All Forum Posts by: James Hamling

@Vidit S. keep this in mind, the regulating body is really the only opinion that matters. 

If I understand correctly you have the joint LLC, doing the contracting. That means that LLC has to be licensed and insured as a contractor.

Instead, if looking for simple, you'd have that LLC sign a contract with the contractor, just like any normal customer does, hiring that GC for the work.

And if smart, would make it open book accounting and can even make it a net-0 agreement for payment. Because the profit compensation is from his membership in the joint llc also. 

Your GC should know this that there is 2 licenses in MN for GC's. First the person has to have there license as a qualifying person/builder. Than the company is the actual licensed contractor. 

It's not a singular thing, it is 2 parts, the person and the business. 

So what your trying to do here is in fact illegal contracting business. Even though you have the qualifying person in it, the company itself does not hold a GC license and is not insured for such. 

So save yourself the headache, split it up, sign like a client and use terms language of the client contract to get it done. Than the LLC is just the owner, not a GC.

When people made statements such as this, they were already doomed to fail. 

Because what they truly were saying is they were going to wait until others are not buying, to buy themself. 

To wait until, the actions of others, made things look "cheap". 

That they wanted "Cheap" buys, not intelligent buy's, not data driven buys, not future casting buys, just "cheap". 

And "cheap" is a thing most seen and realized looking back. In review. Something of "wow, that '20' buy was really "cheap" looking back vs where it went to in '23'. 

Post '08' people had the luxury to analyze for "cheap" vs the pre-'08' pricing and feel a sense of security in there current price acquisitions. 

Now, that's gone. No simple lazy-hacks to say it's worth-it because it's "cheap" vs previous price. Now were back to a mare normal world where a person has to have that skill of forecasting, analysis, ability to "read the tea leaves" for where it's all going and if todays acquisition makes sense. 

And this group is refusing to learn, evolve. 

What they are really saying is they don't have the skills to act in a market other than post calamity so, there just gonna do nothing instead of evolve. 

Yeah @Drew Sygit, I am pretty sure we started the "flat fee" thing. 

Not 100% but we were doing that pre '08', and it was based off our model not drawn from anyone else. 

You bring up some important points. We never set a flat fee rate just out of a whim, or price strategy, it's part of the operational strategy which is different, as it's all about efficiency. 

And with that, we are laser focused in 1-4 unit single family investment real estate. 

The model becomes very problematic in low quality assets, and sec8. Because those simply demand a significant level of labor inputs that makes it very hard to effect the efficiency model we invented. 

So yes, it's about knowing your business and being very specialized. 

Those who just try to copy the price model and not the operational leg, yeah they don't last long. 

That's why those who call asking can we take on there 200 unit community, were just not a right fit for each other. Too many just get $$$$'s in there eyes and take on anything and everything. 

No, know your lane and get great at it. Specialize. 

A/B class is our jam. C+ we will do but we know it's a net 0 so it's on value of relationship because odd's are we will loose $ on 3/4 of those. C, D and below, nope, not our thing. 

It drives me nut's when there is those upstart PM's who not only say but brag they "do everything/anything". Just announcing there ignorance and fast-track to insolvency. 

And I am NOT knocking those in those segments we don't do, big high 5 to those who have that as there jam, it's just not our thing. 

@Kyler Tarr first off, everything @Bruce Woodruff and @Steve K. said. 

I don't care if 99 of 100 homes in the area have K&T, I would NOT buy it and leave it with K&T anywhere. Period, full-stop, no exceptions. 

So onto the deal and how to navigate it. 

You should have a MAO to this deal. Your maximum allowable offer.

If not, then you got into this way wrong from the get-go, and get that MAO sorted now.

Next, I'd get my electrician in there STAT to give me there quote to get it done. maximum scope, account for all variables, not a "hopefully it's just..." NO, I want the "guaranteed it won't be more than.." number. 

So yeah, I actually get 2 quotes. Our best case which I keep to myself, and our worst case which is fully written up official quote yada-yada. 

Next Step: 

With with sparkies quote, I'd get that quote over to sellers and with an amendment all written up ready for there signing giving me a credit at closing for exactly that amount. 

Negotiation tip #47, make it as simple as possible for the other party to accept your terms. No verbal talkie-talk on it, no, send it over WITH the amendment for them to sign. 

