Welcome Home with Monique

Unknown Speaker 0:00
You're listening to locally produced programming created in KU NV studios on public radio K u and v 91.5.

Unknown Speaker 0:11
The content of this program is sponsored by CMG financial, the content of this program does not reflect the views or opinions of 91.5 Jazz and more. Or the University of Nevada, Las Vegas. You see me on the

Unknown Speaker 0:36
Good morning. This is Monique cannon, the host of the welcome home with Monique show. And on this show, I talk all things real estate. Listen, I want to thank you for tuning in. Well, hello, Las Vegas. It's Monique Buchanan, the host of the welcome home with Monique show. I hope that you're out there driving around in this beautiful sunshine and enjoying your weekend. But you guys, this show is near and dear to my heart. Because I have a very good friend of mine. He's actually one of the very first people that I was ever around that was an investor. Okay. Honest to God. I was at the time we work together. I was doing a little like dipping and dabbling just a little bit in investing by buying struck off properties in Texas. I don't think he knew that. But he was the real deal, you guys. He was buying investment properties. And I'm let I'm gonna let him tell his own story. But I've got him on the show today because not only is he an investor, but he also runs in an amazing property management group. You guys this is listen, it is vital, vital. So I'm going to have him come on. He's going to go ahead and talk about what his company does. He's going to tell you his story about being an investor, what that looked like for him, what it looks like now for him, and as well as his property management group, and how that can also help you if you have properties right now. So let me just go ahead and introduce him. Derek Mullingar. Hi, Derek. How are you? Yeah. How are you, Derek? So anyways, guys, like I said, he's like family to me. I've known him for 20 years. We used to work together, right, Derek?

Unknown Speaker 2:18
Yeah, for a long time, a long time.

Unknown Speaker 2:21
And now you run a very, very successful Property Management Group. I'm driving around, and I just start cheesing. from ear to ear. Whenever I see your company sign on, you know, like on these buildings, I'm like, That's my boy. So Derek, real quick. Go ahead and introduce yourself. Can you start off just by telling them your story? How did you get into property management.

Unknown Speaker 2:46
So it goes back quite a few years, I never sought to be a property manager for other people. That kind of happened organically. I was an investor. And in being an investor, at first, I had to have a real estate agent. Because at that time, many years ago, I didn't have a license. And I just thought, I'm doing all this guy's work. He literally gave me his log on to the MLS, I would find my own properties, make my own offers, write my own offers. Oh, wow, do it all these would get a check at the end. Wow. And I thought, let me skip the middleman. I'm going to get a real estate license, right. So I did that just to buy my own properties. I wasn't trying to represent other people at that time. And I did that for myself. Then, some years go by, and I'm dealing with brokers because a broker has to sign off on everything. Some of the brokers, the deals I was putting together had no idea what was going on. And I would have to sit with them and teach them what I'm doing in this contract. And I thought this is pointless. I just need to be a broker. Right? So then I went and got the broker's license. Same thing with property management and on down the line. So I eventually cut everybody out until I had a corporate broker, individual broker, property manager, business broker and be to contractor license. And I just cut everybody out of the mix. And did it all myself for my own personal properties. Right at the height of my ownership. I had 96 rentals in Las Vegas myself.

Unknown Speaker 4:07
That's crazy. Yeah, that's awesome. So you had 96 doors, like we say, right? Yes. Wow. I know that when me and you are working together you guys like I said we're 20 years in. We're very good friends for 20 years, but when I was working with you, you even owned the what was it that across the street? What was a queen's Ridge condos or no Townhome? You had a Queensbridge across the street? Yes, I remember you had a bunch of multi units, and things like that as well. Right?

Unknown Speaker 4:38
I did and that, in fact, then I had eight or nine houses that I was renting out. So when the real estate market crash of 2007 Eight came, I was just getting out of my houses. And it wasn't because I was some financial genius. I literally got lucky. I was working and everybody I knew had two and three house to some of these people, I really felt like how in the world

Unknown Speaker 5:04
they get a house right? My father had two houses Derek, and he worked his room service at the Luxor and he in his two houses equaled a million dollars. There was no way in the world he should have ever been approved for a million dollars. No, man. No, sir. And can you just expand on that real quick not to get you off. But you know, what do you have to say when people say, Oh, the crash? Another crash is coming? Can you explain you went through the crash? You knew that it was because of predatory lending. So can you touch on that? Derek, do you think a crash is coming? Like in Oh, eight?

