joeyfitzclick .....

[Mr. Wonderful]

I have a rental property right now and it is as big of a headache as you can imagine. House was a reasonable nice house. Not a slum; just a typical middle class home. Well, the renters i rented it too broke his neck so the son moved in and everything went down hill. Ended up moving out in the middle of the night and the place is trashed bejond beleif. looks like their has been a flood in there and there is mold, drywall damage; you name it.

I filed an insurance claim hoping to get major $$ and only got a freakin $2,800 and I am just praying that can repair this stuff so i can sell the piece of crap.

Next time, if there is a next time, i will do alot more homework and control it alot more. I ran too loose of a ship and I'm paying for it

 

[joeyfitzclick]

So does this mean the rumors of the gay porn star is not true?


:WTF:

I'm hung like a lightswitch, straight and camera shy. My career never took off for some reason.

 

[joeyfitzclick]

I have a rental property right now and it is as big of a headache as you can imagine. House was a reasonable nice house. Not a slum; just a typical middle class home. Well, the renters i rented it too broke his neck so the son moved in and everything went down hill. Ended up moving out in the middle of the night and the place is trashed bejond beleif. looks like their has been a flood in there and there is mold, drywall damage; you name it.

I filed an insurance claim hoping to get major $$ and only got a freakin $2,800 and I am just praying that can repair this stuff so i can sell the piece of crap.

Next time, if there is a next time, i will do alot more homework and control it alot more. I ran too loose of a ship and I'm paying for it

Welcome to my world.

 

[Mr. Wonderful]

Joey, obviously without seeing the house, you can't give too much advice. But basically, the carpet is ruined as when you walk through out the home or maybe half the home, it has sqishy sounds from water, there is mold in the living room that of course would need to be taken care of, and it looks like about 4 -6 feet up from the ground there is water damage to the walls and drywall will need to be replaced. There is also a bad stinch in there from pets, mold, smoke i guess. The house will of course need to be painted also.

I'd estimate the home is around 2,000 square feet of living space. Also, I need to get rid of just a ton of trash they left behind. Just nasty.

In your expereince, how much do you think something like that should cost? ballpark? I've been putting this off because i just know i will hit the fan if i find out it is much more than this $2,800 the insurance company gave me. Also, in talking to a contractor, he told me that if he says there is more damage, that they will send me another check. i don't really trust him that much and do not want to make any bad mistakes. Is this normal? Any input you could give would be appreciated. Thanks

 

[joeyfitzclick]

It's a pain in the arse but if you try to sell this property now every tire kicker and handyman in the world will low ball you to death. Take an equity line of $20,000 and fix this mess. The rule of thumb in a decent market is every $1 you spend on fixing up your house you will get back $3-4 in increased sales price.

 

[HarryCaray]

I'm hung like a lightswitch, straight and camera shy. My career never took off for some reason.

uppy:

 

[fhmesq44]

I pay back $40,000 to every shareholder at the end of the project. Project typically take 18 months and my shares are $25,000 each. Gauranteed ROI of about 60% regardless of success of project.

You guarantee the returns? Not just prefs? Damn, let me know next time you do one if you are guaranteeing returns. Do you split returns above the $40k or do you keep it all?

 

[bigtendominator]

Ice, you still game for a local Mich. bash? What's the update on your cash flow with RE?

I have 7 deeds in the Orlando area and need to short sale them all. Mostly 200k and under starter homes.

Where in Orlando exactly? Zip code or zip codes please. thanks

 

[joeyfitzclick]

You guarantee the returns? Not just prefs? Damn, let me know next time you do one if you are guaranteeing returns. Do you split returns above the $40k or do you keep it all?

I eat losses and keep excess funds. I take my time picking out projects that give me a ton of wiggle room if things don't go according to plan. If it's not a slum dunk I pass. It's not like a do one every week, I pick and choose a project out the thousands of houses I see every year. This is my sixth project in five years and I have never made less than 60c return on every dollar invested.

 

[fhmesq44]

Is it 60% regardless of time it takes to sell?

As an aside, have you ever given thought to doing prefs with splits above the prefs? All of my clients do their deals by paying a preferred return of x% to investors, then split remainder of profits something like 80/20 or 60/40.

A lot of them do it where the preferred return is x%, then split 80/20 (80 to investors) until a x+2% return, then 70/30 until a x+4% return, then say 50/50 after that. May or may not end up being better for you. Although, based on the numbers you showed above I don't think it would. certainly less risk for you though since there is no guaranteed return.

 

[Boddie]

BTD, I target all around the area but mostly East. Sanford, Deltona, Castleberry, Deland, and Orl. I'm looking to sell my deeds at RETAIL (not investor discounts). I hope this answers your question.

