I hesitate to even mention this deal as it's going to be such a long shot. I submitted an offer on the property I mentioned in the previous post. I won't go through posting all the numbers as it will probably all be for naught. My agent said she sent it on to the listing agent, so we'll see what the bank has to say about it in the next day or so.
Edit: Within an hour of posting this entry, my agent called and said the listing agent called her to say that there were multiple offers on the property, but the listing agent wouldn't give any details (i.e., what the offers were). I suppose the listing agent is telling the truth even though it's been on the market for over a month now. IMHO, it's a nice house - especially for the price. I told my agent to keep my offer in for now, and I'll discuss with my wife whether we want to up our offer.
Wednesday, January 30, 2008
Monday, January 28, 2008
Deal In The Works
I ran across a bank REO last week which looks to be a real good deal. I won't go into much detail now as my agent hasn't submitted my offer yet. However, I will say that this particular property will probably end up being our personal residence instead of an investment property. My plan right now would be to get it under contract and then immediately sell or rent our current personal residence. Once we close on the new property, I would immediately do a cash-out refi. Then, we'd live in it for two years and sell for a substantial profit. Of course, a LOT of things need to go right for this deal to work. Right now, my wife isn't too thrilled about the house itself (as far as living in it).
My agent sent me comps and even at the low end this property will be a gem. It doesn't need ANY work from what I can see, but I would definitely make some cosmetic improvements over the two years to add more value (e.g., wood flooring, finish the wood fencing, add a roof to the patio).
The offer I submitted was pretty low and my agent initially balked at it, saying the bank would probably not even counter it (other than a total rejection). But I gave her a list of reasons for my low offer. Seriously, I doubt the bank would jump on the offer, but it's a starting point to start negotiations. I have a meeting with the loan officer today to go over my options. Having been in the military, I'm eligible for a 0-down VA loan, which right now is about 5.5%, but we'll see what works out best.
My agent sent me comps and even at the low end this property will be a gem. It doesn't need ANY work from what I can see, but I would definitely make some cosmetic improvements over the two years to add more value (e.g., wood flooring, finish the wood fencing, add a roof to the patio).
The offer I submitted was pretty low and my agent initially balked at it, saying the bank would probably not even counter it (other than a total rejection). But I gave her a list of reasons for my low offer. Seriously, I doubt the bank would jump on the offer, but it's a starting point to start negotiations. I have a meeting with the loan officer today to go over my options. Having been in the military, I'm eligible for a 0-down VA loan, which right now is about 5.5%, but we'll see what works out best.
Friday, January 25, 2008
*** FOR SALE: REI Courses ***
I ran across three real estate investing courses in my desk while getting things cleared away for tax time. I figure I haven't opened any of them in about two years, so it's probably better to unload them (the wife would love it, too, as it's less "clutter"). Until I figure out how to get PayPal configured on my blog, any interested parties can just email me at the address in my profile. Here are the three courses:
Wholesaling for QUICK Cash (Steve Cook)
An indepth "how to" book on flipping houses by one of the masters. This is the previous edition as Steve now has a new edition for sale on his web site. You can view details on the course here. The edition I have has 226 pages, and includes a CD with all the forms you need to get started.
Rehabbing for BIG Cash (Steve Cook)
Learn all the nuts-and-bolts about how to rehab properties from someone who has "been there and done it." Steve walks you through all the things you'll need to not only get started with rehabbing properties, but to keep the pipeline flowing. As with the previous course, Steve has updated this course and no longer has this edition available. You can read the details of his updated version here. The edition I have also comes with a CD.
The "Ultimate" SUB2 Guidebook (William Tingle)
William has been doing "subject-to" investing for years now and provides all the information you need to successfully do Sub2 deals. From getting started, finding motivated seller, signing the documents, closing, and so on, William's course has it all. The course also comes with a companion CD with all the forms you'll need. You can see more information about this course here.
As of the time of this post, here are the current prices of the courses above:
Wholesaling for QUICK Cash (V2.0): $297.00*
Rehabbing for BIG Cash (V2.0): $297.00*
The "Ultimate" SUB2 Guidebook: $279.00
(*) Steve Cook is currently selling both courses in a package deal for $394.00.
