My rentals are making me crazy

Random Ramblings
61

Congrats John!!!

Now remember…The entire POLISHING PROCESS for that building is a SHOW!!!

I call it POLISHING because you probably don’t need to do much to make that building SHINE…But the PROCESS of shining it up is what ATTRACTS ATTENTION…Use that to your ADVANTAGE!!

Get a BIG SIGN out there IMMEDIATELY with a nice COMPUTER GENERATED PICTURE of what the building will look like AFTER… with AWNINGS, NEW EXTERIOR PAINT, RESEALED BLACK TOP, ect…This can easily be done with a photo of the existing building and any editing software…Your sign maker can do this for you.

You want potential TENANTS to SEE YOUR VISION for this building BEFORE it’s finished! If they can SEE what you’re PLANNING…THEY can start going some PLANNING TOO…Like planning to MOVE into YOUR BUILDING!!!

This is HUGE…As you work, they can watch the progress…That simple sign…Is their ROAD MAP. As each part is completed they’ll immediately start to understand your VISION…At that point YOUR VISION becomes THEIR IDEA!!!

A nice BIG SIGN…Right out front with that AFTER PICTURE won’t cost you much…I have mine installed either on 4X6 posts or it’s BOLTED over an existing sign…You want that AFTER picture to be BIG. This is a VISUAL TOOL…Your saying something with a PICTURE. You don’t need a lot of WORDS…Just a phone number, and “AVAILABLE” written on it.

The POLISHING PHASE is important…REMEMBER THAT, it’ll find you that tenant.

62

Hey pete,

Can you go over the basics of the lease you use for repair shops like this? I know you said 5 years with yearly increases. But what about maintenance? I know the tenants do much more of their own but what is industry standard? What about security deposits? Just one months rent like my residentials?? Any chance you could share one of your leases with me?

Thanks

John

63

John,

Basically, this is what I do for a Service Garage lease.

The TENANT is responsible for anything INSIDE the building…I maintain the outside. With a few exceptions like…

ALL Over Head Door maintenance is the TENANTS responsibility…These doors get a LOT of use…YOU aren’t the one using them everyday so your tenant pays for repairs on anything door related.

ALL lifts are maintained by the tenant…Again YOU aren’t using them everyday…THEY ARE…Both these items…The Doors and Lifts will get MUCH BETTER CARE if the tenant has to pay to fix them.

I maintain the OUTSIDE of my buildings…The TENANT is responsible for anything INSIDE…The outside of that building is my BUSINESS CARD. I want complete control over how that is presented to the public. Including SIGNAGE. Make sure YOU have final approval over any SIGNAGE installed on that property in the lease.

I use a annual % increase rider built into my commercial leases…The amount is usually 4 to 5%…The tenant must notify my in WRITING 30 days BEFORE the anniversary date of the lease that they are moving out…If they don’t…The lease increases by 4 to 5% that year. (some of my properties are 4%, some are 5% it’s all negotiable)
This clause might be hard to get in this economic enviroment, but ALL leases are negotiable…TRY IT. It takes the haggling out of the process. I send them a copy of the lease agreement AFTER the anniversary date has passed with the NEW lease amount in it. If the location is working for them…They just pay.

I treat my tenants FAIRLY and I keep my buildings in tip top shape. If I had purchased YOUR building…I would do the following before my new tenant moved in…

  1. Have the heating/cooling system checked and fully serviced.
  2. Replace all garage door springs and have every door serviced by pro’s.
  3. Have a service company that specializes in auto lifts, service the ones in that garage.
  4. Save all the receipts (obviously) and show the tenant what’s been done…At that point HE is responsible for any future maintenance on these items. the day he moves in everything is fully serviced and operable…He just has to maintain it.

As far a security deposits…I use 1 month, but everything is negotiable.

Leases are very REGIONAL…What is COMMON in one part of the country may NOT BE in others…Check with some local commercial property owners in your State. A good Commercial Realtor MIGHT provide some valuable insight…But take everything with a grain of salt. In my experience, my 10 year old SON knows more about Real estate than 90% of the realtors out there. But you might find some very valuable ADD ONS that are very common in your area that aren’t up here.

The OTHER way to do this…Is even better!!

