Join Ken as he talks with financial planner John MacGregor about getting clear on your financial goals. John has extensive experience with a wide range of clients about transforming your mindset to secure your financial future. Check out his website here: https://www.johnmacgregor.net/
A Vacant Unit is Better than the Wrong Tenant
I see this all of the time. Tenant’s not paying their landlords and the landlords having to jump through the hoops of evicting them. Normally, when I get into the conversation with people I find they needed to fill their vacant unit so they lowered their rental standards or they eliminated a credit check all together.
I say this all of the time and people continue to ignore me. I would rather have a unit sitting vacant than to move in an under qualified tenant. Who you move in is one of the most important components of being successful in this business. COVID19 is really showing this. Currently MC Companies is collecting 96% of our rent. Why is this? It is because we were selective in who we moved in. All of our tenants have good credit and no felonies. Most of them are determined to keep their credit in good standing and are working with us on the rent.
Sure there will always be risk, but you can mitigate the risk, and a lot of people don’t because they just want to get their units filled. Below are the six ways you should qualify your tenants before allowing them to rent from you.
HEALTHY CREDIT HISTORY
Most landlords’ number one concern about new tenants is non-payment of rent. Many landlords use a rent payment to cover the rental property mortgage. If the tenant doesn’t pay rent on time or at all, this could leave the landlord paying the bill out of their pocket.
If an applicant has no significant warning signs such as apartment related collections, judgments on their credit report, or they have a high credit score, it generally shows they have a history of making payments on time and are likely to continue to do so in the future.
CLEAN BACKGROUND CHECK
As a landlord, you should always have the safety of your neighborhood, yourself, and your rental property in mind. In this regard, it’s best to know whether a prospective tenant has any relevant criminal offenses on their record. An applicant with a clean criminal check could be a good indicator that you can trust them with your property and the neighborhood. You’ll want to be sure to perform a criminal check at both the state and national level that includes Most Wanted Databases and the National Sex Offender Public Registry.
CLEAN EVICTION HISTORY
Needless to say, a tenant who has been evicted is not a tenant you want to rent to. Although a blank eviction check is a good indicator that the applicant has a positive rental history, you’ll still want to conduct a landlord reference check to make sure the prospective tenant’s behavior at prior residences was up to par because sometimes it takes evictions a few months to post onto a credit report.
STABLE EMPLOYMENT HISTORY
To help increase the chances of being paid on time, you’ll want to look for stable employment history. A person who has held the same job for several years and does not have significant gaps in employment could demonstrate that they have a steady job and income. Not only is this a good sign that the tenant will likely pay rent on time, but there’s also a good chance they will renew their lease since they don’t have a history of changing jobs frequently.
While a credit report is an excellent measure of a prospective renter’s financial credit history, it is crucial to verify employment and income for assurance that the prospective tenant has means to pay the rent. A ratio of three times the income to rent is the industry standard, which typically shows that if any unforeseen expenses come up for the applicant, they are more likely to have enough money to pay their rent.
POSITIVE LANDLORD REFERENCE CHECKS
A positive landlord reference goes hand-in-hand with your tenant screening reports. Reference checks should verify that the applicant was a good tenant who paid rent on time and left the unit in good condition.
To keep up with all of Ken’s latest activity be sure to sign up for his weekly newsletter at this link: https://kenmcelroy.com/podcast-listeners-newsletter-signup/
Join Ken and Michael Bailey as they discuss ways to use business real estate to its full advantage.
To learn more about Michael, visit his website at: https://www.impactdogcrates.com/
Welcome to the real estate strategies podcast. I’m Ken McElroy, and I’m here to give you creative ideas on how you can get started or continue your journey in real estate each week, we will bring you inspiring and informative conversations with successful people and their path to obtaining or investing in real estate. Enjoy the episode, everybody. It’s Ken
I’m here with my good buddy, Michael Bailey’s the owner of heater craft and impact crates. Hey Michael, how are you doing? So what we’re going to talk now about is, you know, how you can take a business and turn it into, you know, real estate acquisitions and kind of build wealth in other areas, you know, in more than just your business, what you’ve, what you’ve done very, very well. Michael, I’ve watched you slowly accumulate, you know, all this real estate. And so you have those assets kind of sitting over here, but before we get into that, once you give a little flavor and a little background about, you know, impact crates, cause it was really born out of the last recession we had in 2008. And as we roll into this next recession, I think a lot of people can get really depressed. They can real be real Philly bad about, you know, the loss of income, whatever that might be as an employee or employer, for example.
And you know, and then if, especially if you watch the news, right, right, right. So right. And so you fought hard through Oh eight. I wish I knew you then. We were good friends back then and I watched you do it. And you came up with this idea in a, in a business, a pet business that you were never in before, you know, essentially you reinvented yourself completely with the business that you had in place and your business is very different than it was in 2008, a hundred percent. I think. So the bottom line is that you know, we start out with heater craft years and years and years ago, we were in the Marine and automotive industry. So we sold to boat manufacturers like, you know like Mastercraft or sea Ray or any of those big guys. And we also sold the UTV industry in the RV industry.
