Eviction: The Other Way To Handle It

9 February 2010

Eviction ImageEveryone thinks being a landlord is all fun and games. You sit back each month and just let the money roll in. I have even talked to some landlords that complain about what a pain it is taking all their rent money to the bank each month. Don't get me wrong, being a land lord can be a very rewarding job, part time or full time, but this week has been particularly hard for me as a landlord. Which reminds me there are times that this job is not very rewarding both emotionally and financially. I had to evict a tenant this week for being over 30 days past due with rent. These days people are not past due with rent because they are just unwilling to pay rent, they are past due because they truly have no money. This particular tenant truly has no where to go nor the means to go anywhere. The particular labor market this tenant works in is just dry right now. There is no work. So I am left with a very big decision to make; Do I move forward with the eviction, or continue to hold out. Part of me says it is my American duty to help out others in this slow economy, and part of me (the business man) tells me I have to do what is best for my business. Furthermore, I also have the problem of this tenant might not have anywhere to go. I can post 72 hour notice but the tenant will not leave because they have no where to go. Leaving me with the addition hassle of having to file papers with the local court and have the tenant removed. Normally, this is the best way to go because then you would get a judgement for the amount owed as well, but if the person is not working you will not have any means to collect anyway. So whats the point?
 
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Real Estate Vs. Da Stock Market - Part 1

11 February 2010

One of the things that drives me nuts, is when I hear people say "Real Estate is my thing", or "Real Estate is what I am into". It is not a drug it is an investment! You buy Real Estate, (as an investment), for it to go up in value and maybe collect rent. Hmmm, that sounds just like buying a stock, and the rent would be the dividend (or even a stock buy back). Real Estate, (from an investment standpoint), is not a way of life. It is not something you are into. It is not "your thing". It is 100% an investment. So many people, particularly young people, don't get that. With this post I am kicking off a series of blog postings talking about the importance of understanding all markets not just the one "you are into". First of all lets clear somethings up. When I say Real Estate investment I am not talking about your home, or a vacation home. Those have personal emotional aspects; you need a home to live in and you love staying at your ski condo on the weekends. I label these assets as personal property, there is a luxury element you may or may not be paying up for. I am talking about the rental property you purchase, to collect rent, or even flip. Second thing I want to clear up, I am giving general statements and rough numbers in this blog series. With any investment there is always another side, another stat, another point of view. I get that. This is what makes markets if we all thought the same way no one would buy or sell anything. This is just one man's view. I hope you can share you view points in the comments below. Lastly, I am not talk to the people that do this for a living. If you are a Real Estate Developer, or a hedge fund manager you have built a business around a particular asset class. While I think every point I am going to make applies 100% to you as well you can make a business case against some of my statements and I might agree with you.
 
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Why Don't People Think In Terms Of ROI?

2 December 2011

Something that bugs me is entrepreneurs who are starting a company or making an investment but do not think in terms of return on investment, or ROI. Simply put, ROI is an estimate: if you invest a dollar how much will that dollar grow to? Typically you calculate your ROI as a percentage. Lets say I invest a dollar today and 5 years from now that dollar is worth $1.20. That means you got a 20% return over 5 years (or 3.71% per year). roi image Also, for the record this rant is not in relationship to the Mark Zuckerbergs, Bill Gates, or Steve Jobs of the world. These guys all started companies when they had no financial worries. The only risk was failing and going back to college. I am speaking the commoners, those who already have jobs. Those who already have a family. Those who already have a mortgage and a car payment. I am speaking to the people who buy rental properties, start web companies at night, or quit their job to go all in on a ice cream shop -not kids in dorm rooms (many of us missed that boat)
 
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