agh re investing has its downs! - Posted by Chris

Posted by Barry (FL) on September 27, 2004 at 09:00:24:

You know, sometimes I think the only reason I’m in this business is for the stories!

Hey, how’s that chainsaw catching technique going? Have you got it mastered yet? LOL

See you tomorrow!

agh re investing has its downs! - Posted by Chris

Posted by Chris on September 25, 2004 at 11:18:07:

It is so easy in this business to get bogged down with the little downs that seem so huge at the time. We have a rehab and that we are selling and the next door neighbor for some reason is causing all sorts of problems. everytime someone comes over to look at the house he runs out to tell them how the house needs 30K worth of work and is not worth what we are asking, a state certified appraiser disagrees. Long story short after two buyers got cold feet we suddenly discover why, immediately call out attorney who threatens a lawsuit and I think the guy will shut up. Buyers that backed out put a stop payment on there check and we have to start all over again!

We just bought two 4 units and had to evict 3 tenants. So far between the repairs and the evictions we’ll be lucky o break even.

With all theese negatives I find myself frustated, negative and ready to hang it up. I’ve been doing this two years now and just started increasing my volume of more than 1 rehab at a time and we have started acquiring a few more rentals. I guess my question is is this how it is bad months and good months and you just have to suck it up and theese are the pitfalls of our business, because sometimes I think I may being doing something wrong, that everyonelse isn’t going through theese frustrations there business is running smoothly.
sorry so long thanks for any expert advice

Re: agh re investing has its downs! - Posted by Handy Man

Posted by Handy Man on December 01, 2004 at 18:30:00:

Reminds me of my last HUD purchase. When I went to look at the property for one last time before I closed on the deal, a beer toting “helpful” neighbor wandered over to give his 2 cents on the property. His list of reasons why I shouldn’t buy the property was - the plumbing and electrical system was shot, the house has flooded many times since he’s lived in the neighborhood. I was thanking him for sharing his knowledge of the property when he messed up and said that a buddy of his put a bid in for the property. Just can’t trust people when money’s involved…

Where’s the bad part? - Posted by Ben (NJ)

Posted by Ben (NJ) on September 27, 2004 at 10:30:10:

The good news is your tenants left (and without taking half your property with them!) Sounds like your ahead of the game to me. :slight_smile:

Someone always has it worse than you!! - Posted by JeffGinFL

Posted by JeffGinFL on September 25, 2004 at 20:42:09:

I know just what you mean…

Just this month I’ve completed my first eviction - a drug addict who brought a trick home with her and wouldn’t leave while I was changing the locks…that was lovely.

A hurricane damaged house - 3 trees through the roof. Try getting through to your Florida insurance company…MANY hours spent waiting on the phone to speak with someone and that’s when I call as soon as the place opens each morning…tenants are strapped to pay rent because husband suffered a heart attack last month (terrible health insur meant they came out of pocket for big bills) and they used up their money staying in hotels due to hurricane damage.

A closing that supposed to put $35K+ in my pocket this past Friday…delayed because the buyers lender is in South FLA and sent all their employees home early due to Hurricane Jeanne so the loan package didn’t get sent to my title company.

And did I mention that I fell out of a tree on Thursday…not really so bad until the chainsaw I was using on said tree came down after me and I proceeded to catch it with my face…The doc says I won’t loose my two front teeth (saw hit me handle side thank God…if it had been blade side I wouldn’t have an upper jaw right now!) and the lovely shade of purple that now graces my HUGE upper lip, nose, gums, and lower chin will fade in a week or two…

But hey, while I was working on a rehab today a lady 2 houses down came and told me she’s 3 months behind today…she wanted to know if I would talk to her about her house and could I help in some way…I studdered (that’s about all I can do right now) “Of course, let’s go take a look at it.”

August and September have been two of the toughest months I have ever experienced IN MY LIFE …but my wife tells me every day that she loves me, my kids greet me with screams of joy (at least I think its joy and not terror from my new appearance) every time I walk in the door and every day someone needs to sell a house - fast.

That’s what keeps me going every day and puts me to sleep each night telling myself - I can’t freaking wait for the sun to come up so I can do it ALL again - no changin’ nothing!!!


Riding out Jeanne at my PC!!!

Re: agh re investing has its downs! - Posted by DP (ON)

Posted by DP (ON) on September 25, 2004 at 12:56:43:

I don’t do rehabbing or rentals, but I have frustrations to deal with all the same. I just had a seller threaten to sue me after the deal was complete. Of course my contracts are iron-clad so the seller doesn’t have a leg to stand on.

