All Forum Posts by: Scott Mac

iPhone (Even though I miss the candy bar phones).

My rule number one is- don't have losses. 

That means don't bite off more than I can chew, it also means get a good grip on the risk of owning it and avoid things with high risk- don't have losses.

If you buy three things and work the same hardness on all of them, two work out and one is a loss you've worked three times as hard to get one win.

Don't have losses. 

I know you were looking for mathematical formulas, but for me this Overrides any math.

But also realize what might be high risk for you, due to my knowledge and experience might not be high risk for me, allowing me to take a big payoff with it.... And to foresee that large payoff before hand where others may not.

Good Luck!

Variable rates are dangerous 

You will need down payment money, You will need cash reserves Money, you'll need closing costs money, and you will need to get a bank loan.

Figure out how to get this money, maybe you have well-off parents who can give it to you or you may have to earn it yourself.

The bank will want you to be working for a certain amount of time and that have certain credit score plus have your financial ratios match what they want. 

Maybe learn about buying a duplex and living in one half and renting the other half out called a house hack.

The foundation of this comes from the loan- your knowledge of the loan. If you're interested in this learn how that works and learn what you have to be to get that loan. 

There are some very nice houses in Provo. Pretty houses. Talk to some of the Realtors in the city and ask them to define where the neighborhoods are and which neighborhoods they think are best.

You may find a good deal in any neighborhood but some more neighborhoods are more desirable than others. I'm talking neighborhoods not zip codes.

Good Luck!

Next time you talk to the renter that's paying late all the time, Maybe mentioned to him or her without getting too involved in their personal life, they should seek out a temporary job a few hours, a couple of days a week until they build up enough to get caught up on the rent, and make a little pool of money to use so they don't get behind again.

Some Temporary jobs can be fun, like handing out rubber id bracelets at functions to the participants, or if the person is more blue collar they have jobs for those people too more suited to their tastes.

 just my 2 cents.

What @Don Konipol said above plus;;;

1) Tell us what you mean when you say commercial.

Describe the asset type.         

2) Tell us why you want to learn this unique thing.

3) These investments typically require a high net worth of assets including cash reserves. Are you in a position to be able to purchase the type of asset you want, or is it just a pipe dream that someday you would have enough money to be able to do this. I say this not to discourage you but because learning it is such a long term commitment that if it's something you would never really use it's just useless knowledge. So that's something to think about also.

Good Luck!

You could advise them to look into programs for emergency rental assistance.

There are programs out there that will help people with issues like this. Churches sometimes or non profits.

 Just my 2 cents.

Your designer should be a business/ independent contractor type of person who will bill you for the services used.

If you are expecting this person to go out and source the items and then place them in the unit that involves a lot of work, designer time, and designer energy.

One way to get yourself on boarded with a designer would be to make some phone calls and see if they have openings for new clients as far as spending the time needed, because in our business time is money vs a family having their living room dining room and entry hall redecorated, where time is not probably of the essence.

That is something to cover on the phone on your first contact with the person.

Interview a few on the phone or in person.

I have interviewed and worked with several designers, you need to have a budget for the designer to spend.

And when the designer brings to you, I found this beautiful carpet or embellishment to set on a shelf but it breaks our budget but I wanted to show it to you in case you wanted to buy it, be ready for that. Because these people are artists.

Ask if they take debit cards and credit cards or must you write a check, 

The way I am comfortable with paying is payment for the job x amount, payment for the decorations according to a gross budget for everything, as they are purchased vs giving a pool of money to draw from. I hold a tight reign on the funds only paying when the purchase needs to happen (Look for financing for certain items if you need it).

You should talk to your chosen designer about the budget for the project . 

Be aware that certain staging items are not designed for regular human use , and may be slightly undersized in order to make the space look bigger. If you are looking for something that will hold up under use talk to the designer about that also, because that's an important aspect. 

That goes for individual items as well as fabrics . Some fabrics are animal resistant more than others , and some are so delicate that you're going to have problems with them quickly . Discuss these things while you're setting your budget because they are part of the cost of doing this . 

Also be ready for some duds, as far as rooms are concerned. You may have an idea for a bedroom and have spent time speaking with the designer about it and then the designer carries out that plan. But in real life it just doesn't click- it's just not the right look. So having your budget some flexibility to redo some things if needed.

I hope this helps you because it's not very difficult on your end you just need to choose things presented to you and decide if you like them or not.

It would also be wise to get a lean release from the person as well as any subcontractors that they use on your job.

Good Luck!

Is this what you want to offer to your renters going forward into the future until the end of service life of these units?

If the lease sets forth how to clean these units with a special cleaner it seems charging the renter for the damage would be a possible move.

If no mention was made of any type of special cleaner in the lease - that seems like an error on your part and would be a cost that you would have to bear.

if you are charging the renter how old the units are makes a difference.

If for instance the service life is 10 years and they are 5 years old, it seems reasonable to charge their security deposit 50% of the costs of replacing the damaged units.

Here is the HUD Service Life list if you are interested:

https://www.hud.gov/sites/documents/EUL_FOR_CNA_E_TOOL.PDF 

Good Luck!

Maybe learn to DIY some of the things yourself.

Have you thought about trading the fiveplex for a Class B duplex in a Class B neighborhood and move into one of the units and rent out the other??

Just my 2 cents.