So that’s, you know, Honda, Yamaha, but what happened in a way, it is obviously the recreational industry it’s called recreation. It, it got destroyed in that economy. People, if they’re going to cut there, if they don’t have money, they’re going to cut those areas for sure. It’ll happen again. And it’s going to happen again and it’s on its way at this point. Yeah. You said that you’re already seeing orders canceled. We’re always seeing orders canceling that business. So one thing I realized is that I needed diversifying to something that wasn’t so volatile or at least had a way more opportunity. Right? So number one, the Marine and automotive is very small. I mean, it’s, you know, what is there you know, hundred thousand boats or, or less built in a year that includes, you know, jet skis and things like that. So the market’s very, very small where the pet industry. So we got the pet industries, what we did. So we had, we had bought this company or partner with this company. We, and we we were in the gun case business and they came with a crate, right. So we got
This dog crate back in 2010, 11. Right.
So before you jumped right ahead, you know, here you are just got the heck beat out of you in Oh eight. And, but your mind is open and you’re like, how do I partner with this company while I’m not doing so well? Right. So talk a little bit about that. Cause that partnership was instrumental in where you are now.
I mean, we, we found an opportunity that was this company. They were wanting to get out of that business. And so we basically acquired them, you know, in so many ways and they got out of their business and we took over what they did. So
You have product lines and customer base, you know, that you had never,
That was what’s the interesting part about it is they were just, they had kind of gone through a transition where they had lost all their business. All they had was product lines. So they didn’t really have much of a customer base. And honestly the dog freight business can, wasn’t even developed to its full extent at that point.
So the here’s the thing, I find fascinating what you did and you got two businesses, yours and theirs, both just got hammered in Oh eight. Yup. Right. Yup. And you were like, okay, how do I, right. Yeah. They could have done that to you. Oh a hundred percent. But usually, right. So this is the point, like everybody’s getting pounded and about ready to get pounded, but you had the foresight and the vision to be able to go snap that up. And, and
I saw opportunity end of the day. I think that you know I’m a survivor personally. I’ve been, I was not going to give up or give in. So I think a lot of people give up too quickly. I don’t think they have to. And so I was going to fight for it. And so I saw opportunity in those that business and the dog Creek business. So we had already in place engineers and people like that that actually could develop products and make them better. So we went to work. So we, you know, we acquired the company, we got it, got it from him. And then we went to work, we started building sampling, dog crates, making them ourselves. And before you know it, we got a customer. And then before, you know, we got another customer. So again, I think it was something that we realized we could do. Cause we did it already. We made metal parts. We had metal fabrication equipment. So we started digging.
But here’s the thing, dog crates at the time there, most of them are cheap. Yeah. They’re plastic. They fall apart. I’ve bought a ton of these over the years, you came up with pay sickly, the rolls Royce of dog crates. And now like it was a massive market that was not served and people it’s. I mean, you lead the industry
Purdue now. I mean, I think we we have always, I’ve always personally seen value in quality, a good product that’ll last a long time. And I think that was just how I thought. So I wanted to build something that wasn’t a hundred dollars or $50. I wanted to build something that was between $502,000 today. And again, I don’t, it doesn’t take as many crates to get a lot of revenue if you think about it. Right. So if
I have to do 10 crates at a hundred dollars a piece, that’s a thousand bucks, but I’ve just so one, one to 10 ratio with a really good product and get, and get a customers that love it. It makes way more sense for me. It worked really well for me. Well, when you, okay, so I’ve had multiple dogs and multiple crates and usually there’s a lifespan on a crate. Yep. When you buy your crate, you, you know, it’s for life. It really is. I mean, that crate is incredible. I mean, you know, you know that it’s not, you’re going to have to buy something five, six years, seven years from now. Right? Exactly. I mean, our crates will last a lifetime, especially a dog’s lifetime or even more, even through a couple of generations of different dogs that you have in your family. I think that that’s what you did for the business and the industry.
You know, we brought them to our level of dog Creek without a doubt, without a doubt. So one of the cool parts was, you know, w we talk, I talk a lot with your son Hunter, but you know, kind of old school, new school. And we kind of did this on a video already with Hunter. If you guys have a watch that you need to watch that one because, Oh my gosh, he’s smart. And he’s very bright. I mean, and here’s the cool part, you know, obviously you’ve got the father son dynamic, you’ve got the family business dynamic, but you got a kid that’s 18 years old that you raised. And you’re like me, you know, we look at our kids, like they don’t know much. Right. I mean, that’s the truth. I think we do think that I do that. It’s not fair to them.