We all go through the trials and tribulations. REI is no different than the rest of life.

Re: agh re investing has its downs! - Posted by jasonrei

Posted by jasonrei on September 25, 2004 at 12:01:31:

I’ve only been doing rehabs 3 yrs. I don’t know all the ins and outs. Every month I make stupid mistakes that cost me big bucks. Every month something new comes up and bites me on the butt. Still, each month I find myself a little bit smarter, a little more efficient.

When my partner and I started, we wanted to do 4-6 deals in a year. We didn’t hit too many snags. We went for more. At 2 deals a month, we had some growing pains. At 5 deals a month, we’re suffering even MORE growing pains. Thing is, we have more stress, more frustrations, BUT the paydays are bigger.

I honestly believe we suck at this business. The gap between where we are and where I envision us being someday is tremendous. As long as we’re making steady improvement, though, I’m okay. I’m not saying it’s okay to mess up, it’s not.

You know, I thought guys that have been doing this for yrs had it all together. I know 4 bigtime rehabbers, I thought they were the sh*t. After getting to know their businesses a little better, I’m no longer in awe. 3 of them, their nets aren’t what I thought they were. They mess up more than ME!

I get so frustrated sometimes. I would quit if I wasn’t making so much.

Hey Jeff, hope Jeanne treated you well. - Posted by Barry (FL)

Posted by Barry (FL) on September 27, 2004 at 01:05:48:

How’s your face?

Does it hurt?

It’s killing me!!! ROTFLMAO

Hope all is well with you and yours. We made it through just fine and dandy. Dodged another bullet!

Speaking of that d*&%#@mned title company, what’s the deal and when’s the close?

Daddy needs a new pair of shoes!

the life of a real estate investor is never dull - Posted by Anne_ND

Posted by Anne_ND on September 26, 2004 at 09:27:03:

Jeff- glad to hear you survived your incident with the chain saw.

This week I found out that a trailer I just bought on 5 acres is so riddled with mold that I have to burn it down instead of sell it. My repair guys couldn’t believe how calm I was. They said “wow, you must have gotten a great deal on this mobile home if you’re so okay with tearing it down”. But really it’s just this sense of calm that descends when something really sh*tty happens with real estate. It would have been far worse if I’d sold it and THEN found out it was full of mold.

Yesterday we spent the day at a new rural property that needs a LOT of work. We came home to a backed-up sewer drain in our own basement. Because of that and some other deferred maintenance that should have been taken care of years ago, we ended up spending most of Saturday night fixing stupid things and then washed off as best we could in the back yard under the hose (roto-rooter comes this morning). Thankfully it was warm out!

We commented to each other that we lived in a house that we’d never put a tenant into! I don’t really want my contractors to know where I live and after a day on a rehab I don’t feel like doing all the work that needs to be done, so we have just gotten by for a while… no more!

what a crazy, fun life.


Re: Someone always has it worse than you!! - Posted by kwack41

Posted by kwack41 on September 25, 2004 at 22:24:13:

Hang in there! The month is almost over and it looks like you are going to make it out alive.

Thanks for the laugh…I’m glad you have a good sense of humor or it might really be a bad month.

NO contract is IRONCLAD and… - Posted by David Krulac

Posted by David Krulac on September 25, 2004 at 19:16:58:

anybody can sue anybody for anything whether it has merit or not.

I once had a seller claim that they never signed a deed to me. In their attorney’s office they went off on this line. I had taken a notary to their house and had the deed notarized on the spot and recorded. when I produced the recorded deed their attorney told them to stop that line of denial.

Re: Hey Jeff, hope Jeanne treated you well. - Posted by JeffGinFL

Posted by JeffGinFL on September 27, 2004 at 05:10:19:

Jeanne hasn’t taken me out!!!

Closing is set for Tuesday Barry…hold your shoes until then!

You wouldn’t believe what happend on Saturday night/sunday morning…at 1:15am I get a call from the local police that the woman I evicted earlier in the week has just broken into that same rental home…the cops found her all cracked up and passed out on a mattress. Problem was that they had no way to secure the property as the front door had been damaged…so at 1:30am I threw on some jeans and a t-shirt and got in the truck with tools in tow and headed over there…just as hurricane Jeanne was starting to kick in.

Someday I’m gonna write a book!

Talk to you soon!

Re: Hey Jeff, hope Jeanne treated you well. - Posted by Barry (FL)

Posted by Barry (FL) on September 27, 2004 at 09:02:10:

After what you’ve been through lately. I think you need to continue doing this part time only.

If you did it full time, it would probably kill you!