Real Estate Property Management

How you manage your property will determine your overall performance as an investor and your ability to generate income or a positive return on your apartment deals. With the right property manager or company, you will immediately see the benefits from both a financial and operations perspective.

An Operational Role

Real estate property management requires a fundamental understanding of basic principles, including managing the facility and physical property, handling tenant requests, and budgeting and financials, in addition to general administrative tasks associated with running a property. For example, knowing how much you can afford to spend on the replacement of kitchen appliances is something that the property manager must be able to figure out. This is an operational role that requires a variety of skills and strategies in order to truly be effective.

Financial Implications

Rental property management companies and individual property managers must know how the operational expenses associated with a specific property will impact the amount of money you receive as an investor. For example, managing vacancy in the property, maximizing occupancy, and setting the right rental rate for your specific budget are all aspects associated with real estate property management.

Learn more about how you can successfully manage a rental property, main your investment, and improve your real estate business. To potentially work with me on one of my apartment syndications as a passive investor, simply complete this form.

The CDC Eviction Moratorium – What You NEED To Know

You may have seen recent headlines referring to an “eviction crisis”: 

The COVID-19 Eviction Crisis: an Estimated 30-40 Million People in America Are at Risk – The Aspen Institute 


Experts fear the end of eviction moratoriums could plunge thousands of people into homelessness – CNBC

President Trump signed an eviction moratorium order that effectively bans evictions nationwide through the end of the year. According to the Centers for Disease Control and Prevention (“CDC”), the moratorium order has been issued to provide housing stability and to prevent the further spread of COVID-19. However, it is important to note that rent is NOT cancelled through the end of the year. Let’s dive into how this order effects landlords and owners of real estate…


According to the moratorium, there are stipulations in order to receive this “eviction protection.”

Those who are eligible must meet additional criteria before presenting their landlords with a declaration, which will be made available on the CDC website. This criteria includes: 

  1. The resident has sought all available government rental assistance
  2. The resident will earn no more than $99,000 in 2020 (or $198,000, if filing jointly)
  3. The resident can’t pay their rent in full due to a substantial loss of income 
  4. The resident is trying to make timely partial payments, to the extent they can afford to do so
  5. The resident would, if evicted, likely end up homeless or forced to live in a shared living situation

What to do if you (the landlord) receives a CDC Declaration from a tenant?


According to Colton Addy from Snell & Wilmer Law, if a landlord receives a CDC Declaration from a tenant, the landlord should respond in writing to the tenant to encourage the tenant to make partial payments of rent (and similar housing-related payments) to the extent the tenant is able, in accordance with the CDC Declaration. Additionally, the landlord’s written correspondence should remind tenants that the rental amounts are not forgiven and will ultimately need to be paid. 


Additionally, many tenants may not be aware of the government assistance programs that are available to tenants to help tenants pay their rent during the COVID-19 Pandemic. Landlords should include a list of available resources that tenants can use to pay their rent. The Department of Housing and Urban Development (HUD) has stated that nonprofits that received Emergency Solutions Grants (ESG) or Community Development Block Grant (CDBG) funds under the CARES Act may use these funds to provide temporary rental assistance to tenants. 


The following websites provide information on federal assistance that is available: 


Additionally, landlords should include other programs that may be applicable in their jurisdiction. Landlords may also consider filing an eviction proceeding for one of the reasons permitted by the CDC Order, but landlords should use caution in pursuing such actions as eviction proceedings in the current climate are likely to draw additional judicial scrutiny.




The penalties for individuals who violate the Order are severe, including:



  • A fine of up to $100,000 and up to one year in jail, if the violation does not result in a death; or
  • A fine of up to $250,000 and up to one year in jail, if the violation results in a death.


The penalties for an organization violating the Order are even more severe.

In summary, the moratorium order provides temporary relief to those residential tenants facing eviction who submit the required declaration, through the end of the year.  The order, however, does not absolve a tenant from paying rent or restrict a landlord from applying penalties, interest, or late fees on the tenant’s account for non-payment of rent.  Additionally, the order does not relieve landlords of their debt service obligations if a tenant seeks relief under the order. 


Disclaimer: The materials contained in this blog post are for educational and informational purposes only. Nothing in this blog post is to be considered as the rendering of legal advice. Readers are advised to obtain legal advice from their own legal counsel. Additionally, please note that the orders and laws related to the COVID-19 Pandemic are changing on a daily basis and your jurisdiction may have stricter rules related to evictions in place. Please verify the rules currently affecting your property at any given time.


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How COVID-19 Has Impacted May Rent Collection for Landlords

COVID-19 has caused a lot of uncertainty for landlords and property managers over the past few months, especially with the recent changes to rent collections and evictions. In an attempt to help tenants who may be struggling financially, many states are beginning to restrict evictions during the pandemic. For landlords, this can be scary as it may translate to less rental income with no ability to evict and find a new tenant.

Changes in rent collection during COVID-19 are expected. However, recent rent collection data shows landlords may not be as impacted as they initially expected.

In fact, data shows that rent collection is down by a few percentage points. While new eviction laws may be scary for landlords, the data shows it is not as bad as it seems.

Here’s what you need to know about COVID-19’s impact on rent collection for landlords:

Rent Collection is Down

Understandably, rent collection has dropped – but this was expected. Going into a recession of any kind means people have less money. Sometimes, this even means missing rent payments.

Luckily, rent collection hasn’t been affected as much compared to previous economic downturns. In fact, as of May 2020, rent collection is only down 1.5% from May 2019.