 

[bigtendominator]

BTD, I target all around the area but mostly East. Sanford, Deltona, Castleberry, Deland, and Orl. I'm looking to sell my deeds at RETAIL (not investor discounts). I hope this answers your question.

Yes, Thanks.

 

[joeyfitzclick]

Is it 60% regardless of time it takes to sell?

As an aside, have you ever given thought to doing prefs with splits above the prefs? All of my clients do their deals by paying a preferred return of x% to investors, then split remainder of profits something like 80/20 or 60/40.

A lot of them do it where the preferred return is x%, then split 80/20 (80 to investors) until a x+2% return, then 70/30 until a x+4% return, then say 50/50 after that. May or may not end up being better for you. Although, based on the numbers you showed above I don't think it would. certainly less risk for you though since there is no guaranteed return.

Yep less risk but this is the way I do things and I pretty much sell my shares to the same investors project after project. I guess i'll have to burned before I look into something like this.

 

[fhmesq44]

Yep less risk but this is the way I do things and I pretty much sell my shares to the same investors project after project. I guess i'll have to burned before I look into something like this.

I think you do better under your method. Ballsy as hell though to guarantee returns like that. Do you always do rehab projects? Or do you also do any buy and hold stuff for operating income?

 

[Iceman]

Joey,
My goal is to eventually replace my current income at my current job with cash flow in real estate, any advice how to approach that?

I am thinking of triplexs and up. I am thinking about a 5 unit property right now. Do you have much expierence in these or have they been a headache.

To me on paper, owning 5 quadplexs may be the way to go but I don't want to be a slum lord. I can't think of a better way to make money in real estate unless you flip and living where I do I am not sure flipping is the way to go.

 

[fhmesq44]

Joey,
My goal is to eventually replace my current income at my current job with cash flow in real estate, any advice how to approach that?

I am thinking of triplexs and up. I am thinking about a 5 unit property right now. Do you have much expierence in these or have they been a headache.

To me on paper, owning 5 quadplexs may be the way to go but I don't want to be a slum lord. I can't think of a better way to make money in real estate unless you flip and living where I do I am not sure flipping is the way to go.

mobile home parks. low maintenance cash cows.

 

[Iceman]

mobile home parks. low maintenance cash cows.

Jesus!!!

You are dead nuts but not like I have the cash, credit and all the other extras to buy that. You are up the right alley but not sure I can pull something like that off.


fhmesq44,
You involved in any RE? You seem very knowledgeable. Just wondering what you do? Thanks for all the info, you are always very helpful and a must read!!!

 

[fhmesq44]

Jesus!!!

You are dead nuts but not like I have the cash, credit and all the other extras to buy that. You are up the right alley but not sure I can pull something like that off.


fhmesq44,
You involved in any RE? You seem very knowledgeable. Just wondering what you do? Thanks for all the info, you are always very helpful and a must read!!!

Yeah, I am a commercial real estate attorney and I own some investment property. Currently own a 13 unit mobile home park with some friends I grew up with. Always looking for more but a lot of them are dumps. used to own a 4 unit building with a retail space on the ground floor and 3 apts.

It is easy putting it together with some investors, you run the show and manage it, pay yourself fees for managing and do something with returns like I posted above (preferred return, then split above pref). That is the way I did ours. Plus, they aren't as expensive as you think, I just found one on the Upper, 32 units for only $215 and it looks nice and with some infrastructure around it. Plus, typically you give some guy free lot rent in exchange for him being onsite manager further minimzing your responsibility.

Honestly, if I knew you, I would consider putting everything together and have you be the local manager.

 

[joeyfitzclick]

The basicall what I do. I bought a few more than 10 and not exactly one a year but here is the basic concept.

I buy one property every year for 10 years. I pull $100,000 in equity out of property 1 in year 11. $100,000 out of property 2 in year 12, property 3 in year 13 and so on until I die. I supplemeny my income with $100,000 a year for the rest of my life without making any more purchases. I actually do this every couple of months but this will give you the basic idea.

 

[Iceman]

Joey,
I have read your concept and do believe in it as they say most single family residential homes double in value every 10 years. A good book that covers this is "Building Wealth One House At A Time". My problem is want cash flow and want it now. The problem is the RE is a long term investment generally speaking.

FH,
If you are looking for a motivated, passionate business partner than get my e-mail. I'm am always looking to learn and succeed in the game of life. I promise you want find many people who will put more effort into life than me. I am just a tad confused which route to take in life and need a kick in the pants on some off the ideas I have down on paper.