St. Louis Property Management

Garrett Knox of Knox Mortgage

Real Estate and Mortgage Insights with Garrett Knox on the Saint Louis Property Management Podcast [http://www.avenuestl.com/podcast] In this episode of the Saint Louis Property Management [https://propertymanagementstl.com]Podcast, Greg Abel talks with Garrett Knox of Knox Mortgage about navigating the world of real estate and mortgage lending. Garrett, with over 23 years of experience, shares valuable insights for homebuyers and investors alike, covering everything from mortgage rates to property investments. Garrett’s journey into mortgages began unexpectedly while he was working in direct sales. A friend’s need for office space led to the idea of launching a mortgage company, and soon, Mid America Mortgage Consultants was born. From that small start in Valley Park, Missouri, Garrett’s business evolved, teaching him the importance of seizing opportunities and being adaptable in the real estate market. The discussion turns to the advantages of working with a mortgage broker [https://www.knoxmtg.com]. After the 2008 financial crisis, brokers were seen in a negative light, and Garrett became a mortgage banker. However, he eventually returned to being a broker, which allows him to offer more competitive rates and options for clients by working with multiple lenders. "As a broker, I have access to multiple lenders and can control my pricing, offering better deals than larger companies." This flexibility makes it easier for Garrett to provide customized solutions, particularly for real estate investors. Many clients find mortgage rates confusing, and Garrett helps break down how they are set. By explaining the difference between brokers and larger banks, he shows how brokers can keep margins lower, helping clients secure better rates. This transparency helps buyers understand the process and make smarter financial decisions. In addition to his expertise in mortgage lending, Garrett has extensive experience in real estate investing, having flipped over 80 properties. While he initially focused on flipping, he has now shifted towards holding rental properties [https://propertymanagementstl.com] for long-term gains. He explains how current interest rates have made it harder to generate immediate cash flow, but focusing on appreciation and tax benefits makes holding properties a solid long-term strategy. "You may not cash flow immediately, but appreciation and tax write-offs will pay off in the long run." Garrett’s investment strategy has evolved with market conditions. Today, he is focused on acquiring rental properties in West County, targeting ranch homes in good school districts. This change reflects the reality of the current market, where holding onto properties and waiting for appreciation has become more attractive than flipping. For new investors, Garrett highlights the need for a 20-25% down payment and explains how controlling his own pricing allows him to offer lower rates. He emphasizes the importance of patience and finding the right property to ensure long-term success. "It’s tough for young investors, but with the right property and strategy, you can build wealth over time." Garrett also discusses how rental income can be used to qualify for investment property loans. If an investor has a signed lease, lenders can use 75% of the lease income to help offset the mortgage payment, making it easier to qualify for financing. Another valuable loan product Garrett highlights is the Debt Service Coverage Ratio (DSR) loan, which allows investors to qualify based on a property’s rental income rather than their personal income. If the rental income covers 125% of the mortgage payment, the investor can qualify for the loan. This is a popular option for experienced investors looking to expand their portfolios. "With a DSR loan, as long as rental income covers 125% of the mortgage payment, you can qualify. It’s a great option for growing your investments."