Better yet is that data shows rent is up over 2% from April of 2020, which also indicates  landlords may not see a massive decrease in rent collections.

As for rent collection percentages, 80.2% of tenants paid rent by the end of week May 6th, 2020. This is only a 1.5% change from the 81.7% of tenants that paid rent by the end of week May 6th, 2019.

Source: National Multifamily Housing Council

Year to date, rent collection is down a total of roughly 3% from 2019, but this is promising. For the time being, the spread of the virus seems to be slowing down. Additionally, steps are being implemented to get the economy rolling again, meaning in the short-term, the worst may be over.

Of course, we don’t know any of that for a fact yet, though. What we do know is rent collection is down only slightly – a good sign for landlords.

Why is Rent Collection Down So Little? Will it Get Worse?

The obvious reason for this is government stimulus checks are finally hitting bank accounts. With many stimulus checks making their way to citizens towards the end of April, it makes sense tenants are able to pay rent.

Of course, as of now this is the only stimulus check confirmed for Americans. There have been talks from President Trump about distributing a second round of stimulus checks, though. The main reason for this is because data shows that 63% of Americans will require a second stimulus check in order to pay bills within the next three months.

Depending on whether the economy reopens, the next few months could prove to be unstable. The good news is many states are ramping up unemployment help efforts, as nearly 15% of the country is unemployed.

With all the federal and state help citizens are receiving as of currently, it is likely rent collections won’t fluctuate too much. Again though, none of this can be said for certain.

Eviction Routines are Changing

Perhaps more important to know than the current rent collection numbers are the change in evictions laws. While not all states have implemented new evictions laws, many states have – and they are important to know.

Take a recent case in Minnesota, for example, where a landlord was charged for evicting a tenant during the pandemic.

States are beginning to require landlords to allow tenants to live in their property even if they cannot pay rent. As of now, there are 15 states which have suspended or changed eviction laws until further notice. Each state’s new eviction suspension is different, so be sure to stay updated on your current state’s eviction laws.

Most states who have changed their eviction laws require landlords to keep tenants in their homes even if they cannot pay rent. New York, for example, declared an eviction and foreclosure moratorium and prohibited late fees for up to 90 days, even allowing tenants to use their security deposits to pay past rent.

Luckily, these changes have clearly not changed rent collection too much – yet. But it is still something that should be prepared for. At the very least, be willing to work with tenants during this difficult time. Even if you are able to evict tenants, finding new ones during this time may not be easy.

Remember – It’s Temporary

Though we don’t know when, the economy will recover. In fact, real estate investments like apartment investing may even come out of the recession stronger than before.

While rent collections have been slightly affected, it’s nothing too concerning as of now. Just be sure to stay on top of your states’ eviction laws and suspensions during the pandemic and prepare accordingly.

For more reading, c to find out what you can do to help “recession-proof” your real estate investments during a recession.






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Tops Ways to Develop Class A Assets & Luxury Rental Properties and Increase Your ROI

Maybe your heart is set on owning an apartment property that is unlike anything you’ve developed before. In the past, you focused on middle-income properties that targeted tenants who valued affordable yet quality housing.

Now, you’re taking things up a notch. Your goal? To develop a Class A asset and luxury rental property—one that will help you to boost your ROI on rental property.

Fortunately, I’ve compiled a guide on the top ways to develop Class A assets and thus watch your bottom line soar in the years ahead.

First, Why Luxury Property?

The prices of luxury properties continue to soar, as this type of real estate remains in high demand—especially along the United States’ coastlines.

In fact, research shows that between 2007 and 2017, the number of people who could afford homes but still preferred to rent properties increased by 175%. In addition, the yearly increase in the number of renting households earning $150,000-plus per year is now faster than that of home-owning households.

For this reason, now is the perfect time to get your feet wet in the growing area of luxury real estate investing. In this area, you’ll cater to high-income tenants looking for first-rate and flexible housing options, and as a result, you can easily boost your ROI on rental property.

What Exactly is a Luxury Rental Property?

Before you attempt to develop a luxury rental property, it’s critical that you understand what constitutes a luxury property in the first place.

The reality is, a hefty price tag is not enough to place a piece of real estate in the “luxury property” category. Instead, along with featuring a high price, the property must be exclusive and unique. In other words, it needs to be highly desirable. After all, wealthy individuals don’t mind paying premium prices for assets perceived as superior.

As a general rule of thumb, your high-end renters want the same types of features that other renters want, just on a bigger scale. They’re looking for beauty, opulent finishes, top-tier amenities, and lots of attention to detail.

Let’s take a peek at a few ways you can increase your ROI on rental property by creating luxury properties for renters.

Customer Services, Like Trash Pickup Services

One way you can make your rental property stand out from the rest is to offer your tenants custom services.

For instance, if you have a maintenance professional, have them pick up your tenants’ trash from their doorsteps two times a week and take them to your property’s dumpster for a monthly fee. This will keep your tenants from having to take the trash out on their own, which will save them time and energy. They’ll love the special treatment they receive through such a service.


Renovating your apartment property is one of the most effective ways of boosting your ROI on rental property. Renovations may include:

Rehabilitating the Entire Building

You could perform a moderate asset rehabilitation, where you rehabilitate your entire apartment building, for example. Any existing residents of the building would have to be displaced for a few months, but they’d return to new heating/cooling systems, flooring, bathrooms, countertops, cabinets, appliances, windows, and even paint.

