All Forum Posts by: Michael K Gallagher

@Zachary Schimenz so sorry to hear this, but also I've always heard amazing things about Memphis invest so no surprise there.  The Ohio Cash is a major bummer.  where in OH is the property?  there are certainly still some great properties and areas to invest throughout the state.  Is there any opportunity to fire the property manager involved with the Ohio property and turn it around?  Or is it under contract with them through the purchase? Not sure how those things work.  

I'm not familiar enough with Real Estate Law in this situation or with TX law to really comment,  But If I were in your situation I'd see if a local realtor can help put you in contact with a Title company or RE lawyer.  At least as a first step to understanding what it would take.  

Not sure what part of TX the property is in but @Bryan Noth is in TX and is fantastic, he might be able to assist.

Good Luck!

@Alexander Glantz If your land lord is a smaller time land lord they might be open to sub leasing, but you need to approach it to make their life easier.  Explain your situation and do the leg work to find them the new tenant.  Make sure you understand their requirements, and make sure they are able to sign off on that tenant as well.  I think if you came at it with a solution you'll have a better shot at being able to sublease.  But In my mind thats the only way you'll be able to house hack before the end of your lease.  

Not sure really where you are in the investment journey from your post...but your foundation is great.  The day job certainly makes things easier to get financed.  Huge plus there!  Again not sure how many investments you have already, or what the living situation is, but personally I think the house hack is such a powerful tool and launching pad to be able to cut expenses really low and go out on a new venture.  Now given your cash you are looking to invest I feel like you may be a bit further down the road than a house hack..But I don't know! maybe there is like a mega house hack of a mix used building you could live in and live for free, while getting ready to leave the day job.  So just a crazy idea but fantastic plan and congrats on getting to this point!

@Spencer Carpenter could be one of those things where the listing looks good but when you dig below the service they don’t have the financials to back up any of the claims and so they can’t get the price they want for it.

@Napatarong Wannaphaschaiyong do some thinking about what you are trying to accomplish. That will help guide and narrow your choices. If it’s out of state your job isn’t so much to run the numbers as it is to find a good team on the ground that’s able to do that for you, or at least help you get the info to run the numbers.

And I’ve said it 10000 times, but house hacking your own residence is the easiest way to get started in my opinion. It’s worth a consideration.

@Eldon Pixley my opinion is that trying to time the market is a fools errand. As others have said on here, most people parroting the “there is going to be a crash” very self only include any data to back that claim up. From doing my own research I fall in the “it’s an inventory problem” camp. Ans so from the data I’ve seen.

It is challenge anyone who try’s to tell you “this is like 2008” because it clearly is not, and to ask them what data they are basing their claim off. If they are just parroting some talking point I’d disregard what they said. If they actually have some data or key points, listen opening and see if it checks out to you.

@Alex Diago if you are looking to get started I can’t say enough how good of a place house hacking is to start. But If you do want to invest out of state especially where o reactors are involved is echo the sentiments on here about getting your treat in place. Maybe wherever you can put the strongest team together is where you should invest.

@Mitchell Krotz I like this concept very much! I’ve also often thought how do we incentivize high quality work. I like where your head is at, but to your point there’re are some issues, the biggest one being cash flow in my eyes.

So in the spirit of coming to the table with a solution not just another problem….

We take the equity idea but apply it to an equity stake/long term warranty type program. However that only works in my eyes under the following conditions:

1) you work with the contractors/skilled tradesman on a “cost+” type basis I guess. I’m thinking you, as the manager or whatever you want to call it, control and manage the supply chain essentially and buy all materials yourself. Therefore able to leverage scale and buying power across projects.

2) you get bids as you described and divide up the equity based on how much work they have into it.

3) to incentivize quality you must reserve equity of the profits for a bonus pool. One where they can earn bonus for coming in under time and under budget. And additionally bonused at year after the project is complete if their work has been error free.

4) any repairs attributed to their poor workmanship or quality is deducted from their share of that long term bonus. And they are on the hook to honor that.

I’d have to really think through the bonus structure on the long term and the penalty structure. Because I would want to make sure it created a culture of accountability and family, and not of something like a blaming culture.

Let me know what you think.

@Allan Smith this was a fantastic response! Also I think it’s worth noting in your search to find The Who not how, you did 2 things really well we hear about all the time:

1) you actually took action! It didn’t work but you did it.

2) you tracked it and were as you said able to pivot. And maybe you did find that person and it’s you. That could be the highest and best use of your time as they say.

And I would have to agree with your points. As long as you are prepared to spend the money and are willing to track the results carefully it’s going to happen. But the most important thing, to your point, is to take the action.