I make sure there agent get's the inspection and quote reports with all this because this "mother fk's" them. I call it that because most commonly the listing agents call me and says "you mother f...." to me in response, lol. 

Because now, legally, they have to disclose that if this all falls out. Because it's a material fact to them. Specifically, the cost to have it corrected is now a known material fact. 

Now knowing my MAO, if they counter, I just look to that MAO, does the deal still make sense?

If no, I tell em no. Simple. 

And depending how it goes down, maybe I counter there counter just for the fun of the sport, all depends. (yeah, maybe I shouldn't be broadcasting my sick twisted forms of entertainment and strategy should I)

BUT, most importantly is KNOW YOUR MAO and follow the math.

If it does not fit, you must aqui.... I mean walk away, if it doesn't fit walk away. 

Keep it simple. No emotions just business. The moment you get emotional on any property you should run away not walk. No place for emotions in negotiations. 

Hey @Clare Pitcher

Correct @Bill B., our current PM fee is $109mnth. Flat rate. That's for all "standard" Property Management "things". 

We then have an ala-cart menu for any 1-off non-standard things. So people know exactly what those billing rates are before hand vs after the fact. Stuff like if want us to do CRP, or if have us send someone to "babysit" and watch a vendor Landlord hired from Craiglist and doesn't trust. yeah, had that happen before. No idea why they worked with someone they feared trusting so much. 

As for the narrative of "if it's flat rate they won't care"..... 

If we do a bad job, our clients will fire us and go elsewhere. That's a lot of incentive I'd say. 

We don't sucker people into "handcuff" agreements. They stick with us because they choose to. They choose to because we earned it. We earn it with our results. 

Seems rather simple to me. 

And here's the thing about flat rate vs %, flat rate is integrity. 

Do you know what the difference is in PM operations on a $2,500mnth rental vs a $3,500mnth rental? 

Yup, not a dang thing. Nothing, zip, zero. 

So why is the $2,500mnth person paying $250 and the other one paying $350 ??????

Our $109mnth Pm fee is based upon math. The math of what our cost of operations comes out to, divided by clients, and a fair profit margin. 

Yeah, again, simple right.

Now doing a tenant placement, the efforts, advertising, the actions to get it best done DOES vary in relation to the rents. Generally the more it costs the more it takes. Not rocket science there. So, that's why it's a # of mnths rent. 

When I see a PMc charging % of rents that just tells me 2 things. (a) there looking to squeeze all the $ out of client they can. And (b) they don't really have much control or insight into what there operational costs are. 

Say what you want, call me bias because I'm at RW. 

Honestly, I don't pander for biz, I don't have to, I and RW are sought after for a reason. 

All this, it's my honest feelings about flat rate vs %  for PM fee's. 

I can see where a person thinks a % "forces" a PM to do there job. I think if you can't trust them to do the job, then shouldn't work with em in the first place. 

If you hired a GC to do some work, and thought that you had to be there, sit n watch them the whole time or else when not watched, they wouldn't do anything.... Would you hire them? 

Hell no. 

I say a Pm should do the best job they can because it's there dang job, end of story.   

Happy to be of assistance. 

And sure, feel free to reach out. But thing is, I'm no STR "guru".

I've stayed in many. And honestly, that itself is a great teacher. 

Way too many over complicate it. It's because they think there is some "secret formula" to success. 

Remember, the secret ingredient, it's you. 

What you put in is what you'll get out, it's just that simple. 

There is an ocean of information out there. Literally anything and everything one could ever need or want to know is all out there and it's free..... Well, free of charge. It will cost you Time, Energy and Focus. 

And funny enough, that's what so many are trying to avoid; time, energy and focus. 

So instead they throw away there $$$ on program after program, guru after guru, trying to find a way around the things that there is no way around; Time, Energy and Focus.

What is a STR?

It's a roof over your head, to use for a certain time, for a certain reason. That's it, simple. 

What's it worth? 

Yeah, EXACTLY. 

A STR stay is worth, what you make it worth. And the demand and value for that by those who'd use it.  

If it's just a place to lay the head in whatever random place, probably not all that much value to it, right. 

Now your a 62 yr young couple from Athens TX who recently retired and always dreamed of seeing London, Big Ben, having fish & chips, riding the "tube"..... 

And there in TX find this ad for not only a place right in London but, it's by an American for Americans. It comes with guides on how to ride the tubes, a crash course in local customs, places of interest, places to avoid, and holly cow it looks just like what they had in there heads of what a London "flat" would look like, so charming and so "Brit"..... 

