All Forum Posts by: Samuel Fletcher Hardy

We haven't signed anything an I am still yet to do a walk through to determine if the deposit is enough money to cover everything.

At this point I simply broke down for him this is where we are financially if you decide it's time to move on.

Why is accepted the keys and the deposit a bad approach?

Hey Guys,
In the spirit of New Years, What things are you taking into 2020 nearest to you and WHY?
Are your priorities(in order) and your daily actions aligned and where can you improve?
1.My Faith
2.My Marriage
3.My Time
4.My Relationships
5.My Knowledge

First(with out preaching) I believe that everything we do here is temporary except how we impact others and serve a higher power.

Second My wife is the biggest blessing in my life and she brings balance and peace I have never known before.

Third My time is something I can never replace or add to and am always drawing from. If I waist it on the wrong things or people it is no ones fault but my own. I probably value my time to much tbh.

Fourth My Relationships the sum is greater then individual parts I couldn't be where I am at 23 with out my mentors and friends that have lifted me up along the way.

Fifth My Knowledge Its one of two things no one can take from me and can recreate the success I may lose in the future.

I believe that the last three are the most basic components to building real wealth but with out the first two there is no reason to push and grow all success would fill dead and hollow.

Your turn guys!

Hey Guys,
In the spirit of New Years, What things are you taking into 2020 nearest to you and WHY?
Are your priorities(in order) and your daily actions aligned and where can you improve?
1.My Faith
2.My Marriage 
3.My Time
4.My Relationships
5.My Knowledge

 First(with out preaching) I believe that everything we do here is temporary except how we impact others and serve a higher power.

Second My wife is the biggest blessing in my life and she brings balance and peace I have never known before.

Third My time is something I can never replace or add to and am always drawing from. If I waist it on the wrong things or people it is no ones fault but my own. I probably value my time to much tbh.

Fourth My Relationships the sum is greater then individual parts I couldn't be where I am at 23 with out my mentors and friends that have lifted me up along the way.

Fifth My Knowledge Its one of two things no one can take from me and can recreate the success I may lose in the future.

I believe that the last three are the most basic components to building real wealth but with out the first two there is no reason to push and grow all success would fill dead and hollow.

Your turn guys!

Hey guys,
I have a tenant that has asked to be let out of his lease, I am ok with it because he is consistently on rent and has broke 3 of his 4 windows in his apt. He agreed to forfeit his deposit in order to pay this months rent/late fees, and to replace the most recent window. I have not walked the unit yet but I'm sure there is more problems as well inside to for me and him to discuss. While i have the leverage of his deposit and him on the lease is there away to address other damages? I am sure he smoked weed inside the unit. also I know I need to document the lease break but I am not sure how.

Thank you for taking the time to read all this guys!

 I do it per house.
lets say a house cashflows $1000, for easy numbers and we determine $10k in the bank is where we are confortable. The first 10 months of that unit performing all Cashflow goes to build that emergency fund. In the mean time I will move on to the next  project using my personal income to fund it and the income form other projects to continue to build this snowball of awesomeness.

Some people hate this because there is a lot of money sitting in the bank and money in the bank is losing money, but someday when I move onto larger multifamily deals and commercial buildings the repair exposure will shrink and so a portion of that capital can be redeployed!

Like I said before I'm still a little wet behind the ears so I'd keep studying what these old cats say!

It depends on where your located. Here in WA yes they all charge around a 7% mark up on all repairs.(I ran a small repairs company targeted at PMs) Property managers interests don't a line with the owners more often then not. In the markets I'm involved in they nickle and dime you in every situation you actually need them in. Id rather self manage and safe that 8-10% monthly and when problems do arise address it using other options. For example in you reached out to a new home inspection company they would more then happily do exactly what your Pm would do for probably the same 10% and are construction experts where Property managers are not.

Just my thoughts hope its helpful!

I structure a similar deal. How do you insure that this project will be his priority? Time is money if your the funding party you need to make sure he doesn't get burnt out waiting on a payday and go work on something else.

What does your investor pool look like? are you using private money?
Mike is a personal friend and mentor of mine he gives some great advice in this podcast! 
It is ultimately a case by case thing its all about what your investors goals are and how can it be a win win.

Mikes BP podcast

I am not envious of your situation at all! I have not gone through this yet but my wife is law enforcement and I brought the question to her.  She recommended doing a drive by just to see if there is any obvious activity and if so go ahead and contact the local police(city or county) and see if they can have someone accompany you to the unit if you fear for your well being. They might be busy but you dont know if you dont ask.

I am not sure if this will help but best of luck, let us know how it plays out! 

We hold 3 months expenses plus the cost of a major repair it averages $10K mark.

I am still relatively new to the game(but have a construction background) so this might be bad advice.
But we close on a property then immediately open both a checking and savings account for the property then all repairs and mortgage payments come out of the checking account(eventually thats where rent is deposited) and the savings account is used for holding peoples deposits. This helps with accounting a TON! Once the property is rental ready we let the rents build that emergency fund over time before utilizing any income from the property for any other projects. While we use other incomes to start the next project.

sorry for the data dump!