All Forum Posts by: Andrew Ware

I also agree that it seems excessive. The carpet maybe, maybe not. Hard for us to guess at real damage. If it was limited to one room? Depends how big the apartment is but you pay that room, and I have to pay the rest if I want to change it out. On a side note, islands of carpet with tile, or laminate etc in the main and connecting areas sounds pretty great right now. Paint, some deposit probably. But again I don't think you get to charge a full repaint for limited damage. 30 months is a long time. But it's hard for us to guess at the true extent of the damage. The patio is the thing that would annoy me. Can you really replace a few tiles? It's going to look weird unless it's natural stone. And it doesn't seem like an appropriate place for those. So yes I agree that it's excessive. But you really are pretty tough on the property. Is there an option for mediation or a third party? The real lesson should be take pictures and video as both a renter and landlord. 5 minutes may have saved you thousands.

Not sure that I agree Chris Martin That can work precisely because they won't write it into the contract. You are reinforcing what you actually care about which is your profit and a well run property and sharing some of the profit. The calculation might be a bit generous. It's a bonus. Of course they wouldn't return it. They don't get a bonus in the years when they don't turn properties fast or put in dud tenants. I personally wouldn't give a cash bonus to someone unless they are on the low end of the compensation and are just getting by (because they really need and appreciate the money.) In general everyone will tell you that they want a cash bonus. But when they have studied this it turns it into a financial transaction and depersonalizes it. A better option is a genuine display of appreciation like a handwritten note specifically to that person and a thoughtful gift. If they made a lot more money for you don't be afraid to spend more.

Matthew A. Yes it's a but scary but that's why you always hear on this site to then take the information to a qualified expert (be that cpa, attorney, agent, insurance agent, etc.) The good news is on this site there are usually enough really experienced people to say no that's not right check your facts.

This looks like a classic case of overthinking it to me. People are afraid to take good enough for an answer. Your real success comes from building something that works and doing it over and over again. Refine your process and your profit goes up and up and up. Milwaukee is in the top ten for goodness sakes. Use your contacts and experience there and do it again. It's hard not to want to do things different. It's easy to get bored. And the grass is always greener on the other side of the country.

A) fantastic job and great wrap up insights! That was a truly helpful post to a lot of people here, myself included. B) I'm curious too about Ashley Wilson 's question about capital gains avoidance. After two years you can use the homeowners exclusion, or 1031 after one? Maybe a hardship exemption, grants from the city, or the way you purchased it? This feels like something else to add to the quiver.

I'm a big fan of strategies that use people's natural advantages because it's like swimming downstream. Sit down and make a list of things or people that could help you. I'll tell you three things that could be on that list. 1. You are an electrician so you could flip or brrrr a house with gnarly wiring that I couldn't/wouldn't touch for the same price. 2. You probably already have contacts in the industry. Know which contractors are great to work with? That's a huge battle for most people. 3. Along the same lines, have you done work for flippers, or other investors? Mention that you want to get into investing and then ask what you can do as an electrician to make their process easier. This is a marketing trick of reciprocity. They will tell you what makes their life easier then want to help you get started. I call it a trick but it's really just relationship building.

Having no debt is a kind of leverage. But also using other people's money to make more money is obviously leverage. Pick what you are comfortable with at the stage you are in. I personally think doing real estate without leverage gives up one of its great advantages. And further, I think killing off your money that is making money is counterproductive. In fact, I'd say what you are talking about is little better than a loan consolidation. I'd rather you keep the houses and do what he really suggests. Downgrade your car and pay for a replacement in cash, get that second job and pay down those loans. Selling the houses gets you there fast, but is little better than a crash diet and doesn't address the underlying issues. If it's a smart financial decision or it gives you peace to sell those houses now then do it. But, make sure you are doing the right thing for you for the right reasons.

I have heard that kind of figure of 50-100. Like others have said it's largely about analyzing the deal, and visiting those that make sense on paper. But I think some people are missing the point. As a beginner you also need to truly understand your farm area. You need to understand finishes, rents, price points, features etc. You just can't do that online. Is a wine fridge a selling point in your area? Will it sell without marble counters or is that a huge waste of money?

What other people do for taxes is not highly relevant unless they are in a similar situation to yours. I will echo that in your situation with 7 doors, and jobs on top of that you probably should be using a tax advisor. Not just someone who files your taxes but helps maximize your gains. Hopefully that tax advisor will also recommend you do some asset protection. Frankly, the idea of being a sole prop with such a juicy target would make a lawyer salivate. They can take all of your units plus your home and garnish your wages. That's not a good place to save money.

Congratulations! I'm a member of the 200 club and the double 200 in about 2 weeks! Thanks so much for this podcast!