Multimillionaire Mind: The 5 Stages of Wealth

 

 

 

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More than a decade ago I read the Idiots Guide to Getting Rich. The book primarily spoke about stock investing rather than real estate but the one thing that stood out from the book was introducing the 5 stages of wealth. I currently measure my wealth building by those 5 stages and now I wish to share it! Here they are: Continue reading “Multimillionaire Mind: The 5 Stages of Wealth”

Being Wealthy and a Bum are the same thing? Say what?!?!

Being a bum is the same as being wealthy. I know what your saying. Your crazy! But believe it or not, it’s true. Being wealthy and being a bum on the streets share one common trait. More freedom than the rest. Continue reading “Being Wealthy and a Bum are the same thing? Say what?!?!”

Dogs: A Landlord’s Perspective

Dogs, doggy, scooby doo. They are cute and mean. The are lovable and smell. They keep us mentally healthy but need a lot from us. They shit and pee. I have a doggy. She shits and pees all the time. When they are young sometimes they poo and pee on you! On a rental property its a gamble, a crap shoot, a roll of the dice. Should I accept a doggy or not? Continue reading “Dogs: A Landlord’s Perspective”

Multimillionaire Journey: Net Worth 1

Every month or so I track my net worth. I go through all my assets with value and subtract it by all my liabilities. Usually I would do it on a notebook I have full of strange ideas and realistic goals. Now that I have this blog….I will be doing it here. Here we go: Continue reading “Multimillionaire Journey: Net Worth 1”

Multimillionaire Journey: My Credit Card Bills are Too Damn High!

My credit car bills are too damn high! If you have read my blog articles Credit Cards: Leveraging the Right Way and Bought a Bargain Property: Now What?, then you know I used many credit cards to pay for a remodel on the new property purchased. My wife and I decided to move into the property and lease out our old home. The remodel took a bit of life from me but we pulled through but now we have to pay this darn debt. A month ago it was $70,000 on credit cards! Yikes! This is not helping my Multimillionaire Journey at all.

Continue reading “Multimillionaire Journey: My Credit Card Bills are Too Damn High!”

Investment Tip 2: A Few Methods for Buying More Property

I have come across several residential investors throughout my time in real estate. Below are a few of the people I have met and their methods!

The Owner Occupied String Method

Before purchasing my first property I was simply dropping in on open houses as a lookie loo. Every time I would see a sign I would stop my car and go inside to talk to the realtors there. One day I was chauffeuring my parents to their friends house across town when I saw an Open House sign. Without thinking twice I stopped to take a look inside. Continue reading “Investment Tip 2: A Few Methods for Buying More Property”

Why Be a Slumlord?

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Why be a slumlord? Because it’s very easy. The less you do on a rental property the less money you spend, the more short term money you get, and the less time you spend on the property. That sounds great in the short term but then you end up with a tear down. I am not a slumlord. That means I spend more money, get less money on a short term basis, and spend more time on the properties. I don’t want future tear downs. These last few months I had to prepare 4 vacancies for rent, three in the last 3 weeks, and many repairs also popped up. I have been swamped because I do most of the preparation and repairs myself. That has given me little time to write on this blog.

About a week ago I was installing a built-in microwave that went bad and thought to myself how much I would be charged to outsource that job. My guess would be about $150. Then I thought about all the other stuff I had done to get that property ready for lease and its probable cost if I had outsourced the labor. Below is the breakdown:

Install Microwave: $150 labor; $400 for microwave

Paint 3 bedrooms, 1 Hallway, 1 bath, plus baseboards: $1200 labor; $150 for materials/paint

Caulk baseboards and ceilings on about half the house: $300 labor; $30 in caulk tubes

Take out large Mirror and replace with double single mirrors: $150 labor; $70 new mirrors

Clean Gutters: $100

Mow and edge lawn (big yard): $70

Paint and install all door knob hardware: $150 labor; $7 in paint

Applying Tile Sealant on all tile: $200 labor; $60 for sealant

Replace old faulty toilet: $150; $110 new toilet

Paint all closets and pantry: $400; $30 for paint

Change out faulty exhaust fan motor and light switch: $200; $20 for fan and switch

Patch large cracks with cement on front porch steps: $80

Fix Garage door sensors: $100

All together we have a grand total of $3250 for labor that would have been spent to get the property ready. But wait there is more. I outsourced professional cleaning at $160 and carpet steam clean at $165. The carpet despite the steam clean still showed many stains so I opted to install new carpet for 3 rooms at $1050. All in all if I outsourced all the work done I would have been spending about $4625, plus materials of about $877, for an ultimate grand total of $5502! Geez…why even go into the real estate rental business? Well, as for me I saved about $3250 by doing all that work myself but did I really save? I spent so much time on all day weekends and late evenings trying to get things done. I have to wonder?

And this is just one vacancy. Now imagine the time and money spent on the others. Now granted not all vacancies are so labor/cost intensive, some less, some more. But all eventually will be as intense or even more intense when bathrooms and kitchens need updating. No wonder we have slumlords.

I imagine some landlords who have to outsource all the labor, attempt to do the minimum and not fix faulty items because of the high costs. They may not have the money or do not want to spend the money. In a few years, one day they look in the mirror only to find out that they have become slumlords. Then they may hide behind management companies. The management companies hold the burden of all the complaints but can not do anything unless the landlord offers money to correct an issue. The management company has a list of excuses why a problem can not be corrected or they lie and say it will be corrected but never do.

I just gathered all my information to do my taxes. That is the only place I see some type of relief for all the work and expenses done on all the properties. All repairs are deducted from our taxable income which is an added help during tax time. Maybe it’s not so bad being a landlord afterall. Maybe.

There are big ticket stuff like two years ago when I spent $14,000 on new siding on another property. Then there are the small costs here and there that add up to big numbers. I have boxes full of receipts. I have a contractor account at Home Depot and Lowes. Sometimes my clothes are covered with paint, grime, and dirt. My van is full of tools and debris. I take calls and correct problems on a constant basis. I do not hide behind management companies but sometimes I wonder if I should? Everybody thinks its easy. I say its not and they don’t believe me. Being a slumlord is easier. I am not one of those.