Archive for the ‘fixer upper book’ Category

Will Rogers’ Secret of Seizing Opportunities

Wednesday, July 17th, 2013

“It was not so much that Will sought the new opening as that he never failed to seize it when it came his way.” — Betty Rogers 

It’s nice to think that we are captain’s of our own ship and masters of our own destiny. Who doesn’t want to like Captain James T. Kirk or Bill Gates?

In my own case, I know that the reason I became the person I am today is by, not so much bending life to my will, but more by taking what life handed me, and by being keenly alert when a new opportunity presented itself.

That’s the way Will Rogers found success.

As his wife Betty said in her biography of Will:

His whole career was the development and unfolding of a personality through the various vehicles that seemed to be constantly and almost miraculously presenting themselves. His comment on stage on the stage during his roping act was incidental at first, if not accidental. (Will never spoke during his Vaudeville rope trip act, except when he once made a mistake and the audience laughed at his funny excuse. From then on, he incorporated that comment, and gradually others, into his act.)

His writing came the same way. (Will wrote a regular Sunday feature for the New York Times that was syndicated throughout the U.S.) His entrance into the movies, too, was not of his own seeking  (he starred in 69 movies). But once started in these new fields, he made the most of each, giving to them the same enthusiasm and energy he had given to the rope (tricks) in the early days.

I added the comments in parentheses to the text.

Meander in the Direction that You Want to Go

I know I’ve probably said this before, at least in Fix em Up Rent em Out, but a good way to get started in real estate, particularly if your circumstances are such that it is impossible for you to start investing in real estate right away, is to just start by meandering in that direction, like a slow, gurgling stream.

You can program your mind to pay attention to anything related to real estate. Cut articles out of the newspaper, buy books at book sales, tale to friends and co-workers about it, watch for seminars and classes about real estate investing. Sometimes desire and knowledge can be acquired simply by observing someone else operating a successful business.

And, when the opportunity does present itself to get started, like Will Rogers, seize it!

 

Upcoming “Turn Your Home Into a Rental House ” Radio Interviews (most shows can be heard  on the internet)

Friday, July 19th, at 7:45 am (eastern time), I will be interviewed by Gary Sutton and Chris Tyler, at WSBA 910 AM  in York, PA.

Friday, July 19th, at 8:10 am, I’ll be on Dan Ramey’s show on WBEX 1490 AM, in Chillicothe, Ohio.

On Thursday, July 25th, at 7:10 a.m. (central time) I’ll be on Jeff Anderson’s show, KSDR 1480 AM, Watertown, South Dakota.

On Friday, July 26th, at 7:30 am (mountain time) I have an interview with David Gillian, KRSN 1490 AM, Los Alamos, NM.

Tuesday, August 6th, at 8:10 am (central time), I’ll be on Bob Schmidt’s show, WLFN 1490 AM, Onalaska, WI.

Watch this space for information on additional interviews.

Related Articles:

Volunteering at Pascua Yaqui Youth Career Academy Job Fair

Dreams Still Come True

Friday, September 21st, 2012

Dreams come true: without that possibility, nature would not incite us to have them.” — John Updike

One of my favorite blog authors is Lynne Spreen at Any Shiny Thing. Her article “Our Dreams Persist” describes the long and winding road that she traveled to write and publish her book “Dakota Blues.” I admire her persistence in the face of many obstacles to hold tight to her dream and to finally see it come to fruition.

Reading her story of how she wrote her book reminded me of my own experiences.

I first determined to write a book when I was a Peace Corps Volunteer in Honduras in 1987. I didn’t have any idea, at that time, exactly what I wanted to write about. I just knew that I wanted to write a book that would be useful to others, and to hopefully inspire them along life’s way.

Time Marches On

It wasn’t until 15 years later, after starting my fixer upper and rental house business, that I began to put pen to paper (and fingers to computer keys) to begin writing my book. I thought that sharing my experiences with fixer upper houses would be that useful and inspiring book that I had imagined writing years earlier.

Four years later, through many iterations, and alternating periods of exhilaration and self doubt, “Fix em Up Rent em Out” was proudly rolled out on Amazon.com. Seeing my book finally published gave me a warm glow  that still shines inside me to this day.

