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- Dec 23, 2017
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Good job! You're a winner!
You have the magic formula. You are relentless! Keep going. You are making your own good luck.Working on a store now. It’s my last unrented store. I have had it listed on CL for 6 months. I’ve showed it to a few people but it needs a lot of work. I was hoping to get a tenant then do some work on it once I had a customer. But at this point I decided I had to do something. I posted it in Instagram as a free pop up to anyone that would take it for a week. Got 3 interested freeloaders. Just kidding at this point I need some action there. At least get some feedback.
For some reason I don’t have a good shot of the front. It’s looks different now. Windows are cleaned up and all signs are down. Started gutting today. Except for a sinus headache feels better already.
John, just keep swing... don't quit... don't retreat...@WJK @ZCP thank you. Thanks for following this.
Made some mistakes. I rented to a bad tenant a few months ago. Apt came back to me from a long term inherited tenant. The apt needed lots of work but I was broke. I had a known bad tenant come in with cash, I showed it they would take as is. Filled with garbage and they would clean it out. I had 10 vacants apts at the time. Dumb but, I rented to them.
So had a fire in that building today. The bad Tenant threw a cigarette in the garbage. In the bathroom. So had my first bathroom fire ever. Ive has dead tenants in the bathroom but never a bathroom fire. I have a rule. If the cops or FD come to my house i usually evict that tenant. This time is no different. FD gave me a stop work order on my store below bc they came to the house.
Got another tenant headed for eviction too. He called the health Dept instead of telling me he had bed bugs. Argh. I have an Extermintor. Tenants don’t call me they call health Dept. Then HD calls me give summons. Then I call Exterminator. Them HD comes to inspect problem solved. But first I call lawyer to evict that idiot tenant. Sorry venting.
This idiot tenant was no good either and I rented to them also. I knew I shouldn’t. I could tell he was that type. Always trust your instinct. But I was broke and I was weak.
Good news. I passed a City inspection today for a unit that was condemned and illegal when I bought it. Got it really cheap bc it was a disaster. It was renting for 560$ to current tenant. One women. Apt was in shambles City did and inspection and failed it right after I bought it.
I Kept the tenant in place did repairs and the tenant had gotten a S8 voucher. Rent goes up to 1100. Tenant called to say they love the new floors, paint and apliances and thanks. That’s good for now. We’ll see.
Better news. Had a legal rooming house the city had condemned it neeed repairs. I did some repairs. Now it’s not easy but they could take me to court revoke my CO then I would have to gut and redo whole building. Return to single family. I asked them to help me out and reissue CO. The city hates rooming houses. I don’t like them either ...but my mom was a drug addict. My Dad was in prison. So I’ve lived in some rooming houses. I know what to do with them. Fear and RULES. Make them afraid to break the rules and they will abide. Be a dictator about the rules. Cleanliness. Garbage where it’s supposed to be. No visitors. No BS or you get evicted. I could write a book on rooming houses but I think someone did. If your game it’s $$$$$
Anyway It’s 4 rooms. I can rent the rooms 500-625 each. So all 4 for 2000-2500(tops but I can dream).....as an apt it’s a 4 bedroom it’s 1250 a month tops in that area. It’s ghetto. The Inspector said OK. That’s huge.
So next month I’ll probably do 25k. That’s black. Way in the black. Thanks for the support. Just getting feedback here has helped me. Thanks.
One more thing. I’m on BP. Been there for a few years. Great site for RE knowledge. Not so much for get it done as how to. So I joined a meetup last year of 4-5 people. They faded away....I kept it up. Once a month. This month I had 40 attendees. Banks, hard money guys, RE agents, insurance guys and other investors.
I mentor a few guys they show up it’s a fun thing. Coffee and BS. Some of my guys own a few houses. A few own 3-4. So it’s done something already. We do it at 8am. Today people said that I’m helping change the city......that’s big. I’m not finished yet but that’s my goal. I want to turn newburgh around. I’m pretty sure I never mentioned that before but that’s what started the whole thing.