Unknown Speaker 5:38
I don't think a crash is coming. But I do think that property prices in Las Vegas especially have already come down? Yes, or 2% from last summer, right? If you take that percentage to where we're at now, it's come down quite a ways. I think it could come down a little farther. But I do think the collapse of this bank last week is very instrumental and what's going to happen here in the future. The Fed was very much in line to raise interest rates here next week by about half a point. I'm curious to see if they continue to do that. If they do. We I think we will move into an area where maybe house prices come down a little bit more, it's a back off and don't I think people are going to rush into the housing market and it could stabilize the the lower end of it where we don't have any kind of freefall. So I don't think a crash is coming is my point.

Unknown Speaker 6:30
I absolutely agree with you, Derek. And it's so funny that you said that I tell everybody, if you're sitting on your hands waiting for these, you know the feds to lower the rates. Like you just said, Everybody's going to rush. And then we're going to have the same thing that we had last summer, where we're waiving appraisal contingencies. We're offering 10 20,000 over because we still have low inventory. Am I right?

Unknown Speaker 6:55
Yes, that's correct. When I look at the Las Vegas market, what I usually look at is the Los Angeles market. Okay, I look at Los Angeles, because historically Los Angeles precedes what we do here. Right. So they're about six months ahead, right now, if you go into Wall sandals and get what would be considered to be a fair middle income range house, which there could be $800,000, those things are flying off the market. Right? There'll be 15 off. Right

Unknown Speaker 7:24
now. You're absolutely right, I've got a friend in LA. And that's exactly what he said multiple bids right now.

Unknown Speaker 7:30
So the same thing is kind of here even now. In my company, we're still selling quite a few homes. Now. If we get up in the higher end homes, 800 million, which is a lot of money for a house, those aren't flying the same? No, sir, down at $3,000. That house is getting multiple offers today. Anything

Unknown Speaker 7:48
under 400,000. I'm looking at I've warned my listeners, I said, Hey, guys, I'm starting to see multiple offers again. And you're you're right. But you're right, Derek, it's, it's under 400 grand or 300,000. They're flying off the shelf. Now I do have a listing that is is, you know, a luxury home listing. It's at around 700. And it's still sitting, because that payment is what 4005 Almost $4,500 a month with the rates right now.

Unknown Speaker 8:15
So yeah, and and what's happened to people's rates? It's gone crazy. So just for if you had a $500,000 loan total 18 months ago, your payment was around $2,100 a month, not including taxes, insurance, all that, today, that same exact loans. If you have a 7% mortgage, it's going to be somewhere around $3,400 a month. Wow,

Unknown Speaker 8:37
what a difference. And that is that they have is what what 20% down are now. That's

Unknown Speaker 8:42
that's just if you took a loan amount of 500,000 based on that number, so it's, you know, the house could be 600 700. But the loan itself 500,000. The payment on a $500,000. Note 18 months ago was around 2100. And today it's around 3400. Yeah, that's a big difference. And of course, there's a lot of people who even want that note, unable to qualify, because how much extra money do you have to make to qualify for that 1000s extra month, you've got to show on paper to qualify for that extra 1300.

Unknown Speaker 9:12
And that's assuming you have, you know, pristine credit. So, you know, yeah, we we went off on a tangent, I kind of led you down a road you were telling your story. And it was my fault I got but that was great information. I'm glad that you shared it. Because sometimes people have to hear from somebody other than me. And you know, you have been in the real estate business for many years. And like you said, you have been an investor you are now you know, you've been a real tour broker. I mean, you've just moved all the way up. So please continue that. You know your story, that this is why you got into property management cut everybody out. You said I'm going to do this myself. And then how did you end up starting your own company with property management?

