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If you have the time to do all of that, someone who just has a W2 job should have the time to do real estate on the side.
And I think that people want to focus on real estate. They just want to jump in, go after it, stay on it full-time. But you can put systems in place so that real estate investing becomes somewhat passive for you or takes up very little time. How many hours a week do you spend actually on your property management and then sourcing new deals? Kevin:Property management and sourcing new deals is very small. I have two full-time employees now that renovate for me so I can spend a little bit more of my time on other things. But an hour later I get a text from him, "Hey, I got it fixed. I spend the majority of my time actually renovating or kind of navigating projects right now. Figuring out this is what needs to be done at this property and scheduling my guys around and making sure that things get done. Ashley:I am very curious to hear about your two full-time employees.
What made you decide to hire two full-time contractors instead of outsourcing this and using subcontractors? Kevin:It just happened in July of last year so cash advance denver it was probably my 13th or 14th deal. What happened was … As funny as this is going to be, it was 100 degrees outside and I was doing siding by myself.
But the work we were doing was extremely challenging and he plays travel ice hockey. So I go back on my phone like in the Facebook group. I have an incredible contact for getting roofs put on. And then the way it evolved to a second guy was I was furloughed from my day job from April until October of last year because of COVID. And in October when I got called back to my day job I was not expecting it. He soaks up everything around him and he shows up on time every day. I have no issues with him calling out of work, anything like that. Tony:That brings up a really I think interesting question Kevin about, as a real estate investor, how much work should you be doing yourself versus hiring someone else to do that work? So they payday loans huntington beach ca may not be at a point where they want to go out and hire employees.
But how do you make the decision of, what work to do yourself versus what you hire out? But the thing that I weigh in is, is it the right thing to do and is it something I want to do?
And I think that my reality is I have an incredibly happy life.
I drop him off at hockey, I drive 20 minutes to a reno property, I work for two hours and I drive 20 minutes back and pick him up. So those little steps add up to a bigger project being accomplished faster. So I just try to get in and do whatever I can to help. It was like me and payday loan edmonton my partner could do this so much cheaper. And then when we did our first major rehab it was more, we could move faster than the contractors we had been using and we were so tired of trying to schedule them and trying to get them to show up and then them not showing up and having to figure out why.
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Ashley:Kevin, I am really excited to actually jump into one specific deal and find out the numbers and the nitty gritty.
What rookie deal did you want to talk about with us today? Do you want to talk about the first one or fast quick loans do you want to talk about the one that ended up with the lawsuit that became an Airbnb property? So I went through, looked at it and I start talking to them and explain to them, I said look … First of all they were behind on their mortgage so they were a month or two behind on their mortgage. So anyway, I go back and forth with them and I tell them a little bit about what I do. And the way it turned into a short term rental is so ridiculous. A friend of mine was renting his one bedroom apartment that he lived in.
And I have not increased my prices still a year later which I probably could of made a lot more money than I have. So payday loans in laredo tx like I said, it cost me six grand to furnish it. I made 14 grand in the first two and a half months. And it really turned into what is this actually capable of?
Well, right before Christmas … And I mean, right before Christmas … I think it might have been Christmas eve.
These are all things that are dire importance to me.
No, our subject to contract said I was going to pay all the bills, I was going to pay the mortgage. I never missed a beat on anything that I said I was going to do. He basically told me … To be fair, I was very stern with him because I was upset that he was representing someone who was clearly lying. And cash advance denver he demanded that I send him screen shots of everything that I had proving his client was lying. The property belongs to my client as per the contract. So there was nothing illegal about it and I very clearly said that to him in an email in those exact words. So anyway, we came to agreement and by the way, December 27th or whatever, when they were closing in on the day they were going to change the locks and the day that I was arguing with fixed loans them, we came to an agreement that they would not touch the property and I would be able to continue renting it as is until we negotiated a purchase. We did not sign a purchase agreement until the end of February. And I dragged it out for two and a half months because I was so pissed off that they lied about everything. And it was petty and it was beneath me and I still smile thinking about it because I wasted two months of their time. It gave me 45 days to make the purchase in a traditional fashion, which I did.
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And I actually have two more STRs that are getting ready. In my retail business, in my life, customer service is the core of everything. If you are a good customer service person, if you can learn to not be petty and drag things out for two months for spite, those are the things that lead to success. I had a lady come in and she found a dead bug right by the front door. But do I argue with this lady over 75 bucks or do I realize loans in california that keeping her happy and getting a five star review out of it is exponentially more valuable in the longterm? The guy in that two unit that was in the front house ended up having to be evicted. And I was going to recommend this to everyone listening. That is a great deal and thank you for sharing that with us. Tony, did you have any short term rental questions you wanted to ask him before we move on to our mindset segment? And what you said about the customer, just how you treat your customer is super important. So if you have an issue and you handle it well, you get a glowing review. Like what were some of those assumptions you made that turned out not to be true? Like I said, I came into this … My mindset has been the same way before real estate.
And I found that finding contractors is absolutely the most stressful and painful part of this business.
And it had a lot to do with kind cash advance denver of why I lean towards using my guys as much as possible. They are the only projects in 18 projects that have come in over budget our outside of the timeframe. And the problem is I genuinely like all three of those guys. I hope all three of them hear this podcast and they understand that as people I love all three of them.
They are scumbag business people and it is what it is. One of them came in 13 weeks past schedule of a 10 week project. Because cash advance denver as a person I felt like he spent the last 13 weeks doing my project. I want to take us to our next segment Kevin, which is the Rookie Request Line. So for those of you that are listening, if you guys want to call in and have your question answered by one of our lovely guests like Kevin, give us a call at 888-5-ROOKIE. My name is Tamika and I am from the New Jersey, Jersey City area. My question is how do you know if a home is good for BRRRR, good for flip, or good for hold? Typically, what I run into is, I BRRRR, BRRRR, BRRRR, BRRRR, BRRRR, and then when I want to stock my cash reserve back up I flip. I am very much a rookie from a financial standpoint. I mean, I live a nice life but I am not even remotely rich. So when I need money back in my account, I got to sell a property or I got to generate that money somehow.
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And you can do the math alternative loans and see how much of that … It was pretty much all of my free time for three months reading, listening to podcasts. And this thing behind me … And my parents go a long way to that. And you take the things that worked in that relationship and you apply them to the next one. And that to me is more important than anything, that you learn from the things that go wrong and just keep pivoting and pivoting. I run into things now in these flips and BRRRRs that would have absolutely broke me when I started. I mean, I literally just solve the problem before I even think about it. Because the purpose of the first deal is what you just said which is to educate yourself. Now, for the short term rentals I use a program called Smartbnb, which does some automated messaging for your cleaners and it really, really automates the short term rental side. So if people are doing that business, I highly recommend looking at Smartbnb. But from the real loan with bad credit history estate stuff in general, I pretty much just manage it via email and my cellphone. Ashley:Kevin, thank you so much for all of the valuable information today and also thank you for your service too. But please tell everyone where they can find out some more information and where they can contact you. Kevin:Diyrealesateinvesting on Instagram, which I am terrible about. Ashley:Kevin, I just want to say, you really provided a lot of great value today.
Well, thank you so much for joining american general loan us and a lot of the things that Kevin mentioned, we will put into the show notes at biggerpockets. And of course make sure you join our Facebook group, Real Estate Rookie and you will see Tony and I in there and also Kevin.
Ashley:Well, thank you everyone for listening today. And make sure you guys listen to our newest episode on Saturday. RentRedi is all about helping new landlords manage their business and be happy customers. Go mobile and manage your properties from anywhere at RentRedi.
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