This approach to renovating your property may cost you around $20,000-plus per unit. But it’ll lead to a beautiful finished product, and as a result, you could very well increase your rent prices anywhere from 50% to 100%. In the end, you can expect to develop a more desirable tenant base in the future.

Rehabilitating Individual Units

Rather than renovating your entire apartment building, you could complete renovations as each lease turns over. For instance, once a tenant vacates a unit, you can add quality finishes to it, such as fresh cabinet faces, faux hardwood flooring, fresh carpet, or new vanities.

These kinds of fixes may put you in a position to increase your rent between 20% and 30%. As a result, this approach is an excellent option if you’d like to increase your ROI on rental property by boosting the property’s value while still maintaining cash flow.

Additional Modifications

To further develop Class A assets, you can offer premium parking to your tenants. These parking spaces would be directly in front of their rental units, and they would pay you to reserve them. This will immediately drive your ROI on rental property up and benefit your bottom line. You could also provide a garage for your tenants to park in, which can increase your ROI as well.

In addition, consider adding light-emitting diode lights to your property’s common areas. These lights will save you money in that they use minimal energy and can easily last you 25 years, thus saving on maintenance costs.

Other Possible Changes

Be sure to install washers and dryers in your rental units. This is one of the best ways to generate revenue at rental properties. In addition, feel free to add a children’s playroom, exercise room, or rooftop deck to further boost your ROI on rental property.

Greenery can also make any living space feel new and fresh. So, try to add new landscaping in the exterior of the building. You can also add plants to apartment balconies or your lobby to add life to these areas.

Your Property Location

Location, location, location—this is another extremely important consideration when you’re trying to increase your ROI on rental property.

When you search for a rental property to turn into a Class A asset, look for a property in a “hot” neighborhood. The best neighborhoods are generally those near high-end shopping, the arts, and dining.

Also, try to locate your property near other luxury properties or near a body of water. For instance, many luxury renters value living at waterfront locations or at least in areas where they can enjoy stunning lake, ocean, or river views. A property with an excellent mountain or countryside view can also be good for your ROI.

Start Developing Class A Assets and Boost Your ROI on Rental Property Today!

If you’re serious about watching your bottom line grow, this summer is a good time to start exploring properties that you can turn into luxury rental properties. The good news is that you don’t have to take on this task all by yourself.

I can guide you through the multifaceted process of transforming properties into top-of-the-line assets. Get in touch with me to learn how you can develop Class A assets and start enjoying new levels of financial freedom.

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Hud Loan Programs for Apartment Syndicators: Everything You Need to Know

Hud Loan Programs for Apartment Syndicators: Everything You Need to Know

Let’s talk about one of the top loan program providers that apartment syndicators use on their deals: Hud.

Hud can be a great option for apartment deals. We’re going to cover each of their common loan programs, including their permanent, refinancing, and supplemental loans.

Loan 1: 223(f)

The first Hud loan, which is the permanent loan, would be the 223(f). This is very similar to agency loans, except for one major difference: processing time. Plus, the loan terms are actually a little bit longer. So for the 223(f), the loan term is going to be lesser of either 35 years or 75% of the remaining economic life. 

So if the property’s economic life is greater than 35 years, then your loan term is actually going to be 35 years. It’ll be fully amortized over that time period. Whatever the loan term is what the amortization rate will be. If you’re dealing with a smaller apartment community under the $1 million purchase price, then this is not going to be the loan for you.

In regards to the LTVs, for the loan-to-values, they will lend up to 83.3% for a market rate property, and they will also lend up to 87% for affordable. So that’s another distinction of the housing and urban development loans, which is they are also used for affordable housing. There will be an occupancy requirement, which is normal for most of these loans. 

The interest rate will be fixed for this loan, and then you will have the ability to include some repair costs by using this loan program. For the 223(f) loan, you can include up to 15% of the value of the property in repair costs or $6500 per unit. If you’re not necessarily doing a minor renovation, but if you’re spending about $6500 per unit overall, then you can include those in the loan.

The pros of this loan are that they have the highest LTV. You can get a loan where you don’t have to put down 20%; you can actually put down less than 20%. It also eliminates the refinance as well as the interest rate risk, because it is a fixed rate loan, and the term can be up to 35 years in length. You won’t have to worry about refinancing or the interest rate going up if something were to happen in the market. 

These loans are non-recourse as well as assumable, which helps with the exit strategy. There’s also no defined financial capability requirements, no geographic restrictions, and no minimum population. There’s essentially no limitation on them giving you a loan for a deal if the market doesn’t have a lot of people living in it or the income is very low. 

There are also some cons involved when considering a Hud loan. The processing time is much longer than some. The time for a contract to close is at a minimum of 120 days to six or nine months is actually common. Other loan providers have processing times between 60 and 90 days. Hud loans take a little bit longer to process. They also come with higher fees, mortgage insurance premiums, and annual operating statement audits.

Loan 2: 221(d)(4)

The next Hud loan is 221(d)(4). These are for properties that you either want to build or substantially renovate. 

Similar to the 223(f) loan, these loans do have very long terms. The length of the loan will be however long the construction period is, plus an additional 40 years. That is fully amortized. 

This isn’t the loan for smaller deals, because the minimum loan size is going to be $5 million. So if you have a deal that you want to renovate and has got a $1 million purchase price, you’re going to have to look at some other options. 