Unknown Speaker 9:56
So like cutting everybody else out, I had all the life To ensure, and I have signs that are on my building anything that was my personal building, I put a sign on it with my company name, here's a phone number. And it's, it was for me a way to get tenants. That's how I drove tenants to my places. Well, what happened was a few other investors that owned on that block would see the sign and call me. Can you help me? Can you manage my building? Can you put tenants in? Can you rehab for me? And at first, I told them, no. And one person happened to call me it was over in a street called Sunrise, I owned a 12 unit building. And my thought was this buildings in such terrible condition with the neighborhood, the police wouldn't even go down there at the time. When I bought it, the agent who sold it to me, on the sell side said, why would you even think about buying this? I said, Well, if I get enough investors together, we're going to fix this block. So that's what happened. So this investor had bought two buildings on the same block that were condemned by the city and said, Can you help me? And I honestly didn't do it with the idea of I'm going to really help for us. I'm going to help me improve this block. A few other people like this investor, we can fix this whole block. That's amazing. And that got me into contracting for other people and managing for other people. That was my start.

Unknown Speaker 11:14
And it was a blessing to the to the neighborhood that you fix that blocks that you guys did that?

Unknown Speaker 11:20
Yeah, you could. I mean, I can tell you some horror stories about that block. It was, it was rough. But people would come down there and just knock on people's doors and say you don't live here anymore. Get out. We're taking this, this unit over. Wow. Was that that down? There was that time? That's amazing. That's crazy buying for 35,000 a door.

Unknown Speaker 11:41
And so you had a 12 unit? And then somebody else came in as an investor and bought one across the way and then you guys teamed up, per se, or?

Unknown Speaker 11:49
Well, no, I just I did, she lived out of town. And I did all of the rehab for property was condemned. So I had to go to the city council meeting. And we tried to get her fines and everything reduced, which they did, they reduced it by over $100,000. And we just said, we're going to rehab this, we're going to improve the neighborhood, we're going to put people in here and make it a safe place to live. So they said, well just pay us back what the city has invested in the condemnation of this for the previous owner. And then we will let go of everything else, which they did. So we went in and rehab that building top to bottom.

Unknown Speaker 12:26
So there you are. So that was my I was going to lead into that. So what is it that you know, your company provides, but that is a major thing that you just said, Monique, I went in and I got her fees reduced, you know, you have to know what you're doing. You can't just be you know, the, you know, the brand new person going down there trying to figure out how to get your fees reduced, you know, they mean, so you know how to do all of these things, as well as you took over her rehab for her. That's, that's okay. So let's go ahead and segue into that. As a property management group, what do you offer your clients? What do you do for them? Why am I paying you?

Unknown Speaker 13:04
We do, I think above and beyond, from what anyone else does. So it sounds like and I'm an investor, I'm an investor first, right? So I understand what a property needs. I'm not sitting in an office with a suit and tie nine to five, and making three different phone calls to get three different bids to see who might be able to go out there on what day, we're actively involved, I have 40 full time employees directly. Just the contracting side of it alone. I've got 17 or 18 employees, 16 trucks, I've got my own 14,000 square foot building. We're involved, right? So when somebody needs something, when I buy a building, let's say I represent someone, and I buy a building for them or with them, we go in, and we first of all, assess, okay, what are the rents going to be once we get it where we need it to be? That's first to me. So I figured out here's the rent, here's what you're gonna get. I can help you put tenants in there. Does it need work? Does it need flooring? Does it need a roof? Is it leaking water? What are the issues with it? We're going to fix that right? And you have to know what's too much of a fix. It doesn't do me any good to put gold faucets into place. If it's not going to. If I'm not in Trump Tower, for example, there's no point, right? Some people think oh, I just keep putting money in there and make it perfect. And I'm going to get more rent. No, there's a line where it stops. And eventually you just have diminishing returns and there's no point right? So you got to know how to make sense. So I let people know this is all the money you need to spend. Here's what it needs to look like. This will get you the maximum amount of rents possible. And we do that so we rehab at that point we put people in if we need to go through evictions. We process the evictions. I personally processed over 1000 evictions in Las Vegas. Wow. We go to court we do all your paperwork we deal with chap money if there's that we do a draft money if that's going on the program you will be paying for all that all of those if they're doing any other kind of run coexistence through some of the other charities here in town. We deal with all that,

