Yesterday I approached my daytime boss and let them know that my 12 hour days for the last 6 months were starting to burn me out. They have been promising to hire someone since November of last year. Well I was told that I would need to justify hiring someone else to help me. I went back to my desk very upset and ready to just walk out. I pulled up my tickets for the last 6 months and pulled up the tickets for the 12 months prior. I then took them to my boss and showed a 998 ticket increase. That is how many calls or trips to desks or computers I have had to fix. I showed my boss that the year prior we didn’t have that many tickets with 3 people doing my job. I was told that they understand how hard I work but I needed to prove that I needed the person now. I looked at my boss and almost quit but I bit my tongue (literally) and smiled and politely explained that I was burning out that I have to convince myself every morning to go to work. I am not threatening to quit or go berserk but they need to hire someone ASAP. I got the exact same response as I did in the beginning. I said thank you for your time and walked out of the office.
Another manager came into my office a little later and closed the door so we could have a private talk. I was informed that they appreciate the long hours and very little complaint and that they will hire someone once we get past the second quarter. Apparently there are money issues to consider. Well I just couldn't keep my mouth shut anymore. I looked at the manager and pointed out that I am here at 5:30 every morning and I leave at 5:30 or later every night. I thought that it was funny that we are having money issues but I didn't see any managers here earlier than me or later than me. Well the manager left the office and I went back to work. Next thing I know the owner is in my office feeding me the same line. Now I have worked with this company for more than 5 years and they are a very good and considerate small company. I looked at the owner and said "listen don't take this as anything other than frustration for the current situation, but this company will be the last one I work for." He gave me the strangest look and says "so you’re quitting?" I couldn't help but laugh. I told him that I wasn't quitting but that I had started my own business and when it got to the point that it would replace my salary I would not work for anyone else but me.
So the owner leaves feeling good (I assume) that I am not going to quit and I will wait for them to hire someone. Well right when I was getting ready to leave for lunch (First time I was leaving in 6 months) the owner calls me and wants to take me to lunch. I figure oh so they think taking me to lunch will keep me quite for a while. Well I don't turn down free so I took him up on the offer. At the lunch he asked me about the business I started and I described my business plan (wanted to get his opinion on it) and my short term goals. We ate and then he shocks me “I have 5 rental houses that I want to get rid of!" I didn't say anything because my mouth was full. I honestly didn't know what to say so I stayed quite for a minute. "I want you to take them over for me" was the next statement. I made my blunder at that point and said “I don't have the money yet". I will spare you the rest of the monologue but basically here is the deal after a 3 hour lunch. I will take over the 5 rentals with no money down. 4 have current tenants and the 5th just needs a little work (going to look at them on lunch today) and then I will get it rented. I told him that I would not buy the houses unless they cash flow a positive 100 after everything else and he agreed. The company is taking up to much of his time and he just wants to dump them. He inherited the land they are on and the houses were cheap to build in the 70's. There are 3 SFH 2/1 and 2 3/2 SFH. The 3/2 is rented for 1k monthly and they are on month to month I will fix that next month. Of the 2/1 2 of them are rented for 725 and the other is not rented. So the total deal we shook on yesterday and hopefully get finalized tomorrow with the lawyer is he will owner finance 100% with nothing down and all 5 houses go for a total of 200K. This goes to show you tell everyone what you do.
I am now off to view the houses now and I just got a call from my lawyer and I am taking the rest of the day off to finish up.
Ok it is official I can never play the lotto again. I have used up all my luck on this Deal :biggrin Seriously I just got the comps (had to pay 125 for them) and the total would very close to 600K :shocked My lawyer says that I will need to draft a letter to the existing Month to Month tenants to let them know that I am the new owner and that they will need to sign a new lease next month. Looks like I am going to pay a few bucks for the lawyer but oh well this deal was worth it.
Oh yea I haven’t to my SO yet so my night is going to be very interesting. She has told my she wants nothing to do with this so I can’t wait to see her reaction.
Benjie
(2) $600K of real estate for $200K AND Owner Financing; $400K of ‘instant equity’; control of 5 properties, all with PCF every month…this is a deal that even Mike (propertymanager) could love!
You da man, Benjie…go get 'em!
Great job – and all because you said that you’re tired of working for a paycheck…
Let me give you a little advice for your SO. I’ll assume your married because if your not forget everything I’m going to tell you and just dump her if she gives you a hard time. Back to the point…Patiently, slowly, show her ALL the comps you received. Don’t say a word about the property yet… As she looks at these homes explain to her how much rent they generate. Again say NOTHING about your deal.
Now the important part… Drive by these places, get her to look at them, ask her what she likes, what she doesn’t. Then drive by your property. Tell her how much this “guy” you know could buy these for, then when she’s interested lay out the plan.