The Seed Continues to Grow

What I find interesting, in both my experience and Lynne’s, is that once the seed of a good idea is planted, it grows inexorably and invisibly inside of us, until it eventually becomes reality. The fact that it takes years for the final completion of the dream makes it all the more satisfying.

Weekly Blog Roundup

Additional recent blog articles that I liked:

The Landlord Quick Fix at LandlordInvestor

21 Ways to Manage the Stuff that Sucks Up Your Time at Louisville Gals Real Estate

 Why is it Healthy to Change Bank Accounts? at Fearlessmen

Give your Family an Amazing Fall with these 8 (Frugal) Activities at Frugal Habits

Hording Gold at All Things Pondered

How to Save Money on Contacts and Eye Care at Work Save Live

How We Bought A $50K Duplex – Part 4 at plantingourpennies

Legal Battle Over a Sagging Balcony  at Blue Collar Worker

What Do You Do When You Don’t Know What You Want To Do With Your Life? at Untemplater

Auto Insurance Basics And Recommendations For Everyone at Financial Samurai

Household Budget Tips for the Upcoming Fall at My Money Design

Catering Your Blog To Your Readership at Modest Money

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Coming Soon!

How to Turn Your Home into a Rental House, Instead of Selling It

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants

Friday, August 10th, 2012

The Arizona Network of Real Estate invited me to give a presentation to their group about my book “Fix em Up Rent em Out.”

I thought the video might be available to the general public but it looks as though that’s not going to happen.

However, so that no one feels left out, I am going to provide  a summary of the key points that I hit during the presentation. As someone who was regularly picked last for teams in gym class, I’m sensitive to people feeling left out. Casting modesty to the wind, I am also including exclusive photos of the event.

So here are:

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants (based on an article by Andrew Stefanczyk)

1. Choose the Worst Possible Area

Location will determine the kinds of tenants you will attract, and how much rent you can fairly charge.

Do you want these bearded wonders as tenants?

The best approach is to identify target areas in your city where you would like to focus your purchases. I like to focus on “transition zones” (where there is a mixture of housing types) which are good for investors because we can purchase properties at lower prices, and there is high demand to live in these areas.

2. Put in the very best of things when fixing up  an investment property

Use new and expensive sinks, doors, refrigerators, light fixtures, etc. Never shop at stores that recycle construction supplies. Spare no  expense.

Of course, the problem is that tenants will not take care of our properties as well as we would,

Habitat Store

so we end up with many broken or worn out items. The better alternative is to shop at used building supply stores, and to purchase good, inexpensive, supplies for our rental houses. One such store is the Habitat for Humanity store.

3. Make sure you have absolutely no experience in make basic repairs

Not knowing how to change electrical outlets, unclog drains & toilets, and replace broken windows will cost quite a bit down the road.

The better way is to:

A. Learn as you go, and comply with EPA regulations

B. Take construction classes at junior college

C. Learn from handymen and contractors

D. Take the Zen approach to  house repair learn to do everything yourself

5. Utilize fix-up books, investing books, & YouTube to find answers on how to make house repairs

4. Do not screen your tenants

Being as uninformed as possible about who you rent to may be the best way to lose money as a landlord. Do not ask for or check references. Do not call previous landlords and ask questions like, did they pay rent on time? How was the condition of the house or apartment when they left? Did they ever disturb neighbors with loud music or shouting matches? How often would you have to make special trips for repairs? Being as uninformed as possible about whom you rent to will make a huge difference and will increase the chances that you will get tenants that will trash your property and refuse to pay rent.

However, the better way is to:

A. Use a checklist for tenants. Decide what kind of tenant that you want ahead of time.

B. Look at their paycheck to verify income.

C. Check county records to see what illegal activities they’ve been up to.

D. Know the Fair Housing Act. Never select tenants based strictly on “race, color, national origin, religion, sex, familial status or handicap (disability).”