Unknown Speaker 15:05
you know, and if anything, I want to jump in real quick and just share my story, you guys why I'm so big on property management, you know, my, my new, you know, thought process is if you want it done right, don't do it yourself. Okay? Because when I, I had, um, you know, I personally had an experience, but I've also had realtors, realtor friends that have had horrible experiences, because, you know, they're trying to help out a family member that was renting or whatever. And because, you know, they're a realtor, they think, well, guess what, we're completely different. There's real tours that sell property, and we have absolute, we do not have our property management license. As for instance, I do not have my property management license, I am not licensed to handle any property management, I always refer to my referral partner, which is Derek, okay, because that's his lane. That's what he knows how to do. But if it's something that you own yourself, or family member, you're allowed to step in, well, let me tell you this story. She stepped in, she had to go to court because the the tenants, they did some upgrades within the home. And they felt like when they left, you know, when the lease was up, they should be compensated, you know, every dollar of all the upgrades that they decided to do within the home. And so she had to go to court, she battled that thing out and went back and forth to court for almost a whole year. And it was just a nightmare. And she said, you know, I'll never do this again. So that's her story. I've heard of Realtors, you know, going, like you said, six months, trying to get somebody out of a property, I had a property that was sold completely sold, the seller sold the property, even gave the renter a credit to move on and find another rental. Do you know that person did not move out of that property, these new buyers had to sit there and pay mortgage on a home that they could not move into for almost four months. So these are the nightmare stories that happen all the time you guys. But if you have a property management group, today will take over and they will handle it. They handle those hard conversations. They handle the late fees, they issue the violations. You know what I mean? They go to the court appearances. You know, this gives you peace of mind. And not to mention, Derek, here's the main thing that I see. You know, there's people that have been renting for a long time. And you know, God bless them. I'm happy for them. And when they first moved in, you know, seven years ago, they are still paying $1,100. That's great for the tenant. But that's because the owner is property managing that property themself. They have no clue that Sir, your $1,100 has been gone a long time for three bedroom, you cannot find they don't know that they need to raise the rent. And not that I'm I'm just saying they're missing out on that money because they do not keep in touch with the current market. Am I right, Derek?

Unknown Speaker 17:54
So yes, it does touch on one thing you said there in Nevada, especially if you're an out of town investor, the law says you have to live or be available within 60 miles of the place that you're managing. Unless you're a property manager licensed in the state of Nevada, you cannot manage even your own unit after three. So you can manage three of your own units. If you buy a four Plex, legally, you're not allowed to manage that yourself.

Unknown Speaker 18:20
That's good. I didn't know that. Okay. So a lot of people don't

Unknown Speaker 18:24
realize that and then when it comes to doing work on it, you just can't have your brother come over fix things that is illegal. You have to have a licensed contractor come over and do the work on a property that's being managed. That is state law. And a lot of people work on their own thing. And, you know, I don't blame them. Honestly, I don't begrudge them that right. But you live in a litigious world and especially today in Las Vegas with tenants everybody came in, that's supposed to pay the rent, right is also there to give tenants a free attorney. And part of that chat money is gone to that. Every tenant wants to sue you for something because they've heard I get something for free. So you can't give them any excuses. Like I manage my own property. That's illegal. My brother just fix the water here. That's illegal. You've got to do everything illegal so that when you do finally get your chance in court, you have everything on your side to try to get your property back or get your money. And

Unknown Speaker 19:21
if you're just tuning in, this is Monique Buchanan. This is the welcome home with Monique show. And I have my property management partner Mr. Derek Molitor on with me, he's just going over. You know what it looks like to own multiple properties. Being an investor which he is he owns how many doors do you own now, Derek?

