Housebroken, thank you for your input.
My client is in an enviable position… …
Yes, he is my client. I have listed the house in Westlake for him. He wants to upgrade the house while he has it on the market which I think is a BAD idea…
His house site next to one of the model homes that is selling for 1.2 M and the landscaping is of course immaculate at the model home. This landscaping upgrade would be beneficial. But I told him that I would leave the inside as it is to let the new buyer do their own upgrades or give them an option. sometimes what we think a buyer wants is not necessarily what they want
But my client is a little hard headed to say the least. But we are working through his issues one at a time.
I agree with you that he should wait until he has more expertise in property management before he takes on a mall… (that is an understatement)
NO, I don’t want to sell the housefrom under my friend. She runs a day care from her home and trying to move would be hard. what I am trying to convince my client to do is to refinance the house to get cash flow. He has a lot of equity in each of his properties so one refinance would put him in the black.
I’m advising him to send a three day notice to the tenant in the house that is not paying.
thanks again.
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Sounds like he’s doing ok. Without a little more info, I’m afraid I can’t offer anything on a strategic level. Purely based on what you said, you should be addressing his cash flow and tenant issues.
I wouldn’t present any ideas that didn’t provide solutions to those two issues. Show him how he can maximize his cash flow with his current holdings. Further, I would advise against the mall until he is on better financial footing and a little more experienced with property management. Perhaps you’ve already done this, but I’d go back to the drawing board with him to formulate both short term and long term investment goals. Does he have a plan? How is he doing so far? Do you even have him as a client yet? Cash flow crunch could present an opportunity to partner up with him. Know anyone who might be interested?
Finally, are you really thinking of selling your friends house from under her? How does this make sense?
Make it happen.
-housebroken