No, it’s not. I think, yeah, we do. We don’t live [inaudible] we don’t listen to our people. Exactly. I mean, I think it’s, it’s insane. I mean, I didn’t listen to my dad when I was at right. Me either. Yeah. I mean, I fought that battle and then we ended up being them. I do, but here’s the cool part. Then you let him come into the company I did at 18 and boy, what he’s done from a marketing sales. Hey, can I, what I can say about Hunter is he has been instrumental in growing our business and putting us where we are today. I can give him a lot of credit for that. I mean, I really can say that. I mean, it’s, it’s massive, right? I know business. I know. And again, it comes right down to me listening to the younger generation and, and not just we’re father, son deal, it’s listening young, Jewish generation, how they purchase, how they buy, how they think, what they do, what they’re looking for, those kinds of things. And it’s, it’s been massive. I mean, it’s, it’s been life changing for our business. It’s it’s you, your company has gone, the model has changed so dramatically, you know, you’ve gone from the old model of, you know, belly-to-belly sale to internet sales and direct. And so your margins are up and everything’s up and you kind of learned along the way. And I think a lot of businesses are stuck right here. Yeah. I think the old model of, for us was distribution the OEMs direct to the OEM’s, you know, the Costco
Selling to a reseller or whatever it might be. Even someone that was actually sewn on the internet, but they were, we were shipping it even for him. So we would have to, you know, build a product, everything like that. And we would, they would give us the order, we’d ship it to their customer and we’d have to give them, you know, 40% discount.
All they did is have the customer,
The customer. And we started realizing that, and this is where the younger generation came. Is that why don’t we do this ourselves? Why don’t we grow our own internet site? Right. And so again our, my theater generation let’s call it that. And again, I think it’s my son he’s been and done amazing, but that younger generation just does things differently.
Oh, a lot differently. I know he graduated in 2013. I think it was. Yeah. And then he came into your company and boy, what he’s done on the sales side has been incredible, but this is a real estate show. Right. So let’s talk about, okay. So we all know that the, you know, the ESBI model, the E employee self employed business investment model, we all know that you guys have locked. It, that you’ve watched the cashflow quadrant. What Michael’s done is go from S to B and now we’re going to the I, which is the investment part. So the business is now buying your real estate. Right.
I mean, if you think about it you gotta pay rent somewhere, right? Why not pay it to your own, your own yourself? So end of the day you pay, we pay rent to ourselves. That’s right,
Right. Yep. That’s right. And so, so what we’re seeing now, what, what was amazing is I’ve also watched you move from, you know, a small facility to a medium facility, and then just recently to a massive state of the art facility. That’s big, how many square feet is it?
About 60,000 square feet. Yeah. It’s pretty big. So, yeah.
Yeah. So I, you know, all paid by your business
A hundred percent. It’s not just paid. We make a profit,
Right? That’s the other thing there’s cashflow, cashflow positive.
You take, this is the model guys. The model is to start your business and then have that pay your rent essentially. But what we need to be doing here is you, your business is what your business. So heater craft has a business impact, craters, a business that business now leases from a building that you own, which is also an LLC or an individual purchase. So you purchase it here and then you lease it just like you would anybody else. Yep.
Yeah. It’s, it’s, it’s really, it’s, it’s not hard to do it truthfully. I mean, it’s really easy, honestly. And also I’ll add value to that. When a bank, or if you’re getting a loan for this building, the bank’s going to look at your business as well as your real estate. So it honestly, truthfully is easier because when you’re leasing to yourself, they know you’re not going to leave, get out of your lease. Right. So I understood that real quick in life that it’s, it’s, it’s a lot easier than you think it is. People might think it’s hard, but no, it’s actually easily.
You take the cash, your business is making and that’s your down payment. Then you go get a loan, you buy the building, you set it up. And then the business makes hopefully even more money. Right. And it pays itself off. So you’re, you’re paying rent to yourself. Here’s the other thing, huge tax benefits.
Oh, that’s right. It’s massive. Well, let’s talk about,
Let’s talk about, because we’ve talked about depreciation bonus depreciation, cost segregation, right? So you can accelerate the expenses in these buildings that you own and you can make even more money.
Yeah. It’s, it’s a, for example, this should, we’d bought the building dock in 2019, our first year depreciation or cost segregation. We did a whole whole deal on that and it will be, it, will we, again, we won’t paint taxes personally because of how we did that struggle.
Yeah. So the way it works, the way it works is let’s say you buy a, a, a building for 1,000,007, and the reason why well, let’s, let’s say it’s $2 million. You can depreciate that building over a period of years, it’s called an a non-operational expense and it can, it will offset your
Income. Right. Right. Well, yeah. Again, I think exactly. So for us, we have a holding company that has our, that we lease. Right. Right. The company releases from our holding company and again, cost segregation is a much rapid or a depreciation because there’s things that wear out faster in the building than other things. Right.
So what that means is Michael might have a machine in there that has a five-year life. Right. And so you can depreciate that machine for five years. Right.
Right. Or asphalt you know, there’s different, different years on different. Depreciations, it’s really interesting because I didn’t realize that things wear out faster than others. Right. But the steel buildings is only 39 years still, but steel part of it. But everything else around it is goes less and less and less. Yeah.
Yeah. So the buildings depreciate at 39 years, and then the things inside of it can be accelerated. Same with it, with a rental apartment, you know, the building itself in the park and the apartment building has 27 and a half years. But inside of it are appliances and stoves and, you know, things like that, that you can depreciate a quicker, right?
Again, asphalt’s one of them as like weird one, like an asphalt will ask, well, it does wear out after about 15 years, you need to start fixing it. And whatever electrical is, another
Electrical is another one. Yeah. And by the way, it’s not subjective. It’s not something you get to decide. The IRS has guidelines around this and the accountants tell you exactly what you can and can’t do. So it’s all perfectly legal. You do have to get a cost segregation study, which isn’t very much money, but they tell you exactly what you can and can’t do. And then you can take those amounts and offset your income.
