It’s been a long hot summer here in Atlanta and we are looking forward to cool mornings and evenings in the fall. As most of you know, we have a moderate climate with a fairly mild winter.
With the heat in summer comes the calls from tenants requesting air conditioning repairs. This is one item that will really ruin a landlord-tenant relationship if not handled immediately.
When it’s over 100 degrees most air conditioning systems have a hard time keeping the entire property cool. This also causes the unit to work harder than normal. Thus, the most repetitive area for maintenance calls during summer is A/C and conversely during winter, the heating systems.
When these calls come in, I personally handle them to make sure that we act quickly as well as determine who will be responsible for the maintenance call. As well to see if it is a repair the tenant can perform to reduce your expense. Since we’ve changed our leases with the tenants, we have initiated billing invoices to the tenants for repairs. In hopes to deter them from calling in repairs that they are responsible for.
On our side, we want to make sure the responsible party is getting charged and sometimes, it falls under a home warranty that was given by BCFP. (www.BuyCashFlowProperties.com)
In an average week, we might get 15-25 calls requesting repairs. On a day where the temperature is over 105 degrees Fahrenheit, we might get 30-40, primarily A/C related. Thus, our relationships with our A/C contractor as well as all other trades, is very important. We endeavor to keep all expenses to a minimum for investors while doing all we can to increase cash flow.
Recently, we collected $10,000 for an option agreement from a tenant and $5,000 on another. In fact, we increase option payments whenever possible to increase investor returns. We have added one full time maintenance man to reduce investor repair cost and we are going to add another full time maintenance man as well.
The rental market is very strong in Atlanta right now as our days on the market for available rentals is under 22 days. This is a far cry from where we were 3 years ago and the main reasons for this are:
- Portfolio Managers – have assumed responsibility for their areas: rentals and collections, and they are doing an excellent job as they are only paid on their results.
- Our reputation on the streets is excellent! Prospective tenants have expectations on how a “NES” property will look and that they can expect fair treatment in all situations. Communication is critical with tenants and the timeliness of communication is what sets us apart from others.
- Our communications with investors has improved but it’s still not acceptable to us and we continue to make strides in this direction.
A few times this year, an investor found out about repairs on their monthly statement prior to my assessment of the situation. This is an area I continue to strive to get better. I take it very seriously to mitigate circumstances surrounding your property and I always endeavor to deliver the best result possible given the details of the situation.
I want you to know that every single problem that ever happens on any of the 720+ houses we manage ultimately ends up on my desk. Typically I evaluate and personally make a determination as to how to treat the situation and contact with them. In some past instances, an investor discovered the situation due to monthly reports prior to my notification as to what was going on at the property. Please understand, I cannot involve every investor in our property management decision making. You hired us to do the work so you could have a passive real estate investment. We really don’t like to interfere with your day to day life, thus I typically contact you after I’ve set a course for action and it’s resolved! I make the decisions based on your best interest and as if it was my home. We are the ones on the ground, communicated with the tenants and know the details of the situation.
We know you want to know what’s going on with your houses and for most items, we will not bother you. We only contact you on repair issues over $500, unless it’s an emergency. Or, if the cost is close to $500 and is something that has to be done, that way we avoid a potential two trip charge to the property that could cost much more.
Every investor should already have received 2 of the 3 LLPP reports (Landlord Protection Plan). If you have not, please contact me. These reports give you 3 “report cards” on the house and the tenant each year. We contract with a few different companies to provide these services for you and we also review every report that comes in, taking action where needed.
Many of our investors still have the same tenants that initially rented their homes 3-5 years ago. It’s our goal to keep a good tenant as long as possible because turnover can be costly. No one wants to replace carpet and paint every 3 years and we do all we can to minimize the work without compromising the product. Whenever possible, we clean carpets, paint only a few walls and freshen up the landscaping. All of these turnovers are done at our exact cost and I use the most efficient crews available to keep your costs down. At all times I revert back to RJ from BCFP and Jim Case, who oversees rehabs and turnovers.
Collectively, we sort out situations and set the course of action that would be most beneficial for you. We share the same attitude, simply: “The Investor Comes First.”
In the last few months we’ve sold 8 houses for International Investors. All of them made money on their sales and they sold for different reasons. Some needed money for their kids, building a new home or for their own business.
Keep in mind, if you need to sell or have a greater need for your money now, let me know and we can give you an idea of value and a timeframe to dispose of the property.
As always, contact me at any time to discuss your portfolio, issues, potential new acquisitions or whatever.
Letter from RJ // BCFP – Acquisitions Specialist
Hello my friends, this is RJ from BuyCashFlowProperties.com (BCFP) and I hope my first article finds you in good health. First, I want to say thank you for buying property from us and then placing these properties under management with Anthony (NES). I know that if you’re getting this newsletter, then you have bought houses from BCFP. Anthony is under agreement to only manage what we sell. Why? Quality control. Some real estate pros acquire cheap houses in cheap areas which simply require too much time, aggravation and in the end, everyone loses time and money. Thus, we have an agreement between us that puts our investors first and the delivery of exceptional service at reasonable prices is our highest goal. We want you to be successful!