Similarly, this is for market-rate properties as well as affordable properties, with the same LTVs of 83.3% and 87% respectively. These loans are also assumable and non-recourse as well as fixed interest with interest-only payments during the construction period.

The CapEx requirements for this loan are quite different than the 223(f). For the 223(f), it was up to 15% or up to $6500 per unit, whereas for the 221(d)(4) loan actually needs to be greater than 15% of the property value or greater than $6500 per unit. 

The 221(d)(4) pros and cons are pretty similar to the 223(f) pros and cons. There’s the elimination of the refinance and interest rate risk, because of that fixed rate in a term of up to 40 years. They’re also higher leveraged than your traditional sources. Those longer processing time and closing times can be a pain. There’s going to be higher fees, and you also have those annual operating audits and inspections.

Loan 3: 223(a)(7)

Hud also offers refinance loans as well as supplemental loans for their loan programs. Their refinance loan is called the 223(a)(7).

If you’ve secured the 223(f) loan or you’ve secured a 221(d)(4) loan, you’re able to secure this refinance loan, and it has to be one of those two. You can’t go from a private bridge loan to this refinance loan– that’s not how it works.

The loan term for the refinance loan is up to 12 years beyond the remaining term, but not to exceed the term. If your initial term was 40 years and you refinanced at 30 years, then this refinance loan will only be 10 years, because it can’t be greater than 40 years. 

It will be either the lesser of the original principal amount from your first loan, or a debt service coverage ratio of 1.11 or 100% of the eligible transaction costs. These loans are also fully amortized. The occupancy requirements are going to be the same as the existing terms for the previous loan. These are also going to be assumable and non-recourse with that fixed interest rate.

Loan 4: 241(a)

Hud also has a supplemental loan program available, which is the 241(a). This is only probable if you’ve secured the 221(d)(4) or 223(f). 

The loan term is coterminous with the first loan. Whenever you acquire it, it’s just going to be the length of the remaining loan. You’re essentially just adding $1 million or $5 million to your existing loan. 

Your loan size can be up to 90% of the cost of the property, so essentially a 90% LTV, because you need to have at least 10% of equity in the property at all times. It’s going to be fully amortized. 

They’re also going to base the loan size on the debt service coverage ratio. Because of this, it needs to be 1.45. That’s a ratio of the net operating income to the debt service. Then, the minimum occupancy requirements are going to be the same as whatever the terms are for your existing loan. Like all the loans, they’re assumable, they are non-recourse, and the interest rate is fixed.

And that’s it for Hud loans! What do you think about taking out loans through Hud for real estate purposes? Tell us what you think in the comments below!

Image Courtesy of Pixabay

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Navigating the Mechanics of an Apartment Deal

Navigating the Mechanics of an Apartment Deal

From the types of roof, electrical wiring, heating and cooling to the parking lot condition, windows and hot water heaters there are alot of checklist items to consider when negotiating your apartment deal.

Nathan Tabor shares his insight into some of the the nitty gritty so you won’t be left in the lurch after closing. Read on to find out what you may not have been thinking about for your ideal setup.


Check for city complaints

How do you know if the plumbing is alright? Or the electrical connections are okay?

“So the number one thing on top of my list that I do first when I start due diligence is to go to the housing authority or whoever is writing city complaints and get the last two years’ worth of city complaints. The reason why – I got burned on this.” says Nathan Tabor.

This will give you a general idea as to what issues you’ll be facing. From the housing complaints, you can determine what else is probably wrong with property revealing any expenses you will incur so you can factor them into your deal.


Thinking about the roof

The type of roof you have not only impacts your installation and maintenance costs, but plays a part in insurance costs as well.

Let’s look at pitched vs flat roofs. A flat roof is cheaper to install but that’s about as far as the benefits go. A pitched roof has a longer life span and has a more appealing appearance while flat roofs have an institutional vibe. You see a flat roof and the first thing you’re thinking about is a medical facility as opposed to something that feels like home.

Usually, flat roofs cost more to insure because they’re not going to last for very long and also have a greater chance of developing leaks. Not to mention the host of other problems a leaky roof would present in your apartment building.

Nathan on flat roofs: “…[With flat roofs] you’ve gotta climb up there often, make sure that the drains are unstopped… Depending on where you are in the South, flat roofs just make your electrical bills more, because in the summer it’s hotter, and in the winter you don’t get the sun.”


Look out for fire hydrants and mailboxes

Nathan sheds light on some other hidden costs:

“Do you know who owns the fire hydrants on the complex you’re getting ready to buy?”

Most folks would never think of this until there’s a gigantic puddle next to the fire hydrant. Sure, you can call the fire department to come over and fix it, but since it’s on private property you could be on the hook for a surprise $6,000 expense.

Nathan on multi-unit aluminum mailboxes: “I just thought hey, it’s stamped on the side of it “Property of the USPS”, they maintain it. Guess what they don’t do? They don’t maintain them.”

When Nathan looked into the replacement cost of a 4’x4’ mailbox seven years ago it was…wait for it…$1,800.


Water metering

Having one meter on a multi-unit complex means you’re footing the bill for your tenants no matter who is taking 20-minute showers, outside washing their cars or letting their faucets run. Having individually metered units means you can bill your tenants individually holding them responsible for their own water needs. If you’re looking at buying a complex with a single meter find out the the average cost of the total water bill. Then weigh the cost of conversion and savings over time to help you decide which route you want to take.

What does your due diligence look like? Let us know in the comments.


