All Forum Posts by: Shawn Coverdell

My worst tenants were Americans. 

It's a good cash flow steam. Many of them are not married (at least not verifiably in America) By keeping there income separate, the men work illegibly while the women collect what they can from the government. It's sad, but  politically protected, and they do not pay into the system via taxes, so they have less problems coming up with rent money.  

When the hospital asks who the father of a child is, they just say "father unknown" so there is no one to collect child support from. 

Generally speaking, they just pay the rent, they are very grateful for what they are getting, and will not try to sue you for going over your 21 day disposition deadline or some thing silly like that. You will not hear an illegal claiming there dog is for emotional support. They will just get rid of it when you confront them. 

Think about it, do you ask your tenants if they killed there unborn children?  Do you have a problem with men who have sex with other men living in your homes? ( I dare you to find that wrong ). Do some of your driveways have trucks parked in them with inappropriate bumper stickers showing where children can read them? or a set of rubber balls hanging from the back bumper? I for one never thought in a million years I live to see women with skulls tattooed on there arms. 

You kind of have to set aside some of those feelings and opinions to make it in business in these last days. If not, you will get a permanent "landlord face". You will drowned in your anger if you read that liberal stuff that is being put out. We got rid of our TV. I feel so much better. 

If you don't like it, I suppose you could dispose of there applications, just don't brag about it to your friends.  

Shawn Coverdell

Homes in the Hood

Find someone who tried to help a friend or family member out by renting to them. You know the cousin who decided to raise pit bulls for a living in the back bedroom to support his meth habit. Replace the floors. spend a couple months running back and fourth to Home Depot. POW!!!  you just doubled your net worth. 

Yes the market could crash and your net worth only increases 25%. Just drop your rents a hundred bucks and grab up some bargains during the panic. Use some of your of your extra income to help out your friends who were in the stock market. 

Shawn Coverdell

Homes in the Hood

WORK

If you don't work, you don't eat.....Unless you are an American. 

Ask anyone if they would like to become a millionaire in less than 10 years and they will probably say yes. Show them the steps they have to make. Show them your beat to crap truck and your wardrobe of caulking stained shirts and jeans. 

A great way to get rid of people. 

Shawn Coverdell

Homes in the Hood

I have found there deals SUCK!!! and I mean they are really bad deals. I am not sure why that has been my experience. I don't care who sales me a deal, a heroin addict I met in the Highland alleys, a broker or a wholesaler. But you have to have a deal that I can buy. 

So far all claiming to be wholesalers have terrible deals. I mean really bad. 

Shawn Coverdell

Homes in the Hood

Strategy if market flops:  A) wait for panic to peak, Hit the clearance rack. Buy as many properties as you can on owner contracts (preferably), or with cash if necessary. Once broke head to Mexico and load up on Margaritas until sale ends. Come back and get to work rehabbing.

B) Chill out (the out of cash option)

Basically enjoy life because using the principles on this web site, you made wise BRRRRR purchases and no longer have anything left in them. Cash flow is huge and every day is a cause for celebration and a great appreciation for a financially free lifestyle.

Shawn Coverdell

Homes in the hood

I buy properties for half ARV. Kind of have to have cash for these gems. Bankers can't stomach the before pictures.

Shawn Coverdell

Homes in the Hood

Yes, these are the best deals. I literally sniff out nasty stinky cat pee infested ran down shooter shacks. We draw straws on who gets to roll up the carpet. 

Were doing very well.

Shawn Coverdell

Homes in the Hood

Just raise the rent. and keep raising it until the calls stop, or they move out. If there really dumb and don't catch on, just stop by and let them know  that you don't feel they are a good fit for this property and you strongly suggest they start looking for another place to live. 

Shawn Coverdell

Homes in the Hood

Yes it has Steve. I personally only use a contractor for Gutters because you have to have a gutter machine to make them seamless. There is nothing you cannot hire out yourself. Even electrical. Just post on Facebook, craigslist or where ever you prefer and start trying people out. Just be prepared to let most of them go once you find out they lied about there skills just to get a days pay so they can  run straight to there dealer to fill there meth pipes. 

If you take the time to sort through them you will find a few good men. Guess what you just became, your a contractor now. Can even go get a license if you want to look cool. Maybe pass out some shiny cards. But better yet, you save 10's of thousands of dollars that would have went to contractors to do the same thing for you. 

I'm not saying this is easy, but it is necessary to keep from bleeding out. 

I think a lot of guys think they will just buy a messed up house and call 3 companies, hire one and there off and running. They night be getting that from TV or something, I am not sure but Make sure you have a lot of money and several check books before you try that. Contractors don't like credit cards. 

Shawn Coverdell

Homes in the Hood

Our first 10 properties my wife and I did ourselves. We at least doubled up on each one. I believe this was the biggest part of our growth.  here is a big hint. We now hire most of the work out. I fired 10 guys for every one I kept.  so far all of the investors that I know who hire contractors, give up huge chunks of profit and they are way behind us. I mean ALL of them!

Now with that being said, if you can somehow make profits while paying contractor prices then go for it because anything is better than a W-2 job right?

But, if you are looking to  come up FAST, you better learn fast on how to remodel homes. This also eliminates a lot of risk by increasing your margin (ie Cash flow).

Also, I can spot a scam in less than a minute in most cases, just by what they say. You just know. I can't even explain it. 

Have you been quoted 10K for a new roof. Same roof cost me less than 3K and I hire it out. Learn how to do the work and you will learn how to hire workers and what to look for later on in the game. 

I have heard many say your time can be spent more wisely. I say, buy some knee pads and get them dirty. 

Your best education is not buying a pack of CD's from some famous person that sounds cool, it is buying a trashed house and making it look great. You will learn everything you need to know from doing that. All the numbers will become crystal clear. 

It's a HUGE DEAL.