St. Louis SIngleFam vs MultiFam as a rental investment

Multifamily vs. Single-Family Investments Welcome to the Saint Louis Property Management Podcast, hosted by Derek Merkel and Anthony Zamacona, both experienced property managers and realtors at Avenue Real Estate Group. In this episode, they dive into an essential topic for real estate investors: the differences between multifamily and single-family investments. Whether you're a new investor or seasoned, this conversation offers valuable insights to help you decide which property type is best suited for your goals. 00:00:02 – Introduction Derek and Anthony kick off the podcast with a warm welcome. They introduce themselves as realtors and property managers and set the stage for the day's discussion, focusing on multifamily vs. single-family investment strategies. “Welcome to the Saint Louis Property Management Podcast. I’m Derek Merkel, and this is Anthony Zamacona.” – 00:00:0300:00:14 – Setting the Topic: Multifamily vs. Single-Family The hosts reveal the topic for today's episode and emphasize that they aren't here to declare one investment type better than the other. Instead, the conversation revolves around understanding the differences between multifamily and single-family properties and how these differences relate to an investor's unique goals. “The topic for today’s podcast is multifamily versus single-family and which one is, I wouldn’t say better, but you know, the differences between them.” – 00:00:1800:00:29 – Determining Your Real Estate Goals Derek and Anthony delve into how an investor’s specific goals and circumstances will play a significant role in choosing between these property types. They talk about the factors that influence an investor’s decision, including whether you’re just starting out or already an experienced investor. “What your specific goals are with real estate will determine which one may be more beneficial for you to get into.” – 00:00:29 00:00:40 – Derek Prefers Multifamily, Anthony Prefers Single-Family Both hosts reveal their preferences: Derek gravitates toward multifamily investments, while Anthony is a fan of single-family homes. This sets the stage for a friendly debate where both sides will share their perspectives, backed by real-world experience. “I’m kind of on the multifamily side, and Anthony is a little bit more on the single-family side.” – 00:00:40 00:00:49 – What Attracts Anthony to Single-Family Investments Anthony begins by outlining what excites him about single-family homes. He breaks down how he evaluates deals and looks at investment properties that come across his desk. He considers important factors like leasing, property management, and what challenges each type of property presents. “When I look at these investment deals, whether it’s multifamily or single-family, I’m looking at the leasing and management side.” – 00:00:52

Ask a St. Louis Mortgage Lender

In today's competitive real estate market, it's essential to stand out as a buyer. Key strategies include getting fully underwritten before making an offer, which makes your bid more attractive to sellers by reducing financial contingencies. Acting quickly with a same-day pre-approval and communicating directly with listing agents can also give you an edge. While waiting for interest rates to drop might seem tempting, it often leads to increased competition and higher property prices. Instead, consider locking in rates now and refinancing later if rates decrease. Understanding the nuances between FHA and conventional loans can also help you choose the best option for your situation. Overall, being proactive and prepared is crucial to successfully navigating today's market. Time-Coded Summary: [00:00:00] - Introduction David Mertens introduces the topic: how to set yourself apart as a buyer in the current competitive market. He emphasizes the importance of acting now before rates drop and competition increases. [00:00:42] - Competitive Strategies for Buyers Garrett Knox discusses the strategy of fully underwriting loans in advance, rather than just getting a pre-approval. This makes a buyer's offer more attractive to sellers by reducing financial contingencies. [00:01:45] - Pre-Approval and Underwriting Process Garrett Knox explains the timeline: same-day pre-approvals are possible, but fully underwriting a loan typically takes 3 to 5 business days. This allows buyers to remove financial contingencies, making their offers stand out. [00:02:14] - Communication with Listing Agents Garrett Knox describes how he communicates with listing agents to reassure them of the buyer’s financial stability, further strengthening the buyer’s offer. [00:02:23] - Interest Rate Predictions Garrett Knox discusses the potential for interest rates to drop, particularly during an election year. He anticipates a slow decline, likely in quarter-percent increments, starting as early as September. [00:04:22] - Risks of Waiting for Lower Rates Garrett Knox warns against waiting for rates to drop, as this could lead to increased competition and higher property prices when rates do eventually decrease. [00:05:56] - FHA vs. Conventional Loans Garrett Knox explains the differences between FHA and conventional loans, noting that FHA loans have stricter requirements, such as addressing peeling paint, but otherwise, there are few major differences. [00:08:19] - Timing Your Refinance Garrett Knox advises that lenders typically prefer buyers to wait six months before refinancing to avoid chargebacks. He suggests waiting to make six payments before refinancing. [00:12:16] - Final Thoughts on Setting Yourself Apart David Mertens and Garrett Knox conclude that the key to setting yourself apart as a buyer is being prepared early, fully underwriting your loan, and working with knowledgeable real estate professionals. [00:12:54] - Disclaimer A disclaimer that the information shared in the podcast is for general informational purposes and does not constitute professional advice.

