Hello, and welcome to another episode of Passive Real Estate Investing. I’m your host, Marco Santarelli, and today we are going to do part two of our seven common questions asked of our investment counselors. We did one a few weeks ago, had some great feedback and response. So I’ve brought on one of our other investment counselors here today to go through same seven categories that we went through last time. And who knows? I have no idea what Nate’s gonna talk about, but there’s a chance that some of these might be the same as my interview with Melissa, but odds are, they’ll probably be different. So hopefully this is gonna help a lot of you in different ways. And with that, Nate, welcome to the show.
Thank Marco. It’s good to be here. My friend, very good to be here.
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Well, I’m happy to have you on. It’s always a pleasure and a joy speaking with you. You’re a very sharp individual. And so now I get the chance to kind of ask you questions and kind of poke pro into your head and get to hear what other people are asking you. So what I did last time with Melissa is I went through these seven categories. I’m starting off with, you know, the most common question that you get when it comes to people who are getting started. And that doesn’t necessarily mean that you are a newbie and this is your first property, although that is often the case. But you know, when you first connect and dialogue with someone on the phone, there’s always gonna be some questions that you get before. Even the process of choosing markets and properties happens. And so let me ask you, what is the most common question that you get as it relates to getting started, either investing or getting started in working with us, I’m gonna leave it wide open for you.
Yeah, that’s a great question. And to be quite honest, it’s, I’m gonna feed you right back at you. People literally say to me, well, how do I get started? And so I have to clarify, similarly with them, are you referring to buying a piece of real estate? Are you referring to building a passive investment plan? Like what, what do you mean by generally getting started? Now? I would say in most cases, most investors I’m working with that come on board to Norada, want to buy investment real estate. They, they wanna invest. And typically they wanna invest fairly quickly. A lot of times it’s, you know, I have capital right now and I wanna deploy it. So they come on board and they say, Hey, what do I need to do to get this money deployed? What’s the first step. Some people think it’s market.
Some people think it’s financing. Typically what I like to do is I like to clarify a step by step process. And number one thing for most investors that I recommend is first and foremost, from a basically a step by step process would be, what can you do with your capital? Can you get financing? Right? So number one would be, let’s talk to lenders to at least see where you’re at with financing. Some investors can get qualified for conventional financing and some investors cannot. So if we can’t get conventional financing, maybe it’s a, a different type of financing. So from a practicality standpoint, getting started in buying an investment property. Step one would be, let’s get pre-approved for financing now from an overall perspective on getting portfolio built. And what’s this whole real estate thing about, I think the, a broader answer to that question is, well, step number one.
What, what do we do when we get started? Well, we need to identify an objective. What’s your goal for investing? Right. So getting started for some people might be, I wanna invest in appreciation based markets, or I wanna invest in cash oriented markets. You know, it’s my job as an investment counselor to kind of help answer that question with you. So if you came to me as a client and they said, Nate, how do I get started? I’d say, well, practically speaking, we wanna get preapproved for financing from a plan building perspective. We want to figure out what your timeline is, what your goals are, you know, things like this. So, you know, I like to actually build an investment strategy along with the practicality of actually buying the investment property. Does that make sense?
That makes total sense. So from a practical perspective, what you’re saying is let’s get pre-approved, let’s make sure that you can qualify for financing. And there are many options out there. There’s the conventional loans. Of course, there’s Norada Real Estate Funding where we can provide you portfolio loans, but you want to know that you can leverage your investment capital and get financing and start building a portfolio. And along with that, it sounds like these run in parallel, you want to set a plan based on your goals and lay out somewhat of a timeline or a time horizon to build that out.
Exactly, exactly. Right. So we want to build out a plan and a timeline of, okay, what does this look like for the next three to six months for you? Right. We look at budget, we look at amount for a down payment, right? We look at type of capital are we’re using retirement funds or we using non-retirement funds, right? So we certainly in conjunction with the practica of getting pre-approved and, you know, potentially opening up an LLC, things like this. Uh, we wanna build a strategy and a plan.
So Nate, a lot of these things you’re talking about are not necessarily things that people are gonna ask you right off the bat. I wouldn’t call a lot of these bullet points. You’re mentioning common questions, but it sounds like the common question that you are are building off of is how do I get started or where do I get started?
That’s correct. Yeah. I, I think I’m almost answering, you know, my own question of where would I go? Yeah. To get started. Yeah. Yeah. So that’s, that’s correct.