So, if you were to order all three courses online, you could be paying $673! However, I am willing to sell all three of the courses I have together in a package deal for only $325 - a savings of almost 52%! Don't want/need all three course - I can sell any two courses I have together in a package deal for only $250! And, if you just want to purchase one of the courses I have, I'll sell them individually for $150 each! All of the courses are in excellent condition and contain ALL of the original binders, CD's, and pages.
Again, if you are interested just send me an email at the address in my profile (under "About Me" in the left column of this page near the top), and I can send you more information about the products.
Note: Prices do not include shipping and handling charges. Buyer is responsible for paying the shipping and handling.
Wholesaling for QUICK Cash (Steve Cook)
An indepth "how to" book on flipping houses by one of the masters. This is the previous edition as Steve now has a new edition for sale on his web site. You can view details on the course here. The edition I have has 226 pages, and includes a CD with all the forms you need to get started.
Rehabbing for BIG Cash (Steve Cook)
Learn all the nuts-and-bolts about how to rehab properties from someone who has "been there and done it." Steve walks you through all the things you'll need to not only get started with rehabbing properties, but to keep the pipeline flowing. As with the previous course, Steve has updated this course and no longer has this edition available. You can read the details of his updated version here. The edition I have also comes with a CD.
The "Ultimate" SUB2 Guidebook (William Tingle)
William has been doing "subject-to" investing for years now and provides all the information you need to successfully do Sub2 deals. From getting started, finding motivated seller, signing the documents, closing, and so on, William's course has it all. The course also comes with a companion CD with all the forms you'll need. You can see more information about this course here.
As of the time of this post, here are the current prices of the courses above:
Wholesaling for QUICK Cash (V2.0): $297.00*
Rehabbing for BIG Cash (V2.0): $297.00*
The "Ultimate" SUB2 Guidebook: $279.00
(*) Steve Cook is currently selling both courses in a package deal for $394.00.
So, if you were to order all three courses online, you could be paying $673! However, I am willing to sell all three of the courses I have together in a package deal for only $325 - a savings of almost 52%! Don't want/need all three course - I can sell any two courses I have together in a package deal for only $250! And, if you just want to purchase one of the courses I have, I'll sell them individually for $150 each! All of the courses are in excellent condition and contain ALL of the original binders, CD's, and pages.
Again, if you are interested just send me an email at the address in my profile (under "About Me" in the left column of this page near the top), and I can send you more information about the products.
Note: Prices do not include shipping and handling charges. Buyer is responsible for paying the shipping and handling.
Monday, January 21, 2008
Business Mentorship
In our Sunday paper, they always have a short 4-page Wall Street Journal section in the Business section. I usually skim through it to see if there are any newsworthy items. In this week's edition, they had a piece about people in different stages of progressing their business who are now 'stuck, and spinning their wheels' and need a mentor to help guide them through. They mentioned a few web sites where entreprenuers can connect with successful business mentors, who will help guide them through the next steps of creating a successful business. One particular web site, MicroMentor, seems to be ahead of the game in this arena. This service isn't so much for the timid, either. You have to be 100% sure of sticking it out for the long haul, because once you get a mentor assigned, you will both work on a plan of success and have routine milestones. I'm sure if you start and then bow-out, you won't be given a favorable rating for future endeavors.
So, I'm thinking about seriously drawing up a draft business plan for several of my ideas and giving it a whirl. I think I'll only pursue one - or maybe two at the most - ideas, and see if I can get over this first big hurdle of actually coming out of the blocks. I have a good idea which two ideas I'll cncentrate on, but I want to give it a lot of thought beforehand so I'm not making the wrong decisions early.
So, I'm thinking about seriously drawing up a draft business plan for several of my ideas and giving it a whirl. I think I'll only pursue one - or maybe two at the most - ideas, and see if I can get over this first big hurdle of actually coming out of the blocks. I have a good idea which two ideas I'll cncentrate on, but I want to give it a lot of thought beforehand so I'm not making the wrong decisions early.
No Word From Tenant
I gave the tenant up until this past Friday to say "yea" or "nay" about leaving at the end of the month. We got no response on Friday, and none Saturday, either. So, on Saturday, we decided to pay the tenant a visit, however, no one was home. It was obvious she was still living there as there were things outside and I peeked in the rear door and all her furniture, etc., was still there - just no tenant. I put in the letter that if we didn't get a response from her, we would assume she was staying and the original lease - with all of it's conditions - would continue to be in affect.
