Frankie and Oran K.
Frankie and Oran were able to become successful real estate investors with PMI’s coaching and education.
“We missed the bubble in our area where we felt comfortable buying, and real estate was definitely in a down cycle. We learned from PMI, however, that this was a good time to invest in real estate. So, we decided to employ the “buy, hold (rent), sell” strategy.
With that goal in mind we created our own investment team of professionals we can trust and who are exceptionally good at their jobs. The team includes: a real estate broker to help find the properties, contractors (plumber, electrician, carpenter, and builder) to evaluate properties and once acquired, to rehab them. We also found a community bank to help us with financing, and a title company for expedited title transfers.
We began looking for deals, focusing on finding short sales, foreclosures, and estates. Whenever we were out, we would also look for “for sale by owner” signs, moving vans, and estate sales.
Other factors we started to look for in target properties were those that have been on the market for 180+ days, properties with 2nd units, properties that are zoned for 2nd units, properties that are structurally sound but need cosmetic help, and two bedroom one bathroom homes that can easily be changed to three bedroom, two bathroom homes. Any of these features are indicators of a good return on our investment.
We used PMI’s advice and created a list of reliable people who do different management related tasks (yard work, handymen, etc.) and we have a deal with our real estate agent to manage our properties while we are away. We also chose to use the same paint colors and the same vinyl and carpet in all of our properties for each touchup and replacement. We chose to invest in a smart lock system for our properties, so whenever a tenant moves out, we just need to change the key and don’t have to remove the locks. We also set up an 800 number with extensions that correspond with each property address. Callers get full descriptions of the rental properties and we save on classified ad costs. To screen tenants, we use the credit bureau to check credit scores, evictions, and criminal records. We also call two previous landlords and current employers. We are now looking into setting up a lease-purchase plan for a current renter. We will be using a contract from the PMI website.
We frequently rely on the PMI website to provide ongoing tips, techniques, and motivation.”
-Frankie and Oran K.