Image courtesy of Pixabay

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Property Development or Fix-and-Flip Deals: Which is Better for Your Strategy?

You’re ready to make money in real estate and watch your bank account grow to new levels. But how? Should you focus on building new construction or on rehabbing existing properties?


The truth is, property development can be an extremely lucrative option if you’re presented with the right market and the right opportunity. And it’s a great way to generate equity as well. Fix-and-flip real estate can also be a good way to go if you’re looking to make a significant return on your investment.


So, which is better for your strategy? The answer isn’t black and white, as it ultimately depends on a number of factors, including your personal goals and your industry experience. These strategies are different, so we’ll take an in-depth look at both below. But the reality is that both real estate development and a fix and flip business plan offer great promise if you know what properties to look for.

A Glimpse at Property Development

In years past, people treated real estate development like a niche career field. Only people with robust real estate experience and cash reserves were active players in this industry. However, in today’s world, property development is becoming increasingly popular due to current efforts to gentrify neighborhoods, improve the stock of housing, and promote urban consolidation.


Of course, this field does carry a great deal of risk, but it can also be rewarding for those who have development and construction experience—if you pursue opportunities in a hot market.


It’s also a viable option if you’re willing to overcome the learning curve associated with developing your own project. By the same token, it’s a good move if you find it easier to build something from the ground up versus working with an existing property. You’ve got to have patience, though, as developing properties takes time.

Growing Markets for Development

Desirable areas in large cities can often be good places to target for property development. That’s because the demand for brand-new homes—especially apartments—and their supporting infrastructure in these areas is continuous. Co-living accommodation is an especially growing trend, where people live in communities that are supportive instead of in isolated homes. So, smart developers in the years ahead will jump on it.

Funding for Development

A perk of going the development route is that, if you’re working with a traditional lender who is relatively conservative, you may find it easier to secure financing than you would for a flip. You can get great terms if your development prospect happens to be very good. Part of the reason why conservative lenders like development is that new development usually features fewer unknowns compared with flipping. Plus, the returns can be easier to predict with new development versus fixing and flipping a property.

Funding Future Investments

Let’s say you choose to treat your development like a long-term real estate investment. The value of the investment will keep increasing over time. Then, you can use it to fund other projects down the road.


What’s especially great about this strategy is that it offers you some “insurance” in the event that the market experiences a shift at some point. That’s because you can hold onto your properties and then simply rent these properties out to generate cash flow until it’s a good time to sell them.

A Glimpse at Fix-and-Flip Deals

What’s great about a fix and flip business plan is that you can make a profit relatively quickly compared with developing a property. In fact, it’s not impossible to earn significant returns in just a few months.


However, it’s critical that you do market research prior to buying a property to flip. Looking at homes that have sold recently should provide you with a glimpse at what buyers are searching for in an area. For instance, although modern designs might be in demand in certain areas, traditional designs may be big winners elsewhere.

Personal Development during Fix-and-Flip Deals

Another reason to choose a fix and flip business plan over property development? Fix-and-flip deals are generally a great way to get your feet wet in real estate investing if you don’t have much of a background in this industry.

What You’ll Learn

During these types of deals, you’ll learn firsthand about budgeting for unanticipated costs, like holding costs if you cannot sell your fix-and-flip property as rapidly as initially expected. Other unexpected costs may include those related to contractor disputes, material delivery delays, construction delays, and building permits.


In addition, you’ll learn about real estate in general. This may include learning about how foreclosures or short sales work, for example. You’ll also learn about the different financing options that are available to investors like you. Yet another skill you’ll have an opportunity to hone is negotiation, as you’ll be doing a lot of negotiating to get the best deals on properties and materials.

Boost Your Network Both Development and Fix-and-Flip Deals

A common benefit of both property development and a fix and flip business plan is that you can grow your real estate network relationships like never before. That’s because you’ll develop many new contacts, such as other investors, insurance brokers, building inspectors, contractors, attorneys, and real estate agents. All of these contacts may prove helpful for future investments.

Start Making Money through Property Development or Fix-and-Flip Deals Today!

If you’d like to increase your earnings this year, you can’t go wrong with developing properties or flipping houses. The challenge you could face, of course, may be how to find the right properties and approach transactions involving development and flipping.

The great news is that you do not have to figure it all out on your own. Get in touch with me, Joe Fairless, to find out more about the unique benefits of property development and fix-and-flip deals. I may be able to help you build your investment strategy; acquire the resources you need to make it a success; and capitalize on it, full speed ahead.


Are you a newbie or a seasoned investor who wants to take their real estate investing to the next level? The 10-Week Apartment Syndication Mastery Program is for you. Joe Fairless and Trevor McGregor are ready to pull back the curtain to show you how to get into the game of apartment syndication. Click here to learn how to get started today.

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The Pros of Finding Private Investors vs Investment Property Loans

You’ve got the passion and the business sense you need to flourish in the competitive real estate market, but do you have a healthy bank account to go with it?


If you could use some outside funds to help you to kick start your real estate investing business, there’s good news. The lending market for commercial real estate was robust last year, despite increased trade tensions coupled with volatility in the financial markets. So, there’s promise that it will fare well this year, too.


The question that remains, though, is, should you seek funding from a private investor or should you stick with real estate investment loans from the bank? The reality is that choosing to find private investors offers several advantages over seeking out traditional bank loans. Let’s take a look at a few of them.


This is one of the major benefits of choosing private investors. The grim reality is that banks usually have requirements for credit scores, down payments, and income verification that are very rigid. You’ll basically need a credit score that is near perfect, a financial history that is squeaky clean, and an explanation of your outgoing and incoming funds.


Other documents you’ll need when seeking investment property loans from a bank include 1099 or W2 forms, bank statements, personal financial statements, profit/loss statements, and tax records. And there’s more. Be prepared to submit paycheck stubs, records of your existing mortgage payments, and a list of your current assets and debts. If what you look like on paper doesn’t match what the bank is looking for, you likely won’t get the loan you need.


Private investors you find as you network, on the other hand, are more interested in your track record of finding and making great deals and the proposed asset’s value. You get to know them on a personal level and will likely work with them over and over. These kinds of working relationships provide you with some flexibility based on trust.


In addition to being inflexible, banks usually have lengthy approval processes. With a bank, you may not secure cash for a whopping 90 days. That’s because gathering all of the abovementioned documents takes time and can be challenging. In addition, the paperwork itself can be extensive and you’ve got several levels you have to clear.


Meanwhile, with capital from a private lender, the process of qualifying for funding is less complicated and thus less time-consuming. Instead of having to clear multiple levels and deal with an annoying middle man, you’ll be dealing with your lender directly. And this lender raises and controls all of the funds and makes its decisions in-house.


As a result, you won’t see your approval times dragging on for several weeks. Instead, your private lender will work with you directly and will simply assess your particular project to see if you qualify for the hard money loan you need. Same-day approvals are not uncommon, so you can easily expect your funding within one week.


If you decide to find private investors, you’ll quickly learn that you’ll have much more liberty to develop a repayment plan that is based on ROI. With large financial institutions, this freedom simply doesn’t exist. Instead, you’ll have no choice but to accept the bank’s payment terms. You might be able to make some adjustments, but more often than not, you’ll have to abide by the bank’s established payment structure. And to make matters worse, you may face hefty pre-payment penalties.


Once you find investors with whom you’d like to work, you’ll simply start discussing with them your financial need. Then, you’ll work toward a mutually satisfactory plan in which you each receive a portion of the monthly rent (if you invest in a rental) and the final sales price. You can easily come to your own terms since no established lending requirements typically exist.

Cost Benefits

When you choose to find private investors, you’re essentially choosing to save money in closing costs and fees. That’s because bank investment property loans tend to be more costly in these areas.


You will also not end up shelling out thousands in interest rates if you work with investors. Many banking institutions demand application fees upfront, even before you are approved. In addition, rates and terms may vary significantly. Still, banks often offer fixed rates and lower interest rates that you can repay over a certain number of years if you’re actually able to secure funding. If your loan terms are fluctuating, or adjustable, you may end up with higher payments over time.

Find Private Investors and Start Investing in Real Estate Today!

If you’re ready to take the plunge into real estate investing, now couldn’t be a better time to try to find private investors. They’ll help you to get started on your real estate investing career without the hassle you’ll experience with big banks.


Understandably, though, knowing where to start when it comes to finding the right lender can be challenging. As with any type of loan, it’s critical that you understanding your investment property loan terms as well as the impact it will have on your financial health. This is where doing your due diligence in researching your various lending options comes in. That’s the only way you’ll get the best deal available to you right now.


Get in touch with me, Joe Fairless, to find out more about how to find private investors and kick your real estate business into gear.

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4 Ways to Partner with a Property Management Company on Your First Apartment Syndication Deal

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The major challenge first-time apartment syndicators face when pursuing a deal is a lack of credibility. They’ve never done a deal before and don’t have a proven track record. To put it lightly, being taken seriously by real estate brokers, apartment owners and passive investors isn’t a guarantee.


However, there are many ways to portray yourself as a credible syndicator who is capable of closing on the deal. For example, a long-term strategy is to create a thought leadership platform. But if you find a deal before you’ve established a thought leadership platform, a faster technique is to find and partner with a property management company. By partnering with a property management company, the you can leverage the management company’s experience in order to establish credibility with the seller, the lender, and your private money investors.


Based on my syndication experience, there are four distinct ways a first-time syndicator can partner with an established property management company.


Method #1 – Sign the Loan


The first way to partner with a property management company is to have them sign on the loan. As a result, they will become a general partner in the deal.


This is ideal if the syndicator doesn’t personally have the liquidity or net worth to qualify with a commercial lender. By having the property management company’s signature, the syndicator can leverage their liquidity to be approved for a loan.


To compensate the property management company, the syndicator can offer a one-time fee of 0.25% to 2% of the loan balance paid at closing, or offer a general partnership ownership interest, or a combination of the two.


Method #2 – Invest in Deal


Another way is to have a property management company invest in the deal and as a result, become limited partners. For this method, they will have the same compensation structure as your passive investors.


Method #3 – Bring on Investors


A third way is to have the property management company invest in the deal and/or bring in their own investors. The extra benefit of following this method is that it adds another layer of credibility (i.e. the property management company’s investors) and it adds another level of alignment of interests since the property management company and their investors have their own skin in the game.


Similar to method #2, they will have the same compensation structure as your passive investors.


Method #4 – Ownership Interest


The final way that a syndicator can partner with a property management company is to exchange the property management fee for ownership interest in the general partnership.


The benefits of this method are three-fold. First, it establishes credibility right out of the gate for all parties, as the experience property management company is part of the general partnership. Two, the first-time syndicator can leverage the property management company’s liquidity or net worth to qualify for the loan. And three, since the property management company will likely bring in their own money and/or their investor’s money, it decreases the amount of money the syndicator must raise.


