Fixer Jay’s Mom & Pop Millionaire Blog

Attractive properties always sell first – and for the biggest profits! They also rent up much quicker when they look neat and well kept. If you understand this, you’ll have a much better insight as to what needs fixing and what don’t! What I’m saying here is don’t mess around too much with stuff that don’t show.  Obviously, I understand it’s necessary to fix things that don’t work – and correct safety hazards. But, don’t fall victim to the old “soft wood trap” and decide all the floors and joists need replacing. Once you start tearing things out – there’s no place to stop. You’ll never make a dime if you tear the house down and rebuild it.

– Daniel Webster said: “The world is governed more by appearance than by reality.” And, that’s exactly how your customers will judge your house fix-up job. If you spend $5000 working under the house, you can consider that money as mostly a gift for the next owner.

Fixing rundown houses for profits is not the same thing as remodeling houses! If it were, lots of custom builders and remodeling contractors would end up rich – And, handyman-types, like me, would probably be working for them! Fixing houses the way I do it has a lot more to do with budgets and accounting than with hammers and wallpaper! There’s no question that fixing is my goal all right, but only if there’s a profit to be made. Don’t forget that last sentence unless you plan to do this for a hobby.

Tags: Jay's FooFoo Fix-up Strategy by FixerJay
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In case you don’t know – most customers make up their minds to buy or rent properties driving by about 30 miles an hour. Street appeal is what sells first, All your marketing and rental ads are not worth a tinker’s damn if the property looks like a “dirt bag” when your potential customer drives by.

I harp on this subject quite often it seems – but everyday I still see people spending countless sums of money installing lovely new carpets, kitchen fans, new cabinets and attractive wallpaper. At the same time, an old dark blue station wagon is still stripped down – just sittin’ in the driveway. You can see the motor dangling on a rope, tied off to the fruitless mulberry tree. The corner post on the patio is still busted where the former tenant kept his well-mannered pit-bull tied up. Take my advice; please fix up the outside first!

Investors who intend to make any serious money fixing up rundown houses must constantly police themselves against “over-fixing” – or fixing stuff that don’t count for much! For example: Don’t waste time changing the wallpaper or redesigning the hallway. It’s not cost effective! It’s easy as pie to fall into the over-fixing trap and it’s about the quickest path I know of going to the investor’s poorhouse.

Successful house fixers must learn to concentrate their time and money on things that clearly have some proven pay-back value. Improvements made on the basis of personal taste are generally not worthwhile. You must never forget – It’s your customers (tenants or buyers) you’ll need to satisfy!

Tags: Success Secrets by FixerJay
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Sad as it may be, anyone can be sued anytime, anywhere for anything! Hey, it’s the American way! Naturally, landlords and property owners fall smack-dab in the middle of this Wild West, shoot ‘em up free for all! The big question for us hard-working landlords and housing providers is: What can we do to protect ourselves?
If you operate real estate and manage the tenants who live there, your first line of defense will always be your insurance policy. Don’t confuse corporations, LLC’s, trusts or hiding on some far away island with the protection you need. When you own mortgaged properties and you have rental customers (aka), tenants living on your properties – you must have adequate insurance to protect yourself from losses. The only thing we need to discuss now is what kind.
Basically property owners (investors) need two kinds of insurance! They need property insurance (a fire policy) and they need liability insurance, which protects against personal accidents and injuries that may occur. I call this the people insurance! Liability insurance for investment real estate owners should provide protection for two different kinds of exposure. The first would be protection for accidents at the property. For example, say the bathroom floor falls through with the tenant standing on it, causing a personal injury.
The second kind of liability for investors is what I would call the imploding liability. It’s a risk for owners but has nothing to do with the property itself. In this situation, the property doesn’t cause the problem, yet the owners and his real estate holdings will be exposed to a loss just the same! Here’s an example of what I mean. Let’s say your handyman worker has just purchased a new toilet plunger at Scotty’s Building Supply and while driving to your duplex loses control of his VW bus and steers right through the middle of a troop of Girl Scouts selling their cookies on the sidewalk. Obviously, the property had nothing to do with this accident; yet• the liability will be tied to the owner and his real estate through the actions of the handyman! Naturally, you as the property owner-employer will be held responsible. You’ll need lots of insurance to pay for the cookies, believe me!

Tags: Fixing For Money by FixerJay
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Substantial discounts must fall in the 20¬50 percent range to make serious money. Don’t tell me how hard it is. I already know. The good news is, it can be done and with a little knowledge, you can do it.

When I talk about these sizable discounts, I’m talking about the difference between what you negotiate to pay for a property and what it will be worth after you become the new owner.

For example, if I determine a shabby looking house is worth $100,000 after I clean it up, and I estimate the clean-up effort will cost $10,000, my goal would be to acquire the property for no more than $70,000 or a 30 percent discount. If you can do this with a HUD, house or foreclosure – fine!

Looking for bigger and more substantial discounts is what led me to my favorite type of investment real estate: small multiple unit properties. I quickly discovered that 30 per¬cent discounts like the single house example above, were like child’s play compared to run-down multiple-unit properties.

Multiple unit values are primarily deter¬mined by the income they generate. The appraisal is the only measurement of value for single family homes.

When a small apartment building or group of duplexes is allowed to become run down, the income or rents the property generates go down with the property. Buying properties with low rents is where discounts can really become substantial-40-50 percent dis¬counts are not unheard of. ‘Investors who learn to participate at this level can rip, snort and rumble when it comes to paying the right price the day they buy.

Tags: Fixing For Money by FixerJay
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Right now is a perfect time to consider income-producing properties! Done correctly, these properties offer fail-proof investing – plus the income (rents) is indexed to regular living costs, which provides protection against inflation. For W-2 wager earners attempting to save money for retirement. Acquiring small apartments offers the perfect business opportunity.

To start with, whatever amount you have to invest can quickly be multiplied with safety. This is extremely important because many so-called retirement plans linked to the depressed stock market continue to collapse, dumping your dollars as you read this letter. Extraordinarily high investment returns of 20-50% are not the least bit uncommon for leveraged real estate – and when your transactions are properly structured, aII positive income can be sheltered from Uncle Sam’s tax collectors.

Cheap houses in a bunch (like bananas) and small rundown apartment units offer the best ray of hope for Mom & Pop investors in their search for cash flow investments. This is what I teach at my FIXER CAMPS and this strategy has made many students wealthy and financially independent. Many have built sizeable retirement incomes that won’t dry up before they do. My investment techniques are very do-able for average working folks! First of all, we’ll build a solid cash flow foundation so we never have to retreat! Every now and then, someone asks me — Will your teaching make me like Donald Trump? They answer is no, it will not. I can however teach you ways to invest that will make you financially secure for your remaining days on the planet – assuming of course, you’re ready to do your part!

Perhaps the most significant benefit for ordinary working folks who are concerned about their future is that affordable rental houses and small apartments can provide a quick alternate income. Also, income property equity builds much faster than traditional savings plans because affordable houses are always in demand. Additional income, equity growth and increasing cash flows offer the best guarantee that you11 be able to enjoy the comfortable retirement you deserve and are counting on!

Tags: Growth, Risk and Longevity by FixerJay
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