All Forum Posts by: Michael Wagner

 Hi Jerry, When we bought are facility, we did extensive due diligence to mitigate risk and were relatively certain we would turn it around.  We didnt know exactly how but we did identify the primary causes of its poor performance and knew we could address those.  It helped that my wife had a job and we didnt have any kids.  We also bought a house that cost half as much as the "banks" said we could afford.  These things put us in a position to take the plunge.

As for my personal "philosophy" switch, some of it I'm sure comes with normal maturation that happens in your 20's.  I also started to notice that buying things felt really good!.....but only for a little while.  A fancy car (a used acura TL in my case) can make a young man feel pretty big in the britches for a few months.  But inevitably, that guy soon notices the Lexus or Mercedes and his TL no longer shines the way it once did for him.  So if things only make you happy for a short while, is there anything that can make you happy long term?...and how much might that cost?  So i started down a path of reading and investigating success and happiness material and have been very pleased with my progress in that realm.  The funny part is that financially speaking, I'm far richer than I ever was when I focused on making money....of course, not needing to buy cars/houses etc that I cant afford has helped in that arena.  Im sure this is more than you bargained for when you inquired but I am very passionate about helping people not climb the "investment ladder" only to realize that it was leaning against the wrong wall! Hence I use any opportunity I can to inject a better is better mentality into my investment talks.  More isnt better.....better is better.  This isnt to say that theres anything inherently wrong with fancy cars or big houses.  If they bring someone lasting happiness, Im not one to judge that....my concern is that few people understand the true "cost" or promising thier future away buying things they cant afford (ie-taking on payments)....and I'll step down from my soap box now.  Thanks for listening!

When I started out (in 2007), I had the goal of owning 100 apartments generating $100 per month which would put me at $120K positive cash flow (double what I was earning at the time).  4 years and 31 apartments later, I realized my plan would take too long to achieve and i had to get out of my JOB.  Replacing my JOB income was as lofty a goal as I could muster and it didnt matter if I had to work 60 hours for myself...that would have been better than 40 for somebody else.  I also had dreams of fancy cars and a big ol house etc. I've since had a big change in heart and believe very deeply that time is the most important thing we have (rather than things).  It is time that allows one to enjoy experiences and develop relationships (two things that I value greatly)....but I digress.  Back in 2011, knowing i rather make less on my own that make more while working for someone else, I bought a storage facility that was losing money and quit my job the day before i closed.  We've been very fortunate in that our storage investments now allow my wife and I to work a combined 15 hours per week and all our bills are paid and we live quite comfortably by our standards.  This is a wonderful level of freedom but our businesses do have a good bit of debt and so I do not yet consider us to be financially free.  That day will come in 5-10 years when our debt is gone and we "re-structure" our investments to be as close to hands off as possible.  And if there's money left over the fancy cars and toys will follow:) but not before then!

Paid contractor a total of $4400 out of $6600 total job cost (partial basement finishing).  He did some basic framing, hung drywall (not well). He was supposed to also finish all mudding, hang two doors and install drop ceiling but he stopped showing up. Was dodging calls for a bit then would promise to be there tomorrow...blah blah. Then I found out he is in jail for violating a restraining order. He was paid roughly $2000 more than he accomplished. Signed contract as well as third party estimates to finish project along with pictures of his work back this up.  The only upside is that he left all his tools.  I've since put tools in storage to make room so someone can get in and finish the job.  Can i hold tools ransom?  My plan is to trade tools for a fair refund or hold them until we get in front of a small claims court...?  Any advice or tips would be very much appreciated.  Thanks.

 If you haven't already done so, I highly recommend attending.  I have done so twice!  The "sales pitch" is a voluntary "after-session" and if you attend that part as I would recommend, you might be talking about 45-60 mins of "selling" out of the full three days.  Far more value here than any event I have ever been to.

 Knowing this program well, I can promise you that, in this case, your past experiences are causing you to miss out on a perspective that can be career/life changing.  Full Disclosure. I am not currently nor have I ever been paid to promote this company.  Just a VERY satisfied customer!  

