Fixer Jay’s Mom & Pop Millionaire Blog

People constantly ask me, “What kind of investing do you recommend for ordinary working folks with only a few dollars to invest and a limited amount of time to do it?” I have no trouble whatsoever answering these questions because use in my opinion, the same answer fits for all ordinary working folks. My “one fits all” recommendation is to invest your money and your time in income producing residential properties. THAT’S IT!
Most everything in life has trade-offs! Early on in my investment career I made a searching and fearless examination of my financial situation. It didn’t take very long-especially adding up my assets. I determined rather quickly that what I needed from any investment plan was cash flow. Whatever else I thought I might need would have to line up behind the cash flow. It’s a very simple strategy, with cash flow you survive and grow-without it, you won’t.
Over the years, investing for cash flow as my number one priority has paid big dividends for me. Cash flow is what I always advise new investors to think about first. It’s a basic rule of investing the way I see it. When you have cash flow, money coming in, you are growing financially. I call this “Green and Growing.” When you are green and growing all things are possible, investment-wise. Without money coming in, nothing grows except discontentment and the constant worry about financial disaster!

Tags: Fixing For Money, The Joy of Cash Flow Investing by FixerJay
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I discovered there is no inexpensive method to turn older houses into new houses. Many amateur fixers try to accomplish this task only to find their bank account disappears faster than the house changes. Herein lays the most important difference between what I do and what re-modelers and renovators do. Believe me, it’s a very expensive difference.

Often re-modelers will replace entire plumbing systems. Sometimes they have the entire house rewired. They tear out old flooring and replace floor joists and girders. They replace wood windows with new metal frame styles. Some will even jack a house up to level it. That means they must also fix all the cracks and often redo the stucco exterior. Don’t do fix-up this way. Unless money is not the object, you’ll lose your shirt.

Since older houses are not the same as newer ones, don’t try to make them so. Instead, try to capitalize on the marketable features not found in the modern day construction. Older houses quite often radiate charm. High ceilings, wood­work, large porches, yard space, old windows (dressed up), evaporative cooling with separate heating, storage sheds, separate garages, and mature shrubs and trees. Add a freshly painted white-picket fence after everything else is cleaned and spruced up and you’ll have lots of customer’s renters or buyers, depending on your investment plan.

Tags: Jay's FooFoo Fix-up Strategy by FixerJay
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When I negotiate with sellers to purchase their real estate, I spend countless hours doing “Colombo style” detective work. I talk with them, I study their surround­ings. I meet with the kids, I drink coffee with the grown­ups and I try very hard to keep my mouth shut, at least as much as I can for a blabbermouth with a large ego. After years I’m making progress.

FIRST, before you start arbitrarily changing or negoti­ating terms and or conditions, make sure you can show the reason why. If you can’t they’re probably not valid. Worst of all, when you can’t, it will do severe damage to your credibility.

SECOND, it’s more important to listen to the other side. You-can answer yes or no if you train yourself. But lis­tening to others will provide you a wealth of knowledge and information that will help you structure offers or counter-offers. People love to talk. If you’re a good lis­tener, you’ll be very popular with most folks.

THIRD, never get emotional. Don’t be critical and above all, never talk down to anyone. If you humiliate, embarrass or ridicule, you’ll lose all chance of negoti­ating a winning deal. Even sellers who are about to lose their shirts won’t do busi­ness with someone who intimidates or tries to overpower them. Courteousness and understanding are two of the most powerful tools in your negotiating kit. Use them gener­ously; they’ll pay big dividends.

The time consuming part is my effort to find out what the seller wants so we can arrive at a settlement. I have never met a seller who asked me what I wanted! The truth is, most couldn’t give a tinker’s dam about me. Sellers are tuned into one frequency what’s ‘In It for me’ prepare yourself to listen and you’ll do just fine.

Tags: Negotiating With Sellers by FixerJay
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I’m frequently asked, “How can I purchase properties from experienced owners and negotiate a good deal for myself when I’m only a beginner? I feel intimidated when the property owner seems to know much more than I do. I always feel there’s no way I will come out 50/50 because I don’t consider myself an equal. I have tried to educate myself, but I still lack confidence. I’ve read books about negotiating but I have trouble remembering the simple things I’m supposed to say and do in a real situation. I know things like, He who says a dollar number first loses. Always answer the buyer’s question with a question of your own, and don’t talk too much-listen. I still feel an unequal match for an experienced seller.

To negotiate well, you first must under­stand what the word means. Webster’s defi­nitions are listed as: To confer with another and arrive at a settlement of some matter, to deal with or manage, to convert into cash or equivalents value, and to complete or accomplish? I think you’ll agree, that’s what we’re supposed to be doing when we negotiate.

Seldom are neat and tidy written defini­tions the same thing as doing stuff with real live people. Still, it’s a beginning. Now you know Webster’s version. Here is mine.

Investing in real estate for money is a whole lot more about people than the property itself Real estate investors, like myself, are after the benefits. Benefits are where it’s at. But in order to get them you must first find the folks who can provide them or will accept them.

When I teach folks how to buy property, I begin to change what they think they’re doing to what I want them to do. I call it “shopping for benefits”. Anyone can buy property; not everyone ends up with benefits. You must learn what benefits you want first, then deliberately set out on a path that takes you to them.

Tags: Fixing For Money by FixerJay
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Don’t make a game of rent collections. Rent monies are the life blood to apartment owners. Yet, I know many property managers and owners who participate with their tenants each month in a silly rent collection ritual. The tenant starts the game by saying the check is in the mail. Then the landlord begins calling every day or driving out to the property to inform the tenant he hasn’t received it yet. Sometimes this goes on for weeks.

Playing this game will only eliminate whatever respect one party may have for the other. It generally leads to more bickering about other matters as well. Don’t allow yourself to be part of this game. You’ll fare much better if you use the rules already on the books. I’m referring to your state landlord-tenant civil laws and, of course, your own rental contract terms, agreed to by your tenant.

Enforcement of the rules whether it’s the civil code or your own house rules, is the best way to develop a smooth running management operation. Preventive tech­niques are as important to managing tenants as they are for the doctor who manages your personal health. One of my main criticisms about professional property managers is that they very rarely act ­mostly they react. They’re always ready and willing to fix the busted door, but only after the horse is out of the barn.

Landlords who learn to act before small problems become big will control most tenants. This strategy works very well for collecting rents and also for enforcing your tenant rules. Speaking of rules; many landlords have far too many. It’s best to keep your list of rules short and enforceable, rather than long-winded, without any teeth.

One of the most important questions all landlords should ask themselves is, what would I rather be, popular or profitable? You don’t have to be a greedy person or steal candy from babies to become a wealthy landlord. What you must be is a fair-minded business person. Fair-minded business means that accounts receivable (rents) are collected in a timely manner and that your business assets (houses) are maintained properly by the tenants who lease them.

See how simple this stuff is!

Tags: Landlording Success by FixerJay
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