Wanna Be a Successful Rehabber? Follow This Recipe. (Part 5)

successFrom Craig Fuhr, The Fix & Flip Artiste …

Can you believe we are half way through 2014? It’s just insane how fast life moves these days. It seems like it was just yesterday that I started this series of lessons, but alas – we’ve come to the end. This is the final installment.

Right now, you’re probably feeling like California Chrome standing at the starting gate, just waiting for the sound of that pistol so you can sprint to your first rehab deal. You’ve learned a lot in the first four installments Part 1, Part 2, Part 3, Part 4but hold on there my thoroughbred rehabber-to-be

Good ole’ Craig still has a few more steps to teach you.

In the previous installment, I ended with Step 11, which is Plumbing, Electric and Miscellaneous Hardware. At that stage of your project, you’re so close – you can almost smell the alluring scent of your massive payday!

Get it in Focus

Here’s where I would once again remind you to FOCUS, FOCUS, FOCUS! There’ll be time later to “make it rain,” but for now your number one job is to keep yourself and your team focused

Lessons from my Losses, Part 2

Hey Clever Investors, Franklin Cruz – REI Drill Sergeant and Mentor – back again to finish the thought-provoking post I started a couple weeks ago. In Part 1, I talked about a disgruntled student of mine whom I affectionately referred to as Mr. Crazy Banana, and how mistakes I learned surrounding some circumstances helped me grow as a person, husband and an investor…

The Saga Continues

Okay, so where were we?

I told you guys about my marriage almost ending up in a bitter divorce, and (even though that totally sucked) it taught me that:

Your past is your story, but it’s how you let the story shape you that’s important. Learn to let your mistakes make you a better person.

And we also talked about how Mr. Crazy Banana was trying to claim that I was not fit to be a coach or REI leader because of my public records with 2 arrests.

Yep. 2. Arrests. Lemme explain…

During the period of my potential divorce there were some domestic issues and I was arrested twice. However, and I was found not at fault and the charges were dropped.

Lessons from my Losses, Part 1

Hi guys, Franklin Cruz here – REI Drill Sergeant and Mentor …

Today I want to share a personal story that taught me that you should embrace your past mistakes and use them as tools to craft yourself into a better person.

Most of you know I’m out there in the trenches of the investing world doing deals all day long and that I am passionate about teaching others. As a coach, I let my students walk along with me and I help them do deals. Most of them go out there and do amazing things and I am extremely proud of my students’ success rate.

There’s Some Crazy in Every Bunch

But, there are always 1 or 2 crazy bananas out there that you are going to encounter – who you just can’t make happy. As a coach, I expect this, but recently I crossed paths with a really nasty banana – a disgruntled, former student of mine. Mr. Crazy Banana decided to dig into my public records and used some rough patches in my life to discredit me by trying to prove that I am a bad guy that’s not fit to lead others as a mentor.

What Mr. Crazy Banana didn’t realize is the points in my life he is trying to use to discredit me are actually my points of strength

These invaluable lessons from the past are what shaped me and continue to shape me today. I am completely unashamed of these things and actually like to share with others the important lessons I have learned.

Are You Committed To Your Freedom?

freedomFrom Dave Ludena, Real Estate Rockstar…

As I write this, we recently celebrated the 4th of July and had some fun blowing up fireworks.  Just like Memorial Day a couple months back, these are great holidays not only to celebrate our freedom, but also to appreciate and remember all those who have served and are serving to protect our security and freedom in the good ol’ US of A. I personally want to say how much I appreciate that, and to say thanks to all our guys and gals, past and present, who are defending us.

In our country, we enjoy freedom, but freedom is not “free.” And that includes your business.   A lot of people want freedom in their life, to live on their terms… do what they want, when they want, how they want, without making decisions based on time and money. Great on paper, but in real life, this comes with responsibility and a price.

So you want freedom… what price are YOU willing to pay? What kind of personal sacrifices are you willing to make for your own personal freedom? Today, I want to share a couple points regarding success and freedom.

Commit to the process. 

