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All Forum Posts by: Rob K.

Rob K. has started 38 posts and replied 2251 times.

Post: Washer/plumbing advice

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707

It sounds like the drain is full of lint. Happens all the time. I would snake the line with one of these:

Drain snake

If that doesn't work, you can find a plumber to snake it for about $75. Have the tenant use lint traps on the washer discharge in the future.

Post: Ready to be a full time real estate investor but concerned about Health Insurance.

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707

Call an insurance broker. Each state is different. I have a PPO that was costing $350 per month for a family of four and was grandfathered in until the end of 2015. They recently sent me a letter saying that they were extending it another eleven months at $385 per month. It's not the best plan. Office visits are $35 and there is a deductible of $5,000 and $10,000 per family. We rarely use it as we eat healthy and exercise. It's just there for emergencies.

Maternity coverage is very expensive. When my youngest was born in '08, I had to pay $7,000 out of pocket and that was for a natural birth with no drugs. If my wife had an epideral or was induced, it would have been more. Natural births are WAY healthier for mom and baby if she can take the pain. Have your wife nurse the babies and they will be way better off through their entire lives.

If you know you're going to have a baby, try and get on an HMO beforehand. That's what we did with our first child. There was an open enrollment window and the coverage in '04 was about $300 per month just for my wife, but it covered most of the delivery. I think new plans are requiring maternity care, which is ridiculous if you're done having kids.

Post: Any flooring contractors in here?

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707

Home Depot rents a machine that can scrape that up. I haven't used it, but it's made for that.

You could also buy a heat gun at Harbor Freight for under $15. Once he heats up the tiles, they will lift right up with a putty knife or wallpaper scraper.

Post: what if sub gets injured

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707
Originally posted by @J Scott:
Originally posted by @Robert D.:
you lost me here. if the judge asks you "so tell me ..did you hire the bathroom guy as a independent contractor or employee ?  on one hand you are showing me the independent contractor agreement that specifies that the guy is not your employee but on the other hand you are using insurance product specifically designed for employers"  that question might come during any employee/employer related lawsuit about overtime or SS premiums not being paid.  I might be wrong but that's a logical conclusion. cant have both ...you either hire the guy as an employee and PAY him as employee AND deduct/pay all related expenses accordingly or you hire him as a independent contractor (hoping he has some kind of insurance that will pay if he gets injured), issue 1099 and pay him lump sum for the job done ...

Not how it works...at least not in my experience...

I carry WC insurance under my LLC. When I hire an independent contractor that is not covered under WC, he is automatically covered under my WC policy (even though he's not an employee).

 I do exactly the same thing and my insurance company has no problem with it.

Post: Coin Operated Laundry or Car Wash? Question please.

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707
Originally posted by @Bill Bodziak:

 I am submitting an offer on a coin wash this week. My offer is an owner finance at asking price for 7 years, the monthly payment will be around $1500 with no money down but I will need to do at least a new roof for $20,000 within the next 2 years. The building is a little neglected but those are the best opportunities :) If you are considering a car wash purchase try to do it with owner finance and as little down as possible....the 3 month+ option is a great idea here and I will put that in my offer.

For valuation use a multiplier of 2.5 to 3.0 of the profits to get a good faith value and consider any repairs and equipment age. Figure replacing pumps at 6 years ($600-1200 ea) and brushes yearly. Chemicals are cheap (100,000k gross location can run on $3500 in supplies) Auto Laundry News carwashmag.com is a tremendous resource for industry news and owner surveys. Having a touchless automatic bay helps big time with sales in the winter and will most likely be the majority producer. Other less expensive improvements would be adding credit card readers and in-bay drying systems. Do everything you can do to keep people in the bays longer, time is money! Also consider your time. You need to have someone clean the place daily, preferably twice a day. As an owner you should plan to be on site at least twice a week to watch your investment. Its a good idea to have extra equipment to such as an extra vacuum, coin acceptor, etc so when one goes down you can replace it immediately while getting the broken repaired. 

Keep us posted and Good Luck!

Bill 

With all of the $2 tunnel car washes in our area, is it hard for a coin operated wash to compete? When I was a teen, I used to wash my car at a coin wash and it cost about $2.50 to do it myself - 20+ years ago. Now, I can get my SUV washed for $3 and not even get out of the car.

Post: what if sub gets injured

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707
Originally posted by @Robert D.:
Originally posted by @Rob K:

regarding audit : do they also check your payroll if you pay FICA, medicare, SS etc ? technically it should be part of the payroll since you act as their employer, correct ? so if you want to  hire a guy to paint your SFR at say $10 an hour ....would not the other costs make it close to $15 an hour ? or maybe it would be part of IRS audit and actual payroll is not insurance company problem ?

for example if I hired a guy in IL for 9hrs at $10 an hour I would need to deduct 

Gross Pay:

9 hrs x $ 10.00 /hr $90.00

Taxes:

Federal Income Tax -$4.67

Social Security -$5.58

Medicare -$1.31

IL Income Tax -$4.50

NET PAY$73.94

and I would need to pay his SS as well. so what folks who have WC do in this case ? 

I usually pay by the job and then 1099 them at the end of the year. I've never withheld taxes.

Post: Feral cats

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707

Harbor Freight sells a large live trap for around $20. I bought one and caught a woodchuck and three possums. It's easy to set up and release.

Post: How do you handle the stress?

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707

One of my friends has major anxiety and told me his trick when he wakes up during the night is to listen to NPR on his phone. You can get the app. Sometimes if I wake up in the middle of the night, I will do that and go right to sleep. It's so boring that it puts you right out.

Another good thing for stress is yoga. It sounds gay, but it's super relaxing and you will feel great. Plus there's lots of women in yoga pants, which is a huge bonus.

Post: Man charged with breaking into foreclosed home he bought

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707
Originally posted by @Chris Martin:

Mirantsoa Razafindrandriatsimaniry and Vololoniaina Razafindrandriatsimaniry. 

 Imagine those people in kindergarten trying to write their names.........

Post: Assignment Contracts for Wholesalers in Michigan.

Rob K.Posted
  • Investor
  • Southeast, MI
  • Posts 2,295
  • Votes 1,707
Originally posted by @Jon W.:

@Rob K. can you elaborate on that?  Does it matter what area of RE?  Thanks.

It's in the "Red Book" of Michigan real estate laws. You're also not allowed to sell more than five properties per year without using either a licensed broker, or being a broker yourself.