All Forum Posts by: Erik Peddle

was just about to ask the same thing.  have you found any useful reviews?

 Thanks Wes!

 Thanks for the note!  I should have added to my lessons learned- 

"Don't give into or do business with arrogance."

  I think arrogance is like a jacket we wear and it ruins everything good that we can accomplish.  

I heard a great podcast recently from a great friend - @Paul Moore "How to lose money in real estate" that said:

" Don't mistake success for a bull market.  "

What lessons have you learned recently?

@Mike H.  Thanks for the questions!  I sold for several reasons:

1.  Tired of SF rentals- moving toward MF
2.  I (hope!) avoided capital gains since I lived the home 2 of last 5 years

3.  I like to see my name on yard signs.  ha-

I did consider the Heloc option, but I have one on another home, and really want to flip houses then buy MF rentals- more scalable, easier to manage.  

How I made $112,000 on the sale of my rental property that I purchased in 2007!!!  

Purchase (2007): $165,000 

I lived in the house for 5 years, renovated kitchen, baths, and converted a screened porch into a bonus room  ($30,000/150hrs of my time).   Moved to Seattle and rented the house out to a great tenant (until he caught the back yard and my neighbors fence on fire!)  Moved back into the house for 18 months, fixed a few more things, then moved into our second home and rented the house to a "friend" (bad idea!).  Only a bad idea because my gut told me not to trust him, but I did anyways and lost a few thousand dollars  (humbled), then I improved my tenant screening methods, picked a very qualified tenant and had a great experience- because I took the time to be professional, raise my rent, got more proactive and clear on my expectations (wiser now).   After all expenses: I profited $11,800 in rent over these 3 tenants, who also paid down my mortgage (approx)  $30,600.

Got my real estate license earlier this year, then without knowing anything about how to list a home, took some pics, wrote a nice description and sold the house for:  $265,000- realizing a profit of $112,000.  By having my RE license I saved $7950 on the sale.   I could have sold the house 6 months earlier with an agent when the market was not as hot but only have made $50,000.  Couldn't have done it without my awesome team, @Chris Flynn, and my amazing wife!!!!  (our three kids also helped in their own way. ha)

Lessons learned: 

-Be ultra clear on your expectations to tenants and contractors.

-Never let doubts, fear, people's opinions or the pain of losing money creep in and steal your joy.

-Buy low, fix it on a real budget and sell high

-Don't rent to friends, family or anyone you don't trust

-Don't do business with arrogant people

-Stay the course, get laser focused and stay the flipping course!

sorry!  it sold already!  have a great week!

@Joshua Dees

Your not alone in the fight!  I've found a lot of help in the midst of uncertainty to ask the Holy Spirit for guidance- and He happens to sound a lot like my wife!!  Don't have to be a Christian to find help from that quote.   

What does your wife think? Take some time to write down your goals and share them with someone you respect who can coach you. We all need coaches in our lives! Then press into your strengths, focus your efforts on studying, becoming an expert in one area of REI at a time. Buy a new REI investor coffee every day. Build a network of people you trust and all the deals will come to you. All good businesses are built on one thing- good people.

Read the "ONE THING" for sure but actually apply it.  Whats the ONE THING you need to do today to be the person you want to be in each arena of your life? - then go surround yourself and your family with people who will support you, and bring the best out of you.  

One last thought- making other people rich is not a bad thing.  Work can have a higher purpose than each person being the boss, or getting what they want or feeling successful.   Working for others can be the best place to learn, study and prepare to launch a business.  But be like Abe and sharpen your ax perfectly before you waste a lot time, energy and money trying to fell an oak with a dull axe.  Lack of clarity about which way to go is a dull axe.  Not having a strong network of people and coaches is a dull axe.   

One of Tony Robbins mantras is awesome direction for the purpose of all work: "Add value" 

Hope something in here was helpful!  All the best!

heck no!  ever seen money pit? 

https://www.youtube.com/watch?v=dO9nxRjIv2A

I'm PM for luxury builder, all of our subs get paid when work is done.  We buy the majority of materials (except for rough plumbing, HVAC, wiring) then add out markup.  Subs should have enough credit to afford a little rough in material and if not, only in certain circumstances will I pay for it directly and only if i know them well.   We bill our clients cost plus 15%-25% and every receipt, invoice and bill is sent to them every week.  everything is completely transparent.   If subs will not show me material receipts and time/labor broken down on their invoices then I do not hire them.   

Bottom line is when you run a business-  you are the standard- and if the players on your team won't play to your standards then fire them.       

@Quinton Slay  

On your first question:

"Should I just handle it all and tell her "Ok. This is the address of our home for the next year or so." Then a year or two later, move us to another 4 family building and so on until we can buy a single family? "

I would not advise this approach.  I had a financial advisor remind me every year when we would meet and discuss our family goals, dream and plans:  

"Do two walk together unless they have agreed to do so?"  Amos 3:3

Walking with anyone into an investment requires mutual agreement or it will be miserable and it could lead to unnecessary stress and perhaps relational and/or financial loss.   I've found great help (results) in me working on becoming the man my woman wants to follow and giving her the space to decide for herself.   But,  if she won't follow you into this fire then what will ya'll do when your health, wealth or dreams fall apart?  

Another counselor would always remind me too of the line from Topgun:

https://www.youtube.com/watch?v=eEMqL0JQUKU

"Never leave your wingman"

we moved and relocated many lines underground.  We usually trench the conduit ourselves then the city sends guys to run the cable from the house meter to the pole.  I have no idea what this costs in other states, but he it is not that bad.  Hardest part is getting power company to show up!