2015 has been a year of fear, not just in the financial markets, but the world in general. No one can deny the disruptions of life in the Middle East and look at what is going on in Europe! Are the rest of us that live in other parts of the world immune to these terrible events? HECK NO!!
All you have to do is turn on the TV or buy a newspaper and there are terrible situations going on throughout the world. By the way, this has been going on since the beginning of time and we know it.
Look at the U.S. dollar and the global currency crisis. I could not imagine doing business in your country. It’s too hard! Then when you’re successful, you lose the International value of your money against the U.S. dollar. That’s screwed up unless you plan to stay in your country and spend all your money there…of course, then you still have to deal with inflation.
For us Americans, all we have to do is apply ourselves in a worthwhile business and we can be successful. We’re not worried about what to eat tonight, if ISIS is rolling in or if our currency will fall against foreign currencies. All of our problems are First World problems and you know what? We as Americans should not complain as we enjoy more freedom than most of the countries we serve. For you Canadians…you have it pretty good too. It’s the Europeans, South Americans, South Africans and Chinese that really have issues far worse than our country.
America is still home of the free and the brave and it feels like the brave will have to continue to fight for our individual freedom. I cannot imagine living anywhere else that has less freedom, more socialistic policies and tighter control over their citizens.
With that being said; what can you really do? The answer is: take care of yourself and your family.
If you like where you are – stay there.
If you think it’s going to improve – stay there.
If you’re making money there – stay there.
If you think it’s going to get worse and you’re not making money – GET OUT NOW!
If you’re making money – Use only what you need in your business and get the rest out!
I can’t imagine what it’s like to wake up one day and find out my net worth dropped 25% overnight for no good reason – except that I lived in the wrong country.
That’s what happened in South Africa last year.
That’s also what happened in Brazil this year.
Folks, I’m suggesting to you that the times we live in are uncertain and are more dangerous in ways than in recent history.
The real estate market in the U.S. is good overall, depending on where you invest. Many of you have heard me poo-poo other markets outside of Atlanta. Want to know why? Because they are not as good – it’s as simple as that.
The Atlanta market is still hot. Prices aren’t racing up but they are rising. I’m still acquiring well-located single family houses in my personal portfolio as many of you are reading this.
Even though the market is going up – there are still terrific opportunities for safety, cash flow and growth.
Recently, I heard comments by a U.S. promoter offering rental homes in several cities. He said that it’s too late for Atlanta, thus he offers houses in areas that support HIS COMMISSION! I’m suggesting to you right now that it’s still the best time to buy a house in Atlanta.
Business is good or bad in between your ears. For some of you, it may be time to do some thorough examination of your goals and determine if the path you’ve charted is still the direction you want to go in. Two years ago, I along with John Chin and my daughter Rose flew to Scottsdale, AZ to attend Tom Hopkin’s last 3 day boot camp on sales. FYI: Tom is one of the top sales trainers in the world and his material is more relevant than ever. At this event he said something that I thought was profound. He said this: “Some of the goals I use to have are not as important to me anymore.” He said this prior to his 70th birthday and it really hit home to me. As we age and go through the seasons of life, some things really aren’t as important as they once were. We all need to go to the “time out” corner and re-evaluate where we are and where we are going. Our world is changing and we must adapt. Each one of us must make the decision to impact our families positively.
Our website, www.BuyCashFlowProperties.com is getting a new look with updated relevant information. Soon, you can sign up, get great current information and see houses before we put them on the market. Additionally, upon sign up you will automatically get an inspirational quote from me every day that could be a good kick in the ass to get out of bed and be productive.
I will be in South Africa in October, as well as Brazil in October and December (2015). I look forward to seeing you there.
To your investment success,
From Jim Case, Supervisor of Rehabs & Turnovers
Most property management companies nickel and dime their clients by marking up every service provided on their properties.
I’m Jim Case, Supervisor of all BCFP rehabs and all NES turnovers. Thus, I am the one person that knows about every aspect of maintenance on each property. It may sound like a lot of responsibility and quite candidly – it is!
We don’t mark up any invoices from contractors or materials so when we do a “turnover” for you – it’s at our exact cost and all savings are passed on to you.
Our internal mantra for this business is that the investors must make money through the performance of their properties.
Three months ago I hired a full-time maintenance guy in order to save money for our investors. We placed this guy on our books and we only invoice the owners for his time on their property. This has worked well and we are currently searching for our 2nd full time maintenance employee.
When these invoices are reviewed collectively with Anthony, we make sure warranty work is paid for by BCFP and any tenant damage is charged to the tenant.
Our turnkey operation is way different than other so called turnkey operators or property managers. Anthony receives offers to manage other investor’s properties every single week and he continues to turn them down. Most investors don’t keep their properties like we do and that’s because we have created a reputation for beautiful and clean houses, located in good areas. We could do less work on turnovers and still get houses rented but eventually, it would damage the reputation we’ve worked so hard to attain.
I want to make sure you understand something that should be very important to you. If your house goes vacant – there is always some work to be done. Typically, Anthony will call me after he views the house and after our discussion I place the most efficient crew in your house, removing them from other ongoing rehabs of new BCFP properties. Thus, we attempt to fix and rent your house as fast as possible.
If you ever have a questions regarding your rehab or turnover, please contact me at Jim@GotOurHome.com.