Ask a Property Manager

http://www.avenuestl.com/podcast Welcome to the St. Louis Property Management Podcast! This week, we are diving into some of the most common questions about property management, inspired by trending searches on TikTok and YouTube. Joining us today are David Martins, one of our senior account executives, and Derek, one of our newest team members. Election Impact on Real Estate Property Manager We explored how presidential elections affect the real estate market. Historically, home sales and prices tend to rise after elections, except during major economic crashes like in 2008. Mortgage rates also show varied trends, with some increasing and others decreasing around election times. Roles Property Management FeesBecoming a Property David and Derek discussed the various responsibilities of property managers. Their main tasks include ensuring properties comply with occupancy laws, maintaining property conditions, and managing tenant relationships. They emphasized the importance of communication between property managers, tenants, and owners. ManagerChoosing a Property Manager The typical property management fee ranges from 5% to 10% of the monthly rent, with additional fees for leasing and renewals. They noted the importance of not just opting for the cheapest service, as effective property management can save money in the long run by preventing issues like extended vacancies. Both David and Derek highlighted that previous experience is not mandatory to become a property manager. Starting with a related role within a property management firm and learning through mentorship can be very effective. Key factors to consider include the responsiveness and communication style of the property manager, their local presence, and their ability to handle problems efficiently. Shopping based on these criteria can lead to better management of your property. Tax Deductibility of Fees management fees are generally tax-deductible, which can make professional management more financially viable for landlords. Investment Areas David and Derek shared their favorite areas for real estate investment in St. Louis. David prefers Kirkwood and Webster Groves for their stability and long-term returns, while Derek sees potential in Hazelwood for its affordability and growth prospects. Thank you for joining us! We'll be back next week with more insights. If you have any questions or topics you'd like us to cover, feel free to reach out.

Why Good Realtors Make Great Property Managers

http://www.avenuestl.com/podcast Welcome to the St. Louis Property Management Podcast! In this engaging episode, we're joined by Aaron Wilson and David Mertens, both senior account executives at Avenue Real Estate Group. Today, we dive into the fascinating topic of why good realtors make great property managers. With extensive experience in the real estate market, Aaron brings invaluable insights into the intersection of real estate sales and property management. Making his debut on the podcast, David complements the discussion with his rich background in real estate sales and management. We kick off the episode by getting to know Aaron and David, exploring their professional backgrounds and roles at Avenue Real Estate Group. The core discussion centers around the statement, "Good Realtors Make Great Property Managers," and our guests uncover why this is true based on their experiences and industry knowledge. Discover how a deep understanding of the real estate industry equips realtors with the skills needed for effective property management. Learn about the specific skills that realtors possess, such as negotiation, client relationship management, and market trend analysis, and how these translate seamlessly into property management. Understanding the importance of handling legal documents and ensuring compliance with local laws is crucial, and Aaron and David explain how realtors' experience in these areas benefits property management. To bring the discussion to life, they share real-life stories from their careers, illustrating the advantages that realtors have when transitioning into property management roles. The episode concludes with practical tips and advice for realtors considering a move into property management, helping them leverage their existing skills for success in this field. This episode is a must-listen for realtors and property managers alike. Aaron Wilson and David Mertens provide compelling arguments and practical insights, offering valuable knowledge and inspiration for anyone looking to enhance their understanding of the industry or considering a career transition. Tune in to learn why good realtors truly make great property managers and gain actionable tips from industry experts. Whether you're a seasoned professional or new to the field, this episode delivers the insights you need. Don't forget to like, comment, and subscribe for more episodes of the St. Louis Property Management Podcast. Hit the bell icon to get notified whenever we upload a new episode! #StLouis #PropertyManagement #StLouisPropertyManagement #RealEstate #Realtors #AvenueRealEstateGroup #Podcast #PropertyManagers #RealEstateIndustry #CareerTransition #ProfessionalDevelopment