With this being our first full week home from England and my first week back at my full time job in the Navy, I was still able to get a lot accomplished. I believe that is because I had 4 days off prior to going back into the office on Monday and I was efficient and focused during the time I had available to work on the business. I’m sure my wife would say I was working too hard and she is probably right. Here is what was accomplished this week in my world of real estate investing:
I got the renovation budget and contract finalized for the filled pool house that will be closing next week. This renovation will include gutting the majority of the interior, some wall removal, and a full kitchen and master bedroom / bathroom reconfiguration. There will be new floors throughout the house, HVAC replacement, electrical upgrade, bathroom tile, vanities, toilets, new paint throughout, appliances, you name it and it will be new! The only thing left of the original house will be the roof and some of the walls. There was an IRS lien on this house so I am waiting to find out if I need to delay the closing to be outside of the 120 day window or not. If everything goes well, closing on this house will be next week so expect some photos and more specifics on my next post.
I wrote in a previous blog post about partnering up with an out of state investor who wants to do a JV and rehab a house here in Pensacola. I found a good property a few weeks ago at the foreclosure auction but we didn’t win the bid on it last week. However, this week I analyzed another property going up for auction and he was the high bidder at the auction. There will be a lot more to come on this one in the future once I can get inside the house and come up with the scope of work.
I did a lot of administrative work for the business to get ready to bring on a full time employee. This included setting up Quickbooks for expense tracking, payroll items, contractor payment tracking, etc… as well as creating some training materials for her. It will be mostly on the job training when the phones start ringing, as you can never really predict what kind of calls you will get. But, I can pass onto her the things I have heard over the last few years to prepare her as best as possible.
I met with a local CPA for a question and answer session as well as to determine whether she is the right one to be doing my taxes from year to year. I have a lot going on when it comes to tax time so I want to make sure the person I pick can handle all of these things and will maximize my deductions. I have been doing my own taxes forever so it will be difficult to give this is up and change my way of documenting everything. A move to Quickbooks is a big step for me but I can already see that it will help tremendously at the end of the year and allow me to see the company’s profit and loss statement a lot clearer.
Since I have been writing this blog and speaking to more people about what it is I have been doing and my goals for 2016, I have gotten some interest from potential lenders. These have been friends or work colleagues who want to see a larger return on their retirement funds (IRA, 401k) or savings. A lot of them didn’t know that they could self direct their IRA or 401k into real estate and lend it, buy a rental house, purchase a commercial building, etc… So, I spent some time this week speaking to them and telling them what I could offer. I think this is such a big topic and deserves it’s own post so I will go into this deeper in the next few weeks.
I finalized this years marketing plan, decided on and setup a phone system, purchased the first list I will use, and ordered the first month’s direct mail letters. They will go out shortly and then it will be time to make some deals! I will write another post specifically on this whole system, who I used, why and how it is turning out.
So, I hired a full time lead manager / assistant last week. She was the most highly qualified applicant and has been working in the sales industry the last few years. She has a solid background in residential real estate to include working as a real estate agent and in the mortgage industry. There are a lot of differences between what I do and what 99.9% of the real estate agents do so there will certainly be a learning curve. However, it will be great that she already has a foundation in the real estate basics. She is also incredibly motivated to get out there and hit the ground running so I have very high hopes for her in the future. The worst part about hiring someone was breaking the news to the other 50+ applicants that they wouldn’t be getting the job. The only advertising I did was on Craigslist and the ad was only up for 10 days, what a response. I don’t know if I should attribute this response to the area I’m in and employment rate, the excitement and interest that comes along with real estate investing, or maybe the wording of the ad was just that good? I had a lot of extremely qualified individuals with impressive resumes applying and ready to leave their good paying job to come join my team and get started in real estate. I enjoyed speaking to all of the applicants and I hope that I will be able to grow our team in the next 6 months to a year. With permission from my lead manager, I will give some more information about her and hopefully have her write a blog post one week so you can see things from her eyes.
It was a very busy week but a lot got accomplished. Next week should be great too, I have a training call with my lead manager today, an investment club meeting on Tuesday night for networking, closing on the filled in pool house is scheduled for Thursday, and hopefully I will be able to get inside the house we bought at the foreclosure auction.