All Forum Posts by: Jeff M.

The only thing these "gurus" can claim guru-status to is: marketing.

Specially crafted, persuasive messaging takes skill. Every word is hand-picked, nothing left to chance. Triggers are embedded to manipulate our psychology. Some are rock stars of persuasion!

When you come across such marketing and feel your pulse racing and your hand reaching for credit card, immediate slap yourself in the face. Wake up! Honest marketing doesn't require manipulation. Remember, you are your message. If the message is gimmicky and too good to be true, typically, so is the "guru".

Become your own guru. Find a solid mentor to show you the ropes. Your mentor should be an active investor who sells more real estate than information products.

To our success!

Bryan's right on da money! I use yellow letters to target out-of-state, non-owner occupied homes...basically, investors. Many out-of-state investors are tired of the hassle of trying to make their long distance investments work. Sometimes you're able to score a house with a cash flowing tenant. Love that!

I use a letter that offers a solution to their out-of-state headaches. Response has been good. However, you must follow the yellow letter rules to see results. Plenty o' "yellow" resources on BP.

To our success!

I realize this topic has reached geriatric status BUT when evaluating whether or not to personally take on major repair projects, investors must always factor: The Value of Time.

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 you to lay the floor, you've potentially lost $5-10k!

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

Are you a handyman or an investor? Don't just spend time, invest it wisely. There's a reason there are so many cliches about "time". I hope this post was a good use of mine.

To our success!
Jeff MacIntyre
Emmy Winning Investor
[LINK REMOVED]

Carpets are tricky. There are a number of factors:
1. Length of tenancy
2. Quality of carpet
3. Magnitude of wear and tear

Typically, carpets have a floor life of 5-10 years. If I was lucky enough to have a long term tenant in place (7+ years) and the carpet needed replacement anyway, I'd eat the cost IF the wear and tear was normal.

In CA, there is a "useful life" rule that states "Normal wear and tear to carpets, drapes and other furnishings cannot be charged against a tenant's security deposit."

The CA Dept of Consumer Affairs addresses the issue of replacement cost:
"Suppose a tenant has damaged beyond repair an eight-year-old carpet that had a life expectancy of ten years, and that a replacement carpet of similar quality would cost $1,000. The landlord could properly charge only $200 for the two years' worth of life (use) that would have remained if the tenant had not damaged the carpet."

Unfortunately, what is "normal" to a tenant doesn't always square with a landlord. When they sign the lease, I always do a walk through with camera and Property Inspection Form. We both inspect the unit and sign off on its condition. Upon move out, I break out the form and we do our final walk through comparing the current condition to the move-in condition. Not only does it protect your interests, the tenant feels respected and part of the process.

Hey Jim,
Great to hear you're considering getting your feet wet with real estate. These are historic times to be investing! I'm a So-CA native and do most of my investing out o' state. CA is tough to make the numbers work...not impossible, but I prefer "easy".

When I got started, one strategy I used was to befriend investor-friendly realtors in places I was interested in buying. I gave them my parameters and they'd send me deals. Boots on the ground are key to out of state investing. You need a trustworthy ally on your team. Eventually, I learned enough to venture out on my own and find my own deals.

Since you're in the learning phase, join local real estate investing clubs. Check out the groups under "Networking" and try Meetup.com. Don't drop $$ on memberships, most groups will be free. If you have a couple bucks, invest it with a good mentor. They've already made the mistakes and can help keep you on the right path. The right mentor can provide huge ROI!

Keep asking questions. To your success!
Jeff