All Forum Posts by: Jeff Owens

over leveraging/ being undercapitalized - must have cash on hand, figure out how much you need, and multiply by two there's often something you didn't plan for, and it ALWAYS going to be expensive.

I have watched several people put their balls out a little too far trying to make things they can't afford happen, hopping for a huge payday, and lose it all.

Getting too creative with financing is another pitfall, if you need a bank, a hard money lender, some owner financing, and money from anyone on Facebook that will lend to you to make a deal happen, you can't afford it! I have seen people borrow money from a ridiculous amount of sources to make something happen because they went to some "guru" class that promised to make them a millionare in 8 minutes using other people's money. There is good money to be made in Real Estate, it's much less than people not involved believe it is, and it sure as hell isn't a get rich quick scheme. It's a big boy game, and requires big boy money to play.

I don't need crime stats, school information, etc, because I invest in a town I grew up in and have lived my whole life. I know which areas are good, bad, transitioning, etc. I go with my gut feeling on this. If I would not live in the neighborhood, or would not walk down the street at night with out a concealed weapon, I have no business owning it.

The choice really depends on your goals and financial situation. Leveraging will create a much higher net worth long term, but won't produce as much income in the short term. I personally am in a situation where I am cash heavy, and wishing for early semi retirement, so I am buying in cash as much as I can afford, and living off the income. If I wanted to still work full time, I would be leveraging. I also prefer living debt free. It's a very personal decision and there is no right or best way to do it that fits all.

Being myself, having a heart, and giving people a chance was my biggest mistake. I am good at the running numbers side, only now learning how being nice destroyed those numbers.

I have always charged one month rent for security deposit. In my state it's legal to charge twice that but the market here dictates one month is standard. The only property I own outside of Virginia is a vacation property in Ecuador, so I don't know other states laws or standards.

thanks Ned, what do you use? I am moving from 5 units and a excell spreadsheet to 25 units. Not exactly big time myself, but it's time I moved past a spreadsheet..

I was actually thinking of having a free barbecue event to meet all of the tenants and go over any concerns and explain how I will manage things, etc. I am not sure if that is professional or wise, but I wanted to do some kind of fun event that shows them who runs the place, and hear concerns, other than just sending out letters informing them of change. I am the first in line to make fun of my tenants when talking to other landlords, but at the same time my tenants put food on my table. I try to maintain a balance, and very much try show I appreciate them for what they do for me financially. It's nothing more than a juggling act it seems. Fr

thanks for all the replies so far, it shows my thinking isn't far out of line with reality and also gave me some ideas. To the poster who brought up having tenants out of sync, I had the same idea when I saw the rent roll. All I could think was "Oh yay, Huffington Post will soon be featuring me as a model of inequality, then they will complain I plan to proffit from the investment"

I much prefer tenant conversations to go more like." how is your rent 20 bucks cheaper than mine" "well I have been here 5+ years" explaining 200 bucks is hard.

Any one use buildium? What's the good, bad, and ugly on it?

lol thanks, I am new to this, only owned rentals for a handful of years. I grew up in real estate and when my father died I had to help my mother deal with the rentals my dad dealt with so I have a modicum of experience. Reading this forum makes me realize that I know enough to just be dangerous, never would have expected a vet like you to congratulate my post.