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All Forum Posts by: Shaun M.

Shaun M. has started 6 posts and replied 59 times.

Post: BP Annual Meet up was last night - Summary, Lessons, & Questions

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

Also, thanks to Great Divid Brewing. Two free beers made an already great deal even better. 

Post: BP Annual Meet up was last night - Summary, Lessons, & Questions

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

BP's Annual Meet up last night was great - lots of good interactions and interesting people.

Here are some observations:

-Brandon is taller than I thought

-Josh is skinnier than I thought (and a heck of a nice guy)

-Some people drink way too much for their own good at a networking event

-Lots of newbies with good, positive drive. Excited for these folks and their journey

-Lots of opportunity to meet and interact with diffrent folks from all walks of RE investing. Wholesalers to funders, they were all there.

-Gum. Gum or mints are your friend at a networking event.

-Some great knowledge was in the room. Lots of cumulative experience. Although was hoping for a @Jay Hinrichs sighting. I bet he is fun to have a drink with.

-Thanks to BP for putting this on. It was great to connect with the BP community in real life.

What did everyone else think of the night??!

Post: The forums and podcasts never prepare you for this…..

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

Apart from a changed name, this is a true post. The incident happened last Friday night. The write up is divided into three sections. The story, The Aftermath, and The Lessons.

---

Bang, Bang, BANG! It’s midnight, my wife (8 months pregnant) and I have been asleep for hours, and someone is slamming on our bedroom window.

Confused, but now full alert I rush to the backdoor. Looking out, I lock eyes with one of our residents, Mike. He is wild-eyed and shirtless on a negative 12-degree night. As soon as he sees me he starts yelling, “Help, call 911, call 911!”

We live on a large property with four individual homes. And although we are friendly with all of our resident neighbors, we keep the relationship strictly professional. Rent is all taken care of online, as are any maintenance requests, etc. In short, we treat them in the same professional manner as any of our other tenants.

Any of these resident/owner barriers were out the window though. This is a fellow human in need of help.

I rip open the door and see that his shirt is in his hand, pressed over his chest. Blood is dripping down.

“I’ve been stabbed” he stammers.

The room grows incredible small as every neuron is firing on full. I close and lock the door behind him; he collapses to the floor.

“Breath Mike, breath…”

He is awake and conscious, but clearly running on adrenalin. The color is draining from his face.

I grab the phone. “Hello, 9-1-1…”

The police arrive first and immediately separate us. The questions come rapid fire:

“Who did this? Are they still in the house? What time did this happen?

Motioning to our knife block, the officer questioning me asks if I stabbed Mike with one of the knifes.

He’s just doing his job I know, but a new, deeper feeling grips me. Is this how innocent people go to jail?

When the two officers convene is clear Mike was able to provide them with good information. I hear them call in a vehicle description and a name. A jealous ex-lover of Mike’s girlfriend. Someone he had filed a complaint against 3-week prior for threatening .

The paramedics are here by now and I cannot tell from their casual demeanor if everything is okay, or of they are pretending for Mike’s benefit. The last thing he says as they bring him out the door is, “I am fading…”

Family first, I head to my wife and together we practice some of the breathing techniques we’ve been readying for the impending birth. Deep breath in, hold, hold, nice slow exhalation….

A half hour later brings me to the hospital. I bring an extra sweatshirt for Mike, his is still laying, bloody on our kitchen floor (the police came and collected it the next morning).

The hospital can tell me very little, other than it doesn’t look good. “He is very sick” is the euphemism they use. He’s going to be flight-for-life’d to a larger hospital, one better equipped to handle this type of injury.

For some reason, I sit at the hospital and wait until I hear the helicopter. Knowing there is nothing else I can do, I slowly walk to my car.

AFTERMATH

Mike lived. He is still in the hospital, in critical but stable condition. The knife missed his heart by two centimeters but it hit an artery. The doctors had to break open his chest and perform emergency surgery. They have told him to expect a 7-month recover time.

The jealous ex-lover was caught within 30 minutes of the incident.

I changed the locks the next day on Mike’s house. One of the things he mentioned while laying on our floor was to not let anyone into his place. His girlfriend (not on the lease) tried to get in the next day and I said no. She was upset. When I was finally able to speak to Mike he confirmed that he didn’t want her in there. There was perhaps some cheating going on.

We only have a weekly paper here, so not sure what charges will be filed etc. I will know more on Thursday.

LESSONS

-We live in a small (6000 people), rural mountain town in Colorado. Apart from a stolen bicycle every now and again, not much happens here. It’s very chill. This can happen anywhere.

-I have systems for late rent, evictions, repairs, but nothing for the death of a resident. The time to be navigation that terrain is not while it is happening. I am now building out this system. I hope to never use it.