Yep. Yeah. So it makes complete sense. It’s like, how do I get started? What’s step one, step two, step three. Well, let’s get you connected with one of our many lending options. Let’s get you pre-qualified or pre-approved, let’s talk about your goals. Let’s lay out a plan. Let’s talk about your timeline or time horizon, and then we can get more granular. So I think you’ve answered the question. It’s it’s great. It’s like, how do I get started? I mean, it’s almost like common sense. It’s like, <laugh>, what’s your first question. Well, how do I get started?
Exactly. Right. And if you’re gonna make an overarching response to this, it’s let’s get you educated, you know, where do, where do I get started? Well, let’s get you educated.
Yeah, definitely. And that’s where things like this podcast and articles and you know, some of the things we publish out there coming to play is people consume that at different times and varying degrees. And they start to put the pieces of the puzzle together in their head and they start to see what is possible and what they can achieve and what they can build over time. And, and that gets really exciting. That gets me excited cuz I know what’s possible. I’ve been there. I’ve done that. I know so many people who have I get emails. In fact, it’s funny. I even got a gift in the mail yesterday, which was completely out of, you know, out of the blue. I never even expected anything cuz I don’t get a lot of gifts from clients. Usually, we send them something a little, thank you. After they close escrow.
But someone sent me a nice box of brownies, you know, with a, a nice card just saying thank you for all your help and everything else. And I thought that was so thoughtful and it’s not that common, but it was very nice to receive, but sure. But yeah, I mean, you know, the whole thing about educating people and just helping them move along through this process is, is exactly what we do. So let’s segue on that. So that’s the getting started part. So I think one of the first areas that, you know, we start to talk about when we get into a deeper conversation and that we’ve got, you know, some goals laid out on a plan and a timeline is really well now, where do I invest? You know, what market should I be looking at based on my goals or the plan that we have, and this is gonna change from person to person of course, but you know, NA what is the most common question you get when it comes to something that is market related?
Yeah. Typically when it comes to market related question, I would say for me, most comment could be, is, well, Nate, what’s the best market. Right. Put me in the best market. And so they, they always ask me, you know, what’s the number one option. Right. And it’s, it’s very general. Yeah. Cause people wanna be in the best market with the best appreciation and, and the best cashflow. Yeah. Right. So it’s, it’s typically a very general question I get asked is, well, of course, you all wanna be in the best markets. Right. It’s typically, it’s not, it depends on how educated they’ve been. If they’ve watched materials or whatnot, typically they don’t jump into, you know, appreciation basis versus cash unless they’ve watched the material. Right. So generally people just say, Hey, where’s the best place to invest. Right.
And then what do you, do you, you kind of drill down into that or do you just answer the question based upon what their investment goals are?
Yeah, exactly. So if market, if you came to me, you just said, where’s the best marketplace to invest in. And I, I would say something like, well, what’s your objective? What’s the investment objective. Right? Cause there’s overarching. There’s, you know, we could say there’s, there’s three marketplaces types of marketplaces where we talk about hybrid or appreciation based or cashflow, but it’s kind of narrowing down a little bit right now in this market to where there’s more, whether more, what I call cash flow centric markets. So there’s more appreciation based centric markets, which means, you know, if you’re an appreciation based market, generally speaking, the, the real estate of that market is going to attend to appreciate a bit more. But your cashflow might be a little bit less to your ROI might be a little bit less. So there’s some give and take. Um, if you want more of a cash flow centric market where we’re talking, for example, you know, Illinois yeah. Is a nice cashflow flow centric market. You’re going to have a little bit more cash flow or a higher ROI based on your down payment. However, the appreciation basis might not be as strong as let’s say a, you know, a Dallas Forthworth type area or a San Antonio. Make sense?
Yep. Completely that’s, you know, interestingly enough, people overcomplicate that question or the answer to that question, when it, in fact it really isn’t that complicated. There are certain markets out there that are gonna be better choices if you are looking for faster equity growth, meaning it’s an appreciating market that you foresee to who appreciate for the foreseeable future for the next 2, 3, 5 years. And then there are markets that are a little more boring. They are a little more flat on the curve and stable. They don’t have, you know, the, uh, the curves or the ebbs and flows of other markets, but that’s okay because from a rent to price or rent to value ratio perspective, if they provide better cash on cash returns upfront. So if, if that’s where you lean, there are certain markets that will help you there. And then there are other markets that don’t fulfill any of those objectives and you shouldn’t touch those at all. Because from an investment perspective, you’re not gonna get a return or a very nominal return. And they may introduce some, uh, greater downside risk just because they are unaffordable or inflated markets over-inflated markets. So, you know, there’s a little common sense, but it’s not a complicated question. There’s simple answers to it. And you know, we can help people navigate that. But anybody that wants to spend some time doing some research and thinking about it can figure it out on their own as well.