Both of us are pretty sure that given the circumstances, we will drive by there one day between now and the end of the month and the tenant will be long gone. As long as she doesn't damage the place when she leaves, I'll be thankful if that were to happen.
Both of us are pretty sure that given the circumstances, we will drive by there one day between now and the end of the month and the tenant will be long gone. As long as she doesn't damage the place when she leaves, I'll be thankful if that were to happen.
Thursday, January 17, 2008
Live and Learn
I have started a list of things I plan on changing when it comes to (pre-)screening and managing future tenants. All of these ideas I got were from reading how other successful landlords operate, including Terry Sprouse who is the author of Fix 'em up, Rent 'em Out. Some of the things I'll do differently:
1. Tenant must have a bank account.
Neither of the previous two tenants I had had a checking account with a bank (as far as I could tell). They both paid me with money orders or cashier's checks. The former tenant was late one time and the latter was late three times. Both tenants wanted to move out before the lease was over. The tenant prior to those two had a checking even though they were moving from Houston, but was never late one day. Matter of fact, she always paid about 4-5 days AHEAD of the due date. I've also heard this from other landlords, so it seems like a pretty good litmus test to prescreen tenants. Maybe there is a responsibility factor involved with having a bank account, or something. Not sure. What I do know is that it looks to be a good guage on how well the tenant pays each month (and whether they want to leave early). The bank in question should have at least one branch in the area, too.
2. Give rental "rewards" to good tenants.
I first heard this when dealing with lease/options, whereby the the owner gives credits each month to a tenant/buyer who pays on time. If they don't, then there is no "reward". Basically, one sets the rent at a set amount each month for the duration of the lease as usual, however, if the tenant pays their lease on time, they are given a "credit" in the form of paying less rent. IOW, if the rent is $1,000 per month and the tenant pays their rent on time, they only have to pay $950 or $975. This implants a psychological memo in the tenants head each month to pay on or before the due date. If they miss the date, they have to pay the regular rent payment (plus late fees).
3. Better screening of tenants.
I've learned first hand the rule about screening the tenants thoroughly BEFORE they become tenants as it will save a lot of headache once they BECOME tenants. Not only will I do a more thorough job of looking at a prospective tenants criminal and financial background, but also demand they have AT LEAST three previous landlords I can call. I still believe I was tricked with this current tenant by having her use a friend to say he was her former landlord. By having at least three previous landlords, it will be harder to trick me (not impossible, but harder). I will also institute a means to make it harder for prospective tenants to trick me. If their previous domicile was a house they owned, I'll expect them to have proof of ownership, etc.
4. Month-to-Month vs. Standard Lease
When I first became a landlord, I held steadfast that leases were to be a standard 12 months - period. Since that time, I have always used the standard 12 month lease (which automatically rolls over into a month-to-month after 12 months). I'm contemplating now on just using a month-to-month lease right at the beginning. There are certainly pros and cons to each, but as Terry mentions in his book, if a tenant doesn't want to live in my rental anymore do I really want to keep them there? Still deciding on this one.
1. Tenant must have a bank account.
Neither of the previous two tenants I had had a checking account with a bank (as far as I could tell). They both paid me with money orders or cashier's checks. The former tenant was late one time and the latter was late three times. Both tenants wanted to move out before the lease was over. The tenant prior to those two had a checking even though they were moving from Houston, but was never late one day. Matter of fact, she always paid about 4-5 days AHEAD of the due date. I've also heard this from other landlords, so it seems like a pretty good litmus test to prescreen tenants. Maybe there is a responsibility factor involved with having a bank account, or something. Not sure. What I do know is that it looks to be a good guage on how well the tenant pays each month (and whether they want to leave early). The bank in question should have at least one branch in the area, too.
2. Give rental "rewards" to good tenants.
I first heard this when dealing with lease/options, whereby the the owner gives credits each month to a tenant/buyer who pays on time. If they don't, then there is no "reward". Basically, one sets the rent at a set amount each month for the duration of the lease as usual, however, if the tenant pays their lease on time, they are given a "credit" in the form of paying less rent. IOW, if the rent is $1,000 per month and the tenant pays their rent on time, they only have to pay $950 or $975. This implants a psychological memo in the tenants head each month to pay on or before the due date. If they miss the date, they have to pay the regular rent payment (plus late fees).