Exactly. That’s actually the beauty of the beauty of is you offset your income. Right. So end of the day, I think that it’s it’s if you made a half a million dollars last year, personally, and you had a cost segregation of 30% on 2 million bucks a hundred. Yeah. You would, that’s so much money in taxes. She would say those are simple numbers,
But that’s the real truth. Right. So as you start to, so now there’s incentives even to do more real estate, right. Because as, as, as I’ve said before on the show here, the depreciation that we have on our apartment buildings offsets a lot of our income, if not most of the income and a lot of the properties that we own.
Yeah. Right. I mean, yeah, exactly. I mean,
So you can not pay taxes legally through depreciation. Yeah.
Great benefits. And there are plenty of others. Oh yeah. Right. Yeah. There are plenty of others as you own a business, you know, there are things that you can do legally,
Right, right. From a tax stamp. So, but bottom line, I mean, you’re a real estate, that’s your business. Our business really isn’t real estate truthfully. But what we’ve done is we’ve taken a manufacturing company where we build stuff and we’ve tried,
Turned it into real estate wealth. That’s right.
The company’s product lines, a sales pitch
For the lease that’s right. The rent. So let’s take a look at the buckets of assets that Michael has. He has his companies over here, which are only as good as somebody, what they’ll buy, but then you also have your real estate that pays for the company pays for that’s also over here. Right. So I’ve had friends that have actually sold their businesses. So let’s say you sold your business and I know it’s not for sale, but let’s say you did. You could actually lease it back to the people that buy it. Right.
Exactly. I mean, I mean, again, I don’t, I mean, I don’t tell you this and you know it, but end of the day, what, what’s better than someone else paying for your bills,
Right. Not me. So you sell your company, you go off and do whatever, but you still have the reoccurring revenue. So I have a friend that did this in the, you know, he had alcohol and drug rehab centers and he did a very good job and he was buying real estate and he was growing these businesses and he sold the company to a private equity group. And, but he didn’t sell any of the real estate. And so he did these longterm contracts. So the private equity group was paying him monthly. And so he could kind of figure out what he wanted to do next. Right. So he still had depreciation, he still owned the building. Right. Right. And you know, the only difference was, is he didn’t control the real estate or control the business, but he had sold that. So he cashed out in a big way. So, and this is how the rich get rich. Right. Right.
I mean, whatever. I mean, again, if you, if you bought a $5 million building and you, you know, it’s a, usually a 15 year loan say, and it was paid over, you know, 15 years and all of a sudden it’s paid for, by someone else. Right.
What else, what else can you do? And you got all the appreciation and you got the income and a lot of it’s tax free along the way. And so that’s the model guys. The model is to create a business and then have the business for the real estate. Right. Michael, it’s huge.
Yeah. I think it’s, it’s create a lot of family wealth for us
And will in the future and the legacy
In a legacy end of the day, is it, you know, it’ll pay for grandkids going to college and things like that, that know that we, we want to be part of it. Yeah,
Yeah. Right, right. Absolutely. And isn’t that what this is all about,
It really is about family. Right. And providing for your family and giving them opportunities.
I know, man. Well, I’m really proud of you and everything that you’ve done because I’ve watched you go from a massive, massive hit in Oh eight to, you know, basically reinventing yourself through a new product line to buying this state-of-the-art brand new building. And you know, and essentially just reinventing yourself in a short period of time in 10 years. Yeah.
No, it was one thing I would say though, even during the bad economy, one thing we were still doing, we were still, the company was still paying the rent. So that whole time we were still building wealth over that time, as bad as it was as hard as it was, we were still continuing to pay the rent we had to.
Right. And sometimes when you get hit on the income side, it’s nice to have that extra bucket of cash sitting there. When, you know, you have equity sitting in a building, it’s just an insurance policy that hopefully you never have to use, but it’s nice. Yeah.
It’s something that you can actually look back to and go, maybe that will help you save your business someday because you might have so much equity in this.
Yeah. Yeah. I got a buddy that owns a hundred houses in Wisconsin, you know, and you think, Oh my gosh, there’s a lot of work. And it’s true. He has a property management company that does it. I go, so Jeff, you know, what do you do for money? He goes, well, when I want something, I just sell one of the houses. You know, that’s what, that’s how he does it. That’s how he thinks. He’s like, you know, I got the renters paying them off, but you know, if I want to go do something and buy something, I just sell one of the houses. And I’m like, that’s a good strategy. You just got a hundred of them. It’s the same thing. Right,
Exactly. Right. So again, I think as you make money from your company, your product line, you can take that and reinvest it into real estate. I think real estate is a key to that. I think it’s all of us. It’s, it’s, it’s Stabler it’s more stable from an event,
Especially if you’re the tenant.
