US Real Estate Investment Tips # 2

Good friends
Continues to tell about success and what do we call it… failure? Maybe an obstacle? Maybe a slap… Anyway a true story even quite fresh.

First story

We have been buying private homes in Detroit for two years now for us and for investors, after all the years before we were only in satellite cities.
About a year ago you meet another management company that makes an excellent impression, someone knows the owners, offices, employees, a huge team, 2000 Properties.
We buy 15 properties from them last August, and start dealing with them.
Within a week of starting management, it turned out to be not one company, but two partners with 2 companies, which, in fact, we knew had almost nothing in the office,
No asset management capabilities, no staff, no office and no assets. Only our 15 properties.
The presentation of collection was a lie,
Took money of rentals of 15 houses and disappeared.
It turns out he's a very sought-after figure among law enforcement officials in Michigan, Florida and more.
The damage was enormous. First of all, 15 is unmanaged bytes. Tenants call the management company, as if a management company, there is no answer. Untapped problems, and of course tenants are not willing to pay rent.
We immediately entered the thick of the beam. We flew to Detroit.
We immediately transferred 15 assets to a management company with which we have been working for a long time. .
We sent letters to the tenants, we explained, we put letters on the doors, and slowly tenants realized that there were new owners and a real management company and started late, paying rent.
Our investors were very stressed and some were also upset. We paid our August rental out of pocket and made sure the tenants would pay even if late in September.
We have stabilized the situation, the tenants are responding, paying rent and slowly the situation is leveling.

A second story

Another management company we work with in the suburbs.
The media is everyday. They manage us almost 90 properties already in 4 years.
When the holiday arrives they receive beautiful deliveries of flowers, flowers, sweets, etc.
When I am with them on the phone (every day) there is a lot of caring concern and a desire to succeed.
The relationship is social, and of course we are both business owners. We are still checking them, arguing and asking them to dig up. For us.
But we have a wonderful, reliable and professional team that handles our properties.
It is much more than a business relationship.
In August we went with them for two days to North Michigan to the lakes, we were together in the cottage, we walked, and we enjoyed ourselves.

What have we learned?

1. When you contact a local party, you should thoroughly check its background, all its information on the Internet, customer ratings,
You will come to their offices, meet the staff, ask to see customer portfolios, sample assets.
2. Ask them for references to brokers, contractors, notaries, Teitel.
If you have come to a serious and reliable professional who cares, the chances are high that the people he recommends will be on the same level. And here you have created a winning team. You can start buying real estate.
3. Keep investing constantly in relationships with professionals. Develop relationships. We will be dispersed. Say a good word.
4. Management Fee. In my experience I know that it is customary to pay between 7 and 10% management fees. As a matter of principle, we only pay 10%. no less. Give a lot and you'll get a lot.
And do not forget that we are in Israel. And U.S. assets. The local staff needs to feel valued and paid for.
5. You will learn. All the time. Keep developing skills, listen, learn, hear all the local professionals.
After 7 years in Detroit I know how little I know, and every day I learn more. On what topics?
City regulation, rental laws, renovations, aviation laws, learning to talk to tenants, learning what they want and need, and more and more…
6. We have experienced and experienced such failures and successes. Every time we have solved a problem for the client, like today, we have another satisfied ambassador in the country.
And we will continue to grow and do. Every obstacle we grow and every blow we learn.

So do not be afraid, do it.
and most importantly.
Real Estate, Do not Stop.

Tomorrow 2-3 gives you excellent tools for analyzing a transaction.

Happy holiday

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