3. Better screening of tenants.
I've learned first hand the rule about screening the tenants thoroughly BEFORE they become tenants as it will save a lot of headache once they BECOME tenants. Not only will I do a more thorough job of looking at a prospective tenants criminal and financial background, but also demand they have AT LEAST three previous landlords I can call. I still believe I was tricked with this current tenant by having her use a friend to say he was her former landlord. By having at least three previous landlords, it will be harder to trick me (not impossible, but harder). I will also institute a means to make it harder for prospective tenants to trick me. If their previous domicile was a house they owned, I'll expect them to have proof of ownership, etc.
4. Month-to-Month vs. Standard Lease
When I first became a landlord, I held steadfast that leases were to be a standard 12 months - period. Since that time, I have always used the standard 12 month lease (which automatically rolls over into a month-to-month after 12 months). I'm contemplating now on just using a month-to-month lease right at the beginning. There are certainly pros and cons to each, but as Terry mentions in his book, if a tenant doesn't want to live in my rental anymore do I really want to keep them there? Still deciding on this one.
Monday, January 14, 2008
Tenant Wants Out
Before retiring for bed last Friday, my wife checked her phone and noticed the tenant had called her and left a message earlier in the evening. She said the number was not one the tenant had used before and from the background sound, it was probably a pay phone. Anyway, my wife said the tenant was saying she wants to terminate the lease the end of the month. She didn't give a reason, but only that she wanted to get out of the lease by then. I think it's evident to us why, but she didn't want to say it. She also said she was going over to a relatives house and would call us back, but never did.
The next day, my wife and I discussed the matter in detail after reading the Lease Agreement thouroughly and decided she could terminate the lease early under certain conditions. The Lease Agreement itself doesn't spell out specific damages if the tenant vacates early, but does have one very important clause: "all unpaid rents that are payable during the remainder of the lease or any renewal period will be accelerated without notice or demand". Of course, I highly doubt if we were to enforce this clause the tenant would ever pay us, so, instead, we used the clause as leverage for our conditions.
We sent the tenant a letter saying, basically, that she can vacate early, but that she would have to sign an attached agreement, which spelled out a list of conditions she would have to fulfil first. We included the clause above from the Lease Agreement, but said that we would overlook accelerating all the unpaid rent if she would read, sign, and return the Early Termination Agreement to us by this coming weekend.
Some of the things we asked of the tenant were:
(1) The tenant would have to be out on or before January 31st.
(2) The tenant would forfiet refund of all or any portion of the security deposit.
(3) The tenant would be responsible for disconnecting all utilities solely in her name, giving the utility companies her forwarding address, and paying all residual bills for the utilities when/if they are due.
(4) Give us a forwarding address.
(5) Pay us an additional sum as compensation for terminating the lease early on or before the date she vacates.
(6) The condition of the property will be the same as when she moved in, excluding NORMAL wear.
(7) On the date she is to fully vacate, do a final walk-thru with me to inspect the condition of the property, to give us all the keys, and to give us the additional compensation (if she hadn't already).
It will be interesting to see what happens now. I swung by there Sunday just to make sure she hadn't already 'up and left', and there was still signs of life. I half expect her to just leave one day before signing the agreement I sent, but who knows.
The next day, my wife and I discussed the matter in detail after reading the Lease Agreement thouroughly and decided she could terminate the lease early under certain conditions. The Lease Agreement itself doesn't spell out specific damages if the tenant vacates early, but does have one very important clause: "all unpaid rents that are payable during the remainder of the lease or any renewal period will be accelerated without notice or demand". Of course, I highly doubt if we were to enforce this clause the tenant would ever pay us, so, instead, we used the clause as leverage for our conditions.
We sent the tenant a letter saying, basically, that she can vacate early, but that she would have to sign an attached agreement, which spelled out a list of conditions she would have to fulfil first. We included the clause above from the Lease Agreement, but said that we would overlook accelerating all the unpaid rent if she would read, sign, and return the Early Termination Agreement to us by this coming weekend.
Some of the things we asked of the tenant were:
(1) The tenant would have to be out on or before January 31st.
(2) The tenant would forfiet refund of all or any portion of the security deposit.
(3) The tenant would be responsible for disconnecting all utilities solely in her name, giving the utility companies her forwarding address, and paying all residual bills for the utilities when/if they are due.
(4) Give us a forwarding address.
(5) Pay us an additional sum as compensation for terminating the lease early on or before the date she vacates.