Exactly. I mean, yeah. I mean, exactly. I mean, it’s, it’s, it is more stable for us. That’s for sure. So cause it, it didn’t take the hit during the economy. It’s dark product line that took the hit
That’s right. It’s really something really. Yeah. There’s a few things, a few lessons here. One is the fact that you, you know, you reinvented yourself from 2000 and a lot of people are about ready to go through this right now. So don’t get discouraged to keep an open mind with these young guys, you know, open up your mind, a young gen X is your son really reinvented the, at least the sales and the marketing side of the business. And three figure out a way to, to, to roll all that into cash flowing real estate. Right. And, and, and be able to get this cash flow to you. Tax-Free through things like depreciation. Exactly. Right. I love it. Yeah. That’s all just
What a great episode. I hope you learn something new from today’s guest for full show notes, check out Ken macra.com. If you enjoyed the episode, then jump on iTunes, subscribe and leave a five star review. Also, if you can check me out at Ken McElroy official on Instagram for daily real estate advice, see you next week.
People always ask me to mentor them.
I probably get at least 3 messages a day for this request.
A true mentor is going to walk you through their experiences bad and good and look at your experiences and warn you of things they see going good or bad in a potential deal. They are going to show you how to handle questions and problems as they arise. They are going to be your teammate through it all.
Clearly, I can’t do that for every request I get. This is why I made the forum at KenMcelroy.com. Click here to check it out. The point of this forum is not only for me to answer your questions, but also for you to find mentors in one another. I absolutely will answer the questions you post on there, but also the connections you make if you try can be life changing. I believe there are all levels in the group, so finding someone to mentor you is something you should make a priority.
Other places to meet mentors would be meet up groups, networking events, LinkedIn, and even the old fashioned way of stopping by real estate investment offices! When you introduce yourself please remember if they don’t know you they may want something in return. I don’t recommend paying them a lot of money, because you haven’t even seen what they will offer. I do however believe you need to make it a win win situation for them.
How can you do this? It depends on you and what you’re good at. You can offer to work in their real estate investing office part time for free, yes I said it free! What you can learn could be life changing. You could actually start a real estate investing networking group. If you are the leader of the group people will be more apt to help you. You could even start a podcast and have real estate guests on your show. You have to be creative, but take your skills and offer them something useful in return.
Some of you may be saying, “I’m not working somewhere for free.” or “This is a lot of work.” I am here to tell you starting a business, even a real estate investing business is a lot of work. So if you aren’t prepared to put in work then it will be very hard to become successful. Those that put in the work and really learn the trade are the ones that can really kick some ass in the industry.
Until Next Time,
If you want to improve your business and your life in general, you need to learn to be a better leader. Too many times people are either a pushover, a worker bee, or use their power to “lead” aka push people around. Yet none of that is being a true leader. I interviewed one of my closest friends and one of the best leaders I know, Tod Davis on my podcast. Todd started Life Lock from the ground up and sold it for a billion dollars. 1 billion! If you ask him why he was successful, he will tell you the learned how to be a true leader. These are the qualities he feels you need to be a real leader and have success in your business.
1. Allow yourself to be challenged. All too often we get in a position at work, with our family, or in our company where we shut down when someone challenges us. Why are we shutting down? It’s because we don’t want to be wrong. We think we know everything. Having an open mind is something every leader needs to have.
2. Make sure people can ask you for help. Make sure they don’t feel stupid when asking a question. You should be open to all questions and be patient with your answers. To found out the other three qualities of a leader and to have Todd motivate you to get your ass up and be successful. Click here to listen to the podcast.
Until Next Time,
Facebook Forum Question
Be sure to check in on the Facebook group each week where I answer questions that are asked by the community.
I’m a believer in surrounding yourself with a team and we do that in new home construction. However, when we select a realtor, we do not put realtors on our team who also have their hands in building new homes. We avoid this because we know who’s product will be shown first.
My question is about property managers. We are wanting to enter multi family properties with long term hold, cash flowing, models. We would also like to work toward your strategy of value adds with cash out refinances to provide returns, tax free. The area we are exploring is about 85k people or so. The larger and better appearing property management companies own several of the larger apartment complexes in this market. How would you approach this, or what would you consider, to avoid simply paying your competition to fill their vacancies and aggressively represent your interests instead of only their own? Thanks!
A great question. Not all PM companies are created equal. I know large ones that are horrible. I know small ones that are horrible.
The key is the individual and a MF property manager may not do a great job on single family.
Find a local realtor or local investor that OWNS rentals. Ask them for referrals. Look for housing associations in your area where they have ongoing education, this could be a small owner group inside a larger apartment association. I know these are available in AZ, Texas and California. Just check your state.
Join Ken as he walks through a basic understanding of where the rich store their wealth.
Being a landlord is a large responsibility and you must be prepared for everything
that can possibly come up. Still, there are some things that you simply cannot prepare
for specifically but you can work diligently to prevent them. An example of this is
knowing how to prevent fires when you are a landlord. Remember, it is important to be
prepared even for the things we never expect to come up. One of our own properties
had a fire recently. The fire was contained and no one was hurt. This is why it is
important to be prepared and know how to properly react.
Ways to Prepare
There are many things that you can do as a landlord to prepare for fires. One of
the main ways is to make sure that you are complying with local fire codes in the area in
which your property is located. There are ordinances and local fire codes that you can
read through that will help you stay legally protected while also keeping your tenants
safe. If you do not feel comfortable walking through the property on your own, you can
have a local fire inspector come do a walkthrough.
