All Forum Posts by: Darrell D.

Thanks Matt.  Yes the previous owner did remediate the mold.  I'm worried that it might com back and that I could loose the investment.  The only place I suspect it might come back is in the bathroom which is a wet area.  So I want to take the necessary steps to ensure it doesn't come back before the drywall goes up.  

That was fast!  It looks like my investment is secure.  Thank you!

Perhaps I'm putting the cart before the horse here because we just went under contract...

We just went under contract for a 24 unit apartment complex, six units in each of the four buildings.  Six of the apartment were renovated with spray-foam.  The spray-foam was diluted with water which caused significant mold.  The apartments had to be completely stripped of insulation, drywall, cabinets... everything!  It's been certified clean and now the owner is selling it.

We could make a profit of $400K after renovation.  However this is a scary situation.  I want to spray the walls with mold killer just in case but I'm not sure there's a product which is safe and strong. I'll be doing the work myself, one apartment at a time and quiting my job.  So this is a big deal for us.

Keep in mind, this is not a basement or a location that is typically wet.  I feel once everything is installed the mold will not come back but I would like any advice from people who have dealt with mold before.  Thanks for your help!

Sorry to butt in.  

When someone receives a percentage (12% for example), does it include the equity of the purchase?  

In other words, do passive investors receive a chunk of the appreciation or do they only receive a percentage of their original investment?

Thank you

Hi Casey.  

Quick question... Shouldn't the NOI and Expenses equal the Gross Income?

My mistake.  I misread the title.  I would coach him on being a landlord.   The long term benefits of keeping the home usually outweigh the option to sell.  

The landlord doesn't seem to "experienced" as you say.  I didn't see the need sell it so I recommend keeping it and fixing some things himself.  Hire a handyman to do other things.  I'm guessing it mainly needs landscaping, cleaning, and paint... all reasonably cheap. This goes to show that we need to maintain our properties so people stop calling us slumlords... then our properties will take care of us.  

We like it because it "manages" itself.  I'm not in the immediate area but I go there about 5 times per year.  City inspectors go there and check on living conditions.   The automatic check is nice.  I don't have issues with the renter either.  The only issue I have is that they determine what is fair rent and of course it's lower than what I could get.  My home is nicely renovated and could bring more rent.  Once I return the area this year, we will consider seeking more rent.

Congrats.   Most of us only see potential.  It has good windows but thr floor is probably damaged under the kitchen cabinets.   It's all fixable.

Albert Einstein failed math and later mastered it through old fashioned tenacity.  After he died his brain was examined to see if it was any different.  They found that his brain was normal in size and proportion.  However they found more of the Myelin Sheath which protects the neurons.  The sheath is developed and strengthened every time a memory is recalled.  Researchers concluded that Einstein had incredible persistence and love for what he did, as a result he strengthened his own brain. 

Believing and having tenacity is the key here.  Here's another cool story...

People were exposed to poison ivy and placebos but the people were told they were given only poison ivy.  Several of the people who were given placebos also developed rashes.  By simply believing they had been exposed, their body began to react. 

The power of believing is incredibly strong.  I began to read articles from LinkedIn.com and found most of the articles were similar in nature...  They were very motivational.  Later I began reading real estate and investment books.  They also laid the foundation of confidence before teaching any other concepts.

Reading and learning is a key ingredient to confidence.  You can do it!