Almost last. I was in retreat last month. I dug up Grant cardones 10x. I’ve listened to it a bunch of times. Good for rah, rah, rah. Listened to it and realized I was in retreat. I decided to attack instead. I’m coming up with some plans for attack.
Last and WJK will like this. I’m selling one house. I bought it for 47k last year. Inherited a tenant. They were paying 1066 a month they pay all utilities. So I’m December they stop paying. Now this house is a 2 family but one family had both floors. I told them “hey I have another house like that one inremt it for 1250 per floor. Pay your rent. They BS I evict. I asked a realtor today that I trust what do you think it’s worth. As is. She says 125-150. Market is hot. So I’m listing that one. It’s got the plywood on the windows...copper lines throughout and the thieves are still out there.
You just keep swing! Good fI or you.@WJK thanks!
Building Dept hit me with 10 violations after the fire. Mostly related to the fire...a few because the fire called attention to me. Cost me some much needed cash but the cost of doing biz.
Got about 5 evictions in progress. Continuing to cull the bottom 10% of my tenants and then spruce up with paint LVP flooring and Rent to a better tenant. Looks like the store below the fire will be rented.
Was reading a news article last night complaining of gentrification in Newburgh. That is good news. When folks are complaining about gentrification I’m a happy guy. Last time this happened my rents quadruped in 10 years. Kind of crazy how quickly things are changing. Every week I go up I meet new investors
The City contacted me about my meetup....they asked if they could attend. They want to know if we can work together on some things.....no public comment.
One of my tenants never put his utility in his name. Got a bill for 1000 or so this week. 5 months. Argh. They were mailing it to the address of the building and I don’t have a box there. I called him up he’s like I’ll pay when you fix my apt up. My fault bad tenant should have evicted sooner. He’s been there for years place is trashed. Looking forward to him leaving me fixing it up. He tried to break into another tenants place the next day. See ya.
You just keep swing! Good fI or you.
That bill for guy's electrical service just means that you need to check on that issue next time with the electric company. Maybe a check list for each tenant. I know, I know -- you've been up to your a$$ in alligators...
Did you get the shoes off of the wires in front of your building?
You're doing great. You still have you head above water.
I just wrote a blog about a mobile home that was so bad, we had to tear it down. If you get time, read it. I attached it to the "read it" in red. It's funny now -- it wasn't then. I sure know how you feel. Hang tough!
I'd much rather have a vacancy rather than a bad tenant. Love your picture of the bare floor. Keep them out. I know it's impossible to know anyone until you marry them or rent to them! Peace and happiness to you!@WJK yes I know what you mean. I’ll read it I skimmed it and realize your right.
Short story. Years ago it was a very cold winter days of -4 or -6 f. That’s really cold. My water pipe froze up in nyc. My heating was steam. So no water no heat. There is a subway stop in front of my house. The tenants had left for hotels. Bc the subway it would cost 20k or more to repair. I was broke. Through some research and a bunch of 12 hour days I fixed the problem for 1500. Or so. I was cold and wet for days. We had a 3 year old a 1 year old and my wife was pregant.
No we look back and not yet laugh but one day we will.
Thanks for the knowledge and feedback.
No sneakers are still up. But this is the room the drug dealers were in. Before and after.
This will be my progress thread. I’m getting my head kicked in right now. Feel like I jumped off the boat with cement floaties. I have been meaning to start writing for a while but with things getting worse every day I found it hard to get out of bed. Let alone document my weakness and failures. It’s definitely my problem. I have made a lot of mistakes.
I’ve been a real estate as hobby investor for 12 years. Done mostly live in flips. I’ve bought and sold 4 houses and currently own 12. Started out with one three family in 06. I sold that last year and did a 1031.
In the 1031 I purchased a package of buildings from a slumlord. It’s comprised of 37 stores, apartments and rented rooms. They need a ton of work.