That’s right. Yeah. It’s 100%. Right. And you can find these, I, a lot of times I direct people directly back to, you know, the information that we provide on the website, whether it’s the blog or it’s the podcast, there’s, there’s an answer to a lot of these questions.
Yeah. And a lot of the markets around the country, just as a side note are what I would classify very strong markets. Well, let me drop the word very they’re strong. So approximately so 70% of all us markets like major markets are still running strong in terms of demand and price growth. There’s a very small percentage that are kind of flatlined or starting to depreciate just because of overbuilding or high unaffordability if that makes sense. So there’s a lot of good choices out there, I guess, is the point of trying to make, there’s still a lot of markets, whether you, there are markets that we’re involved in, you know, the 20, 25 markets that we operate in or not, there’s still a lot of opportunity out there.
Uh, just one, one thing to add and couch to that is, you know, when it comes to, you know, being in your particular market, whether it’s slightly depreciating or not, if you’re gonna be holding a piece of real estate for 15, 20 years, I mean, these are what these markets are typically designed to do. I usually recommend, you know, minimum a minimum of a 10 year hold. You might go through some market cycles. So, you know, values might go up. They might go down a little bit, but at the end of the day, if there’s a tenant in place paying you a cash flow stream, that’s the ultimately the end goal, right?
Yeah. If, if I invest in real estate, I’m buying with a mindset of I’m never selling. And the only time I would ever sell a property is if I’m exchanging it for other property that is gonna provide me better opportunity, higher returns or leverage out my portfolio size, which means I’m doing a tax for an exchange to get to those other properties, through selling that one property to take that equity out and use that as down payment towards more property. Otherwise I always have the mindset that I’m never buying to sell or flip or trade I’m buying because I’m a PERMA hold person. I’ll hold it forever and pass it on to, you know, my kids or whoever love it. Yeah. Okay. So let’s get more granular. We talked about the most common market related question. Now let’s ask you what your most common neighborhood related question is.
Yeah. I would say the most common neighborhood question is what is the average investor typically invest in, right? The most common investor? What type of area is it a, a class or a B class or a C class type asset, right. Especially if they’ve watched some of the materials that we send their way, or they’ve listened to the podcast a while where we refer to neighborhood grading quite often, the most common question I get is what’s the, what’s the most average, you know, neighborhood. I think I wanna start in B class, Nate, that seems to be kind of the sweet spot. Right. Does that make sense? So they want something that’s potentially gonna provide a decent cash, but also provide maybe a little bit nicer area, a little bit better area in terms of, you know, how many renters to owners there might be, right. It’s a risk, it’s a little bit more of a risk gain for them.
I’ve kind of, uh, surprised to hear you say that. I would think that most investors would be at asking where they should be investing in what, in other words, what type of neighborhoods they should be investing in, not so much, what do most investors invest in? Like why would they care what other investors are doing?
No, it’s, it’s a good point. You know, I surprisingly, I do get that question, I guess maybe I, I didn’t say it correctly, it’s just a typical general question of, you know, where do most people start if they’re newer, right. Would you recommend B, B class, A class or C class? Right. So it’s generally what you just mentioned is I think what I was trying to portray, I just, didn’t…
Got it, okay, well, it makes total sense, you know, where should I be investing? What type of community or neighborhood, and, you know, for the most part, we don’t really recommend C class neighborhoods for the most part. Although there’s a lot of investors who do very well and that’s what they’re comfortable with and there’s nothing wrong with that. But you know, if that’s right, if, if I had to actually look at, you know, the last hundred or thousand properties that our clients have purchased, I would probably guess that the bulk of them would be somewhere in the B plus to a minus range would be my estimate. What do you think Nate?
