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All Forum Posts by: Austin Fruechting

Austin Fruechting has started 13 posts and replied 758 times.

Post: Middle ground between Grant Cardone and BP

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670
Redgy Saint-Germain - that stuff I love! The creative deal making and strategic value add is a lot of fun. But the leasing, rent collections, routine maintenance stuff is what I equivocate with landlording. The general property management stuff. And that stuff I do not like at all. The strategic stuff however is why I keep buying, because I enjoy that.

Post: What Percentage Of People Like/Dislike Being Landlords?

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670
On the flip side of my statement, I'm heading to the golf course now. I enjoy golf even though I'm terrible at it. Lol

Post: What Percentage Of People Like/Dislike Being Landlords?

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670
Not everyone that hates it is bad at it Jd Martin - It's very possible to be good at something and simply not like doing it. I've never enjoyed task jobs and get bored with them super easily. So I already disliked being a property manager. Then when you start managing 40-50 units, have another business to run, want to spend time with your wife when she's in town, and are trying to find/run more BRRRR projects, there's just not enough time. I had to pass on some opportunities because I didn't have the time for them. So not only did I not find the work non-enjoyable and non-fulfilling, it took away time from the activities that would actually get me to my end goal. Compound that with already not liking doing those tasks and loathing it would be the most accurate term.

Post: Middle ground between Grant Cardone and BP

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670
Anthony Gayden - the reasons I say I swing away from the GC side is exactly what Jd Martin just said. GC seems to want you arbitrarily 10X your goals, and seems to think that goals are just arbitrary in general. I guess if that's the case then yeah, go ahead and 10X it because it's all meaningless anyways. My goal was carefully calculated based on designing our ideal lifestyle. But GC would advocate 10X-ing it because you should always 10x your goal. Um, no thanks. I would rather travel and spend time with my wife than for both of to have to keep working full time towards a super high, arbitrary goal. Because then what?! What happens when we hit that goal? Then travel and spend time with my wife? I already calculated what I needed to do that the way we want to do it, so why would I wait for another 10x? The other reason I say I'm more on the BP side is my investments are mostly duplexes and single family and a lot of "BRRRR-ing". I have a few 4 plexes+, but I would say Brandon Turner and I's paths are fairly similar. Now what I will say towards GC is the reason I was able to take just average investing to this level somewhat quickly, was that I probably did 10X the reading, analyzing, and research than the average investor. That's the side of GC I can really get behind and advocate. Set a specific, meaningful goal. Then 10X your efforts.

Post: Middle ground between Grant Cardone and BP

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670
Find your path. I ended up in somewhat of a hybrid, but probably closer to the BP side and went to 141 units in 7 years, and adding more next month (7.25 years). I started with regular deals and they kept growing in size. GC and his book the 10X rule has some good stuff, but stuff I don't like/agree with either. If you go all in on what he's saying there's a good chance you end up like this example in the book The Subtle Art of Not Giving a F$*k: "It’s true, caring is what’s got us all f$*ked up. We care about the wrong damn things. For example, in the book, Mark talks about a guitar player who got fired from his original band. The guitarist vowed to become a rock legend. He filled stadiums, sold millions of records and won numerous awards. Yet, later in his life, when he was interviewed, he tearfully claimed his life was a failure. That guitarist was Dave Mustane from Megadeth and the band who fired him was Metallica. Although to you and I, Megadeth was a huge success, to Dave, they were never Metallica. See, Dave gives a f$*k about the wrong sh*t. He gave a f$*k about how big Metallica was. Instead, he shouldn’t have given a f$*k and f$*king enjoyed the f$*k out of what he was f$*king doing. " Read Rich Dad Poor Dad, BP, 10X Rule, The Subtle Art of Not Giving a F$*k, Think and Grow Rich, and get The Daily Stoic... then figure out your path, and learn to be happy at wherever you're at.

Post: What Percentage Of People Like/Dislike Being Landlords?

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670
Originally posted by @Cody L.:

I love owning property.

Hate being a landlord (which I why I have property managers)

 Exactly this. 

I managed my own properties at the beginning in addition to starting a property management business managing others properties. The day I sold that business was a happy day as has every day since not being a property manager. I don't enjoy managing properties at all!

Post: How's my new deal look??

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670

Oh, and their first asking was ~$1,135,000 and I got them to $790,000. 

Make your money when you buy!

Post: How's my new deal look??

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670

22 Units; 12 SFR's & 5 Duplexes.

Current status; only 9 of 22 rented. 8 more can be rent ready with little/minimal work (4-6 weeks total). 5 units will require substantial work.  Total cost of all renovations/deferred maintenance: $194,500.  

Estimated appraised value as-is: $1,260,000

Purchase price: $790k

Rehab: ~$195k

All in: $985k + closing costs

Gross rents when complete: $18,590/month

Estimated As-improved value: $1,500,000-$1,600,00

Post: Improve your tenants lives?

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670

I treat everyone I deal with integrity and act ethically. If I say I'm going to do something, I do it. If I shake your hand on a deal that means way more to me than a signature on a page does to others. I try to keep my units slightly above the standard of the competition at the same price. If a tenant has a problem I try to fix it as quickly as possible... but let's be honest. That's just business. 

Even though some of those decisions often have the result of improving the tenants lives, those are just business decisions and have nothing to do with a desire to improve anyones lives other than my own. Those are all things that I believe will make my business more profitable. Keeping tenants happy means keeping quality tenants that treat the property well. That all allows me to spend less time on them, have less headaches/stress, and be more profitable (improving MY life)

My business is my business. My charitable contributions to improve lives are my charitable contributions. 

Post: My retirement does 6%--Do I drop it like it's hot?

Austin FruechtingPosted
  • Investor
  • Kansas City, MO
  • Posts 791
  • Votes 1,670
Originally posted by @Joe Villeneuve:
Originally posted by @Joe Splitrock:
Originally posted by @Bernard Reisz:

@Ashley Benning@Christopher Phillips@John P.@Joe Villeneuve

"Diversification is protection against ignorance. It makes little sense if you know what you are doing." - Warren Buffet

Just some food for thought...Best to all!

Berkshire Hatahway is extremely diversified so does that make Warren Buffet ignorant?

https://en.wikipedia.org/wiki/List_of_assets_owned...

 No. It makes him extremely smart.  Heis ableto use his knowledge to choose thebest investmemnts and as a result of the "smart" choices, he ended up diversified.

Yep, just because the companies Warren Buffet acquired and added value too are across different sectors doesn't mean he "diversified".  He simply applied his models to the opportunities at the time and chose the best. If it was a different sector that didn't matter. What mattered what his business plan and model. What mattered was that it had the right financial metrics, and in the right position for him to implement essentially same plan every time.