Go look at a few comparable buildings that are for LEASE…(Even if you have to travel to find some) Then ASK for a lease agreement. This would give you great insight into what your COMPETITION is doing and what is common in that market. That’s EXACTLY how I built my lease agreements!

64

Awesome info! Thanks!!

65

Just thought I’d BUMP this thread up so you can all SEE what a REAL INVESTOR does when he realizes he HATES his residential rental business…

HE DOES SOMETHING ABOUT IT!!!

Read the entire thread…It’s ALL in here…From IDEA to EXECUTION!!!

John…My hats off to you man…

IMAGINE…an INVESTOR that actually FOLLOWS ADVICE!!!

SUPER JOB!!! :beer :beer :beer

66

Yes, great job John. I hopefully can do the same.

Would be nice if some people (FDJAKE) would still give me some individualized advice (for somebody who cant paint/due manual labor very well) when the time comes (like somebody said they would), but were still playing little kid games around here I can see :slight_smile:

Guess im gonna have to WORK and try and dig up old advice from previous threads.

Sigh… I sure do miss the good ole days of this board :frowning:

Jake… do I need to make another dance video or something for you? What the heck mate?

(Tear running down my cheek Jake, tear running down my cheek)

67

I think FDJake gives good advice from what i have read and i am thinking about going into investing with Josh Azbel (Hoosier4Life2005) . I would like some advice from FDJake about getting into investing.

68

Lol… Tyler. Good first post.

This is my friend from real life Tyler. Hes 18. I told him about this site and hes gonna start posting. I told him about Jakes good advice and he said he wanted to post from now on. Hes got ALOT to learn (as do I). But yeah, hes gonna be floating around posting from here on. I realyl wish he would have CREATED A NEW POST like I told him, but apparently he feels the need to hijack this thread.

Partnerships in investing = no no. Stick around and learn about how to MAKE MONEY YOURSELF tyler. Alot of good investors on here and hopeuflly (some have left) you can get some good help.

Good job tyler… good job.

69

Hoosier…

I’ve been givng people advice here for the last 4 YEARS…YOU’RE RIGHT…Just R E-R E A D my past posts…EVERYTHING you need is in there.

What are you waiting for…Someone to hold your hand???

Do you have your $30K yet???

I’ll be glad to help you kid…But don’t waste my time…get off your @SS and get going.

How many people in your AREA know you want to BUY PROPERTY???
My guess is NOT MANY…and the ones that do know, WON’T BE BRINGING you anything.

SO CHANGE THAT… and Start TODAY!!

GET your MESSAGE ON FACEBOOK or any other social net working site you use…You want everyone you know… and ESPECIALLY people you DON’T…calling you with LEADS

THINK HOOSIER…THINK…WHO comes into contact with OLD PEOPLE on a daily basis???

You want houses that need work and have a TON of equity in them…30 to 40 year olds DO NOT have homes like that…50 to 70+ year olds DO!!!

So use that little gerbil brain of yours to THINK of ways to let these old farts know you want to BUY THEIR RUN DOWN HOUSES!!!

Get some business cards with this on them in BIG LETTERS…

PLAIN white cards…Nothing fancy…The MESSAGE is what’s important.

        [b]   $2000 CASH REWARD PAID for DUMPY HOUSES!
                      

              I specialize in buying OLD, OUTDATED homes.
             Do you know someone with a home like that??
         ONE phone call to 555-555-5555 could put THOUSAND$
                    in your pocket!  CALL TODAY!!!![/b]

Looks simple right??? Couldn’t work…TOO EASY…Sort of like JOHNinNC making $200,000 on a building HE PAINTED!!!

Why didn’t anyone ELSE paint that building and fix it up like JOHN if it was that easy???

BECAUSE 90% of people are complete MORONS when it comes to INVESTING. They TALK themselves out of it before they ever START!!

Hoosier…One more thing…

Want to LOSE me FAST???

Keep YAPPIN about how HELPLESS you are…

“CAN’T PAINT or do MANUAL LABOR very well.”

Well guess what???

YOUR GONNA LEARN!!!

How are you going to learn these “TECHNICAL SKILLS?”