Yeah, I would agree with that. I always think that neighborhood grading and is somewhat subjective. Yes. Right. So if you’re looking into piece of real estate, that’s $130,000, for example, and you know, the sellers of Chicago, Illinois, that might be a, B or a B minus type area, a B plus type area. If we’re looking at that same hundred $30,000 price point, and let’s say at Dallas, Texas, or San Antonio, Texas, that might be like a C-Class area in Texas. Right? So it’s a very subjective thing. When it comes to neighborhood creating, I’m not the type of investment counselor, that’s gonna spend an enormous amount of time on neighborhood grading because to me, what it comes down to as well is the management piece. And I know there’s a question on management at the end of the day, whether it’s a B class or an A class property management is going to typically, what’s gonna support you in keeping that tenant in place or turning the property quickly for you for that next tenant. So I’ve known in investors over the years that, you know, owns completely section eight portfolios and do very well because management is good. And in place, you know, at the other end of the spectrum, I know people that only buy new builds or buy newer real estate and a neighborhoods that do very well, cuz management’s in place.
Well, the quality of your property management is critically important. We’ll get to that here in a minute. But I think one of the main points here is that you can’t judge what type of neighborhood you are in out of context. And what that means is you can’t look at price alone because you have no frame of reference that $130,000 property you’re talking about could be a beautiful large property in a particular small city or town, but it would be a garage in Southern California. You know, it’s all relative. The thing about neighborhoods is you have to look at the demographics, the income level for me, the percent of owner occupied homes within a particular area, relative to those that are non-owner occupied and residing by tenants. Those are kind of the key things. Also the type of amenities in the area to a lesser degree, the crime rates, because virtually all the areas that we’re in, you know, crime rates are nominal.
They’re very low. You’re gonna have, you know, the odd type of thing, but there’s not gonna be violent crime that you’re gonna have like theft and whatnot, peppered round. That’s just normal types of school rules. Although I don’t put a lot of weighting in schools as well, because there are some areas that are fantastic for rentals, but they don’t have schools with high school ratings. So correct. So I don’t put a lot of weight in, in crime and school statistics, but I do look at the percent of owner occupied homes in an area, the demographics that come level, those are kind of the key things that I like to look at. Yep. I love that when it comes to neighborhoods, I love that. Yeah. So properties, what is the most common question related to properties or properties specific?
Yeah, If we’re getting granular and we’re actually reviewing a piece of real estate typically now I’m not sure which what way we’re trying to go with this question. If we’re looking at something specific about the property. But if in my mind, the biggest question I get asked is what’s your typical cash? What’s your typical ROI. If we’re looking at a piece of real estate, Hey, Nate, what do the numbers say? Right. They wanna know what their, what their capital and cash flow is actually doing for them. Right.
So are asking you about performance, the, uh, financial performance of it.
Yeah, exactly right. Exactly right.
And is that a matter of them not understanding the numbers or just asking you to walk them through what the numbers are saying or showing
In some cases both. Right. I would say that the majority of investors that I’m working with a lot of times first time investors, and although most investors know what an ROI is, right. Mm-hmm <affirmative> they still wanna understand, Hey, what’s a decent ROI for a piece of turnkey real estate in a B neighborhood. Right. And so mm-hmm, <affirmative> we talk about many, a times how that is broken down. So yes, we we’d certainly talk about, I like to go into what your down payment is actually doing for you, right? If, if you’re a, an investor that comes and says, Hey, I wanna buy three pieces of real estate. I have a hundred thousand dollars to do it. And we’re reviewing property, right? This is a property related question. And we’re looking at, you know, five homes to potentially invest in the most common question people go to is, well, how do I compare these properties based on the numbers? So we would look at the common cash flow and, and the ROI of those five properties that we’re comparing makes sense.
Okay. Yep. And I, I would think that different investors are gonna compare different things because they have different priorities, someone whose cash or cash on cash return based, which means that, what am I making here? And now today, this year, they’re gonna look at the net cash flow and they’re gonna look at on cash return and they’re gonna compare properties based on those metrics. Whereas someone who is investing with a long term perspective, they don’t need the cash flow today. They’re building their portfolio and they’re focused on their net worth the equity increasing because they’re looking at correct creating equity over time. They’re gonna be looking more at the name and the market and what potential that could provide them in terms of equity growth, more so than, you know, whether their cash on cash return is gonna be 6, 8 or 10% today. So, you know, the different priorities are going to play in differently with different investors and that might make the market more important than the properties performance. And for others, the properties financial performance is gonna be more important than what is being forecast for that property in that neighborhood in a particular market. Correct. So, yeah. Yep. Correct. Okay. Well that, that makes sense. Did you have anything else to add to that?
And there there’s, there’s always plan to add, how long do we wanna talk, Marco, if you’re gonna work with me as an investment counselor, you know, we will certainly take a broad approach and, and a finite. So what your capital’s actually doing for you and speaking off the cuff, it’s just something that people ask quite a bit is they, they wanna talk about performance on an asset class and what their money is doing for ’em cuz they might be comparing the property that they’re looking at to something that their stock portfolio is doing right now. I typically do try to get them out of the mindset of trying to, you know, comparing a single family home, to the stock market, just because of different profit centers. And that’s a whole nother rabbit hole. We can go down, but yeah, in terms of properly related questions, that’s very, very common. Got it.
Okay. Let’s slide into the management part of this. So what is the most common question you asked about property management?
Uh, another great question. Typically fees, you know, and usually by the time we’re getting down to a, the granular level of, of picking rental properties and we’ve kind of, you know, I’m working with investor and we’ve kind of earmarked a couple of different markets that we might be looking at. I’ve educated to the point where, Hey, we’re gonna be, here’s the, here’s the, our potential for property managers that we’ll be working with our partners and we educate investors on numbers. So they wanna know like what’s the typical property management fee based on where I’m purchasing. Right. And that answer can be, you know, usually somewhere between 80 10% of the gross rents collected. Right. We know that mm-hmm <affirmative>, that’s a very common question is, Hey, are there are any hidden fees? What am I paying? Or when a user property manager, usually it’s financial related.
Got it. Okay. All right. I guess you can’t answer that question specifically until you’re talking about a specific property because it’s gonna be tied to a particular management company that will have their own fee structure. So you can talk in general terms and correct. You can provide like a range of numbers, but, but you know, that range is not all that wide. There’s not gonna be a ton of difference between one management company and another.
Yeah. And to take it, you know, another direction, another route, that is a common question, but another very, very common question is gonna be, you know, that you guys work out of half property managers in place. Some people don’t realize they forget that this is, is a, you know, basically a one stop shop. We’re like the quarterback here. If you need a lender, we have a lender. If you need property, marriage, we have property manager. If you need, you know, insurance people, we have insurance people. So everything’s kind of tied up into a bow. And so we get down to the, you know, we might say, Hey, we’re gonna work out a Tennessee. And they say, Hey, is there a property manager? Well, of course there is. Right. So anybody listening to this episode know that no matter where we’re going to invest, part of working with our group is that we’ve established relationships with property managers all over the country, whether that’s Texas or Florida or Illinois, or, you know, Kansas City.
I think the bottom line there is always assume there is at least one property management company associated or tied to the property that you are looking at or investing in. But you also want to keep in mind too, that you have the option to choose any management company that you want. You also have the option to self-manage the property. If that’s what you want to do at any time, it’s your property. You get to decide if there’s a management company in place, or if that’s you and what management company you want to use, we’re obviously gonna connect you and refer you to the management companies we’ve been working with for months and years that have proven themselves to be trustworthy and reliable. But that doesn’t mean that, you know, you can’t make changes down the road. So I think that’s really the bottom line there.
Exactly right. Exactly right!
Okay, cool. So coming into the home stretch here, financing related questions, what’s the most common question you get asked as it relates to financing mortgage financing?
Oh, that’s a good one. That’s I mean there’s…
Is that a hard one?
Not a hard one. There’s just so many, there’s so many common questions here. Right? So whether it’s the right answer or the wrong answer. Uh, well, when it comes to financing, are we talking conventional financing? Are we talking asset-based lending? I’m just generally you making that statement. So let’s just say that we’re typically talking about a 30 year fixed mortgage backed by Fannie Mae and Fred Mac. Like we’ve gotten to the point, our work we’re gonna get pre-approved for financing. So a lot of people ask, do we have lenders that we recommend working with 100%? We do. I mean, there’s, I think in the investment, the turnkey investment world, there’s what are called what I like to call investor-friendly lenders. Okay. So if someone’s wondering, do we have recommended lenders? We certainly do again. You don’t have to utilize them. So we do have lenders that we recommend though. And then if we’re getting a little bit more finite than that people ask about rates constantly consistently. Do you know what interest rates are at right now? What’s what’s that gonna be like for, yeah, for me, if I get pre-approved and obviously I can’t answer that question. I’m on lo I can give ’em a general response, but it rates are, you know, they shift, right?
Yeah. I would think that’s probably one of the most common questions that people ask is, you know, are rates low? Are rates going to keep going down? Our rates gonna go up, uh, is now a good time to get mortgage financing. So it it’d be centered around the rate. I would think that most people have a feeling or an understanding of whether they can qualify or not. So they’re probably not asking you that. They’re just asking about, you know, what mortgage rates are out there. Maybe how many loans could I get? Those would be my guesses as far as the most commonly asked questions.
Yep. That’s right. And on that note, when they do ask the question about how many loans can and I qualify for one there’s, I think there’s a pretty good podcast that you do on this. But two, you know, most people don’t know that they can qualify for 10 Fannie Mae, Fred like Mac mortgages over time. Right? Most people can’t qualify for them right off the bat, but on your social security number, you can have 10. So, you know, that’s neither here nor there, but just a little, a little tidbit to put out. If you’re, if you’re someone who’s really going after a portfolio over the next five or even 10 years, um, maybe they wanna know how many loans essentially they, they, they are allowed to have in terms of Fannie Mae, Fred Mac financing loans, they can, that’s how many you can get right now with the current rules.
Yeah. And I think it’s important to remind people, listening to this one or two things. Number one, we ares still floating around historically low interest rates. I mean, we are talking virtually free money. I mean, it’s so cheap mortgage rates are so low that you are getting mortgage financing to purchase investment property, where your tenants are paying off your mortgage for you in an inflationary environment where inflation’s eating away at the value of your loan, meaning that it’s becoming worth less each and every year. So you continue to pay it off with constant dollars. Even though those Fiat currencies, those dollars are becoming worth less and less every year. <affirmative> the value of that loan is becoming worth less and less every year. So that part of it is fixed. You get the benefit of paying it off or your tenant’s paying it off, but you get the benefit of paying it off each and every year with inflated dollars, which means that you’re paying it off cheaper and cheaper every year.
So you’ve got two great tailwinds for you. And the question now becomes says, how much of this financing do you want? How much can you get? I would stock up on it. I’d get as much as you possibly can. Now that we still continue to have historically low rates. And we are in an inflationary environment, which is, you know, driving up the prices of real estate and reducing the value of your mortgage loan. So that’s the first thing I would comment on. And the second is, you know, some people still to this day think that they are limited or capped at 10 mortgage loans. That’s only partially true. You’re capped at 10 conventional loans beyond that. We can help you through Nora a real estate funding to get virtually an unlimited number of mortgage loans, because they’re is no cap to how many of those portfolio loans you can get and qualify for.
It’s now based on two things, one your credit profile in part, but number two, it’s based heavily on the property, the property that you’re investing in. And, you know, we’ll look at things like the debt service coverage ratio, and which is the financial performance of the operating and a few other things. So as long as the property is in a good market, in a good neighborhood, it checks out it’s praise is fine. It inspects fine. Odds are pretty high that you’re gonna get mortgage financing, unless you have like a recent bankruptcy or something on your credit report. So I think those are two important things to keep reminding people of because they sometimes lose sight of that.
That’s right. That’s right. And hit the nail on the head. If, if you max out and you use 10 loans conventionally back by Fannie ma and Fred Mac, there are other routes you can go like with Norada funding. I have some clients who, you know, they, they cap out at their first maybe four conventional loans or five and they wanna continue to invest and they work with the Norada funding product and they’re able to continue to purchase that way.
Yeah, exactly. Okay. Let’s wrap it up with the last question. What is the most common question you get asked post closing, meaning after someone has closed escrow taken possession entitled to that property. And that could be a day after a week after a month after what is the most common question after the close?
Yeah. Well, the first thing that’s coming to me is I’ve created a relationship with most of these clients at the, up to this point. Now that they’re closing their property, a lot of times people ask, Hey, do I still have access to you as an investment counselor? Right. Or do I just right off into the sunset? I always set people. Absolutely. You have access to me. So, you know, whether or not you take advantage of that access. Um, and you, you know, you’re getting ready to buy your next property. Maybe a few months later, or, you know, a year later, I’m here to circle back around to you and, and review and, you know, get you prepped and, and review real estate with you. So that’s a very common question I get is, Hey, once I invest, what happens to our relationship? Do I still get to work with you Nate at Norada? Or do I go directly to the turnkey partner?
Nate, that brings up a really, really good point. So I wasn’t expecting you to say that, but I love that you did, because I, I wanna make two comments. One, I think it’s important for everybody to understand and that your investment counselor is your primary point of contact. They are your go-to person for anything and everything. Yes. You’re gonna work with a lender and there’s certain things that you’re gonna be doing between you and them related to your financing. And yes, you’re gonna be talking to your property manager and yes, you’re gonna be talking to the different builders and property providers that we were with when appropriate. However, you should always come back to your investment counselor as your unbiased counselor, your point of contact, someone that you could ask, any question, bounce, any idea off of get opinions, smell, test things. They are your, I hate to use the term one-stop-shop, but they are essentially your one-stop-shop.
The person you’re gonna keep coming back to time and time again before, during and after every transaction. And I know that many of the, uh, service providers that we work with, like the property providers will stay in touch with you even years after you’ve closed escrow on a property that you’ve purchased through them, but always keep this in mind that you should always come back to us to provide you counsel and guidance and advice and steer you away from potential pitfalls. And that kinda leads to my second point. And that is this. We’ve had a number of clients over the last year or so, maybe over the last two years where they have continued, who purchase property from some of the property providers that we used to work with. And that’s the key word that I want to say here is that there are times where some of the property providers that we work with change their business model a little bit.
They start putting out product that doesn’t check all the boxes for us, and it’s not something we are comfortable with or want to sell. So we stop doing work with those providers, whether because we are forced to, or because we choose to, but we just have made the decision to stop providing properties through particular builders and providers. And there’s a reason for that. So if you don’t check with us or stay in contact with your investment counselor here, you wouldn’t know that we to break away from them for whatever reason, which we can share with you. And the reason I bring this up is because there have been a number of, of our clients or past clients. However, you wanna look at it where they have bought additional properties. And then later have come back to us and said, Hey, I’ve got property or problems over at this property.
Things weren’t finished or things were told to me to be finished. Then they were not, or things were supposed to be finished and they never got finished. Even though they told me they were gonna get those things done. So issues came up different types of issues. And the thing is, we can’t really help you all that much at that a point, because you went off on your own and, you know, you were dealing with a provider that yes, we used to work with, but we have since stopped working with them. So it’s important to just keep your investment counselor, your ongoing friend, if you will, but your ongoing counselor to lean on and work with and just provide you that, because we’re gonna just tell it to you straight. So those are the two key things I wanted to bring up based on what you just said, Nate.
Yeah. I love that. I agree more is we’re here a lot of times drop you a line and see how things are for you after your first purchase. And that’s, you know, as far as, you know, post close related questions, I think be because of the way I educate because of the way I work with people, that’s a very common question. Um, if we’re talking, you know, the other finite like actual real estate related, or, you know, what’s going on with the property or the management, if somebody were to ask me a common question, like post close, a lot of times it’s, if I have an issue with the property or there’s maintenance or there’s vacancy or something like that, do I contact you or do I contact the actual, you know, group that I’m working with or a partner that you’re working with and, you know, basic answer to that is both, you know, of course I wanna know what’s going on with your, with your property.
Yeah that’s what I was gonna say. I was gonna say both as well, because if you can deal direct with an issue and get it resolved, just because it’s a direct relationship between you and whoever the service provider is take that route. But if you’re getting some friction or resistance or there’s a breakdown in communication, then you know, certainly fall back on us here and see if we can provide some leverage where we can flex our muscle because of our relationship with these various providers.
Yeah absolutely.
Yep. Good stuff, Nate. Uh, anything else you’d like to add before we wrap it up?
No, I think it’s great. Marco. I appreciate having me on and um, I look forward to, to working with any future investors.
Yeah, definitely. Well, Nate, thanks for taking the time to come on today and for everybody else appreciate you, uh, listening in, and this was helpful. We might do a part three and part four of this. This has been part two of the seven most common questions asked of our investment counselors. In the meantime, if you’re listening to this for the first time, remember to subscribe that way you each and every week you get notified of our new episodes as they come out. If you have a question about real estate investing, just drop that over at, Ask Marco, just click the button on the passiverealestateinvesting.com website. And I’d be happy to cover it on the show, or maybe I’ll just reply to you directly, depending on what type of question it is, and that is all for today. So thank you for listening and we will see you all on our next episode.
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