All Forum Posts by: Sandy Sawyer

I paid 50% down for new custom windows about 6 weeks ago. Today they installed all but one, the installer telling me it was the wrong size and he has re-ordered it. Also one has the sash in the wrong place. Should I partially pay on what he did, or wait until it's complete before paying any more money?

I've recently learned how to run numbers for property depreciation as a contra asset, yada yada. Now we bought a new $600 fridge for the mobile home we're renting out that we paid $12,000 for. I'm taking the election this year as a real estate professional. Can someone please tell me how to log this expense on my books? (Expense vs depreciate) This unit cash flows nicely. Thanks.

I love learning from these forums and feel compelled to give back. Last year I had the fence and gutters replaced at my home at the same time, just to see what issues may arise in a bigger project later. So here I'll pass (some of) the valuable lessons I learned.

1) When negotiating price, always include the terms of payment. It's a little late when they've already started tearing down your fence when the guy asks you for a check. I thought we would pay upon completion, but he wanted to get paid up front. (We compromised and I wrote him a postdated check.)

2) Be very clear about the scope of work. Don't expect workers to know what you are thinking. They aren't mind-readers. Ambiguity tends to slip in and big misunderstandings can arise. Of course, get it all in writing.

3) Expect that some things can get damaged. With construction workers on your property, sometimes they act like guerillas. In this instance, one of them tore up part of my front lawn backing out of my driveway. Another one busted one of my lamppost lights. Be prepared how you will handle these things. The second one was made to pull out cash and pay for it himself. I turned around and paid him to fix the trim on my garage (borrowing materials from the fence job, shhh!) so we were even.

4) Expect workers to show up when you weren't expecting them and not show up when you do expect them. I told them I'd be gone that day and to come the following day. Came home and they had already started the project. No consideration that I have a dog and of course nobody is watching to keep my gate shut. 

5) While low-hourly workers need micro-managing, you have to also watch the contractor trying to upsell and make change orders. When unexpected additional costs arise, see if you can get a different party involved. For instance, when the gutter guys discovered rotted facia board, I hired the fence guys to fix that for cheaper. (they were onsite anyway). 

You learn a lot about yourself with these little projects and whether you have what it takes to crank out bigger projects and what it's better to delegate. And leave room in your budget for a nice steak dinner afterwards!

I haven't seen anything about forgiveness on the EIDL, only the PPP, which is reduced by the amount of your EIDL. So if you want 100% forgiveness, you'll want to consider that as well. I just got off the phone with Chase Bank PPP team advisor, said they won't be accepting form 3508S (which is for PPP loan forgiveness of under $50,000) until mid January.

@Vidit Maini I suggest take the cash. The interest rate is very low, so the worst that can happen is you decide you don't really need the money after all and you can pay it all back. You can even take several months to decide what you want to do.

Good morning @Vidit Maini

From what I've read and heard, the forgiveness is only possible for the PPP loan, and even then only the portion that you did not also receive in EIDL. Of course, all those windows are now closed as far as applying for the loans. The good news is that you won't have to make any payments right away and it will roll into a low interest 30-year mortgage. The PPP loan was only for those with W-2 employees. Hope this helps. Did you get the EIDL?

Hey Deisy, some days you just want to throw in the towel. It's important not the throw out the baby with the bathwater though. These are relatively inexpensive lessons your are learning as you go. I keep a journal and write down my lessons learned about everything, hoping I don't repeat my mistakes. I'm always trying out different help to see who is a good fit for my style of doing business. My motto is "Do what you do best, get someone else to do the rest!" Right now you are licking your wounds from this big gouge you got from a contractor. You're going to go through several of these jerks before you land on one that's a keeper. Confrontation is difficult, but keep in mind that they are used to it, and won't take it personally. This is not the time to quit while you are feeling emotional about it. Let the dust settle a little before making such a big decision. 

BTW, you can also buy crypto currencies within your self-directed ROTH IRA as well, let it grow and use the money to buy real estate! All tax free!

Whenever you have a W-2 job that offers a 401(k) plan that matches contributions, max that out. Also, go open yourself a ROTH IRA somewhere, anywhere. You can open as many as you like, but just get one going. You are young and you contribute after-tax money into it. It will grow tax free for life until you retire! That is huge! We were eventually able to take our ROTH IRAs with TD Ameritrade, and roll some of the money into a different ROTH IRA and set up an LLC that let us have checkbook control. And we bought a rental property with the money. Do your own homework on this, but at the very least, I recommend go start contributing to a ROTH.

Hi @Brian Pownall, welcome to the BP community! I'm a Houston Realtor as well. Like you I have a strong analytical side. I can just tell you to be prepared to see a good deal come and then go because you didn't move on it fast enough. We like to take our time to do all the due diligence. So it's important to set your parameters and think of yourself like a spider that has set your web. Once the deal comes along and it's close enough, jump on it! Don't get analysis paralysis. There are doers and observers. Pair yourself up with doers to round out your team. I find lots of valuable tips here on the BP forums too. Happy investing!