5/22/2018: This week in long distance investing

This blog wont be as polished and refined as my others but these are thoughts I wanted to get out there because maybe you all can get some value from it.

So we self manage three doors now and will be closing on our fourth as soon as this lady finally responds to my email. This is a property we will close on in person which sucks but is also good because it gives me another excuse to get boots on the ground and explore the area.

I find that you don’t have to be immediately available but as long as you can touch down multiple times during the year you are ok. The key to being able to do this is owning more doors.

We were having some issues with the repairs on deal one where she was texting me about a ton of minor things that could be handled by a handyman. I emailed and called a ton of people but because of the size of the projects nobody wanted to take them on. What is small to them is big to her. She let me know it. She called me multiple times at ignorant hours. We even got into a text conversation around midnight when I was in Atlanta. I almost told her she could leave but the money is calling.

Struggle begets progress though.  here are some of the lessons I learned by pushing through these problems when I had the opportunity to call it quits, take my ball and go home.

What I learned

What I took from this was a lot of things. I learned that this experience with the squeaky wheel that tenant 1 has become has helped me spot a potential trouble tenant who viewed our property and came back with a laundry list of issues as opposed to the prospective tenants at deal 2 who were just happy with the space. I spotted the squeaky wheel as another deal 1 tenant and she got hit with a James Harden eurostep.

Getting on the phone expands your knowledge base

Another lesson was that in calling on references for the tenant this was actually an opportunity to network with another investor and potentially find more deals. I wasn’t able to get in touch with her but when I did I planned to do what I always do which is ask her opinion on the market, ask her for as much information and feedback she can give me and of course let her know what I do, who I am and who I represent.  Everything in real estate is an opportunity to level up.

I have done this in the past multiple times and each time I have worked my way into a solid partnership.

Closing deals brings you deals

The third lesson of this week was that closing deals gets you better deals. We closed on deal three with a wholesaler and now that she knows we are legit, professional and expedient, we got put on her top list that has the true money making deals.

We might break even or buy a bad deal or two but its worth it if you are on the money making deals list.  The very next week she was shipping us deals.

Pay for quality

The fourth lesson is that handymen might be helpful but sometimes the quality of service and the detail that a true professional trade can provide is worth the extra bucks. A handyman will provide you quick fixes but people who do trees and only trees will give you the best long term solution while also letting you know what you need to prevent the issue in the future and putting you up on game in the process. This game is invaluable because that knowledge can be applied to the other properties like likely have the SAME issue.

It always pay to invest a little more in a quality service.  They also get back to you timely. I had waited two weeks on the handymen and potentially ruined my brand with the tenant. I will have to hustle to get that back.

Do things afraid

As I said on the podcast, everyday I am scared that things wont work out but I am learning and growing through this process. Like Ivy Investor said on a show I can’t remember, sometimes you have to do things scared. If you aren’t scared you likely will be in the same place you are now a year from now. I embrace the fear and I grow into greatness.

There is an ant problem (I’m not sure why she couldn’t just use some raid) and because of the ants burrowing in the rain was able to leak into the basement.

Well that is it for this week.

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Be great and invest well!

Todd Millionaire

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