I bought these houses knowing that they were in a depressed area of NYS. I knew the city had a reputation as the “murder capital of New York State. I looked for the worst part of the city. There I found a building that seemed worse than those around it. Luckily for me the owner was easily convinced it was time to sell.
Edit: If this sounds like a complaint that’s not how I mean it. All of my complaints right now would not exist if I had not handled executed better.
What is your plan with these units/stores ? If you got a good deal on them you can try wholesaling them to investors who buy them and fix them ? I do this here in Arizona and it works pretty welll
I usually buy distressed and fix up. This house is extremely distressed it’ll probably cost at least 150k. But it’s in a rally up and coming area. We bought it for 45k but shells like this are selling now for 100k or more.
I’m only going to do limited work on it.
I’ll ask for the variance going from single family to three family...that’s tonight. Go before the Architectural Review Board and ask permission to paint the House and change the windows, fix the roof (already), fix some structural isssues (working on it)run the service electric for the Building and clean out the garbage(took out 7 tons)
Long term goal is to build a large portfolio But in the meantime when I see a property that’s a good deal but I can’t hold it long term I don’t mind fix and flip or in this case do the haeavy lifting and when it’s ready for interior work sell. There is def money being left on the table but the 150k budget isn’t there.
I have a long term strategy for the city so Depending on where the other houses are located I will fix up and hold or sell.
Congratulations! Now you JUST have to make it work. You know how to do it. Go for it.Got the variance. Building is worth way more tonight then it was this morning. What a relief. I was banking it would happen but it could have gotten voted down.
That was a huge gamble. If it hadn’t been approved I didn’t really have a way out except to flip it but that’s more cash in then I had. Lucky again.
That'd be right. Cities end up as cesspits because their governments deliberately make them so. People don't just go and make a shit city. They go and inhabit a good city and then deliberately drive it into the ground. Maybe you've got to grease some people into not being you-know-whats and getting out of your way.The second tenant and I had an agreement that I would install heat and a bathroom in his space. I made the deal quickly and later learned the city wouldn’t approve my plans.
Your life sounds epic exciting. You should write a kindle book about it at some point.So now I’m evicting more people. The dealers got busted in a drug raid. Tanks, helicopters, swat team. The came in with combat gear and swept the place clean. That night after the cops left neighborhood folks busted my front door broke in to the dealers apt and stole all his stuff and trashed the place. Next day I found two people barricaded in a junk filled room with a refrigerator wedged up against the door.
Your wife sounds pretty wise, I'd follow her orders.She wanted a full accounting.
I left about about two millennia of stuff.That'd be right. Cities end up as cesspits because their governments deliberately make them so. People don't just go and make a sh*t city. They go and inhabit a good city and then deliberately drive it into the ground. Maybe you've got to grease some people into not being you-know-whats and getting out of your way.
Your life sounds epic exciting. You should write a kindle book about it at some point.
Your wife sounds pretty wise, I'd follow her orders.
Things with you sound normal to me. Keep on stepping. It's hard to see clearly when you're up to a$$ in alligators.@WJK thanks.
Been a while. Haven’t been back. no good news.
Few updates. Some things went well. Got the house with the boards into contract. Paid 47k last may. put in about 25 plus holding costs. Have two partners. In contact for 159k, so that one should be a good one.
Overall tho I’m still in trouble. Little profit for two months the but then this months with taxes, water, sewer due I’ll lose about 8k this month.
Got 4 vacant apts right now. Money and time are tight and I’m having trouble getting them ready. Doing them 1 at a time. Crews i usually use are busy.
Got 3 other houses on the market right now. Bought one for 75 put in 20k. It’s had a vacant commercial space. I rented that to a deli that’s well known in the area. Very stable tenant. It’s on the market for 150k.
Last one is the the rooming house. Paid 465. I evicted almost all the tenants and did lipstick Reno as I went. This one also has a store on the fiat floor. The crime problem in the building is cleaned up. It’s on the market for 659.
