All Forum Posts by: Tom Goans

While technology may be trendy, the good old fashion personal touch can be much better for numerous reasons - too long to list here.

Both my father and I use part-time workers. This idea now has a common term - Virtual Assistant. What has worked well for us is finding a professional who is now a stay-at-home parent. They already have the knowledge and training. Moreover, they are professionals who put a good image on our businesses.

• Over the years, many companies are learning that customers and prospective customers do not like dealing with voice mail and automation. Keep in mind, it is not about you, it is about the customer who pays your bills and makes your investment successful.

• Today, people are increasingly becoming very apprehensive of conducting business solely by automation and technology - especially when it comes to giving out personal information.

• Many companies and government agencies warn against making virtual payments. Want an example, visit a Walmart Customer Service area. At each register is a warning about sending money to someone you have never met. This is a service they provide the Walmart customers for a fee. Yet, they warn against the practice.

Tree and plant roots will invade cast iron.

Don,

Probably one of the very best suggestions is what my father always told me - get everything in writing.

The idea is to have a very detailed written partnership agreement that is in effect the road map for all things to come and who is responsible for what.

• Be sure to have a life insurance policy on each partner
• Should a partner die or becomes incapacitated, all control goes to the surviving partners and not the heirs. This one I have personal experience in and lost millions because it was not done
• All parties to the partnership should be highly skilled investors with like-minded goals. Seasoned and strong financial capabilities is a plus.

Some people avoid partnerships. I do not, in fact, I find the right ones extremely valuable - two heads are better than one - if there is a great agreement.

Don, I find a great agreement can make what may have been a bad partnership a very good partnership simply because of clarity.

My partners were always interested in what I was pursuing and were highly skilled. They added to the venture with much more than just money. Moreover, all my partners were well known and established. It was easy to learn about the history of the person through many channels. Financial statements are never requested or that important. Historical actions are critical.

With that said, even someone just beginning in the real estate business can make a good partner. What they have done in the past to bring them to this point is what I consider. Attitude is also important - avoid the legends in their own mind.

@Joseph Pytcher,

The question is best answered by you.

Primarily, managing real estate properties is complex and requires thorough knowledge of the laws - especially tenant rights laws in your state and local - proper legal forms that best suit your needs and are acceptable in the state where the property is located, and the laws governing how to communicate with tenants.

• Even the way you communicate with a tenant regarding payments and delinquencies are regulated by law.
• The way you advertise a property for rent is regulated by law - however, many people and companies violate the laws on a regular basis.

It is also extremely valuable to know how to collect money. It sounds simple enough, but it is much more complicated than demanding money.

Do you have software for tracking the collection of money?

The list goes on.

So, the question is bounced back to you. Are you prepared?

As for how many properties before hiring a manager is also a unique question and answer. It depends upon the individual and situation.

If you do hire a company, have a thorough interview that goes beyond determining their skills. Make sure the company will represent you as you want to be represented. If you have a soft approach to people, be sure whomever represents you does as well.

As for me, I never and have never hired a company to manage my properties. I have hired someone to be my eyes and ears and to post notices. But I still run the show and handle all challenges. My goals are different from most in that I want to resolve problems instead of going through an eviction. My calculator says this is more profitable and my conscious says this is just being a better person.

1. Lease with option to buy
2. Seller financing
3. Straight lease with the ability to sublease
4. Partner

Margins Too Slim

Generally, as taught in all basic business classes, if a person or company is in any business that does not have adequate profit margins and cash flow, that person or company will eventually go broke. In order to have what is considered in the business world adequate profit margins and cash flow, you must be able to survive economic challenges.

Many wonder why I would not accept a 10 percent return on an investment (any investment). It is because that is not an adequate return for a short or long term investment to allow for an enduring investment strategy. This is also why old seasoned investors do not compete with most of you.

I am not wanting to offend anyone; just hoping to alert some to what was apparently omitted from the books you read. I am suggesting some continuing education may be very beneficial and will reduce the stress and increase the one’s happiness.