What's-that-worth????? 

You have a choice in STR.

You can rent a place to lay a head. 

OR, you can rent an EXPERIENCE. 

And heres the thing. You can go to bed at night sleeping like a baby even though you charge 4X what others get because you know, you helped fulfill a couples LITERAL life dream. They waited 42 years for this. You were a part of helping making a dream a reality for them. You did that. 

When they got back to TX, friends asked how it was, was it worth it, holly cow that was so much $ they spent and "Betty-Jean" says with a smile ear-2-ear "it was everything I had hoped it would be..... It was amazing"..... 

THAT's the beautiful side of this business far to few ever see. 

So don't chase making big $, chase making big impact. 

The $ is just how score is kept of how your doing at it. 

To clarify another point @Tiarnan Gormley: 

I EMPHATICALLY disagree with any & all advice being given of: sit-tight..... wait..... be patient.... watch paint dry..... do nothing..... 

Wait for what?! 

Seriously, FOR WHAT?!

Name 1 successful person/business who "waited" themselves into success, just 1..... 

How about just 1 who "analyzed/ researched" themself into success........ 

No.... 

Not just no; HELL NO! 

STOP waiting, start DOING!. 

Get ACTION centric. 

Yes, be methodical, be with purpose, have a plan but MOST important of all EXECUTE, DO, TAKE ACTION. 

Your going to the London School of Economics, your not some punk day dreaming from Mom's basement working PT at McD's who's best achievement was the dugout ya made in metals shop and got your first -B of your life wondering how to get Grant Cardone "rich" with you $85 of deployable savings...... 

You've already achieved so much more than so many! BIG high-5! 

Waiting is the enemy. 

Picture the BIGGEST graveyard in the world, stretching as far as the eye can see, horizon too horizon. This is the graveyard of great ideas, plans, hopes and dreams that were never done. Know what it says on those grave stones: "Waiting.....". 

Take ACTION. 

Act like tomorrow might be your last day on earth because some day, it will be. 

Mark Cuban didn't "wait" until he could start at billions. Mark Cuban started by selling flippin garbage bags Door-2-Door. 

Daymond John literally sat in a dumpy apartment at a sewing machine and then out on the street selling what he made. 

Billionaires. 

What separates the 2%...... 

ACTION. They didn't wait, they took action, and kept taking action, and kept taking actions. 

Don't wait, take action. And keep making them 1% better than the one before. Learn as you act. 

Doing is a mighty powerful teacher. 

Fail UP. And keep failing UP. Fail often, fail frequently and keep-failing-UP. 

PS: 

Here is a detail tip. Notice when I spoke of London STR I used the words "gain control of a property" and NOT "buy a property"????

Ownership is NOT necessary. CONTROL is what matters. Control. 

If in your shoes, I'd be sorting my marketing strategy, and jazzy ways to do my frunishings, marketing budget, how to Gorilla the hell out of it. And touching with owners pitching ways I can gain control, to then monetize. 

Dang right, I'd be trying to find jazzy ways to lease, to then run as STR. And again, Gorilla the hell out of it all, so yes it would be crazy outlandish asks and efforts. Deferred rents to let me launch, furnishing on deferment, etc etc..

I'd get very creative with it, and when people are saying "your nuts" I'd know I'm in the right zone of things. 

Musk was nuts, Bezos was nuts, Cardone, Jobs, all "nuts", every great was "nuts" until they were relabeled a visionary, path blazer, innovator, genius. 

Don't wait. 

Don't wait for "perfect", don't wait to be sane. 

Be "nuts". Go out and start making your future come into existence. 

What action can you do now, TODAY, that moves you even 1 single inch closer to your future? 

Go do that, NOW, right now, TODAY. 

Don't wait for the future, make it. 

@Tiarnan Gormley I think your really going about this in the worst way. 

Your looking at this really cool and unique position your in, and focusing on it as a problem. 

So all you see is problems. 

You already decided what it is you "should" be doing, while simultaneously stating you don't know what you should be doing..... So yeah, of course it's confusing and vision filled with problems. 

Do you want to be great at Real Estate Investing? 

If so, step 1 is rewiring how you look at things. You need to rewire yourself to ALWAYS look for the opportunity. LOOK at what ADVANTAGEOUS, what competitive edges do you have, how can those be best used to engage in the opportunities at hand. 

