atlanta landlord summit 2.18.17

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Post on 20-Mar-2017




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  • 100% of funds due at the time the property is sold. This information can be found on the

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  • Bidding on Occupied Houses online auctions by Darlene Coquerel

  • Acquired $75 Million Dollars in Residential R.E. in 2014!

  • I want to Buy a House!

  • Occupied Property Addendum Basically says you understand

    that the property is Occupied.

    If you see this, the property MAY BE OCCUPIED but not necessarily performing.

    You will be responsible for getting the occupant to leave.

    No Security Deposits will be transferred.

    Rents will NOT be prorated.

  • Due Diligence

    Drive by only cant talk to tenant

    Estimate your rehab (without entering the property) to determine your MAO BE CONSERVATIVE

    Include CASH FOR KEYS

    Understand and have your attorney review the Important Documents i.e. Occupied Addendum & Title Information

  • Visit me at

  • Visit me at

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    Curt is a former software engineer who found his

    passion in real estate. As both an investor and a

    property manager, Curt specializes in finding the

    right opportunity for investors. His average

    portfolio cash-on-cash is an impressive 20%, with

    LTV at 23%. He is also blogs on with landlord investing advice.

  • Bullet Proofing Your

    Rental Portfolio

    How to buy high performance rentals

    Curt Smith, Board Member, mentor

    Buy-and-Hold Investor since 2011 / 678-948-7151 (prefer text)

  • Our Companys Investing History and Portfolio Our real estate investment company consists of my wife and myself.

    Quit my day job 6 months ago thanks to my rental income

    Spend around 2-3 hours/month self-managing current properties (this can peak to 10 hrs/month occasionally). My wife spends 5 hrs/month on bookkeeping and rent rolls.

    Own and self-manage 36 single family rentals (scattered in metro Atlanta and north GA with a few south of Macon)

    Bought, rehabbed and rented 33 of these rentals with full-time job over the past 6 years.

    Averaged buying 6.1 new rentals/year

    Average portfolio cap rate = 18%, just the SFRs = 14%

    Current portfolio LTV = 23%

    Use solo-401Ks for 38% of rentals and the rest are taxable

  • What buying goals allowed us to have it all

    Our buying goals:

    High appreciation

    High cap rate (like 13% or better)

    3 bed/2 bath or better

    Nice, safe neighborhood

    Decent schools ( >= 6 is best, can buy down to >=5)

    Low rehab costs (

  • What happens when you give up the most desirable rental quality goals?

    Buy too low priced rentals you may end up with high management costs, turn over and low net income and slow appreciation

    Buy too high a priced rental and your cap rate sags but you often get appreciation Buy in high competition areas and your deal flow and cap rate sags Buy in low (Great Schools) rated school systems and you cant attract high quality

    tenants. IE under Great Schools rating of 5 Buy an ugly houses, on a busy street, and its tough to find good renters Buy far from transportation and youll take longer to re-rent due to a much smaller

    renter pool

    Add a few of the above together and performance plus ease of management drops fast.

  • Set business goals and your business will improve

    And you likely CAN accomplish what you previously thought impossible

    Resourcefulness is your #1 resource. (Tony Robins)

    Just do it. (Art Williams, Original Art Williams speech)

    Youll be 100% successful at NOT accomplishing a goal you never set.

    When I talk to landlords mostly I get told their latest war story. Why compete in that contest??

    Set A LOT of great goals, work toward accomplishing as many as possible and your portfolio will improve

    Your rental business can only improve by setting ALL of the above goals, right?


    Weve got the landlord success criteria BACKWARDS

    What is your primary capital asset as a landlord?

    I.E. what is MOST important?

    Your rental house? Asset or Liability?

    Your tenant? Asset or Liability?

    Most investors focus 99% on houses right?

  • What is your main capital asset as a landlord?

    The tenant!!!!! An empty rental is what? A liability. Your tenant your main asset.

    Learn to make one of your most important business goals targeting YOUR ideal tenant.

    Know what they want

    Know where to they want to live

    Know how to market to them (The rental ad copy and subject line). IE do they want to see a rental ad subject in all caps and see 1st month free???

    You need to make your rental business TENANT focused

  • What good tenants wantThey want many of the same things your business wants:

    Attractive house in a safe neighborhood

    Good schools

    Convenient to freeways and good paying jobs (buying near good jobs is important)

    Nice rehab with a clean attractive look. (sometimes this means some laminate floors, upgraded fixtures, freshly painted cabinets, nice backsplash etc)

    Fair rent

    Quick response to maintenance requests

    Being treated fairly. (This is very important to me. I have a great relationship with all my tenants. Positive attracts positive --- it does work! Create a positive rental ad, mentioning the things good renters want and youll attract good renters)

  • J-O-B-S

    Underpin all real estate especially rental portfolios

    Landlords who buy in the metro counties dont even think about why some rentals rent easier then others, or at least one factor most dont think about. Access to good jobs.

    Near by plentiful good jobs are key to an easy to manage, low turn over rental business.

    The farther a renter has to commute to work, the fewer choices of jobs, the weaker the tenants jobs skills the more likely youll have turn over, late rents and evictions.

    Doesnt this make sense? The linkage between good jobs, a short commute and a good rental business?

    For example: theres fewer good paying jobs South West of Atlanta VS straight North. Areas matter a lot!

    An even BIGGER tail wind for a rental (and renter) is to buy in the path of GROWING JOBS. Which Ill get to.

  • Our current business rules circa 2017Our current rules are not the same as the day we started. Our rules have changed through trial and error. So yes we own some houses that dont meet all of these rules. This is what we currently look for:

    Blue collar dual working parents with kids and dog(s) are our target tenants.(Dogs..why? Because most landlords are now turning them away, I WANT (smaller) dogs!!)

    Cute house in a nice, safe neighborhood, 3 bed/2 bath (a garage and fenced yard even better).

    Our all-in-costs vs rent yields a cap rate of 13% or better. 10-15 minutes to a major freeway or road, 30 minutes to good jobs. rating of 5 or better Low competition. We search craigslist and zillow for areas with few rental ads. And our newest rule is 30 min to nice restaurants and entertainment (If were going

    to be working hard and staying at hotels we want really good meals and something to enjoy).Plus areas with great restaurants tend to attract good renters.

  • Over view of tenant types we target We buy nice rentals, fixed nicely in nice areas and we do not take Sec-8

    We do tend to screen OUT white collar workers. They never stay long and are more of a pain, cant do simple maintenance, break leases to buy houses.

    We target financially stable blue collar workers who cant afford to buy a house, are permanent renters, they just want to create a home in our rental and stay forever.

    I screen for: moving back to be close to relatives, in same school system or near their job

    Our written requirements are (Re HUD/Fair housing you need written requirements): Dual income, has a bank account with a balance of > 2x rent plus utility deposits 3x take home income vs rent Long term rental only. IE I say during the face to face that my typical renter stays 5 yrs. No evictions or collections We are ok with pets. IE dogs not on the dangerous breed list and under 25#. We take the most qualified applicant not necessarily the first application.

    End result: they never leave, fix things, never call, treat my