At some point though you grow to where people are calling you right? Who manages repairs when the toilet overflows or a door falls off? Someone calls and you have to dispatch a service to repair this stuff don't you? Or is every property you rent out just a situation where you do nothing and the owner has to deal with all their own repairs. (I can't see how that would work really, but what do I know?) I mean at ten properties it's not a big deal. At 500 properties your phone is going to ring all day and night.
Topic: RentalStarter - A Midwest Real Estate Investment Company - page 29. (Read 120426 times)
Branny,
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
We already have 2 people working for us now, I don't see an issue adding more since the way we pay is all success-driven. I don't like the idea of hourly/salary employees.
I always pay on a mix of performance and cost-per-action.
It takes about 5-6 hours to rent out a house (Ads, showing it, signing contracts and the like). I charge all potential renters a $40 application fee. We might get 1,2,3 applications for one property. That puts up to $120 in the hands of a person to get it rented out. If they end up only spending 30m to rent it out (Like the case was with W Mill), they end up making $80 a hour for their time. Once you explain to someone how it works, it doesn't take alot of convincing to join on.
Everything we do, I try to look at the best ways to scale (You'd be surprised how much can be offloaded to software). Because it's easy to handle 5, 10, 20 rentals. It's impossible to handle 500 or 1000 without a team. The plan here has always been to make it scale the best.
Alot of the marketing/work is done through our website. Contracts, videos, very clear information about each property. It solves alot of problems of people showing up and wasting contractor time or my own time. I'm already taking photos of each property for investors, it's trivial to upload it onto the website.
Branny,
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
We already have 2 people working for us now, I don't see an issue adding more since the way we pay is all success-driven. I don't like the idea of hourly/salary employees.
Branny,
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
We already have 2 people working for us now, I don't see an issue adding more since the way we pay is all success-driven. I don't like the idea of hourly/salary employees. The pay that they receive sharing minor management burdens is paid for by new tenants.
Branny,
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
I'm curious, how is your ability to manage all these properties? It appears you're one dude right now. As this outfit grows, you will need to bring on more people. Employees can suck a lot of cash out of a business. At what point do you see yourself adding employees. For instance, how many properties do you reach before this becomes a situation where you need help, and what do you think the loss would be. Like, if you had 25 properties and had to bring someone on for $40,000 a year (Health Insurance, Unemployment Insurance, Social Security, blah blah blah) figuring some properties require investment to modernize and keep-up, and some are in transition. Have you factored that kind of cost into your future growth analysis? I'm just curious how you plan to grow as an operation.
Great update via email and the posting above. Glad to see things are doing well!
There's been a small modification to the rent roll for the potential duplex purchase. The agent had the wrong information on the rent roll and the income is now $1200 instead of $1300 (The rent was $50 less on one unit, and there's a $50/mo fee for water on the other unit).
Two MASSIVE deals.
Both by the same landlord that self-managed 100+ rentals, he wants to liquidate some properties.
#1 - 4br/2ba unit duplex. $1200/mo with one tenant under sec8. Both are doing their own work on their units as the units are quite underpriced. $39,900 purchase price (36.1% Simple ROI)
#2 - 3br/1ba unit duplex. $1000/mo with both being long term tenants. Decent shape overall, not as good as an area as #1. $39,900 purchase price (30% Simple ROI).
Both by the same landlord that self-managed 100+ rentals, he wants to liquidate some properties.
#1 - 4br/2ba unit duplex. $1200/mo with one tenant under sec8. Both are doing their own work on their units as the units are quite underpriced. $39,900 purchase price (36.1% Simple ROI)
#2 - 3br/1ba unit duplex. $1000/mo with both being long term tenants. Decent shape overall, not as good as an area as #1. $39,900 purchase price (30% Simple ROI).
This is awesome, when can they be bought?
As long as the condition isn't terrible (And I personally know the agent who has them listed, and he knows his stuff. He has told me they are in average shape). We could make an offer on Friday after looking at them.
Great update via email and the posting above. Glad to see things are doing well!
Two MASSIVE deals.
Both by the same landlord that self-managed 100+ rentals, he wants to liquidate some properties.
#1 - 4br/2ba unit duplex. $1200/mo with one tenant under sec8. Both are doing their own work on their units as the units are quite underpriced. $39,900 purchase price (36.1% Simple ROI)
#2 - 3br/1ba unit duplex. $1000/mo with both being long term tenants. Decent shape overall, not as good as an area as #1. $39,900 purchase price (30% Simple ROI).
Both by the same landlord that self-managed 100+ rentals, he wants to liquidate some properties.
#1 - 4br/2ba unit duplex. $1200/mo with one tenant under sec8. Both are doing their own work on their units as the units are quite underpriced. $39,900 purchase price (36.1% Simple ROI)
#2 - 3br/1ba unit duplex. $1000/mo with both being long term tenants. Decent shape overall, not as good as an area as #1. $39,900 purchase price (30% Simple ROI).
This is awesome, when can they be bought?
Two MASSIVE deals.
Both by the same landlord that self-managed 100+ rentals, he wants to liquidate some properties.
#1 - 4br/2ba unit duplex. $1200/mo with one tenant under sec8. Both are doing their own work on their units as the units are quite underpriced. $39,900 purchase price (36.1% Simple ROI)
#2 - 3br/1ba unit duplex. $1000/mo with both being long term tenants. Decent shape overall, not as good as an area as #1. $39,900 purchase price (30% Simple ROI).
Both by the same landlord that self-managed 100+ rentals, he wants to liquidate some properties.
