All Forum Posts by: Account Closed

I think it depends on your individual business and how you conduct business.  I have property managers and couldn't do it without them.  My closest rental has about $100 per trip overhead just in mileage (not including time) based on current IRS rates because of it's location as compared to where I conduct operations.  Despite what many folks here will tell you, I am of the philosophy that if you leverage yourself to the point where "other's people money" is making the other people richer than you are, then it isn't good business.  I say if what you are doing works for you, then let it keep working.  If it doesn't, then change things so it works.

The properties I have bought, I put in just short of what I was willing to pay.  If the auction was coming to an end, and the ending price was over, but close, I went a head and bid over it.

If you don't get to the reserve price, then don't worry about it - it will be re-listed with a lower reserve until it's sold....this process could take months.

I live in grow central - near the Platte River in Denver where most of the grows are.  There are over 120 grows less than 5 miles from my house (based on a 2011 Denver Post Article on "medical marijuana" before it became legal for recreational use).

The grows are located in 5,000 - 10,000 sq ft warehouses or in former nursery locations (as is the case of Dardano's Nursery where I used to buy my vegetable plant starts in the Spring).   Good luck finding a place like this as there is very high demand in Denver.

Once you find a location with the correct zoning, if that's the industry you want to target, you're going to have to upgrade electrical to the warehouse.  You might even have to install specialized ventilation systems to keep the smell down (Denver has a Department of Environmental Quality that keeps on top of this...though you can still smell it when you drive by).  Hydroponic systems and grow lights will need to be installed as well.  Security is essential - these places get broken into quite often.

Your tenant, if not already licensed, will have to go through an extensive background check that also requires site visits to ensure compliance before they even get started.  This could lead to higher than usual vacancy rates while things get set up.

Honestly, if you want to go commercial, go commercial and keep yourself open to other industries....in the long run, anyone with a 5,000 - 10,000 sq ft warehouse is going to do well in this area no matter who they lease to. 

@Jerry K.  As a matter of update, heard from the attorney that property #1 has been foreclosed on.  We are waiting from official documentation from the court so we can forward it to the county and so I can claim title.  Hearing on the second property is on the 27th so I should have both by the end of the year.  Focus has shifted to how I can sell these building lots as quickly as reasonable.  I'll update with progress.....

I own a rental in a town of about 10,800.  Here are my experiences/thoughts...

1) Everybody knows everyone else.  Seriously.  Face time and reputation are huge.  Don't skimp on either one if you invest in a rural area/smaller town.

2) There aren't many property managers in these areas.  If you don't want to manage the property on your own, this could be an issue.

3) There aren't many hardware stores in these areas - the closest Lowe's/Home Depot to my rental is about an hour away.

4) LICENSED trade folks are tough to come by.  You might have an electrician, you might have a HVAC guy that doubles as an electrician.  You might not have access to a plumber.  This is a tough issue - everyone's situation is different.  The folks that are LICENSED tend to work on their own time....it's currently hunting season - they may not be around this week or next...

5) Rents could be absolutely outstanding in my experience - especially in areas near big oil & gas operations, near railroad areas, etc.

6) Landlord beware - Mayberry is a great place for folks like Aunt Bee, but there are also MANY folks that are intentionally hiding or avoiding other areas for whatever reason.  Don't be surprised if you have someone with full face tattoos, "no background" and references like the local hotel manager applying to rent your house.

The Home Depot (big box hardware)

Lowe's (big box hardware)

Ace Hardware (middle market hardware)

Plumbing Supply.com (hard to find plumbing stuff including short risers for clawfoot tubs in bathrooms with low ceilings)

Murdoch's (tools & clothes)

Tractor Supply Company (tools)

MFS Supply (REI Stuff - really like these folks)

Amazon (just about everything)

Xero (Accounting Software)

Ring Central (phone system)

Wix (web hosting)

First Bank (banking)

Wells Fargo (banking - not lending)

REI Guard (insurance)

Allstate (insurance)

With relation to dumping and cars and such - I have an old used Ford Super Duty.

For those that have cell phones and don't like the signal quality, check to see if you can route your calls via the internet.  This is a setting on iPhones and I believe Android/Other phones have the same capability.  Essentially, you can set it up so the call goes through via the internet through a WiFi signal (VoIP technology) as opposed as through a cell tower.  This makes things a bit more reliable when making calls.

They are the same thing.  A "landline" as you refer to it is basically two copper wires connected to a telephone network (the telecom term is a "POTS" line which translates to "plain old telephone system".  "VoIP" as you refer to it basically a telephone call that occurs over the internet that is delivered either via those same two copper wires (if you get your internet through your phone company) or the conduit installed by your cable company (if you get your internet through your cable company).

"Wireless" is your cell phone.

My business runs on VoIP (Ring Central) connected to my Cable System's network.  When cable goes down, so does my phone system at my home office.  When the power goes out, so does my system at my home office (the cable router is connected to electricity).  I forward my calls to my cell phone so I don't miss them.  Works great for me.

You can do the same things with a landline...I haven't had one in many years but the reason I went with VoIP is because I pay one fee, once per year, and don't have to worry about long distance.  I also get text messages on that line and I can send data via those lines.  Any incoming faxes get forwarded to me via email in the form of a .pdf document.

My first thought is I would want to look at the liquor license/excise tax laws for the location where the rental is listed.  That could be a big factor in your decision.

These types of properties as a warehouse are in big demand from the marijuana industry.  I don't know the rules in California, but I believe it's legal at least from a medical perspective.  Might be worth looking into?