Are There Any Downsides?


The downside of bringing on a property management company as a general partner is that they and the syndicator are essentially married. Therefore, if the management company falls off the face of the earth, completely forsakes the property, or they turn out to be bad people, the syndicator is going to have a very messy divorce. If this happens, the syndicator will have to buy them out in some form or fashion.


If you decide to follow any of the four methods, in order to mitigate your risk, you need to make sure that you have proper clauses in the contract that stipulates a buyout process. Also, you have to be careful about who you select as a property management company. (See All You Need to Know About Building a Solid Real Estate Team)


From personal experiences, I believe the benefits of partnering with a property management company outweigh the potential downsides, as long as you’ve planned for them in advance. I have successfully overcome the challenges mentioned earlier (i.e. lacking in credibility and/or liquidity/net worth) by partnering with property management companies on past deals using all four of the methods described above.



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Best Ever Success Habit of the Nation’s #1 Landlord Aid

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Linda Libertore, who created the number one tenant communication and payment assistant company in the nation that supports over 1,000 landlords, is one of many speakers who will be presenting at the 1st annual Best Real Estate Investing Advice Ever Conference in Denver, CO February 24th to 25th.


I interviewed Linda on my podcast mid last year and she provided her Best Ever Advice, which is a sneak preview of the information she will be presenting at the conference. The main, practical takeaway I had from our conversation was find something, a habit, technique, etc., that needs to be done to further your success and do it on a daily basis.


Linda attributes much of her success to being a big “daily person.” In other words, she is always looking for specific activities that will bring or has brought her tangible success. When she discovers one, she exploits that success habit by doing it on a daily basis. Not on odd days or even days only, and not weekly or monthly, but she makes the commitment to doing it daily.


When Linda first began her tenant communication and payment assistant company, she was starting from scratch. The only real estate experience she had was obtaining a real estate license, so she did not have many connections with landlords. The only way she could expand her business was by conducting everyone’s favorite activity – cold calling. Being a “daily person” and understanding the power of consistent and persistent activity, she committed to making a certain number of cold calls every single day, no matter what. Linda knew that if she wanted to create a large, successful business, she couldn’t give up in the face of rejection or even miss a single day.


Another habit that Linda commits to daily is widening her education of the real estate industry. She is involved in eight local real estate associations. In order to add value to those meetings and not just sit silently, she must perform research prior to attending meetings and remain dedicated to her self-taught education. And with eight meetings to attend every month, she has committed to conducting some from of research or self-education every day in order to continuously have information she can provide to others.


Education and cold calling are just two of many examples of success habits you can introduce to your daily routine. Reading, journaling, running numbers on deals, or creating posts on BiggerPockets are a few other examples of success habits that you can implement daily, but your options are basically limitless. Once you find an activity, habit, exercise, etc. that furthers your real estate success and brings you tangible benefits, exploit that activity by performing it each and every day, no matter what.


What are some of your daily habits that have furthered your real estate success?



Want to learn other real estate professional success habits, as well as a wide range of other real estate niches? Attend the 1st Annual Best Ever Conference February 24-25 in Denver, CO. It’s the only real estate investing conference whose content and speakers are curated based on the expressed needs of the audience. Visit to learn more!



Related: Best Ever Speak Brie Schmidt Sneak Peek How to Avoid the Shiny Object Syndrome in Real Estate Investor


Related: Best Ever Speaker Kevin Bupp Sneak Peek Lessons Learned From Losing Everything During the Financial Crash


Related: Best Ever Speaker Theresa Bradley-Banta Sneak Peek Don’t Invest in Real Estate on Unfounded Optimism and Emotions

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How to Create the Ultimate Tenant Experience

“If you go above and beyond, so will your bank account” is the mantra of Susan Colwell, who has spent 5 years of managing two successful vacation rental companies. In our recent conversation, she provided her best ever tactics on how to give yourself an advantage over the competition. While this advice was provided in the context of vacation rentals, one can easily tweak these techniques and apply them to almost any aspect of real estate investing.


Professional Photography


The main tactic Susan attributes to her success is taking the hotel or resort experience and applying it to her rental portfolio. And the best way to emulate that experience is to hire a professional photographer to take amazing pictures for all of your listings. Photos are the first windows a potential tenant is going to look through to see what you have to offer. Therefore, you don’t want low quality iPhone photos, or worse, junk in your shots. Rather, you want to portray a 5-star experience, even if you have a modest property. That means your property must be immaculately clean, well lit, and inviting, which you bring together with a great photographer that captures it all and conveys that feeling to the tenant.


Before preparing a listing, Susan will go on various hotel websites, browse through the pictures of the highest quality rooms being offered, and model her pictures after that. Typically, it is as simple as getting some nice fluffy pillows for the bed and furniture, making sure nothing is wrinkled or cluttered, among other small additions, which makes everything in the unit look pristine. All of this ties into the aspirational aspect of vacations. Tenants aren’t just looking for a place to rent. They are looking for the entire luxurious experience.



Provide Phenomenal Customer Service


The next area of focus is backing up the experience you’ve promised from your amazing photos with phenomenal customer service. Susan has an amazing assistant, and between the two, their top priority is to make sure that the tenants are taken care of. Their service starts before the tenant even arrives, because they work towards anticipating specific needs before they occur. For example, Susan provides all of her tenants with a list of local amenities, like food delivery services and nearby restaurants, shops, parking locations, etc. Or, if a property has a unique feature, (one of Susan’s properties has a steep spiral staircase) she discloses that information upfront so that there are not any surprises. Essentially, she offers a service that is similar to what a hotel concierge service provides and is completely truthful and transparent about the features of the property.