(6) The condition of the property will be the same as when she moved in, excluding NORMAL wear.
(7) On the date she is to fully vacate, do a final walk-thru with me to inspect the condition of the property, to give us all the keys, and to give us the additional compensation (if she hadn't already).
It will be interesting to see what happens now. I swung by there Sunday just to make sure she hadn't already 'up and left', and there was still signs of life. I half expect her to just leave one day before signing the agreement I sent, but who knows.
Friday, January 11, 2008
Right/Left Brain Test
I saw this in a post on TheFastLaneToMillions.com and thought it would be good to pass on to others. It's a simple test to see which side of the brain you use most, and what (supposedly) that tells ...
Link
So which side of the brain do you use?
For me, I can only see it going clockwise. Try as I might, I cannot get it to go counter-clockwise. Interestingly - (based on this test, anyway) - I should be seeing it go counter-clockwise as most of what I do is "left-brained". Although, since "getting it", I notice I now possess many of the "right-brained" attributes.
Link
So which side of the brain do you use?
For me, I can only see it going clockwise. Try as I might, I cannot get it to go counter-clockwise. Interestingly - (based on this test, anyway) - I should be seeing it go counter-clockwise as most of what I do is "left-brained". Although, since "getting it", I notice I now possess many of the "right-brained" attributes.
Eviction Thwarted (Again)
I haven't been posting about the tenant this past week as things seem to be changing by the minute (literally, in some cases). I also won't go into a lot of the details as it would probably end up being a novel (and that's if I can remember it all).
Basically what happened was this ... The tenant was late. We sent a letter. The tenant said she sent the rent. She lied, we never received it, and gave her until today to pay everything she owes us to date (including current late charges). We received not only everything owed us, but about $90 extra.
The issues we have with the tenant are she constantly lies to us and is consistantly late. Even when my wife would catch her in a lie, she would still deny it. I guess it's expected when dealing with some of these types of characters. The lateness part has been addressed rather firmly now, too. In the letter I sent, I told her that she would no longer receive a warning from us when she is late, and we would immediately send her a "pay or vacate" letter to start the eviction.
Basically what happened was this ... The tenant was late. We sent a letter. The tenant said she sent the rent. She lied, we never received it, and gave her until today to pay everything she owes us to date (including current late charges). We received not only everything owed us, but about $90 extra.
The issues we have with the tenant are she constantly lies to us and is consistantly late. Even when my wife would catch her in a lie, she would still deny it. I guess it's expected when dealing with some of these types of characters. The lateness part has been addressed rather firmly now, too. In the letter I sent, I told her that she would no longer receive a warning from us when she is late, and we would immediately send her a "pay or vacate" letter to start the eviction.
Friday, January 04, 2008
New Year, New Look, New Goals
It's the new year, so what better thing to do than change my blog's template and add my goals for the year. I decided to go with the new template as it shows more of my post's content than the old one. It's the same template I use for my other blog, so I hope it doesn't get confusing.
I also decided to jot down some of my goals for the new year:
Sell House #1 - I really, really like this property, but I want to sell it and use the proceeds to buy one or more multifamily properties. It's been a good house and I hate to see it go, but I need to move on to bigger and better things. I also am not fond of landlording SFR's that much any more.
Buy (or partner to buy) at least one multifamily property - I have been actively looking for a multifamily property in and out-of state. Hopefully, my persistence will pay off with a lucrative deal that will put some cash in my pocket each month. I want to wring my hands of landlording (at least for now), so it will be a lot more hands-off for me. I plan to use (some of) the proceeds from the sale of House #1 to purchase it/them.
Finish writing and publish at least one book - I am actively writing two books, but it's hard to say at the moment which book will get done first. Everyone seems to have a book on real estate investing, and I am writing one, too. Mine has a slightly different angle than almost any other REI book I've seen, so maybe it will differentiate itself from the others in the marketplace. The other book has nothing whatsoever to do with REI, or even real estate itself.
Build a web site - I've also been actively writing this as well. I have the infrastructure written, but may need to outsource some of the design as I am not graphically artistic at all. I'm still thinking through some of the design issues to see if I even want any heavy graphics in the first place. I won't say much about the web site's purpose at this point other than it will provide a free service to the public. I'm hoping to have it operational before the summer, if all goes as planned.
