All Forum Posts by: Andy Brown

@Andrew Flora nailed it. I would just reemphasize living below your means and avoiding personal debt (student loans, outstanding cc balances, car payments, etc) as much as practical. Personal debt is bondage and will drastically limit your freedom. Highly recommend picking up the oft-recommended Richest Man in Babylon and Millionaire Next Door for easy and fascinating reads on living within your means and really getting ahead.

Just got into the game in 2018 and bought two triplexes out of state. Few factors that drove me to mf right out of the gate: 1) only get so many Fannie/Freddie loans on traditional financing so I wanted as many doors under each loan as possible 2) can consolidate cap ex protects like new roof/siding (though keep in mind, bigger/taller property will mean more $$ for each project than a sfh--though still cheaper as a whole) 3) closing costs are roughly the same for a sfh or triplex so better to get a 3 for 1, 4) especially if youre out of state like I am, easier to track and manage everything for 6 units in two properties rather than 6 separate properties (I use property management but you still need to monitor/manage the pm).

@Matt P. No worries.

@Matt P. I clarified earlier and said that a gift like that is really only for very small operations, if at all.

@Caleb Heimsoth Agree that gifts aren't really scalable. If there is a place for gifts, which should be the exception, it would be at a much smaller scale. A Christmas card from "your friends at Investment, LLC" might as well be spam.

@Wesley W. My recommendation was that a one size gift fits all (gift card) approach is best if someone chose to do gifts at all. Did not mean to imply different gifts for different tenants.

I always read the threads about good-willed or charitable acts in REI because I love watching people flip out. This thread has not disappointed.

But how you approach these topics usually depends on your initial mindset. Trying to show kindness and holiday cheer v. trying to run max efficient REI business will probably get two different answers-- though not always.

 A bottle of champagne for my inherited tenant who doesn't have any leftover weed money for rent will probably cause him to drink the whole bottle in one night and miss work again. And a Christmas card to him would probably go in the trash with his unpaid bills. For him, I give only the gift of eviction.

BUT

if I'm trying to grease the wheels with solid tenants in my new triplex while I raise their rent? This could be the perfect place for a gift (coupled with badly needed repairs to the property) as this "good-will" component may assure them that the new owner knows they exist and is going to provide all-around quality management. I want them to think that their life just got a little better and this is where they want to be long term which will help me avoid unnecessary vacancy costs and other headaches by keeping good tenants. Some people forget that there is also a customer service component to this business that benefits the business as well.

And if people are ungrateful and walk all over you it is probably because you let them pay rent late-- not because you gave them a poinsetta. 

But to actually answer the question, a bottle of champagne will be a waste to the baptist tenants and the poinsetta will be a curious item to the college bruhs. A one-size fits all approach would be a small gift card ($25) to a store with general appeal.

@Caleb Heimsoth -- totally agree. Co-workers are off limits. Don't want bosses to think I'm planning my escape or hear coworkers tell me I'm going to lose my shirt. Also don't want raises or bonuses to be impacted because bosses think I don't need the money. Every work environment is different so it will vary with each person. I will discuss REI with close friends a lot, family somewhat, and neighbors/acquaintances far less.