Unknown Speaker 19:38
Well, I sold most of my doors. What I own now is light industrial. And I put my money into some other things and honestly in some other countries. Oh, wow. But I had as many as 96 doors in Las Vegas at one time.

Unknown Speaker 19:52
Yeah. Yeah. And if you're interested in sorry, go ahead.

Unknown Speaker 19:56
I sold those almost two years ago, I bought a Few more after that, and then I sold those. Oh,

Unknown Speaker 20:02
my goodness you sold at the right time, sir. Yes sold at the right time.

Unknown Speaker 20:08
I did. And I called honestly, I called everybody I knew and I said sell now, and nobody did. You

Unknown Speaker 20:13
know 702984 3700 This is money you can. And if you are looking to, you know, hire a property management group, you've got the best on the line right now, this man will take care of your property to the tee more so than any other property management group. I know 702984 3700 I will get you in contact with Mr. Derek malinger. And we will get you started so that you can not have you know, you'll have a stress free, right, Derek, you don't have to worry about the tenants in the toilets. You'll take care of everything I

Unknown Speaker 20:46
tell them owner, and I speak to a lot of them is my hardest job as a property manager is to get owners out of their own way, right? Just give it to me, let me take care of it and you go do whatever you do, right? You can't be going back and forth. You know, they feel bad for the tenant, they feel bad about kinds of things, these tenants know how to work them. Yeah, I'm fair. I'm good with everybody. But we're here to represent the owner. And then to be fair to the tenant, and legal like

Unknown Speaker 21:15
that. And that's what I want to hear. That's why have you come on, because I do know that about you have a heart for the tenant, but at the same time, you know where to draw the line. So you're bringing me to my story. And if you're just tuning in, once again, let me say it one more time. If you're interested in property management, that's what I have on today, you can give me a jingle at 702984 3700. You can also click property management on my website, welcome home with monique.com Welcome home with monique.com and 702-984-3700. I will say it again, at the very end of the show. But let me share my story. So I own some property down in Texas where my father's from, and my parents are from. So you know, I put one of my family members into the property. And like you just said, you know, it's because they know that I'm family. You know, there's all kinds of stories, there's all kinds of late rent. But as soon as I hire a property manager, because I honestly just didn't have time to deal with anymore. It's mighty funny how all of a sudden, all my rent started getting paid on time. And I didn't have to have that stress. So you know, and not to mention the bookkeeping of it all you guys even do the books, is that right?

Unknown Speaker 22:29
You have to, we have to keep everything compliant, we have to turn in our financials once a year to the state of Nevada or to the real estate division.

Unknown Speaker 22:38
Right, right. And that's you also give copies, of course to your clients. So now they don't have to worry about it when it's tax season like it is right now. That is all taken care of professionally. So

Unknown Speaker 22:49
you're you're given you have 24 hour a day, access seven days a week, to our platform, which will give you every bit of financial information, pictures, text, emails, anything to do with your property, you're given an update every single week on your property, you can pull an income statement, a balance sheet, at the end of the year, you're given a 1099. With your income statement, you hand those two things to your tax person. And everything you have is line item there. You

Unknown Speaker 23:18
don't have to do anything. Yeah, that's amazing. You guys go above and beyond. And I just really appreciate that because it just gives the clients a peace of mind knowing that their properties are being well taken care of. Now, let's go ahead and we're real quick, I want to bet I kind of want to rewind, you said once again, let's make sure that people understand this. Because I know that there's many investors that I even have assisted that live in California, they do own four plexes here in the Valley. And they are managing those theirselves. And I even like I said, I'm not a property manager. So I don't know the laws. So you just enlighten me when you said listen, if you own a four Plex, you're allowed to have three doors. But once that fourth door comes in, you now need and are by law required to hire a property manager. If you live in a state farther than what 60 Miles Derek. Even

Unknown Speaker 24:09
if you live in state, you can only manage three of your own personal units. Without a property management license once it hits for even if they're your own. And you live next door. It is not legal for you to manage that.

Unknown Speaker 24:22
Oh, wow. That's really good to know. Very good information.