Move clothing apparel idea from 'concept' to 'reality' - This was my #1 endeavor a few months ago, but I've let it slip down the priority list, unfortunately. I think it has a lot of potential, but I need to create a few proof of concepts and test the market first. It also involves 3rd-party branding, which I must say has been why I have procrastinated so much.
Create at least one other business endeavor - Actually, I've already started the initial stages of this idea. I've talked with one person who owns their own web hosting business and he agrees that it could be successful. I also have done some research the past year and feel that this industry will blossom over the next few years.
Buy at least five domain names and sell at least three domain names - This is a really low priority, but it's something that seems easy and profitable that I just can't ignore doing it sometime this year. I already have a list of about 15 names that could earn some money (nothing huge, but profitable just the same), and maybe I'll buy some/most/all those names and try selling them.
Whew! Lot's of work to do this year, and I need to get started on some of these now.
I also decided to jot down some of my goals for the new year:
Sell House #1 - I really, really like this property, but I want to sell it and use the proceeds to buy one or more multifamily properties. It's been a good house and I hate to see it go, but I need to move on to bigger and better things. I also am not fond of landlording SFR's that much any more.
Buy (or partner to buy) at least one multifamily property - I have been actively looking for a multifamily property in and out-of state. Hopefully, my persistence will pay off with a lucrative deal that will put some cash in my pocket each month. I want to wring my hands of landlording (at least for now), so it will be a lot more hands-off for me. I plan to use (some of) the proceeds from the sale of House #1 to purchase it/them.
Finish writing and publish at least one book - I am actively writing two books, but it's hard to say at the moment which book will get done first. Everyone seems to have a book on real estate investing, and I am writing one, too. Mine has a slightly different angle than almost any other REI book I've seen, so maybe it will differentiate itself from the others in the marketplace. The other book has nothing whatsoever to do with REI, or even real estate itself.
Build a web site - I've also been actively writing this as well. I have the infrastructure written, but may need to outsource some of the design as I am not graphically artistic at all. I'm still thinking through some of the design issues to see if I even want any heavy graphics in the first place. I won't say much about the web site's purpose at this point other than it will provide a free service to the public. I'm hoping to have it operational before the summer, if all goes as planned.
Move clothing apparel idea from 'concept' to 'reality' - This was my #1 endeavor a few months ago, but I've let it slip down the priority list, unfortunately. I think it has a lot of potential, but I need to create a few proof of concepts and test the market first. It also involves 3rd-party branding, which I must say has been why I have procrastinated so much.
Create at least one other business endeavor - Actually, I've already started the initial stages of this idea. I've talked with one person who owns their own web hosting business and he agrees that it could be successful. I also have done some research the past year and feel that this industry will blossom over the next few years.
Buy at least five domain names and sell at least three domain names - This is a really low priority, but it's something that seems easy and profitable that I just can't ignore doing it sometime this year. I already have a list of about 15 names that could earn some money (nothing huge, but profitable just the same), and maybe I'll buy some/most/all those names and try selling them.
Whew! Lot's of work to do this year, and I need to get started on some of these now.
Investor Group and Tenant
Investor Group
I recall about a year or so ago seeing a sign out in a yard a few miles from where I live advertising an investor's group. I wrote down the information at the time, but never followed up on it for whatever reason (I think I lost the paper I wrote the info down on - 'out of sight; out of mind'). I've passed by the place 100's of times since then, but never noticed the sign (that I recall now). Last week, I was driving by there and happened to notice the sign was out again, so I jotted the information down (again). I had the paper sitting in my car, and decided to look it up this morning.
All I can say is I am kicking myself for not acting on this before now. It seems this is a local group of like-minded individuals from different facets of investing, who get together once a month to network and hold presentations on various topics. The biggest areas seem to be stock trading, options trading, and real estate investing, but they also cover other stuff like business building. I haven't been to our local REI club in years, mainly because it's held in far south Austin, which is a long distance for me. However, this place is not only located about 3-4 miles from my home, but also covers other investing industries -AND- is totally FREE (the REI club charges something like $130/year membership).
I sent the moderator an email with my bio, which is required to "join", so hopefully I'll be a "member" in the next couple of days. Unfortunately, their last meeting was held just last night, so I'll have to wait until February to attend their next one. In the meantime, maybe I'll send some emails to other members of the group to start networking now.