Find a professional AL who can assess the full damage and give you a price to fully remediate the problem. If that's gonna cost $10k, deduct $15k or $20k from you purchase price and make more profits. Termites can be a deal killer but don't have to be. Perhaps an expert will find that the damage is relatively new and not pervasive? Or perhaps they will tell you there's no way to tell...Then the deal is dead.

I look forward to it. I'm afraid I don't have much to share outside of traditional Financing other than the typical seller financing and partnering options. Partnering is tough on the first one but gets much easier on the second. I bought second facility with just about 6% or $26k out of pocket. Had a minority partner put up 19% and I was sole guarantor on an SBA loan. Is it the down payment you find challenging or the credit?

 Hi John,  My failing memory might serve me well here?  Helicopter pilot?  If so, I recall...if not, I guess there were a couple house builders that I met there.  I have not been to the Vegas Convention so my advice has limited value but from what I have heard, that is more of an industry convention with Vendors catering to existing owners/managers.  I'm sure there is still much to be learned but I also imagine it could be overwhelming for someone who doesn't yet have experience in the industry.  That being said, if you need an excuse to go to Vegas, then by all means use this convention as one!!!

How Rural? You might be surprised.  My second facility is in a town of 3600 people.  There are an addtional 4000 or so within a 4-5 mile radius but still, its no metropolis.  And I've grown from 12,000 square feet to 20,000 in 2 years all while another brand new facility went up with 10,000 square feet.  There are two other small facilities in the area....So you might not need to go as far as you think.  If you do need to venture further out, I would say only go as far as you need to to find a deal!  Less than an hour is ideal but 2-3 hours is doable as long as the facility is big enough to support a part time manager.  Larger facilities that can support full time management and your monthly or quarterly visits can be located any distance from home.  

Mike

PS-be sure to use the @ sign followed by a members name to "mention" them.  This is the only way to insure that we know you are talking directly to us.

If your intention is to add a second floor....it can be done but one of many tripping points is the foundation....if it was designed/engineered to support one story with live loads, it might not have enough strength to support the second floor. 

Kudos for realizing that "dying for a living" is no way to spend your life! Your enthusiasm is also awesome and I will not rain on that parade. The most important thing you need to do in the next year (as important as saving the $40K) is to do some real soul searching and figure out what you want your life to look like. The REI world is filled with people who climbed the investing ladder only to realize it was propped against the wrong wall. Dont be one of those people. You need to create a Vision for your life! It will change as time passes but you need to dial in what your values our. Define success. Is it fancy cars and a big house or free time? No judgement here...either one of those is fine as long as it is what you want. Lots of folks chase fancy cars and big houses just cause society tells us too...then they get them and arent happy because it turns out what they really wanted was freedom and those "things" keep them from being free. Others truly find joy in busting their tail til they are six feet under and having nice things is a tangible expression of their efforts. Again, the only way to go wrong is to chase someone elses definition of success rather than your own. So, with that, figure out what you want your life to look like and the pick an investment strategy that will work with how you want your days to look.

Beyond that, my two cents is that its easier to do now than it is once your strapped with a mortgage of your own, a spouse, kids, etc. House hacking is a great way to get your first property while you are still "employed".  From there (or even before then) you might do some part time investing to get some real experience before diving in head first.  

I. like you knew I wanted to be in REI from the time I was in college. Started in residential landlording and after 4 years (13 houses) and lots of headaches later...I realized that my plan was going to take too long to execute. I was stuck in middle management as a Physical Therapist Clinical Supervisor and was feeling just as you described above. So I pivoted to a different niche and bought a self storage facility. I quit my job the day I closed on that facility (despite the fact that it was losing $2000 per month) and have never regretted it. Fortunately I wasn't tied down by big house payments, car payments or other consumer debt so I could make that move (which most people thought was crazy given that I had spent $250,000 on my degree to be a PT)....

This is way more long winded than I intended so I apologize but my last peice of advise would be to find a mentor...one for business and one for "lifestyle" planning.

Wishing you well,

Mike