It is also important to anticipate a game plan for when things go wrong, because in real estate, unforeseen issues are almost a given (A/C breaks down, minor flooding, clogged toilets, etc.). Since you know that these types of things will happen, how you deal with them is key. For Susan, when an “expected” unexpected issue arises, depending on the severity, she will give the tenant money to get dinner or will provide a discount. However, at the very least, you must commit to answering any problems – or questions – as soon as possible. It helps to identify with their frustrations by putting yourself in their shoes. Ask yourself, “If I were renting a property and the toilet goes out, what type of response would you want?”


As the owner, it is about understanding the frustration and easing the pain as quickly as possible. If you’ve followed the “professional photography” advice and are selling a high quality experience, you don’t want people to think that you did a bait and switch. You really have to follow up on that amazing experience that matches the amazing photos that you put out there.





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Best Ever Success Habit of the Nation’s #1 Landlord Helper


In my conversation with Linda Liberatore, who created the number one tenant communication and payment assistant company in the nation that supports over 1,000 landlords, she provided me with her Best Ever success habit: find something that needs to be done to further your success and do it on a daily basis.


Linda can attributed much of her success to being a big “daily person.” If she finds a specific activity that brings her tangible success, she exploits it by doing it daily. Not on odd days or even days only, but she makes the commitment to doing it daily.


When Linda first began her tenant communication and payment assistant company, she was starting from scratch. She had previously obtained her real estate license, but did not have many connections with landlords. Therefore, the only way she could expand her business was by conducting everyone’s favorite activity – cold calling. Being a “daily person” and understanding the power of consistent activity, she committed to making a certain number of cold calls every single day, no matter what. Linda knew that if she wanted to create a large, successful business, she couldn’t give up and miss a day.


Another habit that Linda commits to daily is her education of the real estate industry. She is apart of 8 real estate associations locally. In order to add value to those meetings, she must perform research and self-education. And with 8 meetings to attend every month, she has committed to gaining knowledge every day to always have information she can provide to others.


Education and cold calling are just two of many examples of success habits you can instill to you daily routine. Reading, journaling, running numbers on deals, creating posts on BiggerPockets are a few other examples of success habits that you can implement daily, but the options are basically limitless. Once you find an activity, habit, exercise, etc. that furthers your real estate success, exploit that activity by performing it each and every day, no matter what.


What are some of your daily habits that have furthered your real estate success?


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Awesome Resident Recognition Ideas

Recently I was brainstorming ways to recognize my residents of a large apartment community. I want to let them know we value their role in our community and appreciate everything they do.  That’s the human objective. The business objective is to develop more of a sense of community and goodwill which in turn will lower turnover and increase the NOI. 

My criteria:

  • No rent concessions
  • Costs $5 or less per resident
  • Minimal coordination required to pull off

For the brainstorm process, I posted on to get some ideas from other landlords. (view post here).

I got a ton of great responses, some of the highlights:

A community garden

  • While this takes a bit more time to create (breaks one of my rules above) I love the idea because I could buy in bulk from a local flower shop (helps them get more biz), it would make the property look nicer and could lower turnover because residents who garden want to stay. Plus, it strengthens the community since the residents will likely interact with each other more as a result of the garden

Five crispy dollar bills with a note that says “High Five! Thank you for making 123 Elm St. Apartments Your Home. We really do appreciate you.”

A handwritten thank you card

Some other ideas I had:

Portrait of Family Drawn by Artist

  • You could go on and get that for $5. This is more involved as I’d need to get a picture of them. However, I like how it lasts a long time and is something they might treasure

Give everyone a $1 scratch-off lottery ticket with a nice note

Give everyone a cutting board (or something else that helps keep property looking nice)

  • If they have a cutting board they’d be less likely to cut on the counter top therefore our countertops would last longer

Partner with a local restaurant to offer free or discounted food


I’m going to be implementing something in the next couple months and will report back on how it goes.








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3 Rental Ad MUSTS

If you’re a landlord finding tenants, there are only three things you need to include in your ad to create a successful real estate ad. I define success by potential tenant taking the action you desire.

And, if you follow my stuff, you’ll know that I ALWAYS use a property mgmt company so this info is based on my experience working with them and doing some first-hand testing for my latest acquisition (a 168-unit apt community).

Here we go:

Big, beautiful pictures – think you’ve got more than enough in the ad already? Add 5 more. Seriously, pictures are the key. A good online program my management company uses is It’s a free online service gives you design templates so you just plug in copy and pics and you’ve got a nice looking online flyer in minutes. I have zero design skills so this was a godsend when I came across it.

Contact info stated multiple times in multiple ways. This is your call-to-action and needs to be stated multiple times. Make sure to give the address, email address and phone number. Everyone likes to communicate in different ways so you’ll want to give them all three options.

Include legitimate scarcity or urgency. If you have an apartment building and only have one 2-bedroom left then say it. People want what others have deemed as valuable. If you have a move-in special program then end it on a holiday weekend so you can have a definitive deadline for the potential tenant.

Go ahead and try this approach. Let me know how these ads do compared to your normal ones. If it’s anything like my properties, you’ll be pleased with the results.

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Joe Fairless