By taking your $30,000 that your broke your b@lls to earn…and PLACING IT in the hand of some old fart who’s house you just purchased!!!

Want to CLEAR YOUR MIND FAST HOOSIER???

Take every PENNY you have and buy a house with it…

You’ll be painting your @ss off because you’re gonna LOSE your @ss if you don’t!!!

It’s ALL about MOTIVATION Hoosier…

And you MOTIVATED???

70
"CAN'T PAINT or do MANUAL LABOR very well."

Well guess what???

YOUR GONNA LEARN!!!

rotflmfao…

-Mike
http://www.youtube.com/watch?v=wUlgVqSeLRk

71

Pointless letting people know im going to buy when i got no cash and im moving. Jake, my post was somewhat sarcastic, but somewhat not. Im not so wah wah as I appeared, but yes, I will be working on this 30K as soon as I graduate (1 more month). But yes im motivated.

Im sensing the need for a dance video to lighten the mood around here… just like old times.

72
$2000 CASH REWARD PAID for DUMPY HOUSES! 
              I specialize in buying OLD, OUTDATED homes.
             Do you know someone with a home like that??
         ONE phone call to 555-555-5555 could put THOUSAND$
                    in your pocket!  CALL TODAY!!!!</blockquote>

great verbage!

-Mike

73

That video does capture the mood around here. Good one. :beer

74

“Pointless letting people know I want to buy when I got no cash and I’m moving.”

Then WHY are you asking for ADVICE???

Hoosier…It’s MY WAY or the HIGHWAY for NEW GUYS like you…I don’t have the patience or the desire to change DIAPERS anymore.

Figure it out yourself when you MOVE, SAVE, GRADUATE, GET A JOB, and on and on…

Way to THROW IN THE TOWEL…Don’t take that MONTH you have to get a few things rolling and make a few mistakes…NAAA…that’s too much like MANUAL LABOR!!!

You don’t need $30K to invest in real estate IF you can find DEALS. The $30K just shows me you have DESCIPLINE and keeps me from completely wasting my time.

I just did a simple ASSIGNMENT on a DUMP house that I really didn’t want to mess with…I used a $500 deposit to lock up the house in a sales agreement and then ASSIGNED that agreement to an INVESTOR…I not only got my $500 back at closing but an ADDITIONAL $9000…All for pushing a pile of PAPER across a LAWYERS DESK!!!

But hey…You can’t do that…It’s MANUAL LABOR!! :beer

I’m breakin your beans here a little Hoosier…But remember…I NEVER waste my time with LOSERS…
N E V E R…So if you want some help, you better start SHOWING me your worth the effort. “I can’t paint, I can’t do manual labor.” Just post a thread with the title… I’M A BIG PUSSY!!!

EXCUSE after EXCUSE is the fastest way for me to COMPLETELY LOSE INTEREST…GUARANTEED!!!

75

Jake would this message work any better printed on the dollar bill biz cards?

FULLHOUSE

76

Ha, I just re-read this whole thread, and your right Jake, I do want to sell my other rentals. I’ve got a deadbeat who paid most of her rent this month, but mentioned the house wasn’t big enough. Now she is MIA, i’m assuming another eviction. Typical deadbeat move before moving.

Well You called it man. These rental houses are a complete waste of my time. It’s a good thing I bought them right, I can unload them easily for what I have in them, and I might just do that to get rid of the hassle.

77

John…How’s it FEEL to KNOW you’re gonna be a MILLIONAIRE???

I’m dead serious here…You just scored a commercial building and made $200K on it in 3 months…DO THE MATH MAN!!! You’ve got other prospects in the pipeline and you’ve now got what you NEED to do this again and again…

C O N F I D E N C E!!!

You’ve FOUND your path my friend…and it AIN’T RENTING HOUSES to sh*theads!!!

The BEST PART???

You didn’t buy into the BS that you can’t do this, or that the ECONOMY is about to CRASH, or any of the OTHER multitude of “reasons” people bury their heads in the SAND during BLOW OUT SALES like this!!

78

John I have a question.

What kind of residential rentals did you own?

Low income kind? Is this what gave you the most troubles?

79

Low income

Not because I wanted to deal with the worst deadbeats, but because around here that is about the only thing that cash flowed well back when I bought them.