All Forum Posts by: Wes S.

@Grant Francke I'm in the midst of my solution! 2 yrs out from this post and hindsight being 20/20, I have learned so much and still executing. Few big takeaways that I would relay on to you:

1) System: I've hired a gal full time to manage properties and do quickbooks, pay bills, showings, complaints/maintenance issues, leases, renewals, etc. I also have another business that she helps me with on research and bills. I pay her a fair wage and offer a very flexible schedule but she makes things happen, has brought my vacancy to almost zero, people are happier b/c of maintenance calls and she is like the glue keeping all things in place. I also hired a maintenance guy who I'm spreading costs out on as well...but while this hire isn't showing a huge profit right now, my tenants are happy, things are being fixed up and taken care of and he's increasing my net worth by improving or remodeling fixer uppers I'm bringing into the portfolio as well. I'm in the midst of scaling this business so knowing long term, my costs will be spread out further and margin will be greater. I started in late '07/early '08, we're running about 100 units and expanding.

2) Leverage: Don't hire someone who can do things well, that you do well. Get humble and hire for your fumbles. You need have a conversation with yourself, find out what you suck at or what you don't get paid much to do, find someone who enjoys those things to fill the gaps or the holes in the barrel. If you want to grow, your focus needs to be on high ROI activities. Why would you give up deal running time to do a $15/hr activity?

3) Stomach, Balls & Gut: With growth comes pressure...and balls...and a gut feeling.  There is risk in taking it to the next level and you have to be able to stomach the stress and risk involved....grow a pair and risk time/money/ego on doing it.  Can you fall on your face, sure.  Can you waste a lot of money, yes, but you still maintain control and it has to feel right in the gut.  I continue to work on my mental game but in the midst of growth, I can see where my employees are paying for themselves, which is where I spend my thinking.  And you have to work with people who make you feel good in the gut when you hire them, just like a deal.  It has to feel good and you have to create a culture where everyone is striving to get better.  All this takes risk but it goes back to my question and thinking of 'How can I remove myself from the business for 30-45 days and things still run?' You need to make investments in leveraging yourself and free your time up for growth. 

4) More Deals; This is what I love.  The visioning, the planting seeds aspect and putting deals together.  This is where I shine, what I enjoy most and where I maximize my return on time.  Everything else is mostly taken care of (you still have to monitor and maintain the day to day) and it is because of the system.  

That is my two cents brother.  I wish you luck in taking it to the next level!  

Its called Corporate Housing - even though this might be on a smaller scale, it is a great business model.  Good job drawing out exactly what they're looking for as this leads to great opportunities...

If I were you, I would meet/have a call again with them, ask them to explain the best case scenario and build something around that. + pencil your numbers from that scenario.   

I have a just completed a corporate rental for a Fortune 50 company - I completely remodeled 2 units above a downtown business that will house interns for their company.  Fully furnished down to spoons and I pay all utilities but built these units efficiently and on budget to maximize my margins.  Total win/win situation as they are extremely happy as it is quality housing to the level of the company and assists them in attracting the right people to their company.    

As far as advice - you still have to make sure to vet the individuals and/or make the company liable for any negligence.  Know the identity of the individuals if it is a corp agreement and like any place, I like to keep a close eye on until it is up an running smoothly as trust is gained.  

Hope this helps...good luck.

I have been investing for 10 yrs part time, have built up a decent portfolio of SFH, Duplexes, Fourplexes, Senior Living Complexes and a few Commercial Buildings...the returns are solid but my maintenance and repairs are eating at me - not only money wise but activity wise (calls, complaints, etc.)

Up to this point, I typically hire out to local contractors (plumber and electrician) and do the light maintenance myself, when I can along with a few individuals who help with light painting, fixtures, etc.  I have a very part time asst to help with leases, renewals, paperwork, etc but is pretty limited...

I operate another full time business that is the breadwinner and have a young family ---- so it is becoming more difficult for me to maintain focus with all the action going on and maintain a solid work/life balance.  Basically, I'm looking to duplicate myself!  

My question is for those who have built their portfolio/business to a point where they now have their own employees:

- At what point did you hire Part Time or Full Time Handyman? Manager?  

- How about part or full time in house Property Manager to take care of all paperwork, showings, etc? *I feel hiring an employee to assist with portfolio is a better option as I still want to be involved, have some control and continue to develop/build assets...

- What processes or systems had a dramatic impact or that you'd suggest to improve the efficiency of your daily monitoring, maintenance and performance of your portfolio? 

- Other silver bullet suggestions that made a difference to your business?

My goal is to scale this portfolio/business to a level where it will crank along without me and become the well oiled machine I set out for 10 yrs ago.  

Thanks in advance for your advice/suggestions. 

Freddie Mac
3 Bed 1 Bath
$44,900 List Price with 15 day oo period
Reduced to $34,900 after 30 days
My offer $22k at 40 DOM
Freddie Counter: $33,900
My Counter: $23,500
Freddie Counter: $32,500
Told them my best and final: $25,000
Closed Nov 12

Will: I'm just finishing up the remodel and numbers point to just shy of $12k after a lot of my sweat...I'll keep you posted on the #'s.

Olandis & Stephan: Well done...good returns. What was the asking price? How many counteroffers did you do through? And Days on Market?

Lets fire this thread back up!

Fannie Mae: 3/2012
List Price: $48,000
DOM: 2
Offer: $48,000
Accepted
ARV: $110,000 after $12k

Yes, IRET

IRET...conservative investment, has great dividend & they are growing.

I own some land next door to a Skilled Nursing home who also has an Independent Living Facility. They are in a situation where their facility is older and are looking to remodel as well as expand because they're turning away 3-5 quality prospects a month. They have bascially run out of room and they have approached me to purchase some of the land I own...however...they aren't too aggressive and lowballed me as well. I told them I am thinking about building some condo's or senior independent apartment pods. They mentioned they had the same idea in that type of development to add to their array of services.

We talked a little about this topic in a different thread - 'Assited Living Facility Questions'

Now my question is, how would I go about partnering with this company? I have experience in development/construction and could build these places fairly reasonable but would be a significan investment. I was thinking about building 2-3 unit pods for independent people to rent or my thinking is, this Company could somehow oversee or manage the units/people and lease the property from me...?

Not sure what the right answer is but looking for people who may have experience in developing these types of facilities/condos or who have partnered with Senior Care and leased out property.

Sorry to be long winded but hope it makes sense. Thanks.

Just went through this with a Duplex and owner had same concerns. One of his ideas was to break the loan into somewhat 2 loans: The first being a % of the Down Pmt that is personally guaranteed and will be paid off first giving owner the 'skin' in the game so to speak...Its all wrapped into one but a small portion is personally guaranteed.

He said he didn't need money down either but when you get down to it, putting a little down solves the problem. We ended up putting a small amount down ($5k)to satisfy this concern...after we negotiated 3.5% more off asking price of course.

I also think it really comes down to how you sell yourself. Ask if this is his only concern...then empathize with him, tell him you understand where he's coming from and then give him reasons why you will not walk away: Yrs in business, territory, type of person you are, ect.

Good luck.