First, you must commit to the process

Buy, Fix & Stay, Part 4 – 7 Tips to Killing Common Landlords Headaches

become a landlord Hey Clever Investors…

In today’s conclusion of our series, Buy, Fix and Stay, I’m going to give you seven tips to prevent landlord headaches that I learned through the School of Hard Knocks. But first, let’s take a recap on the previous lessons so we can pick up exactly where we left off:

So this brings us to now…let’s jump back in…

Tip #1: Always have an attorney create your legal contracts.

We just discussed this in our last lesson...

If you’re managing your own rentals, then you’re going to need to connect with a local real estate attorney and get some custom contracts and forms created that are designed for investors and abide by your local state laws.

It’s my recommendation that if you download some documents off the internet and plan on using them, at least have a local real estate attorney check them out before you use them.

Buy, Fix & Stay (Part 3): Essential Landlord Docs & How I Manage My Rentals

2014-07-15-260Hey guys, Cody here…

One of the most frequent questions you guys ask me is:

Should I manage my own rental properties or should I hire a professional property manager to do it for me?

But first, if you missed the first two parts in our Buy, Fix and Stay series, How to Create Long-term Wealth and Analyzing and Funding Your Investment Property, then you might want to check those out and head back over here.

Property Management: DIY or Outsource?

My suggestion is to outsource the property management work to a trained professional so you can free up your time to focus on finding your next deal. Fixing toilets or dealing with nonpaying tenants does not produce you any money.

Professional managers only charge around 7% to 10% of the monthly rents, plus they typically charge a marketing fee for finding you a qualified tenant, so it’s really worth it. They handle all the marketing, screening, paperwork, and evictions, and even the repairs allowing you to have a stress-free landlording experience.

Landlord Docs: What Paperwork will you Need to Succeed as a Landlord?

If you list your rental on the MLS with the real estate agent or if you hire a professional property management company to find you a tenant, it’s common practice that they’re going to provide and fill out all the necessary paperwork involved in any of your transactions.

When it comes to landlord documents, there are really only four documents that you must become intimately familiar with:

  1. Rental application
  2. Lease agreement
  3. New tenant checklist
  4. Option agreement

If you’re managing your own rentals, then you’re going to need to connect with a local real estate attorney and get some custom contracts and forms created that are designed for investors and abide by your local state laws. It’s my recommendation that if you download some documents off the internet and you plan on using them, at least have a local real estate attorney check them out before you use them.

background checkPart of the application process is doing background and credit checks to prescreen any potential tenants. I use ACSDataSearch.com , ERenter.com or LandlordStation.com and they pretty much all cost around $25 to $30 per application to check their credit reports, criminal records, any previous bankruptcy judgments or evictions filed against any of your potential tenants.

These services pretty much uncover anything that I need to know to make an informed decision.

Always, always, always (have I said always?) run a background check even if you don’t care about the person’s credit.

Also check for proof of job/income and previous rental experience by calling an older landlord. Keep in mind that the most recent landlord might tell you they are great, even when they’re not, to try to get rid of a problem tenant – go back a landlord or 2 if you can.

I work with a lot of homeowners who previously went through foreclosure. They make great tenants, but I still always run a background and credit check on them. Ask them during the interview process if there’s anything that they need to disclose to you before you run the check.

Allow them to come forward and volunteer any information and let them know that communication is the most important part of the tenant-landlord relationship. Now is their time to open up because if they lie to you and you uncover anything during the background check, then they’re definitely not going to get the house.

So my Overall Advice…

Outsource the property management work to a trained professional so you can free up your time to focus on finding your next deal.

outsourceBecome familiar with these 4 documents that your property management company will use:

  • Rental application
  • Lease agreement
  • New tenant checklist
  • Option agreement

When managing your own rentals, go to your local attorney to acquire customized contracts made for investors.

Always perform tenant background checks, including proof of job and income. Ask tenants to volunteer any information you may find.

Okay gang, tis time for me to go. Keep an eye out for part 3 in this series, 7 Tips to Killing Common Landlord Headaches.

