Alex Deacon tells you the right (and wrong) times to evict an eviction worthy tenant. Can strong-arming ultimately cost YOU money? When are you being too soft on a tenant? Tune in for great tips from “The Deacon of Real Estate”!
In the latest installment of Alex Deacon’s Property Management Series, Alex Deacon discusses what Property Management IS NOT! Alex explains what limitations you should set with your Property Management company. Ideally, you must put yourself in your client’s shoes, and Alex gives his take on what you should be focusing on as a Property Manager.
Visit AlexDeacon.com! For more information on MACE Property Management, visit PittsburghPropertyManagement.com!
“The Deacon of Real Estate” Alex Deacon has recorded over 2 hours of informative discussion regarding his company, MACE Property Management, and property management in general! Click through the six episodes below, or search on Apple Podcasts, Google Podcasts, Spreaker, YouTube, and many other podcasting services!
In the newest installment of Alex Deacon’s Property Management Series, “The Deacon of Real Estate” breaks down factors that could influence the price of your rental, and ways to maximize your return in any situation!
In this episode, Alex Deacon answers some of the most frequently asked questions he receives regarding property management, and his company Mace Property Management. This conversation is great for novices and experts alike, and is packed with great information for other property managers and landlords!
When you are just starting out, I will suggest it may be all about the cash flow. Especially if you are counting on this money to pay bills and survive. Sometimes, the real wealth comes to those who wait and can see the forest through the trees. Don’t get me wrong, cash flow is important, but not always the only thing to consider. A good example to use are three properties that I own.
1. A duplex I paid 90k for that has cash flowed for me very little the first 15 years. The loan was held by the owner and I borrowed the 10% I put down. Essentially I put zero of my own money down. Now it is paid off and worth nearly 200k. I have owned it for 23 years. I wish I had purchased 10 more like it. It’s been vacant less than 1% of the time, and has been low on repairs. I also added value by building a garage 13 years ago and its been rented out for $150 a month for the entire time. The garage added $15,000 value to the property and cost me only $8,000 to build.
2. A nine unit property I bought for $250k in 2008 is now worth over $350k. I was able to put down only 15% and the owner held a second mortgage. During my ownership, I have actually lost on average $500 a year. Now my balance is under $100k and my net worth for this one building is $250k and climbing. I have my management staff handle most of the issues, repairs, and vacancies, and I am involved very little.
3. I paid $205k in 2008 and it was worth about $240k at the time. I put down 20% and the loan was amortized over 15 years. It’s now worth $380k and my balance is around $70k. This property was cash flow neutral since ownership but will be paid off in less than 5 years.
As you can see, I bought quality and put down as little as zero money to buy at least one of these properties, and as much as 20% to buy another. In less than 5 years my net worth will most likely be over 1 million dollars, and these properties will also cash flow and be free and clear so I can now use that equity and re-invest.
Now duplicate this scenario another 20-30 times, and in 20 plus years you are sitting on millions of equity and hundreds of thousands of dollars in rental income! Anyone can do this, but this doesn’t happen overnight and it takes lots of work with no reward. But if you don’t mind working, waiting, and being smart…your reward will come.
“The Deacon of Real Estate” Alex Deacon has already recorded over 16 HOURS of original informative content! If you haven’t been listening, now is your chance to catch up! Alex uses his 25+ years of experience to deliver tips and suggestions from his own personal real estate investing and property management experiences. This free knowledge can be invaluable!
When you have a vacant property (ESPECIALLY in the winter), turn off the main water line next to the inside water meter. In the winter, the property should also be winterized and the water should not be turned back on until the property is occupied and the heat is on.
In the warmer months, it’s ok to turn the water on and off as you come and go, but always shut it off when you leave. This goes for contractors, tenants, yourself, property managers, etc. If the water is left on bad things can happen. For example, we had a toilet leak in two places in the past two months. One was a tenant who left for vacation and came back to a bit of a mess and the other was a vacant property. In both cases the toilets were running and for some reason they also leaked and caused some damage. I know this sounds simplistic but this one little tip could save you a lot of money somewhere down the road and is and easy preventive action to take!
RSVP TO ALEX DEACON’S FREE REAL ESTATE NETWORKING WORKSHOP IN APRIL!
Creative Financing. How to leverage your business with Other peoples Money
Saturday, Apr 14, 2018, 10:00 AM
Hampton Inn Bridgeville 150 Old Pond Rd Bridgeville, pa
42 Members Attending
We will be bringing in two guest speakers this month. Attorney Matt Beam to discuss different contracts, notes, mortgages and lease options etc.. We will cover some of these different contracts and paperwork to help you navigate through your next creative financing deal. Josh Caldwell who is the director of the Local REIA in the north hills. He is …
Once we go through the applicant approval process, we require that the applicant get to us a security deposit in full. We don’t take partial payments. If they can’t even come up with the deposit in full now, then what is the likelihood they will be late on paying rent if their finances are running that tight?
The deposit has to be a certified check or a money order. This way it’s much less likely those funds will not be there when you deposit them. We try not to accept cash and never a personal check, or at least only on rare occasions. We let each applicant know that once we get the deposit, it will not be refunded if for some reason they back out of the rental. We clearly state that in the application.
It’s not fair to us or our clients that a tenant decides one week before moving in that they are getting relocated, or the couple is breaking up, or their grandmother is sick…we have heard every excuse. We have lost valuable market time and it has cost us money by holding the apartment. We will refund a deposit if it’s only been a few days (or maybe even as long as a week) because lets be real: you have to be somewhat reasonable or we may keep part of the deposit. Hope this is helpful to all!
RSVP TO ALEX DEACON’S REAL ESTATE NETWORKING WORKSHOP IN APRIL!
Alex Deacon Real Estate Networking Workshops
Carnegie, PA 382Members
Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …