- How many properties do you acquire/sell in a given month? How much business do you do annually? We acquire 30-40 per month and average 35+ sales per month. Sales are consistently rising each month.
- How long have you been in the turnkey business? Property management business? With over 13 employees we have over 100+ years of combined experience in real estate, property management and construction management experience.
- How exactly does the process work once I tell you I am interested in a property? What happens if multiple investors want to purchase the same property from you? 1st come 1st serve or is it a bidding war? All offers are taken into consideration. We try to be fair at all times. Cash offers are always considered first.
- How many investors (clients) do you have? How many are from out-of-state, or out-of-country? How many properties has your “typical” investor purchased from you and how many investors purchase another property with you after the first? Our typical investors are growing their portfolios of 10 or more properties. We have 30% foreign investors, 70% all over the US.
- Can you put me in touch with some of them who have purchased in KC? We can provide a list of references.
- Where do you see your company in 5-10 years? Will you still be acquiring/rehabbing properties? Is there enough inventories out there, and do the numbers make financial sense for your company to keep doing this? Yes, we see that the market is jumping back. Sales and sales prices are on a rise and vacants are at a low.
- Can I make a tour out there and visit your team/PM company? Can you or someone else take me on a property tour? Yes, we enjoy getting to meet with our clients.
- What’s your best advice for an out of state investor looking to purchase and build a portfolio in KC? Be aware of the tenant screening and work with a successful property management group.
- What has been your biggest mistake as an investor or business owner? Not acting quick enough and overthinking an opportunity.
Kansas City Market Questions:
- Is KC tenant friendly or landlord friendly? How difficult is it to evict a tenant? How long does it typically take? Kansas City is seen to be landlord friendly. Evictions typically take 4-8 weeks and attorney fees start at $495.00. However, we can offer cash for keys as an option in lieu of going through the eviction process. This would cut out a lot of time and costs.
- How does your company come up with rent estimates? We generate rents based on the feedback from potential applicants, the current KC rental market and also based on the 450+ properties that we currently manage.
- Tell me more about crime and crime rates in KC neighborhoods. Do I need to be concerned? We install ADT in all of our properties as an extra security layer. We also install decorative security doors that give added protection. Having these things has limited the crime we see amongst our properties.
- Can you provide me a map of where you buy your properties? What are the things you look for? Yes. We look for all types of properties in all areas that will make it true cash flowing investment to our clients.
- What areas do you avoid? Why? We do not avoid any neighborhoods, we look at the property and make sure the property is in good condition and can be tenanted.
- What are the typical rent to price ratios your properties offer? 1-2%
- What is your approach with all major cap-ex items (roof, hvac, furnace, plumbing, electrical, etc.)? Do you repair or replace? We update all of these items.
- Do you provide a full scope of work for each rehab and costs breakdown? We can provide scope of work.
- Do properties come furnished with appliances? (stove, fridge, washer/dryer, etc.) Is the owner responsible for maintenance? Yes the properties come with appliances. Most of the time the appliances are a refridgerator, stove, dishwasher, and garbage disposal. The owner is responsible for maintenance after the first 90 days of owning the property.
- Do you work with a preferred lender you recommend? We can provide recommendations.
- What are the lowest rates you are seeing investors with high credit scores (750+) get for properties in KC? 4.75% – 4.5%
- Can I use my own local lender? Most likely.
- Have you run into appraisal problems before in the past? What happened? How do you get around it? Yes, it is then up to the buyer to move forward or cancel the purchase.
- If we do run into an appraisal problem, what are the next steps? After bringing it to our attention, it is up to the buyer to move forward or cancel the purchase.
- If my property needs additional repairs (outcome of independent inspection report), will you have them completed prior to closing? Will you provide me evidence (photos)? Yes we will complete inspection fixes and provide photo proof of completion.
- Do you warranty your work? On which items? What happens if I run into maintenance problems over the first 6 months, 1 year? All maintenance will be covered for the first 3 months on all properties.
- Do you have any issues with having contingencies for appraisal, financing, sales comps, and property inspection in the contract? No
More General/Technology Questions:
- How does owner disbursement (payment) work? Do you send me a physical check, or do you ACH funds to my checking account? When are payments made out? Owners are paid between the third and fourth week of the month by either physical check or ACH, as long as rent has been paid.
- Do you have a web portal available for owners? How do I check my owner’s statement each month? How do I keep tabs on maintenance requests? Online? Yes – We use a software program called PropertyWare and offer an online portal for you to view tenant and owner documents as well as your monthly statements. Owner Statements are also emailed to you each month when your payment is sent. Through PropertyWare you also receive an email when a Work Order is generated.
- How passive will my investment be? What decisions do I have to make, if any? Your investment will be passive from the day you purchase because we are true turn-key provider.
Tenant Related Questions:
- What is the typical credit/background profile of your tenants in KC in B & C class properties? All tenants are put through a thorough screening that includes a background check, credit check, check for past evictions, outstanding utility bills and even make a visit to their current residence.
- What type of jobs do your typical tenants work? What is a typical salary? Tenants are required to net 3 times the monthly rent. Kansas City provides a variety of jobs.
- How long does your typical tenant stay for? What is your tenant renewal rate? The average tenant stays for three years and the current retention rate is over 90%.
- Do you rent to Section 8, or low-income? Why or why not? Yes, we accept qualified Section 8 renters.
- How much damage does a tenant typically do? When they move out, how much should it cost to get the place move-in-ready for the next tenant? Most damages are covered by the tenant’s deposit, which is generally one month’s rent. A new tenant would result in paying a lease fee (one month’s rent). No additional property management fees will be required. The cost to prepare the property for the next tenant is case by case.
- If a tenant destroys my property, do you press charges? Has this ever happened before? Owner has the option to press charges at their expense. This has not happened before.
- What if a tenant sues me? How do you protect your owners? Have you ever been sued? How do you discourage this from happening? If it does happen, what are the next steps you take? We protect our owners by our actions and serving our clients with top notch service. This company has never been sued we have always been able to get to the heart of the problem and correct it. If you take care of your tenants and your property owners and know the art of arbitration chances are you will not end up in court. If all else failed of course the next step would be to get an attorney to take care of our side of the issues.
- How many evictions have you had this past year? How often does it happen? We have only had to evict inherited tenants from when we acquired the property.
Property Management Questions:
- How many properties are currently under your management? We currently have over 450 properties under management.
- How staffed is property management team? Who will be my primary contact? How do I best reach/communicate with them? PM contacts are Mercedes or Michele. You may reach them by email or phone.
- What is your personal definition of rent ready? We do move in walk thru and any issues have been addressed, the property is thoroughly cleaned, new appliances set and utilities on
- What is your current occupancy/vacancy rate? The current vacancy rate is 4%.
- What is your historical occupancy/vacancy rate? Historically 2-4%.
- What is the PM fee each month? Will I get charged this fee if my property is vacant? 8% fee
- When is rent due? Is there a late fee you charge a tenant? How long is the grace period? Rent is due on the 1st of the month. Late fee is applied on the 6th.
- How do you screen/source tenants? In house, or do you outsource the work? We perform criminal, credit and background screenings on everyone in the home over age 18. Employment verification is completed and five years of past rental history is verified. We do a home visit to ensure they are a tenant that preserves the value of the owner’s investment property.
- How many properties do you rent in an average month? How many are first time rentals? We rent an average of 20-30 properties a month. 25% are first time rentals
- How long does it typically take to find a qualified tenant? Most properties are tenanted before the rehab is even completed. Occasionally it may take up to two weeks to tenant a vacant property.
- Is there a lease-up fee for sourcing a new tenant? The lease fee is one month’s rent. When buying a property from USREEB, LLC, the property is already tenanted, therefore there is no lease fee charged.
- Is there a lease-renewal fee for retaining a tenant? If a current tenant decides to renew their lease, there is a $100.00 lease renewal fee.
- Are there any other fees I would ever face?
OPTIONAL: $100 for full set of marketing pictures, $150 for video; If owner requests special mailings or projects, copies will be charged at $.10 per side per page.
REHAB/MAKE READY: Fees will vary. This fee will have to be paid within ten days of the bid to avoid termination of the contract.
If you choose to accept Section 8 tenants, Inspection Charges amounts vary per property and degree of work to be done.
CITY REGISTRATION FEE: $25 ANNUALLY
COURT ATTENDANCE: When Agent or Agent’s employees are required to attend court or court related proceedings, including without limitation, legal conferences and depositions, in the performance of the Property Management Services, such time will be billed at the rate of $20.00 per hour.
- Do you perform routine property maintenance inspections? If so, is there a fee? We offer routine property maintenance inspections for $100.
- How long is the typical lease? Do you allow tenants to lease month-to-month once the initial lease is up? Do you ever do 2 year leases? The typical lease in twelve months and auto renews on a month to month basis. Our goal is to lease a property for two or three years.
- How often do you raise rents typically? Rents are assessed yearly but are subject to the market and location of the property.
- Does your tenant give you a security deposit, or move in fee? Is it refundable? How much is the typical deposit? Generally, the deposit is one month rent. This is a refundable deposit depending on if the tenant causes any damages while they reside at the property.
- How do tenants communicate issues or maintenance requests? We have a dedicated maintenance line for tenants to request maintenance 24/7. They may also put in a Work Order on line.
- What specific program(s) are in place to increase tenant satisfaction? We offer several methods and incentives for tenants to pay rent. We also provide a 24/7 maintenance line and multiple ways of rental payment.
- What specific program(s) are in place to increase owner communication? Email, online portal, we have recently launched a monthly newsletter and also a new and improved website.