Right now, your fighting saying this square peg won't fit into the round hole. 

So stop, stop trying to put square peg's in round holes. Step back, take in the situation around you, what peg's do you have, what hole sis there, what is there that CAN be connected. 

Right away the most obvious is STR. And with that, oh-man there is SOOOoooo many things you can do.

Fear the issues of tenant nightmares, fantastic because you won't have that with STR.

Your right there buddy, freaking LONDON, literally a "bucket list" destination for people the world round. Are you kidding me. What a GREAT golden opportunity. 

You are positioned right at one of the top 10, if not 3, STR markets on the planet buddy!

Ireland..... Scotland..... I mean come on! How many people every year pour out there life savings to come for a vacation, just from TX, not even mentioning the US or rest of world. 

Now let's compound that natural advantage by fact your from TX. Is this connecting yet? Be that person who set's up some STR's there, runs em there, and really caters it to the US "bucket list" tourist.

Look, if you've spent any time in UK you already know the US tourist is WAY different than say the German tourist. Way WAY different. 

How many Ameircans have culture shock when get there? How many struggle in there bookings, to find way around, ask "what is this corn-dog like thing"..... 

You could be "The" STR "guy" for American tourists. Setting them up to do well. Prep that if gonna be in London public rest rooms on every corner is not a thing, so empty that "tank" before head out.

Prep em on the need to experience a Sunday Roast at the Royal Windsor with a pint. (seriously, it is legit "last meal" worthy". 

There is SOoo much opportunity for you it's insane. You'd be a dang fool to waste your energy or effort's on ANY US standard rental more or less Sec8, are you kidding me?! 

And all those skills you going to have to learn and master in UK to get a property under control, operate it, market it, monetize, operate etc., ALL 100% translates to anything and everything you will do when back in US. 

Will it be difficult? Hell YES. 

Guess what, it ALWAYS is. What matters is it will be WORTH-IT. 

To go from 0 is "breaking in" the the biz. It WILL always be like smashing through a wall with your head as fists as the hammer, you will "get bloody", it will hurt, it will exhaust you, it will test you to your breaking point and beyond. That is the reality. 

Simple does NOT mean "easy" or pain free. 

But man-alive, you are in such a GREAT place with amazing advantageous. Don't waste that. 

When you deliver a PREMIUM experience, especially one so curated for those persons what do you think they will do? You'd be delivering BIG and powerful solutions. People reward you with there appreciation and $$$$. 

Don't be average, be AWESOME. If for no other reason than you can. 

You wanna be the 2% so BE the 2%. Stop focusing on problems and focus on opportunities and solutions. And BEING exceptional. 

BE the 2%. 

"CA ran out of water...... do you have ANY clue what kind of water delivery system would be needed to handle multiple wild fires of this magnitude?...."

Yeah, I do. 
The empty ones already in place in CA, neglected to, ya know, have water in em. 

Hey, how about that genius move to turn OFF the power, including to the water pumps. Has CA never heard of generators? Did nobody ever stop and say "oh, hey, maybe we should keep water pumps going because, ya know, no electricity no water pumping, NO WATER". 

Ran out of water, LMAO. That's the drunk driver saying the car just wouldn't drive straight. 

Quote from @James Wise:

Quote from @James Hamling:

Quote from @James Wise:

Quote from @Bruce Woodruff:

Quote from @James Wise:

Thought this was interesting....Trump may withhold aid due to LA's water policies.

About time. Although some people will yell that 'this is mean, of those poor people' it has to be done like this. Otherwise it would be like giving your teenage kid a new car, which he crashes, and you just buy him another one without talking about responsibilty and consequences.

 Ya man, folks out in Cali are wild and have a lot of miss placed rage. Check out this PM I got from a BP member.

And how much help and aid did CA send North Carolina and Tennessee?????? 

Oh yeah, that's right; DIDDLY SQUAT! 

Hey tough guy, how about you come out to TN/NC and talk smack.... "you sure do got a pretty mouth...." 

 lol, someone also left a death threat on the HoltonWise voicemail system. I'll probably end up uploading it to HoltonWiseTV, but for now here is the automated transcript from our phone system. I am guessing it's the same Daniel H who PM'd me. Dude has a few screws loose.

Hey @Account Closed do you got anything to say about this?