All Forum Posts by: Mark Whittlesey

I have a SDIRA with Entrust. Mixed bag so far.

I flipped one house for about a 40K profit in 4 months.

Then lost about 5K on another flip over 15 long and painful months.

I am buying notes now instead.

Hopefully less of a headache.

Best. Most specific. Most replicable advice I have read in..... maybe forever.

Kudos. And thanks much for sharing.

Doubling down on Ray. I have spoken with him in the past on a few occasions. The depth of his research and analysis is absurd. I have never seen anything like it.

In theory, yea... That is the whole point of an LLC. Liability reduction. The 1st thing an attorney is going to do is to try to pierce the corporate veil.

Better just not to get sued at all and have tons of insurance.

Yea, I get that.

But if rent is due on the 1st and late on the 5th then likely the only action I can take is a 5 day.

Even if it is due on the 1st and late on the 2nd and I 5 day them immediately then the best I could do would be to file.

And with all that... it's more complicated. A lot of it depends on the tenant and what the relationship is.

I haven't seen the lease. But all MY leases have per diem late fees. So if they get into the 3rd week of the month, it can easily be more than 20%.

I would never have a flat rate late fee. Tenant needs to understand that paying late causes hard costs for the landlord. And that the later they pay, the more the hard costs are.

Yea. I don't think he ever had one either. Even if his claims were 100% true he always seemed like a flipper. To me, that isn't an empire. That is what you do to jumpstart yourself into an empire.

I would be concerned.. for all the reasons you mentioned and some you didn't.

One question that hasn't been answered: What is the alternative?

If you quit and "get on with your life"... what does that mean?

For buy and hold management is absolutely key.

And even more so for multis. Even small multis like 4-plex.

The vast majority of "professional" managers I have run into are bad. REALLY bad.

The one thing you cannot do is maintain status quo. You either need to find really good managers and then manager the managers. Or you need to sell.

That is really a lifestyle/personal decision, not an investment decision.

It sounds like management is the vast majority of the problem. If it were me, I would fix that problem.

The other thing to keep in mind is that even with small multis, cash flow does matter in terms of valuation. So with all your management problems, you may not get top dollar if you sell without fixing that.