Talk to your Tenants
There are also things to discuss with your tenants when it comes to fire safety for
your property. You need to set strict house rules for all of your tenants, put them in
writing and have them verbally explained to the tenant as well. You also want to be sure
that you are constantly checking the smoke detectors in each property unit. You can
also add carbon monoxide detectors to your properties to help detect when too much
CO is detected in the home.
Plans and Rules to Establish
One of the most obvious but sometimes forgotten things to consider is to have a
fire extinguisher on each floor of the property. Fire extinguishers may not be able to take
down larger fires but can be easily used to contain small flames in controlled
environments. It is also important to have a strict, “no smoking” policy. You need to
make sure to enforce this policy in and out of the house. You also need to be sure to
follow up on any suspicious activity to show your tenants that you are serious about this
policy. Another thing you do directly for the unit itself is to establish grilling rules or ban
the use of grills all together. If you are going to allow grills, then you need to make sure
that they are being used properly. Your tenants need to know how to check propane
tanks for leaks and keep the grill a minimum of ten feet away from the unit at all times. It
should never be allowed under any circumstances to have a grill on a small patio or
under any type of overhang.
Protect in Case of Emergency
You can do everything that you need to do to prevent these scenarios and still
find yourself running into them. This is why you need to make sure that you are covered
if an incident does occur. It is important to have a clearly understood escape plan,
especially if you have a multifamily unit. You also want to be sure to review this escape
plan with your tenants so that they are sure to understand what to do and where to go in
case of a fire. You should also require your tenants to have renter’s insurance. These
policies ensure that the tenants can recover their personal items in the case of an
emergency occurring. You want to make sure that your tenants feel comfortable
reporting any issues to you that may lead to emergencies down the road. Also, when an
emergency does occur be sure to document everything that you have done to help
prevent the incident. For example, if the fire was caused by a lit cigarette and you have
a no smoking policy that has been provided to the tenant, be sure to keep those
As landlords, you can not expect to be ready for every single incident that may
happen. When you are on top of preventative measures you can feel rest assured that
when an emergency does occur, you and your tenant are both ready to take it on. By
clearly communicating your expectations with your tenant, executing a safety plan and
are willing to hear your tenants concerns when they arise you are creating a safe
environment that is prepared for any disaster that may occur. Stay calm, stay prepared,
stay diligent and stay documented.
Affordable housing is a legitimate concern in the real estate market. Not only considering when buying for yourself but also thinking of long term rental properties to own as well. Mobile home parks are a two sided coin. On one hand, they are usually fairly easy to obtain properties and most can be acquired for under fifty thousand. On the other hand, depending on the property itself, the city or town may look down on the property for poverty level or crime rates. There are ways that you can invest in mobile home parks to make sure that you are keeping a long term cash flow at hand.
There are many challenges that one might face when looking into purchasing a property in a mobile home park. You have to be realistic about where you’re buying and the cultural climate, no matter where you are buying properties. When you are realistic about the cultural climate going into a property then you can prepare yourself for anything that might arise. There are also challenges that arise when trying to create mobile home parks to increase your rental revenue in a certain area. Most cities do not want mobile harm parks because they are within the belief that they bring higher crime rates to the area.
There are also many benefits to look into when deciding on purchasing a pre existing or creating a mobile home park for your own benefit. You can use it to your benefit for paying off land, where tenants will pay the land fees while the value of the land will continue to go up. You can aquire a newly renovated mobile home for an average of forty-five thousand and with the ability to rent at two to three times below the market rate, you can usually acquire long term tenants somewhat faster than you can with other properties. This is a great buy for people who are new to the world of buying and renting properties. You go in with less capital than you would for most other properties and can buy multiple at a time.
Mobile home parks, like any other investment have both upsides and downsides. It is about finding the right property or the right land to place the mobile home on. Location has a lot to do with how things will turn out in the long run. If you choose to purchase for an area with a high crime rate then you run the risk of the city not wanting to host any mobile homes at all. You also run the risk of having issues with break ins and crimes of other sorts. On the other hand, if you use the mobile homes to assist in land buys, then you can have the tenant pay the land fees and continue to hold on to the land as the value goes up over the years.
You have to weigh out the positives and the negatives when dealing with mobile homes whether you are purchasing them as rental properties or acquiring them to put onto land that you are buying. If you can find the correct location and the best deals for both the acquisition of the mobile home and the land, they can make for a very lucrative long term deal.
Ken McElroy (00:01):
Welcome to the real estate strategies podcast. I’m Ken McElroy and I’m here to give you creative ideas on how you can get started or continue your journey in real estate. Each week we will bring you inspiring and informative conversations with successful people and their path to obtaining or investing in real estate. Enjoy the episode.
Hey everybody. It’s Ken. Hey, look, we’re stopped in the office. My good friend, Blair singer. Hey Blaire. Good to see you, man. Hey, not too close, not too close. By the way. Check this out. Social distancing. We’re practicing it. Don’t touch that. So, uh, we are making sure that we’re, uh, we keep our distances, but, uh, Blair, uh, texted me this morning and he’s actually working on a deal down the road and I said, Hey, why don’t you come by? I’m at the office. Uh, I’m actually an investor in that deal. So we haven’t talked about it yet, but, uh, I would imagine it’s going to be a very interesting discussion with what’s going on with everything that’s happening right now. So, um, so first of all, uh, you know, Blair obviously owns properties. He’s an investor. He’s got cash flowing properties. He’s got lots of, lots of, lots of books.
