Getting started with Muli-Family investments

[evolusd]

Delaware LLC is fine. The reason we prefer LLCs is most of our deals are here in California where the ‘single-action rule’ can apply. If you lend to an individual or trust and take real property as collateral, the Bank may only be able to go after one or the other (borrower or collateral) if default occurs. Typically, the real property is held in an LLC and the individual or trust provides a personal guaranty of the loan to the LLC.

I can’t speak to lending against SFRs…there are much more consumer protection regulations in that arena, so our group sticks to 5+ multi-family financing (as well as all other types of commercial property and business lending). We have a traditional mortgage group that does SFR financing for primary residences and rentals.

[Ren]

[quote=Diego Mamani]
3. How about property management companies? Do they charge 7% or 8% of rent? Do they charge the same when the unit is vacant? Do they help finding tenants in exchange for a commission? Do they have plumbers, handymen to do any repairs at reasonable cost to me (the owner)?
[/quote]

They charge anywhere from 7-12% of rent, usually somewhere in the middle. A few charge 5%, but if you find one like that, I’d carefully examine their services and get references. I think most don’t charge the monthly fee when it’s vacant, because then there’s nothing for them to do. They have different fee structures, but there’s usually a separate charge for finding a tenant, although they may waive that if the tenant they originally found breaks the lease (you can also hire them to just find/qualify a tenant while doing the monthly chores yourself). Many have maintenance people they work with exclusively and can get you a discount.

[Ren]

[quote=Diego Mamani]
3. How about property management companies? Do they charge 7% or 8% of rent? Do they charge the same when the unit is vacant? Do they help finding tenants in exchange for a commission? Do they have plumbers, handymen to do any repairs at reasonable cost to me (the owner)?
[/quote]

They charge anywhere from 7-12% of rent, usually somewhere in the middle. A few charge 5%, but if you find one like that, I’d carefully examine their services and get references. I think most don’t charge the monthly fee when it’s vacant, because then there’s nothing for them to do. They have different fee structures, but there’s usually a separate charge for finding a tenant, although they may waive that if the tenant they originally found breaks the lease (you can also hire them to just find/qualify a tenant while doing the monthly chores yourself). Many have maintenance people they work with exclusively and can get you a discount.

[Ren]

[quote=Diego Mamani]
3. How about property management companies? Do they charge 7% or 8% of rent? Do they charge the same when the unit is vacant? Do they help finding tenants in exchange for a commission? Do they have plumbers, handymen to do any repairs at reasonable cost to me (the owner)?
[/quote]

They charge anywhere from 7-12% of rent, usually somewhere in the middle. A few charge 5%, but if you find one like that, I’d carefully examine their services and get references. I think most don’t charge the monthly fee when it’s vacant, because then there’s nothing for them to do. They have different fee structures, but there’s usually a separate charge for finding a tenant, although they may waive that if the tenant they originally found breaks the lease (you can also hire them to just find/qualify a tenant while doing the monthly chores yourself). Many have maintenance people they work with exclusively and can get you a discount.

[Ren]

[quote=Diego Mamani]
3. How about property management companies? Do they charge 7% or 8% of rent? Do they charge the same when the unit is vacant? Do they help finding tenants in exchange for a commission? Do they have plumbers, handymen to do any repairs at reasonable cost to me (the owner)?
[/quote]

They charge anywhere from 7-12% of rent, usually somewhere in the middle. A few charge 5%, but if you find one like that, I’d carefully examine their services and get references. I think most don’t charge the monthly fee when it’s vacant, because then there’s nothing for them to do. They have different fee structures, but there’s usually a separate charge for finding a tenant, although they may waive that if the tenant they originally found breaks the lease (you can also hire them to just find/qualify a tenant while doing the monthly chores yourself). Many have maintenance people they work with exclusively and can get you a discount.

[Ren]

[quote=Diego Mamani]
3. How about property management companies? Do they charge 7% or 8% of rent? Do they charge the same when the unit is vacant? Do they help finding tenants in exchange for a commission? Do they have plumbers, handymen to do any repairs at reasonable cost to me (the owner)?
[/quote]

They charge anywhere from 7-12% of rent, usually somewhere in the middle. A few charge 5%, but if you find one like that, I’d carefully examine their services and get references. I think most don’t charge the monthly fee when it’s vacant, because then there’s nothing for them to do. They have different fee structures, but there’s usually a separate charge for finding a tenant, although they may waive that if the tenant they originally found breaks the lease (you can also hire them to just find/qualify a tenant while doing the monthly chores yourself). Many have maintenance people they work with exclusively and can get you a discount.

[Author]

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