All Forum Posts by: Account Closed

I would definitely buy this property providing your income is correct. On Google, it looks like the yard, sidewalks and driveways are thrashed and you did not put any money in your breakdown for repairs. Regardless, any time you can get a GRM lower than 8 you are probably getting a super good deal. I am not so sure that duplexes are price according to the GRM.

I don't like your breakdown and I don't use 'Rules Of Thumbs. I don't see much money for closing costs and I do not see anything for property taxes and insurance. In California we have a 1% Transfer tax and several other fees.

In California, the rent for a 1-bedroom apartment is $1500+ per month and those apartments are in okay areas, but not the nicest. Most of the workers for Assisted Living are single and $25.00 per hours with the cost of living today is only $1,000 per week minus taxes and that is not a lot. The average secretaries are earning $40+ per hour. Registered nurses are getting $40 to more than $60 per hour. The illegal day laborers at Home Depot are demanding $25 per hour. When you add the insurance and tax burden the cost for $25 per hour is about $37 per hour.

incidentally, I am 100% against every wannabe guru who is selling crap b.s. courses for this business. The cost to re-hab a property for this business is enormous and does not justify the income potential. The time to get a home up and running averages more than 1 year. You will need to make the entire property ADA compliant to get wheelchairs up stairs, to get wheelchairs through every doorway inside the house and you need bathrooms large enough so wheelchairs can get to the toilets and sinks..You need shower stalls large enough you can roll a wheelchair inside. 

The client turnover rate is tremendous since you are dealing with clients who are very close to the end of their days and many clients and families decide after a short time that they cannot afford to stay. So, you are spending all your time and a fortune looking for new clients, looking for workers and dealing with problems when workers don't show up.

I really don't know why or how people listen to snake oil salesmen and don't counter their b.s. with these issues. This is a serious business where you can get shut down very easily for what you might think is insignificant and not what do you do with this property you spent all your money on to make it look like a hospital with large doorways and ADA Compliant bathrooms.

Stay away from Assisted Living! Babysitting adults is a nightmare. There is too much competition from big corporations and you cannot compete. You need to feed elderly people meals with specific diets 3 times every day. You need to have a staff working 24/7 and your employee payroll, liability insurance and worker compensation insurance will put you in an Assisted Living home. The turnover rate for employees is super high. A high percent of the homes have multiple lawsuits going on by workers, your clients and lawsuits filed on behalf of their relatives. The legal requirements, government agencies, rules and regulations will put you in the mad house. I owned an Assisted Living home and no amount of money is worth the 24/7 work requirements and demands put on you. There are many other better and easier ways to make money and anyone who tells you they want to do the business because they want to help elderly people is crazy. As stated already, there are many big corporations that house thousands of clients and you cannot compete with them. 

Just imagine one of your clients passing away and their relative doing an autopsy in an attempt to prove that you killed your client by not giving him (or her) the proper medicine at the proper time. Or, your client falls on the floor, dies and you get sued because you did not catch your client. Or, you have to get out of bed at exactly 3:30 am every morning. You thought you would have workers to do the job of cleaning your client's butt, but you cannot find a good employee who will do the job for you. This is exactly what happens. 

Expect to pay $40 per hour for decent workers who will work 24/7 shifts. You have get a few cheap workers in the beginning, but eventually you will find that if you want good workers you will have to pay no less than $25 per hour and when matching payroll taxes and paying worker comp that comes out to about $37 per hour.

At the end of a lease, I don't see any good reason to have our tenants sign a new lease and I believe there are a few disadvantages. The only reason we want a 1-year lease from a tenant is because we don't want to run our properties like a hotel. We need the tenant to stay for a minimum of 1 year to cover the cost for cleaning, painting and re-renting every time a tenant moves out. We don't want to have to re-rent the same unit every month and leave us with vacancies for the same unit several times every year.

