All Forum Posts by: Jay DeCima

I don't advise investing out of state, but many of my students invest 1-2 hours from their homes very successfully.

One technique I developed many years ago was..... managing my tenants by mail.  I just posted a long blog post at my new BP blog.  I think you will find a lot of new ideas in it. I hope you will find it useful.  

Here is the link to the BP blog: https://www.biggerpockets.com/blogs/8579/50742-man...

Good luck.

Jay DeCima

Wow. Thanks to Brian and Rick for the mention in this thread. 

I am new to BP but have 40+ years investing experience with over 200 Northern Calif. rental homes. I had to get creative in California to succeed.

I just started my BP blog that may be of interest to some folks. I will probably post weekly on various creative topics.

Take care.

Fixer Jay DeCima

Wow. Thanks for the mention in this thread. I am new to BP but have 40+ years investing experience with over 200 Northern Calif. rental homes. I had to get creative in California to succeed.

I just started my BP blog that may be of some help. I will probably post weekly.

Take care.

Fixer Jay DeCima

Wow.  Thanks for the mention in this thread.  I am new to BP but have 40+ years investing experience with over 200 Northern Calif. rental homes.  I had to get creative in California to succeed.

I just started my BP blog that may be of some help.  I will probably post weekly.

Take care.

Fixer Jay DeCima

Wow, my older book got mentioned here...thanks.  I am new on BP but not new to buy and hold, cash flow investing (40+ years).

I suggest you read up on a few kinds of investing you are interested in and then pick the one you think would be the best for you, and one that will not require a boatload of cash to start. Then find the best mentor you can in that kind of investing. Learn from that person and stay focused on their kind of investing. Find some of these mentors on a Google, search their name. See how many pages of results pop of for them.

If you chase 5-6 kinds of investing you will become a "wandering generality".  Save time, focus on what you think is realistic.oa

I just started a BP blog, with no sales pitches.  I probably post weekly on newbie subjects, management by mail and other, maybe "different" subjects.

Good Luck

Fixer Jay DeCima

John T.

It is great that you are addressing this at the beginning of your career.

At one time, with over 200 rentals in Northern California, I would fume for a whole weekend on something a tenant was doing that I did not like. What a waste of energy.

So I changed my approach.  By the way, all my tenants were blue collar folks (no Nob Hill, San Francisco).  I developed my strategy of managing my tenants by mail.  This took out almost all the emotions from a "situation"(for me and the tenant).  I wrote hundreds of memos on all subjects.

Most memos were simple, but the tenant knew what his "call to action" should be after reading them.

Memos went something like this:

Dear Mary Lou (or Tommy)

I need your help!

I noticed that you had some friends over and they were parking on the front grass. You may not know that there are pipes underneath the grass and if they are broken by one of the cars parking on the lawn that can get expensive for you. Maybe save yourself the expense and have your friends park in the driveway for street.

Thanks for your help

Jay

End of memo.

A couple of observations here–I knew the tenant was the one parking on the front lawn but I did not accuse him of that and suggested that it was his friends (defuse). Also I nicely asked for his help and offered a way for him to save on a potentially big expense.

Managing tenants by mail – I swear by these memos.

I just started a bigger pockets blog this week and will probably post, weekly, some management ideas from my years of dealing with tenants.

Good luck

Fixer Jay DeCima

Joshua

I posted the following for a newbie the other day.  Hope it helps.

Post:

I've done almost all kinds of investing over the last 50 years in Northern California.

Here are a few things that may save you a ton of time:

1. I've done many, but flipping and wholesaling are jobs. You pay regular taxes, including social security, like a job and there are not many tax breaks.

2. Long term buy and hold is where you build your real estate wealth. Over time your tenants will pay ALL your bills and for your lifestyle.

3. My biggest success over the years came from buying GROUPS (5-8 houses) of older homes on a single parcel, in older, blue collar parts of town (not slums). Because banks will not finance these types of properties, 90% of the time I got seller financing. The seller knew he/she would be taking back the financing. I did not have to talk them into it.

4. I suggest you read up on a few kinds of investing you are interested in and then pick the one you think would be the best for you, and one that will not require a boatload of cash to start. Then find the best mentor you can in that kind of investing. Learn from that person and stay focused on their kind of investing. Find some of these experts on Google. See how many pages of results pop of for them.

You will become an expert in a much shorter time period if you are not going in 5 different directions at the same time.

Good Luck

Fixer Jay DeCima

By the way, I just started a blog on BP and should be posting subjects like this weekly.

Chris V.

His is what I try to do or come close to: 

1.  Raise the rents 50% over 24 months...remember I buy the places looking bad and poorly managed and the rents are significantly lower than they would be if fixed up.

2. Because I fix the places up, the amount an investor would pay for them fixed up (if I was selling) would be about 2 GRM points (gross rent multiplier) higher. So hypothetically, if I bought them at 6 GRM, by fixing them up, they will be worth about 8 GRM. (note, GRM are different in every area).

3.  If I am able to do #1 and #2 over 24 months, I have just about doubled the value of the property.  Play with the math and you will see what I mean.

By the way, you must develop a GRM chart for you specific area. Rent X GRM is the value. Make a GRM chart from lets say 5,6,7 etc to 15. 5 may be slum in your area and 15 fixed up real nice in nice part of town. You look for the lower end of the other numbers. Agents can give you an idea what GRMs are of sold units.

Not rocket science and you don't need a computer to figure this out.  I got by for many years with yellow pads and pens...Just a different mindset and what to look for.

I just started posting a blog on BP and will add one each week, with subjects like what we discussed here.

Good luck

Fixer Jay DeCima

Paul

Having owned 250+ Northern Calif. homes at my high point, I realized very early on that there is no excitement owning a rental(s) that just breaks even (maybe), while you are crossing your fingers hoping for some appreciation.  That is not really a business model.

I needed more cash flow to make a living doing my investing after I left my telephone company management job.  Here is what I did, and have perfected pretty well over the last 40 years.  I look for groups of older homes, on a single parcel, in blue collar areas (not slums).  It takes some time to find these, but it is worth it.  The property may have 5-9 or so rentals on a single lot.  These rentals may be small houses, duplexes, conversions, even a mobile periodically.  These w ill ALWAYS be older properties, not in the suburbs.  I like to find them when they need work.  Because I buy these with work needing to be done, I could usually buy with about 10% down.

Because banks will not finance these "challenged" properties, 90%+ of my buys came with the seller carrying the financing.  These type of sellers know they will be carrying the financing.  If fact over the years as I sold, I did do with me carrying back the financing.

Check these areas around where you live or with in 30-50 miles.  These properties are not always easy to spot.  Here is a tip:  If you see a bank of mailboxes in front of a home, there may be more homes on that parcel (in the back or even next door).  

A little change in what you are looking for can make a big difference for long term net worth creation.

Good Luck

Fixer Jay DeCima

Why don't you keep it real simple.

Right now she has what I call "pajama money".  She can go to the mailbox every month in her PJs to collect the rent checks.  This is a nice position to be in for your sunset years.  If she does not want to manage it, just hire a property manager.  

Better yet, you would gain a lot of street smart experience if you did the managing. With 250 rental homes at my high mark, I do most of my management by mail, with little direct tenant interaction, or headaches.

Good luck.

Fixer Jay DeCima