All Forum Posts by: Jeff M.

@Trevor Aydelott No,I'm no longer looking in Lorain. While the prices are attractive, I'm concerned with its long term viability. How about you?

Thanks everyone for your thoughts!

@Theresa Harris Thanks. They're claiming the original needed repairs are unrelated to what happened. Classic PM move to distance themselves from liability. 

@Bryan Cork Yes, I have a detailed email chain from last August. Judge Judy says, "Guilty!"

@Will Gaston I'll PM you the PM.

@Nathan Gesner Thanks! I totally agree. I'll first give them a chance to make it right and then reassess. Off topic, I'm in Cody, WY every July for the Heart Mountain Pilgrimage. We did a doc about Japanese American internment specific to the Heart Mountain camp. Been about 7 times...will be there this July. I dig the town! 

This sounds like a legal no-brainer, but wanted some back-up from the group. My PM in Columbia, SC notified me of a potential water heater problem last August. I recommended they make the necessary repairs. Since I never received an invoice, in January I enquired if the repairs were done. They weren't. Delaying such repairs could've caused the water heater to fall through the ceiling and do considerable damage, both to person and property. I sternly advised them to quickly address the matter, reminding them of their liability if the worst happens. 

Today, I get a casual email stating the tenant called the emergency line over the weekend to report the water heater had burst and water was leaking through the ceiling. The PM asks if I "approve the repair". Their neglect and incompetence contributed to the magnitude of the final problem which, I believe, they are ultimately liable for. I gave them two choices: 1) Decide what is fair compensation/reimbursement OR 2) Let a judge decide.

I know this happens more than it should. Have you ever had to take a PM to small claims for being negligent in their maintenance duties?

Thanks!

Any recommendations of a good realtor who understands the needs of an out-of-state investor who works the Lorain area of OH would greatly be appreciated. Thanks!

Thanks for your replies!

@Jon Holdman The mobile home has been in my name. For the past ten years my grandmother has had a roommate who paid rent. My tax preparer (who's not very RE savvy) said I stand to "lose" almost half of the proceeds to CA and the Feds. A new tax from the "Affordable" Care Act tacks on another 3.8% to the cap gains.

@ J Martin I'm currently in conversation with Exeter's company. They're great. The big stumper, however, is the classification of the asset. They're not sure if it can be 1031 exchanged for real property. They think I may need to do a like exchange for another mobile home...not interested. 

I'm curious to structure some kind of seller-financing to offset tax liability. Any ideas?

Almost 20 years I bought a mobile home in foreclosure for my grandmother to live in. She recently passed. It just went under contract and I'm about to be staring down BIG capital gains. Yes, there are worse problems. BUT who likes getting mugged by the Tax Thugs?

I'd like to have a brief conversation with someone in CA who can provide some creative ideas on how to structure the best deal. Any recommendations are appreciated. Thanks!

The subject line says it all. I need to discuss an upcoming RE transaction with a real estate-focused CPA for some creative exit strategies. Can anyone recommend someone in CA?

Thanks!

Hi Curt,

Congrats on your "problem". Ringing phones are the worst! ;) Here are some thoughts:

1. Expand the script your answering service is using. Asking the right questions on the first call is a great deal-filter. Go beyond basic prop info...dig deeper with more personal questions. They called you, they're ready to talk. Grab as much info as possible! Nothing weeds out the duds faster than a solid pre-screening call.

2. Quickly call back prospects who meet your pre-screening qualifications. By asking those extra questions, you'll have a better picture of time wasters vs. time investors. Call the sweet deals within 24hrs. The others can wait, if you're DIY.

3. Don't call anyone back. Who wants to hassle with that!? Outsource the sales calls to virtual assistants you train. Let the VAs take the prospects through 90% of the process and then forward the call to you for the final close. Not every seller will survive the trip. You'll only pickup your phone for the strongest contenders.

4. Don't stress over spending a little $$$ to hire help. You've already seen the value of an answering service. Take it to the next level with an assistant and watch your biz grow! You can't close on the deals you can't make. Obviously, time is a huge factor. Since you can't clone Curt, train VAs to be Curt-like.

5. Finally, don't you dare think of slowing down your lead machine. Do you think you're the only one using that list?? The day a prospect doesn't receive your yellow letter is the day they get mine. Keep those yellow letters moving and scale your biz up to handle the results.

To our success!
Jeff

Well, it finally happened. A group in N. CA got wind of this thread and just announced they're opening a shelter for battered and abused bird dogs. Please send $$$ and Alpo!

With the proper care and feeding, Bird Doggies can be an investor's "best" friend. For me, it always comes down to the value of time. Personally, my time is better invested closing deals rather than finding them (to an extent).

Let's not forget the original poster's charge: "Learn to find your own deals and stop using bird dogs, they are a waste of time."

Driving around for hours hunting prospective properties, TO ME, is a waste of time. Savvy investors have a deep toolbox of deal-finding techniques. Savvy investors understand the Time/ROI equation. Trained properly, Bird Dogs are one tool to help keep fresh leads flowing while freeing us up to engage in more profitable activities. You wouldn’t hand address 1000 yellow letters, would you? Some jobs are best outsourced.

For the pups who have greater RE aspirations, it's a ground floor opportunity. I'm all for helping out the next gen of investors. After all, isn't that why we're all here?

What is your time worth?

Re-flooring a unit myself NEVER saves money. On paper, it may be enticing to DIY and save $500. BUT in the time it takes to lay the floor, I've potentially lost $5-10k!

What the Pergo??!! The time spent taking on a task you're not expert at, is time you're stealing away from activities that yield bigger returns. The time spent on your knees wrestling with laminate, could be spent finding other hot properties, sending out yellow letters, talking to prospects, wholesaling properties, etc.

Are you a handyman or an investor? Depending on the scope of the project and level of experience, sometimes it makes sense to DIY BUT only if it’s the most profitable use of time. How valuable is your time? For a handyman it's $25-40/hr. How much is your investing expertise worth?

Aside from being the most precious, non-renewable resource, time is our universal currency. Every day we trade action for time. Our productivity sets the exchange rate. Our choices determine the ROI. Unfortunately, the Big Bank o' Time will never get a sweet bail-out deal. It's up to us to vigilantly monitor, defend and grow our balance sheets.

For a week, keep a Time Tracking Sheet. Analyze how you spend yours and adjust accordingly. Don't just spend time, invest it wisely. I hope this post was a good use of mine. (It sure beats laying linoleum!)