Posts

The Acceleration of Money

Image
All the FI bloggers who are there (at FI) talk about that J-shaped curve, where you start off with a little, and feel like you're making no progress for...well, ever, then all the sudden, overnight, it's like you have a million dollars. All because money accelerates. You hit that tipping point at which it's coming in, and that money makes more money, and all the sudden, you're going downhill at 100 miles an hour (I mean downhill in terms of acceleration, not downhill like, in an "oh shit" kind of way).



I'm starting to see that. Not so much in my retirement accounts, because I regularly rape and pillage those for real estate purchases, but in the RE. It's amazing once you have a house or two and all the repairs are made and they're leased up and rent is coming in...it's like a little miracle that every month $2000 or whatever just magically shows up in your account. THEN, someone suggests to you that instead of renting the house, would you own…

Tenant Screening

Image
You would think people would use basic manners if they want to rent your house. This is not the case. I have stories. Let me tell you just the one from today.

I had a lady who showed up on time for her appointment to see the home. She was pleasant enough. She did, however, show up in cotton short shorts and house slippers. A little ghetto, but okay.

What I did not care for is that she brought a male friend with her. And I don't care that she did that, but this particular guy. In no world is he a plus. I looked in his eyes and thought, "Where do I know that look?" I knew it was a vampire movie...I Googled 2000s vampire movies later. Oh yeah, now I remember, this one.
He had the biggest, blackest pupils. They took up his whole iris. And he kinda tended to scrunch his face like that too. Gait was abnormal. At first, I tried to give him the benefit of the doubt and think neurological disorder. Nope, just high. Not sure on what, but he was twitchy. If I have to use another m…

A Foray into Creative Financing

Image
BRRRR!

It is a little chilly here, but I'm talking about the BRRRR strategy in real estate. That stands for Buy, Rehab, Rent, Refinance, Repeat. I am about to implement this strategy.

I'm not much of a worrier. I think that to some extent, you have to have the nervous system of a shark in order to do real estate and still sleep at night. Being the first time I'm doing this, it does make me mildly nervous. I'll be happy when it's successfully completed. Let me tell you about it.

I found a house in a neighborhood with which I am familiar, but for whatever reason, property values on this street are a little higher than the rest of the 'hood. Locked down the price on the house. Got a rehab estimate for most of the work, which came in as expected. Looks good.

Now, I do not have 15% to put down on this house and also finance the reno, but I have a motivated seller and I'm a motivated buyer - so that's where the creativity comes in. I'm buying the house w…

Um, wrong blog?

Image
I'm doing so many RE posts I feel like I should have made my blog "The Gallavanting Landlord" or some shit. Meh. I said I was doing this as I go...and I went to RE.

I thought I would share some "after" pictures of the rent house. You can see that removing junk, a coat of paint, and an actual cleaning after 30 years of decay does a pretty damned good job at turning a place around.




So there's that. Now on the day I'm writing this (2/5/18, for posterity), the #flashcrash just happened to the markets. I am surprisingly unconcerned by this. One reason is the real estate. Another is that a lot of my IRA funds are in international mutual funds, so my IRA barely got nicked. Haven't looked at my TSP yet, that one might hurt.

I'm also starting a bit of a new adventure - before this house was even done (it's still not technically done, the carpets get cleaned tomorrow...), someone called from the sign in the yard and asked if I did rent to own. Of cou…

You Might Be a Landlord If...

Image
Landlording has put me into a number of ridiculous scenarios lately. I thought I would start sharing them with you for your amusement. Some even have pictures!

You might be a landlord if...

...You've showed up to Home Depot at 8:45 on a Tuesday night in your full pajamas and slippers, because it just occurred to you this is the only time you'll be able to get that part for that repair tomorrow.

...You leave yourself interesting little Post-Its like this:

...You now have paint on every pair of jeans you own.

...You have approximately 7 LLCs, 4 trusts, 18 units, and 6 bank accounts to keep track of.

...Every time you get a text, you assume something bad just happened at one of your houses.

...You have so many keys. So many. And you're not sure what exactly all of them go to.

...You could probably build a house from all the random parts and extras you have stored in your basement.

...Someone has said, "Oh, I'll glue that back on later," and you've responded …

And Another One!

Image
As a certain DJ says...


Closed the next rent house as scheduled. I cleaned SOOOOOO much shit out of it. So much. I have to call for extra trash pickups. Yes, more than one extra. It's crazy how much shit people accumulate. They just stick it in a closet and forget they have it and then buy 3 more, because they have coupons or something. There were so many cans of furniture duster. Jesus.

Anywho, here's some pictures of what it looks like post-clean out, pre-painting and cleaning. Again, forgive my formatting, this is not my specialty.







I also found some cool shit and learned a few things. I found this stuffs:



I may eventually post some pictures of the finished product, but that's all I got for now, I'm still cleaning shit out. The painting and cleaning and whatnot is hopefully happening this next week.

To "celebrate," I put this house into my Personal Capital account. That made a small incremental difference in the whole number at this point, because of cours…

Stopping to Count

Image
Closed on another rent house today. This one, I'll have my hands full with for a short while. It was part of an estate, so there's still some stuff in it and it was last re-decorated in approximately 1979. Actually, that may have been when it was built...maybe it was just decorated in 1979. Anyway, there's some cleaning and painting that's going to be happening, the decor probably won't change for a while. Just gotta get it rented.

Sometimes people ask me how many houses I have now, and that's difficult to answer. Are we counting my primary residence in there, which I bought really to eventually AirBnB and which I rent out when I'm traveling? Hm. Also, do they mean doors or actual physical buildings?

So when I stop to count, I've had four closings, on five buildings, which is a total of seven units. See? Tricky.

What's interesting is that when I started this, I actually didn't imagine going this big this quick. If I look back at my business pla…