Tenant
Same old song and dance with the tenant. Yesterday, my wife called and said the check wasn't in the mail. Yesterday was the final day before it will be counted late. My wife said she tried calling the tenant at her work, but they told her she was off until Monday. She then tried calling the tenant's cell phone, but said she got a recording saying the cell phone is not currently accepting incoming calls. Not good signs at all. I told her that we'll give her until tomorrow night to not only give us the rent, but also the late fees.
Just last week we were discussing this situation, and I told my wife that if she continues to be late that maybe we should try to bribe her out of the property and get someone else in. I really don't mind her paying the late charges that accumulate, but it's like we have to keep bugging her every month just to get her to pay.
I recall about a year or so ago seeing a sign out in a yard a few miles from where I live advertising an investor's group. I wrote down the information at the time, but never followed up on it for whatever reason (I think I lost the paper I wrote the info down on - 'out of sight; out of mind'). I've passed by the place 100's of times since then, but never noticed the sign (that I recall now). Last week, I was driving by there and happened to notice the sign was out again, so I jotted the information down (again). I had the paper sitting in my car, and decided to look it up this morning.
All I can say is I am kicking myself for not acting on this before now. It seems this is a local group of like-minded individuals from different facets of investing, who get together once a month to network and hold presentations on various topics. The biggest areas seem to be stock trading, options trading, and real estate investing, but they also cover other stuff like business building. I haven't been to our local REI club in years, mainly because it's held in far south Austin, which is a long distance for me. However, this place is not only located about 3-4 miles from my home, but also covers other investing industries -AND- is totally FREE (the REI club charges something like $130/year membership).
I sent the moderator an email with my bio, which is required to "join", so hopefully I'll be a "member" in the next couple of days. Unfortunately, their last meeting was held just last night, so I'll have to wait until February to attend their next one. In the meantime, maybe I'll send some emails to other members of the group to start networking now.
Tenant
Same old song and dance with the tenant. Yesterday, my wife called and said the check wasn't in the mail. Yesterday was the final day before it will be counted late. My wife said she tried calling the tenant at her work, but they told her she was off until Monday. She then tried calling the tenant's cell phone, but said she got a recording saying the cell phone is not currently accepting incoming calls. Not good signs at all. I told her that we'll give her until tomorrow night to not only give us the rent, but also the late fees.
Just last week we were discussing this situation, and I told my wife that if she continues to be late that maybe we should try to bribe her out of the property and get someone else in. I really don't mind her paying the late charges that accumulate, but it's like we have to keep bugging her every month just to get her to pay.
Wednesday, January 02, 2008
Welcome Back
I certainly hope everyone had a nice and enjoyable holiday season. I know I needed the time off even though I didn't do a whole lot in regards to making myself any more financially independent. However, I spent a considerable amount of time with family, and I wouldn't trade it for all the money in the world.
However, I did do some things regarding REI, including writing a couple of programs to cut out some of the manual searching I've been doing. So far the programs have uncovered a few interesting leads, which I've inquired about to the listing agents. Two of the agents sent me some spec sheets on the properties, which I'm still muddling through. One is an 8-unit that is 50% occupied due to the other four units needing some work done on them. Another is a 26-unit that is 79% occupied and needs no work. A third is a 12-unit, but I haven't gotten any info on it yet, though.
While I was off, I also started going through my accounting for the upcoming income taxes that are due. I must say I have done an absolute terrible job in organizing my stuff. I also thought I could do the whole thing on my own, since my CPA is no longer working and left me some good information when she did my taxes last year. Unfortunately, though, I had a sale and some other things that I am not 100% sure about how to report, so I may have to find another CPA really quick.
However, I did do some things regarding REI, including writing a couple of programs to cut out some of the manual searching I've been doing. So far the programs have uncovered a few interesting leads, which I've inquired about to the listing agents. Two of the agents sent me some spec sheets on the properties, which I'm still muddling through. One is an 8-unit that is 50% occupied due to the other four units needing some work done on them. Another is a 26-unit that is 79% occupied and needs no work. A third is a 12-unit, but I haven't gotten any info on it yet, though.
While I was off, I also started going through my accounting for the upcoming income taxes that are due. I must say I have done an absolute terrible job in organizing my stuff. I also thought I could do the whole thing on my own, since my CPA is no longer working and left me some good information when she did my taxes last year. Unfortunately, though, I had a sale and some other things that I am not 100% sure about how to report, so I may have to find another CPA really quick.
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