I hope I finally got this question covered for ya. Any other questions and comments are welcome below.

Cody Sperber Real Estate InvestorUntil next time…

Keep it Classy,

 

Wanna Be a Successful Rehabber? Follow This Recipe – Part 4

have a smileFrom Craig Fuhr, The Fix & Flip Artiste …

What’s going on my, Superstar Rehabber? By now, if you’ve been keepin’ up with this series, you should be feeling pretty darn good about your ability to take down a rehab project! You’ve learned all the steps…from demolition to paint.

In this post, I’m going to take you through the majority of your trim items leading up to flooring. If you’re still uncertain, after reading post 1, post 2 and post 3 , we’d love to teach you more. Just click the “Need a Mentor?” link at the end of this post – and we’ll be glad to talk to you about our one-on-one, highly personal real estate mentoring program where you can work directly with me and Cody Sperber.

In Part 3 of this awesome series, I left off with Step 8 in the rehab process, which is paint. Your project will really start to take shape at this point, but again – I must advise you, this is the point in your rehab where you really need to make sure all the materials are at the house ready for your contractors to install – and that you really stay on your contractors to work hard to get the project to the finish line. I don’t know why, but this is the stage where contractors seem to slow down – so ride them hard!

Wanna Be a Successful Rehabber? Follow This Recipe – Part 3

rehab housesFrom Craig Fuhr, The Fix & Flip Artiste …

Well hello there my rehabbing friends! Thanks for tuning into the third installment of my tried-and-true rehabbing recipe for success. Remember, just like making a perfect pot of spaghetti sauce, rehabbing a house requires a precise recipe of steps that you’ve gotta follow.

If you’re coming in late to this series – no worries, you can catch up by checking out PART 1 and PART 2. Regardless of whether you’re a new rehabber, or even a grizzled veteran, I know you’ll find many tasty tidbits in part 1 and part 2 of this series so be sure to check those out before diving back in below.

In part 2, we left off with the completion of Windows & Insulation…

The Exciting Part

From here on, your project will really take shape. This is where the house will go from something that looks like a skeleton to something that looks like a home.

You’re essentially at the ½-way mark of the project. But beware…. if you don’t carefully manage your contractors during this second half of the project, getting to the finish line will take three times as long as it took to get to the ½ way mark!

Are you TRYING to FAIL at Real Estate?

2014-06-24-260From Dave Ludena, Real Estate Rockstar…

I love this Yoda quote. For a little green guy, this dude had some pretty deep lessons. I wonder if he was a real estate investor…I could sure use some Jedi mind tricks with some of these sellers I work with.  

The “Try It” Syndrome

The “Try It” syndrome is something that cripples would-be winners out there, regardless of the arena. It practically ensures defeat. Ever “try” to skydive?  Nope… you do it, or you DIE.

There was a cool movie (well, it was cool when I was younger, circa 1992) called the Cutting Edge where two figure skaters were attempting a never-before-executed move. Check out this clip and specifically what the coach says at about the 1:48 mark. Basically, if they only tried this thing and didn’t give it 100% someone was gonna get hurt

ytplayclick here to watch

Why Having a 5-Year-Old Best Friend is Amazing Business Advice

2014-06-17-260From Franklin Cruz, REI Drill Sergeant and Mentor …

How is my best friend 5 years old? Having a best friend that’s 5 years old is the best thing in the world. Having a best friend at all is a great thing. But sometimes as adults, we move on past our friends and we forget to connect with people like we used to…

So our best friends sometimes become our kids. I am married and have two boys, 12 and 5. I love my 12 year old, but he is starting to think that dad is a little uncool. But my 5 year old still wants to be my best friend. I am his world, his light, his protector. I tell him all this and he says: “Cool daddy, I love you, can I get some chocolate milk?”

But there’s more to my 5-year-old best friend: He has been awesome for my real estate investing business. (Of course, I’m certainly not talking about child labor.) What I mean is that we can learn a lot from children that will help us in our businesses. Kids do some amazing things that sometimes as adults we have forgotten about.

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