investment

January 22, 2015

Pull the trigger and ride the bullet.

If you are going to fire a gun, there is an old saying:  Pull the trigger and you ride the bullet. In other words, you take full responsibility for what happens not just at the time when the bullet blasts out of the muzzle of the gun, but for the entire flight of that bullet–where it goes, what it impacts, and beyond. In real estate investing, responsible investors practice this principle.  They know full well that they, NOT someone else, is responsible for everything that occurs on/in/around their units.  In addition, they are responsible for making sure that they have the financial resources available to fix things that go wrong, replace parts that wear out, and the shear guts to make the tough decisions. Also in real estate practice, responsible agents practice this principle.  It has become quite fashionable for agents to provide counsel to Buyers and Investors on the […]
January 30, 2015

I’m a sucker for watching The Outlaw Josey Wales every time it is on TV. My absolutely favorite scene is the “Missouri Boat ride”.   Josey is riding for his life, chased by the infamous Red legs.  But instead of hustling, he naps.  One cool cat.  Watch the clip below then read on….     https://www.youtube.com/watch?v=t-KEnU9TBmQ&app=desktop
February 3, 2015

How to Maximize your Rental Revenue from real estate

Each landlord we work with has a unique problem—filling their rental vacancy.  On the surface, It may seem like a unique problem to only this industry.  But when you apply business topology, the problem becomes quite common. In fact, there are at least 3 other industries who have almost the exact same problem. Unsold inventory. Billboards, hotels, and airlines all HATE unsold inventory because the moment when time passes, it is utterly worthless. As soon as the date changes on a hotel room with vacancies, that hotel cannot make up the lost profit.  Same with the radio station with unsold advertising slots for radio commercials. Same for airliners that taxi and take off with seats missing rear ends sitting in them. Same for landlords. Which is why we are a strong proponent of aggressive and early marketing of properties with vacancies coming up soon.  Think about the math here…. If you rent a […]
February 6, 2015

How to Hire a Property Manager Correctly…

Below is an unaltered, unedited email from Ken Anderson, a Client of Polaris Property Management.  Enjoy.} On Feb 4, 2015 7:08 PM, “Daniel Baldini” <dbaldini@polarisbrokers.com> wrote: Hey Ken, I need a favor from you, please. You have a unique situation as a landlord whereby you switched from an owner to landlord with a management guy, fired him, and hired us. I’d like to have your first-hand observations of the differences between the guy you used to use and your experience with Polaris. Would you be willing to type out your thoughts (even if simple, run of the spout stuff without editing) so we can help others understand why they should consider hiring us in the future? It would mean a lot to have it in your words, in your ideas… Dan Baldini, MBA (Ken’s response….) Sure. Here you go.. To whom it may concern, In the fall of 2013 I […]
February 17, 2015

New Tax Laws that affect Real Estate Investors and Landlords

The IRS has issued new guidance and regulations that will complicate your tax returns this year and will alter your decisions on how you operate your real estate investment properties.
May 19, 2015

Why you MUST collect Security Deposit and 1st Month rent at time of lease signing

  One of the most frequent questions I receive from novice landlords is what funds to collect at lease signing. As fast as an Indy 500 car slams into the 3rd turn wall I respond with “Security Deposit PLUS 1st Month’s rent”. The reasons are simple for why you should require both to be paid at once but they all congeal into one simple concept: RISK MANAGEMENT Successful real estate leasing is almost all about risk management and the simplest way to minimize this risk is to force the tenant to have skin in the game.  Collecting essentially 2 months rent value at time of lease signing is plenty of skin for most tenants. It also sets the stage for the tenants to expect a certain standard of engagement with you as the landlord–you aren’t joking around with an important business transaction. Finally, it is an excellent secondary screening method–after all, if they don’t have […]
July 16, 2015

Sewer & Drain Backup Endorsements for Rental Properties

  Not exactly what you want to find in your house.  Definitely not what you want to hear about in your rental property. If you have a rental property with a basement, this is a reality that you likely will have to deal with, but there are ways to mitigate the risk as well as outcome. Two perspectives come into play here–that of the Landlord and that of the Tenant. (Standard disclaimer here before we get into the nitty gritty:  I’m not a licensed insurance agent and the comments below are not intended to be taken as providing such professional insurance advice.  Please contact a licensed insurance agent to discuss your particular situation.) Let’s look at the Landlord issues first… Make sure you replace your sump pump approximately every 3 years, even if it is functioning.  It’s a motor and moving parts.  Things break, wear out, get stuck.  Better to […]
August 24, 2015

Your Rental property is not worth what you think it is…

August 24, 2015 Today’s New York Stock Exchange activity was historical. Ouch. We may be in for continued volatility for the near term in the equity markets, which reminds me of how this relates to your rental properties… When I speak with new potential clients, the conversation usually goes something like this…. Property Owner: “I’d like to rent out my house, but I need to get at least $1500 a month because we bought it at the height of the market in 2008 and owe too much on the mortgage still to sell it. Can we get that amount for the house?” Me: “Well, according to the market comps and the demand for your house, I don’t think we can get anything higher than $1300 a month.” Property Owner: “But you don’t understand. I NEED $1500 a month in rent.” Me: “I certainly appreciate your needing to maximize the revenue […]
October 2, 2015

Millenials ARE INDEED moving to suburbs….and the impact on mass transit plans

Over the past few years, State and city officials have been GaGa over introducing enormous plans for mass transit to Indiana and Indianapolis, specifically.  The  most recent projections I’ve read include the estimate of approximately $1.1 Billion over the next 10 years. The urgency behind such a huge undertaking?  The theory that Millennials aren’t moving to the suburbs, but only want urban areas to reside and they demand mass transit, otherwise they will not relocate to Indy. In other words, it’s about trying to attract them to Indianapolis for high paying jobs. Uhhh…..only one small tiny problem with their hypothesis:  they have zero quantitative data about this projected human behavior pattern on which they are gambling tax payer money. Today’s Wall Street Journal doesn’t help their argument either.  Case in point:  Millennials are the FASTEST GROWING class of car buyers.  Here’s the entire article: Somehow, their choo-choo train idea seems to […]
October 9, 2015

Use your rentals to help pay for kids college

Did you know there are options to use rental properties to help pay for your kid’s education? Here’s an article describing the IN’s/Out’s on exactly this strategy: Using Rental Property for College Education Expenses As always, if we can assist, call or click. Dan Baldini is the Founder of Polaris Real Estate & Polaris Property Management, LLC and has been an Adjunct Professor in the College of Business Finance Department at Butler University in Indianapolis where he taught Real Estate Investing. Dan focuses his practice on the residential real estate markets including Indianapolis, Carmel, Zionsville, Fishers and other surrounding areas. Dan continually seeks out new resources for Team training and education in order to keep all the Team members skills on the leading edge of real estate best practices. He is an active real estate investor himself, owning and managing a portfolio of investment properties in the Indianapolis markets. A resident of the Northside area since 1979, Dan […]