E. To find new tenants, use Craiglist, put up arrow signs, and host an “open house.”

5. Make sure you have not learned about your rights as a landlord

Be completely unfamiliar with the eviction process to guarantee long, drawn out disputes with tenants. Don’t keep up to date financial records or copies of correspondence with tenants. Most states provide online information about tenant and landlord rights so avoid reading these.

The better way is:

A. Get an authoritative legal guide like  “The Arizona Landlord Deskbook” by Carlton Cassler.

B.  Copy forms and letters from your legal book to send to tenants.

C. Comply with legal ways to deal with bad tenants.

D. Use memos to communicate with tenants so you have a record of correspondence.

E. Use a month to month lease instead of long-term lease to more easily scrape off bad tenants like barnacles.

F. Reward tenants for paying on time by discounting their rent $25.  

G. Send good tenants Target  gift cards for Xmas.

In Conclusion

Share Your Knowledge

“Each of us has cause to think with deep gratitude of those who have lighted the flame within us.”

–Albert Schweitzer

Carve Out Your Niche Update

My award-winning book on self-publishing, Carve Out Your Niche, is now available in Kindle format.

The Midwest Book Review called Carve Out Your Niche,

“Invaluable for anyone seeking to successfully write, publish, and market their own work.”

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Remove that Garbarge Disposal Now!

Why You Must Own Certain Real Estate Books

Thursday, April 5th, 2012

The fixer-upper house business is a great business to be in these days. But, if you are just starting out, and are as green as a gourd, as I was, you need some help.

To speed up the learning processes, you need to have a collection of reference books on home repair, buying and selling houses, rental properties, tax law and all other aspects of real estate.

If a home without books is like a body without a soul, then a fixer-upper business without reference books is like a cook without a cookbook.

You may not know everything at the start of your new business and you may need help in some areas, especially in the initial stages. However, each time you pay to have someone do work for you, or go through some new process, you should observe everything, ask questions and learn the process.

That way, the next time you will be able to do it yourself, or at least perform a larger part of the project. The key is to keep doing things over and over until you master how it works. You will eventually reach a point where you make decisions of where to make repairs and which houses to buy based on your instinct.

Books will help you to reach that point sooner.

Here are some books that I have found particularly useful to have on hand:

1. Fix em Up, Rent em Out, by yours truly. Yes, believe it or not, I read my own book! Anyone who says otherwise, is just itching for a fight.

2. Investing in Fixer Uppers, by Jay DeCima. His first, and still my favorite, of his books.

3. Investing in Real Estate, by Gary Eldred.

4. Arizona Landlord’s Deskbook (or the equivalent for your state.) by Carlton Casler.

5. Real Estate Debt Can Make You Rich, by Steve Dexter.

6. Wiring 1-2-3, by Home Depot

7. Plumbing 1-2-3, by Home Depot

8. Tiling 1-2-3, by Home Depot. Are you getting the impression that I like the Home Depot books? In addition to mastering the art of tile installation, I made my first grout repair after reading this book.

9. Fix it Yourself Manual, by Reader’s Digest.

10. Upside Up Real Estate Investing, by Bob Zachmeier (teacher of the first real estate class that I took).

Follow Your Dream With Fixer Upper Houses

Wednesday, February 8th, 2012

Go confidently in the direction of your dreams. Live the life you have imagined.
— Henry David Thoreau

While you pay a price for following your dream, you also pay a price for staying where you are. You lose the opportunity to develop new life-coping skills that help you deal with unexpected crises or joblessness. You may suffer from depression by staying in a debilitating job.

Marsha Sinetar, in To Build the Life You Want, Create the Work You Love, says that excelling at a job that you love could be the best mental health insurance for people who feel depressed or anxious about their work. Americans spend $12.4 billion each year to treat clinical depression.

Do You Have Zest and Gusto?

Science fiction writer Ray Bradbury, in Zen and the Art of Writing, wrote that, “life is short, misery sure, and mortality certain.” Yet, he advocated that as we move along life’s way, and in our work, our lives should be filled with “zest” and “gusto.” With zest and gusto, traveling to the grave, Bradbury vowed to fight injustice, appreciate beauty and encourage children.

Is there enough zest and gusto in your life to fight in-justice, appreciate beauty and encourage children?