Unknown Speaker 24:26
But what some people will do, they'll have a manager like, Oh, I've got a property manager. He lives in California, that is not legal. You have to be within 60 miles of the property. Okay.

Unknown Speaker 24:35
That's good to know. Because a lot of you know, we want to stay in compliance. And we don't want to, like you said we don't want to give the tenants any reason to be able to, you know, sue us, just to be blunt.

Unknown Speaker 24:48
I have a horrible story for that. So I know a woman who I represented here with her properties. She's a licensed real estate agent in another state. Okay, she decided she would go ahead and be a property manager in that state. But now ever got licensed to do. So they had an accident happen on the property. And then they found out she is not licensed as a property manager. They sued her for over a million dollars. And there's nothing she could do about it. Because the state views it is that's a professional designation. It's no different than me telling someone, I'm a doctor and putting it up on a science and let me fix your broken leg. Oh, that's a professional designation, you pretended to be that person and you are not. And now this person through your negligence got hurt. And if you would have just had a property management license, it would have been completely different.

Unknown Speaker 25:36
We would have hired a property manager, right? Yep. If

Unknown Speaker 25:40
she would have just let someone do it, who is licensed to do it that would have never come to that, but a million dollars is what that cost.

Unknown Speaker 25:48
Wow. So that's crazy, you guys. So anyways, Derek is a wealth of information. I'm telling you. He's amazing. Like I said, He's owned over 98 doors at one point here just in the valley. But he's an amazing property manager. Him and his team are phenomenal. Very close to them. I know that they're the real deal. And one last thing. Derek has built the majority of his wealth through real estate. Is that right? Derek? That's correct. Okay. And this is a thing that I talk about day in and day out on the show, Derek, I'm telling people, please invest in your future, build your portfolio, buy real estate, that's the quickest way to build your wealth. And, and I know that you shared you at 98, you know, homes or not homes or properties built homes. And I know for a fact that today you're sitting mighty pretty well was that was was it listen in your in your properties? Because of those you become very successful property manager as well, right?

Unknown Speaker 26:49
Correct. Oh, yeah, I, I, I work today because I enjoy it. Because I like doing this. I would, I never have to work again, if I don't want to

Unknown Speaker 26:58
There you go. Not because you have to. I

Unknown Speaker 27:00
enjoy doing it. It is worth it. You know, someone told me many years ago, if you have to trade your time for money, if you have to go out and get paid on the hour, you will never ever truly achieve financial independence until you can make money by going to bed at night and doing nothing having your money work for you. Unless you can reach that point. You'll never be independent. That's

Unknown Speaker 27:21
exactly right. And just to you know, jump back into what I've been telling all my listeners, listen, many of you are sitting on so much equity right now. And those dollars are not working for you. I am telling you. Yes, the rates are up. But guess what's down, you are able to negotiate right now the seller is paying closing costs. The seller is willing to negotiate that price because the rates are up and therefore there are less buyers. Now what I'm saying is pull out a HELOC don't touch your rate. Don't touch your rate because you probably got it as three or four. But let's put those dollars to work. Take advantage of the fact that I'm able to negotiate a killer deal for you right now. But like Derek said, if these Feds after these banks crash like they did or, you know, if these Feds decides to lower these rates, guess what's going to happen? Just like Mr. Investor just said, Everybody's going to jump in the pool. And what does that mean? I am no longer able to negotiate the deal that I can for you today. Put your dollars to work, invest in new properties, snatch up some good deals today. And then let Mr. Derek Bollinger property management for you. Derek, thank you so much for coming on. I appreciate you. And if you guys are interested once again, my number is 702984 3700 you can jump on my website. Welcome home with monique.com and just click property management. And I will get you directly with Mr. Derek Bollinger and you will be well taken care of Have a blessed Saturday. Thank you again, Derek, and we will talk soon thank you for listening. Please remember all terms discussed are simply an estimate my license number is S 1788 46. My phone number if you'd like to contact me is 702-984-3700. You can also find me on YouTube and please join me tomorrow at my church Living Word Church on hassle. I'm part of the EXP Realty Group. Alright, tune in next week.

Transcribed by https://otter.ai