All Forum Posts by: Richard Sherman

The sweet sound of crickets..haha

Sure thing!  I even got mad FOR you when I read that...but take a breath and move on.  Keep getting that ball down the field and don't get distracted.  Sounds like you have the eviction proceeding, spend the time thinking about the next deal, what you can tweak etc.  I spent more emotional energy and time on my first 4 units every month than I now do on 65+ units in an entire year and I self-manage!

Here is some very good advice, I heard it when I got started, ignored it, spent several thousand dollars and lots of headaches to learn it finally. Hopefully you can hear it better than I did.

This is a BUSINESS it is not personal, he who takes it personally and acts emotionally loses, always. Have an attorney, friend, someone other than you offer them $250-1000 whatever you think an eviction will cost to hand over the keys. They get the cash when you get the property undamaged and they sign off saying they are willingly giving up possession. I imagine you got in this business to make it a real business, to scale up, you can not do that effectively and take every BS thing a tenant does personally. Get your systems in order, get out of the partnerships (if you need other people involved they can be investors, but even that I would try to avoid.)

I just tell the tenants this "listen, you will lose so either you can have the money or the attorney can, your choice." DO NOT go over there without witnesses. Check the ego (that was my biggest issue) and run this like someone hired you to manage their business...which means you have to be professional even when others are not. Good luck !

I just posted a reply in another thread then realized the thread was about 2 years old. This post is half question, half advice. First, let me ask the question.

We have heard a LOT about GoBundance lately on the BP podcasts. This made me curious, and I thought I would dig into it a little more. I will admit, I am highly skeptical about anything with a fee, anything that uses the words "mentor" or anything that alludes to being able to advance someone's investing/business/career through some kind of osmosis from being around others who have had success.

Now the question: Is this an organization with actual structure and value in a systematic way where the fees are used to provide support infrastructure, OR is this a updated version of a guru type system but with a monthly fee instead of a significant up-front cost mixed with some self-help (not hating on self-help, just not looking to pay for it .) ?

I did quite a lot of digging and mind you; I run a software company so I am relatively savvy at research, and found almost ZERO negative information..which is interesting in the world of the internet where you can find people who will hate on ANYTHING. I am not sure if that is an excellent sign or an indication of an exceptionally well-run PR group (most even semi-negative mentions, including ones on BP are usually retracted, sometimes mentioning they were contacted and educated about changes or new info, etc.

I do not have a dog in this fight, and I am interested in actual real, unaffiliated, unsponsored, unfiltered information. I am not talking about the less than 1 Million net worth group (though I am sure people would like to learn about that as well.)

I will end with the advice, specifically to new investors or people who are still trying to get things off the ground.

NO ONE can ever make as much of a change as you can, no class, no book, no mentor. Those things are all great bricks to add to your foundation, but the foundation is YOU. You need to get your life in order, save at LEAST 50% of what you earn, cut your expenses to the BONE, NO new cars, no consumer BS, no new iPhone. Get on some of the early retirement blogs for ideas on cutting your lifestyle. YOU control your destiny. Save money, get your first rental (house hack, Brrrrrrrrr, get a 4 plex and live in one, whatever.) SELF-manage until you understand what it takes and how to know if a PM is full of BS or not, self-manage until you understand what repairs really cost and to keep that 5-10% for yourself, pay yourself to learn. AVOID anything that requires money that has anything to do with GURU, self-help, mentors any of that. There is nothing those can offer that you can not learn on BP, the local library and Meet Ups. STOP being lazy, shut off your freaking TV.

Disclaimer: I started with 4 units in 2008, I currently own 65 units (30 Minutes south of Portland Oregon) and am in contract on another 19 closing in December. I self-manage, buy value-add properties, have 1 full-time handyman and just inherited an on-site PM from a 32 Unit property that we purchased in August, she is transitioning to do light maintenance and turns for all the properties and all PM duties. The goal is 150 units next year. NO hard money, all 70-75% LTV or cash (1031s from previous properties into larger properties.)

Seems like we are hearing a LOT about GoBundance on the BP podcasts of late.  I really want to keep an open mind, however, it does smell a bit like a Guru/Mentor type setup..just with a monthly fee instead of a lump sum.  Does anyone else get that feel?  This is based on nothing more than my general skepticism so I could be totally wrong.  I can literally find NO negative information on them...which, being that this is the internet, seems strange (posibly very good.)

Random I saw this!  I just had to sell my mothers house in Sanford (right next to Michigan).   We originally were going to rent it while my mom was recovering, but she ended up passing away.  During that process, I asked around extensively and got several recommendations for Jon Vander Vliet at ParkPlace homes.  I have met Jon in person and he is fantastic, helpful, knows the area etc.  We ended up not renting the home and sold it to the neighbor, so I never actually used Jon for anything and yet he was very helpful even after everything fell through.

Just google Park Place homes and ask for Jon

Heather,  rental property is great, out of state can be great, local can be great.  I own some in Memphis and also 71 units just south of Portland OR.  I like your idea of Palm Springs as it is close enough you could SOMEWHAT easily get out there, you might also be able to do something with AirBNB etc in that location.  Call me old fashion, but I like being able to somewhat easily get to my properties....Memphis was an experiment.I have since come back to just Oregon.

You mention your current property.  Have you thought about looking at your primary as an option?  Not sure of the property type, but can you sell and get into a duplex or triplex etc?  Live in one unit rent the others?

One HUGE downside to keeping a primary residence as a rental is if you have significant capital gains then you could be forgoing your exception of 250k (single) or 500k (married) on a residence that has been your primary 2 of the last 5 years.  You must factor that in.     From my experience, you would not buy that property as a rental, so it is inertia, if you have capital gains, take them tax free, then go buy a real rental (even better a multi-unit, remember up to 4 units is confirming and will qualify for the SAME kind of mortgage as a house (assuming your living in one of them for some amount of time.)