He, he trains all over the world. He actually helped me significantly, uh, do presentations from stage back when I first started with rich dad 20 some years ago, I remember we were in New York and I remember I was scared to death. This is how Robert Kiyosaki does things by the way. He’s like, you remember that you’re up. Yeah. He’s like, Hey, come on, come to New York. I fly to New York and I’m a real estate guy and I’m, and there’s 4,500 people at this place in New York. And he goes, you’re up. So I started, walked up on stage and did my first talk in front of a somewhere over 4,000 people. And um, you know, I’m sure I fumbled through it horribly. And uh, but I, afterwards Blair grabbed me, he said, I see, I’ve just figured out, you know, how you can make your presentation even better. Basically what you did. And he broke it up into four or five things and it was kind of my launch to be able to speak. And, and present and, and all that. And, and Blair does that internationally, right. All over the world, all over the world. So blur real quickly for those people that don’t know you, once you give them a 32nd commercial.
Blair Singer (02:24):
Yeah, sure. No problem. Yeah. And cause that’s exactly what I, one of the things that I do, I’ve worked with entrepreneurs all over the world for the last 15 years, helping them increase their cash flow through sales and pull their teams together and create, get the message out to the world. That’s what we were working on is, you know, you get the ability to present, to present your dream, your, your mission, your product, your service to the world. So rather than going one on one, go one to many, and right now in this environment, the ability to go one to many is critical. So we’ve been doing that, you know, over 15 countries around them.
Ken McElroy (03:00):
I know. It’s been so fun, honestly, and I’ve learned so much from you. Um, so first of all, thanks, uh, literally, uh, guys this morning I said, Hey, you want to come in and, and um, and do something with us? He said, absolutely. Um, because usually you’re traveling a lot. I travel now. Yeah, I know. I know. Usually you’re all over the world and hopefully you quarantine yourself cause I don’t know. Where’d you come back from last? Well, actually, where was I last? I was actually in Germany last I was in Germany and it was there and then came back to Ohio to be with my family and then back here and then everything just kind of locked down. So we’re holding steady. So I know you have a lot of clients all over the world. Um, what are we, you know, everybody, you hear a lot, a lot of stuff. We watch a lot of stuff locally. What’s happening? What are people saying around the world? Well, you know, people that weren’t afraid got afraid. People that, that were afraid are not afraid anymore. It just depends where you talk to you. We have clients in Taiwan and they’re like, what? What problem? Life is normal back here in Taiwan and in Thailand and places like that. You have other places. We’re all like in Italy where we ha we have custom clients, people, members of my team that had been locked up for six weeks. You can’t get out of your house. You know, in Italy they got those big problems. But the one thing that that is true with everybody that we work with is that clear need. You got to pivot right now. If you’re not pivoting in your business and your messaging, who you’re talking to, even possibly who your customer is, you’re in bed, you can be in very big trouble. Or you could be making the first step into a giant new market for yourself either way. Right? Well, right. Some people, this is a clean slate time. Totally peop like people slates are getting cleaned now. They don’t want them cleaned. They’re getting cleaned. So let’s talk about pivot. I love that word. So when you talk to somebody about it’s time to pivot, what do you mean? Well, I think you’ve got to pivot from, from a sales person. I was talking about income. Okay. From an income perspective, you’ve got to pivot. What’s the message you put out to your customers? Is it going to, is it the same message today that it was two weeks ago? Because their needs are different. If you look at Maslow’s hierarchy right at the top, you want to be their best at that. Now they’re people, they’re worried about survival, they’re worried about security. So how do you take your whatever you’re offering and put it in terms that give them some sense of ease along the lines that make sense to them. So it’s part of it’s pivoting your message. It can also be pivoting your product or your service, your offering if you were offering. Um, like for us, we do a lot of work with teaching people to be teachers, leaders and trainers over the last five years. Our roots are in team and sales development, right? So we are shifting very much heavily back to S to helping people generate income. How do you crisis proof your sales team? I know, I’ll tell you a funny story. Um, true story. My trainer who I love, I’ve been training with this guy for four years. He’s in his fifties it’s done Ironman, all that kind of stuff. And he’s a great trainer. But I’ve been telling him for years, you know, I’m like, Hey, like you, you gotta like, cause he loves photography too. I go, you gotta go, he’s not on social media. Okay, think about this. And he’s like, ah, I go dude, you have to like, you’re a trainer, you’re not on social media. So I said, he’s like, nah, I don’t need it. You know, times are good, right? He’s got lots of clients, he’s busy, he’s, you know, he’s putting cash in the bank and you know, he’s traveling and you know, and he’s in great shape and all those kinds of things. So I saw him yesterday because all the gyms are closed in Arizona. So I said, Hey, can you come to my house? We’ll just work out at my house. He’s like, done. So yesterday he goes, I’m thinking about going on social media and I’m just like, are you kidding me? Like, and he’s like, yeah, cause I think then I can start to do short videos on training. I’m like, duh. You know what I mean? Like everybody has these resistance points and um, you know, his, and they all come during crisis. So I said, what are you doing? He’s like, I’m working at ACE hardware, what he’s working on because a lot of his clients, because training through a lot of people’s discretionary, you know, it’s 85 bucks an hour, not everybody has $85 an hour. And, and so he picked up a part time job at ACE hardware. And so then he told me this story, he’s like, there’s a gym that opened up next door as a franchise. And the woman came in and she was buying some things to put, um, you know, to put it in her, in the bathroom, like towel bars and things like that because she had just bought this franchise as a gym.