#1 - 4br/2ba unit duplex. $1200/mo with one tenant under sec8. Both are doing their own work on their units as the units are quite underpriced. $39,900 purchase price (36.1% Simple ROI)
#2 - 3br/1ba unit duplex. $1000/mo with both being long term tenants. Decent shape overall, not as good as an area as #1. $39,900 purchase price (30% Simple ROI).
Just sent out a very long investor-only email to our newsletter list. If you're a investor and did not get it, please message me on here and i'll try to take care of it.
In the email I included instructions on how to access our property portfolio list. Once again, this is for investors only.
There are also 3 potential future properties to review contained in the email.
In the email I included instructions on how to access our property portfolio list. Once again, this is for investors only.
There are also 3 potential future properties to review contained in the email.
Thanks for the update.
It looks like you have a good course set for company.
Just sent out a very long investor-only email to our newsletter list. If you're a investor and did not get it, please message me on here and i'll try to take care of it.
In the email I included instructions on how to access our property portfolio list. Once again, this is for investors only.
There are also 3 potential future properties to review contained in the email.
In the email I included instructions on how to access our property portfolio list. Once again, this is for investors only.
There are also 3 potential future properties to review contained in the email.
Quick update.
The SFD on property #3 is almost done, ended up being way more work than originally estimated. We took off some of the wood paneling inside the house to replace and found the home had virtually no insulation. Rather than just hiding the problem I made the choice to rip out the walls, insulate and put new drywall in. Original estimate was $3k in rehab, we may go an extra $500 to $1,000 over that price.
The bank has asked if we'd like to move up closing on #4 by a few days, this would be preferable as I want to keep our rehab crew busy. Menards has their bid 11% off sale, of which we can also get some extra discounts. It will help #4 and #5's rehab costs a good bit.
A person I sold a house to last year messaged me today and asked if we wanted to take it over for what they owed. It's a nice house in a good area, 2-3br , 1ba 1400sf with $650/mo in income. They asked if we'd take it for $40k, and I told them yes. Waiting on any further response/messages from them.
The SFD on property #3 is almost done, ended up being way more work than originally estimated. We took off some of the wood paneling inside the house to replace and found the home had virtually no insulation. Rather than just hiding the problem I made the choice to rip out the walls, insulate and put new drywall in. Original estimate was $3k in rehab, we may go an extra $500 to $1,000 over that price.
The bank has asked if we'd like to move up closing on #4 by a few days, this would be preferable as I want to keep our rehab crew busy. Menards has their bid 11% off sale, of which we can also get some extra discounts. It will help #4 and #5's rehab costs a good bit.
A person I sold a house to last year messaged me today and asked if we wanted to take it over for what they owed. It's a nice house in a good area, 2-3br , 1ba 1400sf with $650/mo in income. They asked if we'd take it for $40k, and I told them yes. Waiting on any further response/messages from them.
That is awesome, can not beat free equity!
thanks for updating the board members 
Quick update.
The SFD on property #3 is almost done, ended up being way more work than originally estimated. We took off some of the wood paneling inside the house to replace and found the home had virtually no insulation. Rather than just hiding the problem I made the choice to rip out the walls, insulate and put new drywall in. Original estimate was $3k in rehab, we may go an extra $500 to $1,000 over that price.
The bank has asked if we'd like to move up closing on #4 by a few days, this would be preferable as I want to keep our rehab crew busy. Menards has their bid 11% off sale, of which we can also get some extra discounts. It will help #4 and #5's rehab costs a good bit.
A person I sold a house to last year messaged me today and asked if we wanted to take it over for what they owed. It's a nice house in a good area, 2-3br , 1ba 1400sf with $650/mo in income. They asked if we'd take it for $40k, and I told them yes. Waiting on any further response/messages from them.
The SFD on property #3 is almost done, ended up being way more work than originally estimated. We took off some of the wood paneling inside the house to replace and found the home had virtually no insulation. Rather than just hiding the problem I made the choice to rip out the walls, insulate and put new drywall in. Original estimate was $3k in rehab, we may go an extra $500 to $1,000 over that price.
The bank has asked if we'd like to move up closing on #4 by a few days, this would be preferable as I want to keep our rehab crew busy. Menards has their bid 11% off sale, of which we can also get some extra discounts. It will help #4 and #5's rehab costs a good bit.
A person I sold a house to last year messaged me today and asked if we wanted to take it over for what they owed. It's a nice house in a good area, 2-3br , 1ba 1400sf with $650/mo in income. They asked if we'd take it for $40k, and I told them yes. Waiting on any further response/messages from them.
Dividend notice was posted on Havelock, set for the 15th.
Total to be paid to investors is $1,128.75/1.75btc among all shares.
Slightly higher than last month's dividend due to the partial rent assignment for property #3, I did take a small disbursement of funds from this time. Total income over the period was $2,577 in gross income. Gross income less insurance, taxes, repair escrows came out to $1,777, of which I took $500 as the issuer.
If you have any questions, let me know.
Total to be paid to investors is $1,128.75/1.75btc among all shares.
Slightly higher than last month's dividend due to the partial rent assignment for property #3, I did take a small disbursement of funds from this time. Total income over the period was $2,577 in gross income. Gross income less insurance, taxes, repair escrows came out to $1,777, of which I took $500 as the issuer.
If you have any questions, let me know.
tax uh oh there goes the profit 
For the time being the issuer will adsorb all taxes outside of those on the property (Income/state/federal) taxes. We've met with tax attorneys, accountants and others to help guide us, and it's going to be a while before we have to start paying taxes due to the massive amounts of depreciation and other costs we have doing this kind of business.
tax uh oh there goes the profit
Also, we closed on our 3rd property today, the seller's transferred the remaining 20 days of rent to us along with deposits. Still close on two more properties this month, demo is set to start on this studio unit tomorrow.
Great going.
on havelock pls, so we'll get email updates
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