-Securing the property. I glossed over it above, but Mike’s girlfriend was really upset with us. Her boyfriend had been stabbed, was in the hospital and the big, bad landlord would not let her into his house. She tested my resolve, but ultimately we stayed strong and this was the right decision.

-Fatal wounds can have a surprisingly small amount of blood. The wound went deep not wide. Don’t underestimate.

-Additional residents. The lease was with Mike. As his girlfriend started to spend more and more time there we talked about having her do a background check. Ultimately we broke our system and didn’t follow our lease about number of days guests can stay per month before needed to do the full gamut. It may or may not have prevented this situation, but we won’t make that mistake again.

-Communication Plan. Neighbors began to call early the next day, curious about what happened, but mostly concerned that something went wrong with my wife’s pregnancy. My wife and I didn’t discuss what details we would reveal and what we wouldn’t. We got aligned quickly, but having a general communication plan for a resident incident already in place would have been helpful.

-Writing. I cannot express how cathartic it’s been to write this down. Thanks BP, I hope you got something out of it as well.

Post: Drone photos of property for snow removal diagraming

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99
@Wesley W. Check with your county and local municipality. Here I am able to access super high resolution overlays from my town. Every 10-Years or so they pay an outfit to fly overhead and take aerials from a plane.

Post: To buy or not to buy - first flip w/pics

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

I believe it's J Scott that says, "Beware the Ten-Percenter"

As a rule of thumb, if your penciled profit is 10% (or less) of the final price you should give the deal a pass. 

As others have said, 10% can be gone in a FLASH.

Post: How do we create affordable housing for poor people?

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

Great discussion. Thanks for bringing this up @Avee-Ashanti Shabazz

There is no silver bullet for funding or building affordable housing, but the majority of new affordable projects built in the US today are funded through Low Income Housing Tax Credits (LIHTC, pronounced Lie-Tech).

However, since the recent tax overhaul bill the value of these tax credits has declined and stalled out a lot of projects. 

Essentially, investors seeking tax shelter are not buying the LIHTC credits at the same rate/price they used to as they wait for clarity on some of the tax overhaul provisions. 

By early 2019 we should see what direction these credits will take long term, but for now we are in a holding pattern.

DOH has a funding program called the Neighborhood Stabilization Program that can sometimes be used but this is specific to areas with high foreclosures. 

@Teri Feeney Styers mentioned some great CO specific programs. You may have something similar in your area. 

Also - Don't take advise from your barber on your plumbing and don't take advice from people that haven't worked in affordable housing about profit rates. 

You can provide AH and do well. 

Post: Investment Committee Memos

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

Hi @Tyler Kastelberg, would you mind sending the template to me as well? Always looking for good examples and best practices.  Cheers-

Post: first house hack. need some advice

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

HI @Will Kirkendoll, Definitely have the current tenant sign a new lease, and as Brian mentioned have them do a rental application as well.  

You can purchase state specific, lawyer drawn-up documents (lease, application, pet lease, etc) right from Bigger Pockets at:

 https://get.biggerpockets.com/forms/index/

I checked and the do have Ohio forms. It's $99 for the whole package.

Since it is a house hack, I assume you'll be living next door? You can have them drop off the rent for the first month and then get them set up with a free online system like cozy.  

Because you'll be neighbors, be clear about the late fee and eviction policy right from the beginning.  Highlight what the lease says to them. You may become friendly with them overtime, but because you already had a clear conversation you can follow your system and remove any emotion from the process.  

Post: Owner Paid Utilities

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

Hey @Drew Feutz, I agree with @Thomas S. that you must buy right and not compromise.

On the flip side though, I do think that properties with landlord-paid utilities can sometimes be great deals. 

Owners generally know they have a problem (landlord-paid utilities) that is affecting their bottom line, but haven't taken the time or energy to solve. There is upside in being a problem solver. Be that guy. On this deal or the next, always be that guy. 

In this case, factor the cost of sub-metering or implementing a RUBS into your expenses and adjust your offer price accordingly.

Be realistic about these prices. Get some real quotes. Look at the cost over time, not just an intro promo rate. 

And although you could implement a RUBS yourself, definitely don't base your offer on it. 

Someday you wont want to spend the time or energy on this and you'll be paying a company do it. Factor in this cost right from the beginning. 

A professionally implemented RUBS also sits better with tenants and lessens the chance that you'll be accused of over billing, etc.

Good luck!

Post: New Perk Notifications

Shaun M.Posted
  • Rental Property Investor
  • Gunnison, CO
  • Posts 59
  • Votes 99

@Lauren Hogan Thanks for the info. If this changes I would love to know. Cheers-