This may seem ridiculus. But I can tell you that friends of mine have dropped a bomb on their wifes without laying the ground work and it has created a lot more stress than this approach does. Your going this for YOU not her.
Try it if your concerned about her reaction. One of my best friends asked me to help him out on a deal that was a little too big for him. His wife went nuts when she heard what he wanted to do. He almost pulled the plug because of her worries. I gave him the same advice, obviously she knew about the deal first but just driving her by those comps, asking her what SHE would do to make that house look better, all that B.S. turned her around. She now complains that he hasn’t found a deal since. Some people just can’t get a break. (he made $20,000 in 2 months on his deal)
Petemfa
Yes she is my wife, I took your advice and went throught the discussion. She didn’t even make it through the comps. She just told me she didn’t care about this kind of stuff and again let me know that she wants nothing to do with this and she thought it was a scam. So I tried a different approach. Basically what would you do if I were to take over 5 rentals in May, and she says as long as it does not take away from the bills she is fine she just doesn’t want to know.
Well on that remark I told her what had happened and she didn’t show any emotion other than who cares. The best part is everything is under my LLC’s name so by the time I get ready to do this again my LLC will have the credit needed and seasoning needed (I hope) to have everything under the entities name. Well any way I take over the properties on May 1st but the best is the one that is not rented I can start working on this weekend. It has a few problems but nothing that I can’t learn to fix so I should have that ready to rent in the next few weeks.
Any way I wanted to thank everyone for their excellent advice throughout the board this has helped me take great strides into becoming wealthy. I know this is my first deal and it pretty much happened by pure accident but the advice that got to me the most was “Quit reading and do something” Again thanks to everyone for some sound advice. Oh yea I have already started looking for my next deal.
I find it a bit hard to believe that she is not at all interested to know that you’re going to increase your net worth by about $400K in one jump and increase your monthly cashflow at the same time…
SEXIST REMARK FOLLOWS – DON’T READ IF YOU HAVE NO MEASURABLE SENSE OF HUMOR OR ARE THIN-SKINNED!!!
I feel lucky in that my lady stands behind whatever decision I make and lets me make all financial decisions. I run the whole show. The good thing is that we avoid situations like your but the bad thing is if something happens to me she will not be able to handle any of the bills, house problems, car problems etc.
Keith
That was a good one. I think she doesn’t see equity as a real profit because it is not physical cash. I think as time goes on she will see that it is profitable. The other thing is I believe she thinks this is just a fad and now I will stop. She also just doesn’t look at the future or the bigger picture. Since it doesn’t give me health insurance and so on it can’t be a real job. She did call me this morning and asked if I was serious when I said that I will be taking over the house in May so maybe it is catching up to her or maybe she told her dad and he was excited. You never know.
REI
Oh believe me my wife doesn’t want anything to do with bills and anything financial other than incoming money we get to keep. I have tried to sit her down and show her my method of making payments on the bills but she gets a “headache”. I also gave her “The richest man in Babylon” to read and she got 3 pages in and hasn’t picked it up since. In her family the woman has a say in the way money is spent but they don’t handle the bills. (Not sexist just the truth) To be honest I have just given up on do anything monetary wise with her. Oh well at least she like to spend right. :banghead
Oh well she is mine for life so I live with these things. I look at my daughter and she is the reason I am doing this now. That and to acquire wealth for my future. I know my SO is not like most but man she makes life interesting.
:beer
CONGRATULATIONS! Wow, I’m so happy for you! Your wife is sure to come around eventually. Maybe this will sink in for her and she’ll get a WOW, THAT is what happened, WOAH! moment. Either way, pat yourself on the back!
Apparently your wife does not appreciate that income is not the same as wealth.
If you spend all your income, you will live comfortably but never be wealthy. As soon as the income stops – disability, retirement, death – your lifestyle has to stop, too. On the other hand, if your investments are generating income, then disability and retirement should not affect your lifestyle.
Perhaps you should purchase the CASHFLOW 101 board game and play it with her. If she does not learn this lesson after playing the game a few times, she may never get it.
I actually have both cashflow games (Electronic) but she isn’t interested so I don’t push. Anyway she has made her decision and so we will both live with it. She was actually upset this weekend because I spent all day Saturday looking at houses and Sunday starting the repair of house number 5. You know what this is starting to sound like I am bashing my wife so I will stop now. Anyway I am still looking for more house even though I have completed my yearly goal.
Well the transistion between working and investing will be a tough road, the time when you’re doing both will be tough on both of you but on the other side of the bumps is more free time to spend together and more cash coming in to spend on things like trips, etc. One day she’ll see what a smart guy she married.