive PM firms
    4. Finding deals
      1. Look for properties that are mismanaged
        1. Mismanaged properties may be holding unrealized “value-add potential”
      2. Stay focused on specific areas
        1. Do not expand to quickly or invest in remote locations
      3. National and local brokerage firms, in-house acquisition teams good resources for finding deals

More about Ken:

Ken is the author of The ABCs of Real Estate Investing as well as several other books covering all aspects of investing in multi-family property and property management.

He has also partnered with Robert Kiyosaki, author of Rich Dad Poor Dad and serves as an adviser for Rich Dad

To find out more about Ken or MC Companies, visit their website – www.mccompanies.com

To find out more about Ken’s books or other informational resources he offers check out his website – www.kenmcelroy.com

 

 

 

Ten Suggestions for Landlords and Managers of Residential Properties – Josh Diggs

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Headshot_JoshOkay. So you have made the leap and acquired a real estate investment asset to begin your portfolio. The next step, managing the property, is a recurring problem that arises for many investors. Real estate needs to be managed. A poorly managed property is a strain on any investor’s time and finances.

Josh Diggs, of Palm Capital Partners of Tampa, shares with us 10 tips for successful and effective property management. With years of experience in owning and managing investment real estate, Josh has crafted the essential shortlist to property management. His 10 tips cover all the points landlords and managers need to know about residential property management.

  1. Due diligence on tenants
    1. Background checks, credit checks
  2. Don’t make exceptions on tenant-screening policies
  3. Don’t buy used appliances
    1. Repair costs on used appliances total more than purchasing new
    2. It is better and more cost-effective to purchase new appliances w/ warranties
  4. Condition forms
    1. Have tenants complete and sign formal acknowledgments of unit conditions upon move-in
  5. Be cautious hiring sub-contractors
    1. Cheap ones may be appealing but service is unreliable/faulty
    2. Referrals and word-of-mouth are best vehicles for finding reliable sub-contractors
  6. Bed tenants mean bad communities
    1. If existing tenants are bad influence on community, remove them
  7. Complete regular property inspections
    1. A/C, smoke alarms, etc.
  8. Always deal with tenant directly
    1. Don’t allow friends or family of tenant to intervene in matters involving the property
  9. Maintain timely property maintenance
    1. Waiting on necessary replacements and repairs may have serious long-term consequences
  10. Always be professional
    1. Regardless of situation, never allow personal matters to affect business

Josh’s company Palm Capital Partners, LLC is always looking for new investment opportunities. They are mainly interested in B+C multi-family properties.

If you have any questions on investing in the Tampa area or have a property you wish to sell you can contact Palm Capital Partners at 888-805-9317

or you can contact Josh directly at 727-859-6510

Ep 33 – Atty John McMillan Talks Florida Evictions and Protected Classes

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For residential investors and property owners, especially those who wish to remain hands-off owners, assuming the role of landlord can be costly and strenuous for those unfamiliar with the practice of it. This is often made more difficult when undergoing tenant evictions. Confronting the near labyrinthine due process of law during evictions suits can prove a daunting task for even the most seasoned landlords.

Attorney John McMillan stops by this week to discuss evictions processes in residential real estate bayline-coverproperties and covers things to know in order to be a confident and successful property owner. With nearly 40 years of experience representing landlords, he brings with him insightful and educational resources to provide investors and owners with the knowledge and capabilities of being competent landlords. He provides the know-how to properly manage your properties and tenants, especially when handling evictions.

 

  • Florida evictions typically reached in 4-5 weeks
    • $15k properties filed in County Civil (most residential)
    • $15k or over properties filed in Circuit Civil
  • Costs of evictions
    • Filing fee – $198 + $10 for each addtl tenant
    • Svc. of Process – $45/ tenant
    • Atty. fees between $150-500
    • Extra costs for hearings and writs of possession
  • Know your rights as a landlord
    • Know service of process for evictions
    • No limit on lease length
      • longer than 1yr, leases must be subscribed under landlord by 2 witnesses
      • leases under 6 mths. subjected to sales tax in FL
  • Well-written leases are key
    • Thorough
    • Plain-English…you and your tenant should know and understand what is in the lease
    • Address potential issues in lease
  • Know your tenants’ rights
    • Fair Debt Collection Act
    • Fair Housing Act
      • Cannot discriminate against race, color, religion, sex, national origin, handicap, familial status (Protected Classes)
      • County specific classes added: Hillsborough County – age, sexual orientation, sexual identity and marital status
      • Federally-subsidized housing (Sect. 8)

For more information about landlord rights and eviction processes, contact John’s office here or by calling 813-988-5135

For lease templates and information on required language contact John directly at John@JohneMcMillan.com