Bought another for 45k on the market for 154. Fixed the roof and cleaned it out.
Been a few weeks on the market on two. The oher for a month. I think they are all overpriced....except the one in contract. I had the agents drop the prices already but they are fighting me on dropping more.
My live in onsite agent stole about 2500$ this month in cash. Think he’s gotten involved in drugs. Hit him with a 30 day notice and working on getting him arrested.
Wife’s clothing store is open and doing well so far. At least one of us is doing something that cash flows. She’s not bothering me about working late anymore tho. She’s working late now.
Working on getting focused, but seems every time I do I have another fire or flood. Lists of important things get pushed aside by ceilings collapsing, stores getting robbed etc.
Need to focus.
Might see if we can change this posting title to watch this guy get a haircut.
This is ugly. The six months on the sheet below are the better 6 of 10 months. There is none of the Reno money I brought to the deal or money that borrowed lately on this sheet. to keep things moving along. When you factor in that money It’s creeping up on a 230k loss for 10 months. I owe about 1.5 m on loans on 2.7 in property right now. I also owe about 150k in Personal or cc. Mostly biz stuff. If I was a professional RE guy this would be a hiccup. But my 9-5 i take home about 750 a weak.
Closing on a sale next week fingers crossed. That one will be a small profit for me. I had partners. Percentage wise it’s sick deal but small so it doesn’t matter too much.
I had 4 properties on the market. But the market is getting soft right now. My broker called me last week. Good News! I had a cash offer 500k. no contingency on the rooming house. I would have lost about 50k (I paid 464k and did some Reno) selling at that price. I’m selling for 3 reasons. It’s a major PIA. I couldn’t refi the SRO, and it’s (62% occupancy) losing money every month bc I’m strict with new tenants. Heavy duty background checks no Sex offenders, no social service tenants. Only tenants with verifiable income. If I wasn’t strict I’d have 100% occupancy.
When I got the offer they were putting down 10% with a financing and inspection contingency. So i told them to get the cash they said they had together. I had major trouble doing a refi with the sro. That’s why I put it on the market.
So I’m taking a beating financially. I’be been a bit depressed and anxious again hard to sleep. Have to take deep breaths and calm myself sometimes. Getting anxiety a bit.
So I stopped to take a look at what I’m doing wrong. Of course this is all my fault. I made the wrong choices to get myself here.
Working on a way back to success. Been on a diet. Low sugar, low alcohol( I was drinking a ridiculous anount a day for a few months) getting a bit of focus lately.
My retreat plan had been to sell about half what I hold in portfolio. Then pay bills, taxes etc.
The soft market killed that plan. There are son many properties on the market mine are not even getting many showings.
Working on the new plan.
You're upside down on every thing. I know how you feel. Bail out on as much red ink as you can. Is there anything that you can turn around?I left about about two millennia of stuff.
I was showing an agent one of my properties a few weeks ago. For months we had a lot of flies in the building. Normally I’m a little more proactive but this building only has sh*t tenants. So I wrote it off. Turns out there was a hole in the main sewer. There was 2 feet of raw sewage in the Crawl space. Finally got the idea when none of the plumbing was working. I’m under the floor cleaning out the crap with an inadequate pair of rubber gloves when the agent shows. I hop out and start my car salesman act when I Street guy gets the idea to hit me up for cash. I see him a lot. Usually duck him. But this time he’s got me back against the wall. In a corner. Him and the agent leaving me exit. Starts telling me he’s a killer. Tough guy. Well I’m pretty frustrated at this point. I feel like mike Douglas in falling down. 30 seconds later my thumbs are buried in his eyes and the agent is running for the car. Finances might be kicking my a$$. But no one is going to kick me a$$ while my back is against my own property.
I have 5 vacant apartments right now, 2 vacant commercial. Two evictions in process. And I’m still spending every dollar I can to drag my properties out of rhe filth and make them attractive, secure and affordable. Not giving up.
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