God Bless Texas. Hurricane Harvey has unleashed devastation on Texas. Our prayers for those who have lost loved ones, those who have lost property, and those First Responders doing everything in their power to rescue their neighbors. I personally have Clients who live in the Houston area impacted and it’s going to be a long haul for them to recover….Literally years to financially get back on their feet….But hopefully sooner for them to get back on their spiritual feet. If you can assist via a charity or other organization, please consider doing so. If you have already assisted or donated, THANK YOU. In lieu of today’s traditional 5-Minute Friday, I’m resurrecting an old blog article from 2015 that has important points to consider regarding protecting your rental property and tenant’s personal property from water damage. Sewer & Drain Backup Endorsements for Rental Properties Stay safe down there in Texas, […]
The Indiana General Assembly finally passed clarifying language on occupancy standards. If you’ve had to battle this issue with prospective tenants applying for your property, crack open an adult libation to celebrate. This new language offers you better protection from Fair Housing lawsuits alleging discrimination due to disparate impact against families with children. Beginning on July 1, 2017 the below state-wide occupancy standard will go into effect. Sec. 7. (a) The residential landlord-tenant statute (as defined in IC 32-31-2.9-2) does not prohibit an owner or landlord from refusing to rent a rental unit on the basis of a reasonable occupancy standard. (b) For purposes of this section, an occupancy standard is presumed reasonable if: (1) it permits two (2) individuals per bedroom; and (2) the owner or landlord: 9100 Keystone Crossing, Ste 725, Indianapolis, IN 46240 (A) does not include infants less than one (1) year of age in the […]
I was chatting with a lady at a local association meeting who was nervous about her retirement coming quickly in less than 10 years. She was, as many folks just like her, not prepared financially to put up her spurs and sip on a fruity beverage on a beach. After lots of dialogue, it hit me like a ton of bricks. This person owned zero real estate besides her home. And she is a licensed REALTOR. Why would a person in the industry not take advantage of the unique opportunity they have to increase their wealth? It boiled down to ignorance and fear for her. Literally sat there shaking my damn head…. So, the question on the table is this: Should you invest in rental properties for income when you retire? My short answer is this: 90% of you in this audience probably fall into the damn ignorant stupid foolish category if you […]
A number of years ago, I went to the Indy 1500 Gun Show with a buddy. He was in the market for a specific rifle; I was looking to buy a .40 caliber pistol. We wandered for two hours among the booths and tables and came upon a re-seller dealer from northern Indiana who was selling almost exclusively Glocks. And they were priced very aggressively. (Side note: If you’ve never been to a gun show, it’s truly one of the bucket experiences to complete, even if you’re not a firearms enthusiast. You have thousands of people walking around buying and selling and trading everything from firearms to ammunition to hunting and camping and survival gear to even jewelry. And every single person is on their best behavior saying,”pardon me” or “I’m sorry” or “excuse me” when they accidentally bump into you. Very polite and well-mannered people.) Anyways, I find a […]
A few weeks back I wrote about 2017 as a fulcrum year…..if you missed it, here’s the link: http://danbaldini.com/2017/02/20/2017-is-a-fulcrum-year/ Since that post, a few enterprising individuals have emailed or PM’d me asking for more clarification on how they can make 2017 a great year fulcrum year for their rental operation. (Actually, one of my more direct coaching clients comment was,“Baldini–I’ve read your article 3 times now…What the Hell are you talking about?”…….I love it when people are direct.) Here’s what I told them: Move Your Fulcrum Imagine the classic teeter-totter from a playground. It has a long beam with two seats at the ends and a fulcrum in the middle. Well, if there’s a heavy kid on the one end, in order to lift the heavy kid up, you either have to have an equally heavy kid on the other end or use an immense amount of force to push down your […]
The Right Stuff. Astronauts. Jet planes. Test pilots. The stuff of childhood dreams. The stuff adults might want to study again. Chuck Yeager was one of my childhood hero’s and still is one of my adult hero’s, but not simply because he broke the sound barrier. If you’ve ever read his autobiography, you get a picture of a self-deprecating, fun-loving, Appalachian born man who was born to fill his destiny in history. He loved to fly. He had the physical abilities for it. And he had grit. Plenty of it. But the real story of Yeager’s success and place in history is that it shouldn’t have happened to him. Instead, probability says there should be a street named for him at Edwards Air Force Base in California. Dozens of test pilots with college degrees and more “stick time” than Yeager have streets in their names there. (Streets at that base […]
The title of today’s post is derived from the famous scene in the movie, The Godfather. It takes place when Michael Corleone rebukes his brother about an impending action the family is about to take to avenge the shooting of their father, “It’s not personal, it’s just business.” If it’s been awhile since you’ve enjoyed the movie, here’s a link to the clip…The Godfather. If you’ve been a landlord for more than one week, you know human beings, at times, can be messy. Messy in their housekeeping. Messy in their organizational ability to pay the rent on time and plan their household expenditures. And finally, messy emotionally as they juggle the demands placed on them by work, family, finances, and societal expectations. That is part of the human condition. It’s best to accept these shortcomings and embrace them for tremendous success in your rental properties. Or don’t accept these shortcomings and get […]
Tick Tock…..time stops for nobody. We are quickly approaching the end of the calendar year and for most investors and property managers that means the end of your tax year, too. As such, it’s time to consider how to best wrap up your 2016 for maximum effect towards your Financial Freedom. Here’s some boxes to flip up the flaps and peer into: YTD P&L: Yes, it seems like this should be self-evident. But after counseling hundreds of investors and property owners, what constantly comes across is how frequently this review gets skipped, especially when profits are strong. However, doing a quick review now is beneficial to compare the P&L to past years to confirm if any expenses are perhaps out of line–both too high and too low. Both can be valuable indicators of something to dig into deeper. (Sidenote: To get a quick and accurate ROI on your property’s profitability […]
Why do sooooo many investors lose money on real estate? ….Because They Buy: The Wrong Real Estate At the Wrong Time For the Wrong Reasons In the Wrong Way From the Wrong People In the Wrong Location Using the Wrong money/financing The investors who have epic failures typically combine more than one of these reasons. Don’t be an epic failure. Be an Epic Success by getting educated and being disciplined.
Things happen when you run a rental property operation. That’s why there’s the phrase you see on bumper stickers that says “**** Happens.” As such, two primary choices present themselves: Be absolutely rigid and unbending in your policies and procedures….or…..Be absolutely flexible and have strength in your policies and procedures. What I mean is captured in this video below. As you watch it, consider the possible scenarios in your minds and do the metaphorical application to your rental properties, your tenants, and your landlord clients if you are a property manager. So….Is your operation flexible and strong enough to break your ‘cement blocks’? Or will you end up crushing all 27 bones in your hand?