What do You Trade Your “Life Energy” For?

We should wisely use the time that we must devote to work. Our working hours constitute at least one-third of our lives during the work week. As Joe Dominguez and Vicki Robin point out in Your Money or Your Life, money is what we chose to trade our time, or “life-energy,” for. The authors distinguish between “wants” vs. “needs,” and promote not wasting money on unnecessary consumer goods. Instead, they advocate conscientiously saving money until you reach the point where you can free yourself from the working treadmill.

Fixer Upper Houses was Right for Me

The independence of working with fix-up houses was this type of “right” job for me, and can be for you too. It can be the road to operate a business that develops one’s independence, creativity and imagination. With real estate, you can invest a small amount and gradually accumulate money as both your rental income and equity increase over time.

Video of TV Interview for “Carve Out Your Niche”

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Property Inspection and Due Diligence

Saturday, January 28th, 2012

Although I used my handyman friend to inspect the first fixer upper house that I bought, in later houses I hired a professional property inspector to go through the house and to provide me with a complete inspection report.

The Value of the Inspector’s Report

The inspector’s report can be used to help you negotiate a lower price on the house if they uncover anything in the house that is in need of repair. Hiring a qualified property inspector is a good way to make sure that you are really getting what you pay for in a house.

Due Diligence Allows You to Correct Deficiencies

Once you have made an offer on a house and it had been accepted by the seller, the “due diligence” period begins and you have until the close of escrow (or completion of the sale) to check out the physical and financial condition of the property. If you discover that the property has problems, but you think the deal is still worth pursuing, the seller may be willing to correct any deficiencies, or give you money to complete the necessary work yourself.

Two Key Components of Due Diligence

There are two key components of due diligence process:

1. Review of books and records
In my case, there are usually no records to review. Most of the houses that I buy have been fixer-uppers repossessed by a bank, the Veterans Administration or HUD, and the owner is long gone.

2. The physical inspection
When there is no owner present this makes the physical inspection all the more important.

The due diligence period is your last opportunity to either:

1.) complete the transaction, or

2.) cancel the escrow, have your money returned, and look for another property.

“Carve Out Your Niche” TV Interview Monday

How to Turn Your Home into a Rental Property – Radio Interview with Ron Ross

Thursday, August 26th, 2010

I was interviewed by the engaging, master radio host, Ron Ross of WJBC 1230 AM in Bloomington, Illinois this morning.

I talked about how to turn a home into a rental property, including:

– how to do the financing

– getting good tenants

– taking advantage of tax breaks

– and preparing the old house to rent.

Before the show I heard Ron going through the news and he said that ratings were so bad at CBS that Katie Couric was showing up to work in sweat pants, a tank top and a ball cap too.

So, during the interview, I mentioned that one of the advantages of working with rental properties was, like Katie Couric, I can show up to work in sweat pants and a ball cap.

Listen to the entire radio interview.

Upcoming radio interviews

September 2 at 7:40 am, Good Morning Rochester with Rich Peterson, KROC 1340 AM, Rochester, Minnesota.

September 2 at 11:25 am, John Brown’s Mindset, KTRS 550 AM, St. Louis, Missouri.

September 15 at 8:05 am, the Dan and Mike Show with Dan Ramey, WBEX 1490 AM, Chillicothe, Ohio.

William Nickerson – real estate better than stocks

Thursday, August 5th, 2010

William Nickerson, in his book How I Turned$1,000 into Three Million in Real Estate – in My Spare Time, said “you success with real estate properties is enhanced because you can retain control of it.”

Many people have made money in stocks, but they relinquish control of their money, except when to buy or sell.

When investing in real estate properties, you can retain personal control in all stages of the selection, operation and improvement of your investments. You are the captain of your own ship.

More radio interviews scheduled

Aug. 10, 9:10 am, Dave Kelber will interview me, WRNJ 1510 am Hackettstown, New Jersey.

Aug. 11, 8:10 am, Mark Wayne will interview me, WICH 1310 am, Norwich, Connecticut.

