All Forum Posts by: Sonia Spangenberg

"Don't let the opinions of the average man sway you. Dream, and he thinks you're crazy. Succeed, and he thinks you're lucky. Acquire wealth, and he thinks you're greedy. Pay no attention. He simply doesn't understand."

Steve Vaughn, love the illustration of the quote in the story about your parents.  Priceless demonstration of that truth!

Thanks Brian Gibbons, Very inspiring read. I am currently struggling with "upping" my game in marketing. I don't get the social media stuff behind the scenes. I have also considered using VA's in the past but that has been an overwhelming thought. I have been putting off implementation in both of those areas because I just don't know enough. I had looked at a big system for using VA's. Overwhelming. Now I am to the point that I plan start out using a VA for one small area, for the SEO stuff. Baby steps. I don't want to learn the details which has been what has been slowing me down.  I just picked up the audio book "Virtual Freedom: How to Work with Virtual Staff to Buy More Time, Become More Productive, and Build Your Dream Business" which is giving the confidence to step into that realm.   I have days where I am just overwhelmed and paralyzed, but eventually I shame myself into stepping back in and starting with a small step. 

I have decided it's my cycle of learning and that I just have to be patient with myself, allowing  a day or two of contemplation when I am stuck, instead of beating up on myself. That just doesn't lead to growth.  Your description of the years you kept working for peanuts was helpful because It points out the value of that time and how much you were learing.  Thanks

Also, you want to explore "best use" options to help justify the extra expenses.  See if you can add units for example. Ours is zoned mixed use and the architect drew plans which give us two commercial spaces in the basement.  We will develop those after the residential spaces are rented.  When all is said and done we are approved to 4 residential units and two commercial units.  That helps justify the extra expenses.  

If you have a historical home in a historical district, be prepared to deal with the Architectural Review Board and its extra requirements.  This would be in additional to the city or other building commission.  The process is longer than you think and adds fairly significant holding time-frames.  Rehab costs are higher if you can't use new replacement windows for example. For peace of mind I would budget for worst case scenarios on everything.  I recommend gutting to the studs so you can find all the problems.  It will save you lots of money and headaches down the road.  If nothing has been updated, you will need to update systems.  I would generally recommend gutting the electrical system for safety sake. We rehab in a city with a lot of homes from the early 1900's and have one completed and are in the midst of the second one.  A lot of the homes are burn outs because of electrical defects.  If it has been updated, you need to verify that the electrician didn't cheat and hook up new wiring to old knob and tube wiring. When you look at the box and junctions you don't necessarily detect it.  We found that during inspection but you don't always find it until you open walls. A mixture of differing types of wiring can cause electrical fires.  We used an architect to help with the ARB and reconfigure of an old 7 room boarding house.  It currently would only be approved for a two apartment home, however we were grandfathered in for a 4 apartment.  Got the zoning approval letter before closing which was one of our contingency requirements.  We are into our second year on this one.  Sewer systems are often another issue.  Especially if the home has been vacant for a couple of years.  You should pay to have it scoped with a camera especially if it has been vacant for a while.  If the infrastructure is ancient you need to check with your REIA to see how the city handles who's responsible for what.  Learned that one the hard way.  We had video verifying that the blockage was in the city easement, but the city would not even send someone out until we had excavated.  The sewer pipe was 10 feet deep!  That cost a pretty penny.  No reimbursement on that one.  Anyway, its a ball of fun.  Saving and old historical home is fun, but it is not cheap.  I say its really only worth it if it is in a desirable area and people want to pay extra to live there.  Just my two cents.  

Thank you Sonny for sharing your journey so far.  I began studying RE investing about 4 yrs ago, paying lots for education, which had some good value, but I paid more than I should have.  During that time I found BP.  Two years ago I joined with a partner to start taking action.  We acquired a total of 4 properties in a two year period.  The partner ship is now breaking up, on what appears to be good terms, but with differing views on how to do things.   It is time to move on and stand on my own two feet.  In some ways I am starting from scratch but with more knowledge, experience and tools, and a couple of properties and a little cash flow and debt to chew up the cash flow for several years.    Along the entire past 4 years, I have been listening to podcasts, engaging in a few blogs, playing with the calculators and using the expertise of the blog community to get questions answered.  My self confidence that I can figure this out and do it, is growing.  Many posts I have read indicate that just about everyone with any success has some losses and hardships.  But if you stop there, that's what you end up with.  The words persistence and perseverance are the only way to end up with an overall success rate.  I agree, this is a very valuable resource for an amazing price.   But once one takes the initiative and starts taking action, the potential becomes so possible.  Good job on your persistence and perseverance.  The pace is yours to determine and the one that is right for you is the right one.  ( I just learned that this past week).  Bravo Sonny.

Probably most of the money lost on BP is from people spending all their time reading BP, fearful, paralyzed then not taking action, which is not BP's fault.  Jump in and plod thru the scary stuff.  there are people to talk you thru it all.  You learn and earn in the long run.   

more cash flow   (I couldn't stop at just one  : - )

develop better systems

find better deals

One other tidbit...You should always ask your agent for their rationale when they are advising you on offer prices.  It is an opportunity to be educated further and/or to evaluate their intelligence, objectivity, skills, patience and willingness to serve.