The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

EXECUTION Double the Pleasure?

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

Johnny Bravo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 20, 2018
58
109
129
41
US
I'm pretty sure I'm committing a major sin of entrepreneurial law by starting two businesses at the same time. But I'm okay with that because I'm an anarchist and I say f#$k the law!

I had planned to start a quick thread on my new real estate venture, but wasn't sure if I should put it here or in the Real Estate Investing forum. Technically, I'm only going into real estate for the income stream and not for building wealth. Even so, perhaps someone has a pointer to give or, even stranger, I might pass on a nugget of good information.

Real Estate Management

So business #2 is a real estate holding company. We just bought a quadplex for a steal and will get a pretty reasonable revenue stream from it. If everything works in our favor, the note will be paid off in 10 years and it will be pure profit from there on out.

I've never owned a rental property before so it might get interesting, but how hard could it really be?

Cryptocurrency/Banking/Online Privacy?

Business #1 is still in the Skunk Works so I'm not real sure what to say about it. I've got another thread somewhere else discussing the process of sourcing contractors for manufacturing jobs. Specifically in my case I'm rounding up electrical, computer, and software engineers. They're a joyful bunch!

I should have a rough prototype by the end of Q3 at which point I can finally begin to release some of the juicy details.

TL/DR

In sum, I am building one business to generate wealth while simultaneously building another business to generate income. What could possibly go wrong?
 

Don't like ads? Remove them while supporting the forum. Subscribe.

OP
OP
Johnny Bravo

Johnny Bravo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 20, 2018
58
109
129
41
US
Famous last words...
:hilarious:

I figure I'll be okay setting it up initially and handing it off to a management company since I'm basically sitting around twiddling my fingers with my other business waiting for them to ask me questions. Prototyping is a dreary process.

If you've got any experience (i.e. tips) for real estate I'm all ears!
 

CareCPA

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 2, 2017
824
2,954
655
31
Pennsylvania
:hilarious:
...
If you've got any experience (i.e. tips) for real estate I'm all ears!
Whatever you think you're going to spend in annual repairs and maintenance, multiply it by about 4 until you have a solid history that you can use to estimate.
 
OP
OP
Johnny Bravo

Johnny Bravo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 20, 2018
58
109
129
41
US
Whatever you think you're going to spend in annual repairs and maintenance, multiply it by about 4 until you have a solid history that you can use to estimate.
I've got solid figures for taxes and insurance, but am essentially using industry averages for maintenance. I did estimate a little on the high side, but figure it should be okay considering that I'm basing my budget off a 15% vacancy rate. Most estimates put this number at 5%. But thanks for the advice, I'll throw in a little more cushion.
 

lowtek

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
Oct 3, 2015
1,881
6,128
1,480
38
Phoenix, AZ
Anarchy means F*ck the rulers, not F*ck the laws.

As far as the 4plex goes, I've owned one and didn't like it. If you think you're getting a steal, you're probably not. It's not impossible, but just against the odds.

Did you have someone you personally know and trust that has a lifetime of experience in fixing homes inspect the place? The average home inspector is less than worthless, so if you based your assessment off what they told you, definitely 4x your repair budget.

Know that every time you have to evict someone, it's about a year to recover that lost revenue. You're going to have to pay to evict them, pay to fix the apartment (even just cleaning / painting), and it's going to take time to fill that vacancy. It's also lost time to screen tenants and show the property.

Also know that people are dirty filthy liars and will try to take advantage of you, so cut them no slack. Rent must be paid on time, every time, and late fees strictly enforced. Unless you're renting out to high end professionals, people are living paycheck to paycheck and they truly embody the side walker lifestyle.
 
OP
OP
Johnny Bravo

Johnny Bravo

Bronze Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 20, 2018
58
109
129
41
US
Anarchy means f*ck the rulers, not f*ck the laws.

As far as the 4plex goes, I've owned one and didn't like it. If you think you're getting a steal, you're probably not. It's not impossible, but just against the odds.

Did you have someone you personally know and trust that has a lifetime of experience in fixing homes inspect the place? The average home inspector is less than worthless, so if you based your assessment off what they told you, definitely 4x your repair budget.

Know that every time you have to evict someone, it's about a year to recover that lost revenue. You're going to have to pay to evict them, pay to fix the apartment (even just cleaning / painting), and it's going to take time to fill that vacancy. It's also lost time to screen tenants and show the property.

Also know that people are dirty filthy liars and will try to take advantage of you, so cut them no slack. Rent must be paid on time, every time, and late fees strictly enforced. Unless you're renting out to high end professionals, people are living paycheck to paycheck and they truly embody the side walker lifestyle.
Would we not f*ck the rules enacted by the rulers? :shit:

Haha... sounds like you love the rental business!
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Fox's Web Design Guide: Earn $100K this year (Yes, 2020!) and Go Fastlane
It's definitely possible, although it may not be feasible right away. I'm from the U.S. but have...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
Amazing book! Actually I bought it, before I joined the forum and it motivated me to join...
  • Sticky
MARKETPLACE How To Create A 100K-1M+ Sales Funnel
@LynX You know, this is a "Marketplace" Thread. Completely appropriate to offer goods and...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Dropping a quick note in here to say... if you are on TFL, you are part of an elite group of...
  • Sticky
MARKETPLACE KAK’s “Kill Bigger” Incubation Program- With DAILY personal attention.
I joined @Kak's business incubator in the first week of May. During our daily chats we uncovered...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
This is your May reminder that you can do this. I'll keep it short. These are the May promos...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
Thanks! This is a cool idea, actually. I would like to use your experience as I heard that these...


Visit A Forum Sponsor
sponsor

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom
AdBlock Detected - Please Disable

Yes, ads can be annoying. But please...

...to support the Unscripted/Fastlane mission (and to respect the immense amount of time needed to manage this forum) please DISABLE your ad-block. Thank you.

I've Disabled AdBlock