Aug. 17, 6:50 am, Jason Mansmith will host me, WRPN 1600 am, Ripon, Wisconsin

Here is the complete list of my upcoming  radio interviews. I will keep you posted as more are added

Aug. 10, 9:10 am, Dave Kelber show, WRNJ 1510 am Hackettstown, New Jersey.

Aug. 11, 8:10 am, Mark Wayne show, WICH 1310 am, Norwich, Connecticut.

August 17, 6:50 am, Jason Mansmith show, WRPN 1600 am, Ripon, Wisconsin.

August 20, 8:30 am, I will be on David Sutton’s show, KSRN 1490 am, Los Alamos, New Mexico.

August 25 at 8:08 am,  I will be on Jeff Anderson’s show, KSDR 1480 am, Watertown, South Dakota.

Upcoming interviews in Iowa and Minnesota

Friday, July 24th, 2009

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I am back from vacation in Mexico and from attending the National Speakers Association Conference in Phoenix.

It was amazing to see the Aztec Teotihuacan Ruins in central Mexico. My wife and boys climbed the Pyramid of the Sun (pictured above) and the Pyramid of the Moon. My 11-year old climbed the Pyramid of the Moon twice! We cut back his consumption of pixie sticks shortly after that. All that sugar was giving him way too much energy! I had to sit out the climbing because I had a sore leg from playing soccer the previous day.

Nando Parrado was a keynote speaker at the NSA conference. He was in a plane crash in the snowy Chilean Andes in 1972, along with members of his rugby team, and survived for 73 days. Eventually, he walked across the mountains and saved his friends by bringing help. His incredible story was told in the movie “Alive”.

Upcoming radio interviews to discuss my  book, Fix em Up Rent em Out:

July 30, Steve Hexom/Brian Nichols, KBUR AM 1490, Burlington, IA, 8:05 am

July 31, Rich Peterson, KROC AM 1340, Rochester, MN, 9:10 am

Info on Terry’s Book

Press and Media

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The Zen of Investing in Rental Properties

Friday, June 19th, 2009

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Inner and Outer Wealth

As I promote my book “Fix em Up, Rent em Out: How to start your own house fix up and rental business in your spare time,” something curious happens. When I appear on radio shows, one of the most frequent questions that I receive from the show host and from call-in listeners was, “can you explain what you mean by The Zen of Repairing Properties?”. That was the title of a chapter in my book. I was surprised by the response and attention that that chapter attracted. I thought, what’s going on here?

On the radio shows, I explain how I felt a sense of exhilaration and deep satisfaction, as I was making repairs on my fixer-upper house. It was like a religious connection to the spirit, or to my true nature. I could tell that I was on the right path, and in complete harmony with my deepest connections by the feeling of joy and fulfillment that I felt.

In fact, that chapter on The Zen of Repairing Properties was one that I most enjoyed writing because it was so close to my heart. The more radio shows that I appeared on, and the more calls I received, the more I considered expanding my thoughts on that chapter.

Many books discuss the business side of making money in business, but few address the spiritual dimension. Money provides happiness on one level, but we have all known or heard about people who are wealthy yet their lives are in complete disarray. Spiritually, their tank is running on empty.

Although the same principles apply to many types of businesses, I think real estate investing and the rental house business are uniquely suited to tie the spiritual and the profit sides of business together.

Lao Tzu, in The Book of Life, said:

Man at his best, like water,
Serves as he goes along:
Like water he seeks his own level,
The common level of life,
Loves living close to the earth,
Living clear down in his heart.

Herman Hess, in Siddhartha, said

Within you there is a stillness and a sanctuary to which you can retreat at anytime and be yourself.

As the Bible says,

What does it profit a man to gain the world, and lose his own soul?

Is it possible to serve like water, find that sanctuary within, gain the world and not lose our souls? I think the odds are pretty good.

To be continued . . .

Here are my upcoming radio guest spots:

June 23, Greg O’Conner, WKHM, Jackson, MI, 9:30 am
June 26, Jason Mansmith, WRPN, Ripon, WI, 9:15 am
June 26, Peter Stewart, WABJ, Adrian, MI, 10:00 am
July 1, Jeff Anderson, KSPR, Waterton, SD, 7:00 am

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