Signing a new lease comes with a few problems i.e. it is impossible to raise the rent during the lease and it is a little more difficult to sell properties when the buyers want to raise the rents when they close escrow, or they want the units to be vacant for repairs or so they can move in.

At the end of every lease we never ask for a new lease.

You cannot change the terms in a lease unless the tenant agrees. You can change the terms for a month-to-month tenant by giving a notice that I think is 30 days (not sure).

Personally, I would not ask for a security deposit at this time since doing so will probably raise questions that may cause some bad feelings. But, everyone will have their own methods of doing business and opinions. 

Sometimes, we collect two months of security deposits and when the tenant is clean and pays on time we will give one month security deposit back to the tenant. I really don't feel comfortable keeping a large security deposit when the tenant is not a high risk.

We manage about 140 units and the dollar amount of security deposit money we keep is very small. Probably less than one-half of a percent. 

I've was recently crunching the numbers for investing in Yuma and the numbers are not looking good since the California investors caused the price of rentals properties to more than double (maybe triple) in the past few years. If I remember correctly, the population in Yuma is only 23,000 and I am guessing there is not a lot of opportunity for wages to keep up with the rent increases that are necessary to support the high prices paid for properties. 

Many California investors probably made a huge mistake thinking they can increase rent like we do in California and I will bet there is going to be a lot of turnover and the ignorance will just keep recycling because there are millions of ignorant investors who go completely blind by the myths and false theories that they think will make a profit because every other idiot is paying ridiculous prices for rental properties in every and any locale.

Just a wild guess? I would be careful about investing unless a property is a 100% sure thing and don't believe that everyone is making money just because the prices of real estate keeps rising. There are many fools who are losing money in the real estate business.

What does that mean; using a condo for a comb?

I develop all my own software. Search BLPREI on youtube for an example and my software does much more than what you asked for.

Mailchimp is useless because Mailchimp requires that your email list has only opted-in email addresses. So, you cannot use mailchimp to send tens of thousands of emails.  Even if you can get email to send your email list that is not opted-in you have to pay a hefty price and working with mailchimp is time-consuming and more cumbersome than sending your email with your own software Atomic Mail Sender.

The best place to get a list of foreclosures is auction.com and this is in the youtube video.

The best place to get email lists is datazapp.com, but there is no good foreclosure list you can buy from any source for foreclosures with the exception of auction.com (that is free) because 95% of all the pre-foreclosures on other lists are cancelled. That means 95% of your time, cost and effort is 100% waste.  Auction.com gives you a list of pre-foreclosures that have an actual auction date and even 90% of those get cancelled before and on the day of the auction, but, at least, you have a better chance.

For sending tens of thousands of emails every month for free, I use Atomic Mail Sender. I think the software costs about $79. Combined with my own software, I send 4,000 emails every morning between 6 am and 7 am and it does not cost me a penny with the exception of purchasing the email lists. 

At first, about 25% of the email lists I purchased had had email addresses. I purchased 150,00 email addresses. That means about 35,000 email addresses were rejected and returned. So, I paid girls in the Philippines 3 cents per email address to remove the bad email addresses from my database. Now, when I send 150,000 emails I may have only 10 or 15 rejected.

Quickbooks sucks and I run several businesses with software I developed, myself. Someday, I will post a video showing my bookkeeping system that is so simple it can be set up in less than 1 minute and so accurate my records are never off by one penny. But, I've been really lazy about posting it.

What is with the keywords at the end of your post?

Trying to attract investors can get you into some illegal hot water problems. There are many laws you need to tend with before you actually seek investors and invest their money. You need to do a lot of reading about the laws governing syndicating real estate and this will give you an idea regarding what investors with money want from you.

The best and most-honest way to find investors is by learning the real estate business and actually make a good profit. Then, when you have a history that proves your have what it takes the investors will flock around you from every country on this planet and treat you like a god. But, if you have to real-life success stories I can't see why one person would let you risk their money with only your theories to present.