Moreover, if you want to hire a better real estate agent that commands a higher fee, you can do so without busting the budget.

Please forgive my honesty and candor. My thoughts may help you to become an old investor some day.

Please Seek Legal and Professional Advice

Seeking legal advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. It is not wise to consider any legal advice from someone who is not a licensed attorney where the property is located. Otherwise, the advice may be incorrect and cause you harm.

• Every state has unique laws.
• Every state has unique legally acceptable legal forms with legally acceptable legal language for that state.

The attorney will review your specific situation and then provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

Please do not rely on legal advice from anyone other than a lawyer you hire. Protect yourself, your investment/money, your family, and your future.

It is also wise to seek advice from a licensed professional tax and financial planner to make sure the agreement structure best fits your present status, strategy, and future plans - including building an estate. It is one thing to make money; it is a completely different strategy to building wealth, a financially solid estate, and protecting your family and investments with the proper insurance or reserved funds.

Business partnership and financial considerations may include:

• Business Power Of Attorney

• Medical Power Of Attorney

• Living Will

• Will or Trust

Legal advice from an attorney and a financial planner you hire will be the cheapest and wisest investment you will ever make.

Moreover, every investment, partnership, and individual is unique. There is no one correct answer. There are numerous options that must be considered and many costly mistakes that need to be avoided.

• Dissolution of the business is one many forget.

Other considerations include:

• Death
• Incapacitation
• Spouses
• Children

And, yes, you will disagree on the smallest issues. The courts are full of such lawsuits.

Seeking professional advice from licensed professionals who are knowledgeable about the areas in question can be an extremely wise and very economical decision considering the alternatives.

I was involved in a partnership where it was later discovered the major advantages of having a life insurance policy on each partner with the benefactors being the surviving partners.

May your future be full of great success.

@Adrian Rice,

Education and Experience Are Critical to Success

The real estate profession is extremely complex with many intertwining segments.

Because of the complexities of the real estate business and the need to be more competitive by knowing more, education is critical to enduring success in any business - especially in real estate.

I understand your financial challenges, however, making mistakes can be much more costly over a very long period. I know some people who never recovered for the rest of their lives.

Education Sources

• Small Business Administration (SBA) - Not just for loans
  • This is a taxpayer-funded organization just waiting to give you guidance and education. The website is loaded with great articles to help you broaden your business fundamentals and skills, including creating a business plan. The organization also conducts seminars and extended classes in local areas. Some, in association with local colleges.

• Some banks and other local businesses conduct monthly seminars that are very economical to free.

• School districts sometime offer seminars on a variety of subjects.

• Real estate trade schools offer many great courses.

• Many local colleges offer continuing education courses.

Be Paid While You Learn

A great way to be paid while you learn is to work for a seasoned investor who has a long and successful history of real estate investing, especially in the area(s) that interest you the most. You will learn the fundamentals, lessons learned from mistakes, what has better results, tricks, shortcuts, and you would learn tips and better methods than taught in most books or in audio recordings.

After having worked for a seasoned investor a period of time, ask the investor to be your partner in your first several investments. This could allow you to become an owner without much or any money out of your pocket. You will also continue your education.

May your future be full of great success.

Please Seek Legal and Professional Advice

Seeking legal advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. It is not wise to consider any legal advice from someone who is not a licensed attorney where the property is located. Otherwise, the advice may be incorrect and cause you harm.

• Every state has unique laws.
• Every state has unique legally acceptable legal forms with legally acceptable legal language for that state.

The attorney will review your specific situation and then provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

Please do not rely on legal advice from anyone other than a lawyer you hire. Protect yourself, your investment/money, your family, and your future.

Moreover, this old timer sees problems with what was stated in your post.

Seems like I recall a lawsuit 20+ years ago where the MLS was sued to allow private people outside the REALTOR world access to the MLS listing service. The argument was by not allowing private people access to the MLS listing service was too advantageous to REALTORS and unfair practice.

I also seem to recall the court decision was that private people are now allowed access to the MLS listing service.

Any comments?