Ken McElroy (07:42):
And then of course, you know, the governor said, all gyms are closed. So she bought it. I put all his money in there, has this lump, and he’s telling me the story. And I’m like, are you like, this is exactly why I’ve been telling you to, you know, to build this internet presence, people know you need a personal brand and this is, you talk a lot about personal brand and this is a guy that does not have a personal brand. You know, he believes that neck, you know, tomorrow is going to be as good as yesterday. I don’t know about you Blair, but I’ve been through a lot of corrections. He, you know, and he’s not positioned to pivot. He’s now starting at zero. He’s not even online. Right. I know, I understand it. You know we S I see it a lot. It is a part of it.
Ken McElroy (08:23):
We, like you said, we’re having to pivot a lot too. And it, what happens is Mac Newton has a great expression. He told me, he goes, this is why and I love it. He goes, crisis is change trying to happen. That’s a good one, man. That’s a re that’s, that’s a rideable. One of these crisis has changed trying to happen. He goes, so what happens is you always getting invitations to change, but you don’t, with your health, with your finances, with your business, all that stuff, until you get to a point of crisis, like your body gives or your health
Blair Singer (08:56):
gives out, your finances give out. Now you better fricking change because, but now you’re in a crisis, which is much tougher because your emotions high and your intelligence is low and you don’t think clearly
Ken McElroy (09:08):
point. So I know it’s so horrible time. You know what I mean? I mean there’s some, but there are solutions, there are solutions and, and people are in pain, you know, financially. And there’s a lot happening. I mean, we’re having to retract on a number of things. I know you are too, right? Like we’re here talking, but the truth is we have our own fires going on. Plenty. Plenty of them. That’s right. And, and you know, there’s a number of them. And so I don’t want you to think that, you know, it’s all good all the time. It’s not, you know, but I will tell you, we both put things in place to make this a little softer. Right? Right. So when you’re talking, cause we were just talking before this, he’s, you’ve got one guy, a Alfredo who’s got 400,000 followers. You got another guy that’s got 2 million followers.
Ken McElroy (09:58):
So this is the time guys, this is a time to monetize that. And these are followers. Guys want the, you know, followers like Kiyosaki. I don’t know what he’s got now. Few million Facebook followers, right? He’s hunkering down and he said, you know, I talked to him all the time. I know you do almost every day. And he’s like, this is what I’ve been talking about. You know, it’s horrible to see people go through this. But this is exactly what I was talking about and this is why we have financial education. This is why we, we’d go for cashflow, not capital gains. This is why we do personal development. This is why we try to understand that this is why we try to understand taxes all of because of what’s happening right now. Right? It’s a great time to educate.
Blair Singer (10:44):
Yeah, well you have to get educated now because nature of the marketplace, the economies forcing you to do it. Um, and I, and I think, and there are things you can do or things you can do and I think that if you’re an entrepreneur right now, um, if you’ve got a team, it’s time to pull your team together. Okay? If you haven’t done that, you pull them together. And then the second thing is if you’re not, if you’re not selling, don’t stop selling. Now you’ve got to sell more than ever right now. Don’t cut marketing budgets that you’d be marketing, creating more exposure. Now if you are, if you’re used to face to face selling, you better learn how to work on a camera right now. Pull out your phone as are working on it so you, and you don’t have to be great, but you just have to make that change now because here’s the thing, some people will do nothing. They’ll just try to hunt her down and weather this whole thing. We’ll live off their reserves or do whatever. And that’s, and that’s okay. Now, somewhere down the road, smoke will clear, right? There’s other people, they’re gonna jump right on this thing. And in, even if what you’re doing is not necessarily the right thing right now, but you’re doing, but you’re doing the right things, but you’re not doing them perfectly yet, by the time the smoke clears, you’re gonna be so freaking far ahead
Ken McElroy (11:54):
of everybody else that was doing nothing. That this is the greatest opportunity in the world to get ahead in business right now. I know, I was talking to Curtis, you know, uh, today and um, you know, he’s like, yeah, I lost 20 million bucks in Oh eight. He goes, I literally spoke to him today. I go, yeah, I know there’s a lot of people lost a lot of money in 2008. He goes, you know what it was. I go out and he goes, practice. He goes, it’s practice for what I’m about ready to go through. Right. Because it’s true. You don’t really learn much when times are good. I mean, that’s been my experience. So, you know, when, when everybody’s making money, what are they doing? They’re buying cars or buying houses, they’re, you know, they’re doing it. They’re doing all these things that are access related but now is when everybody really learns the lessons.
Ken McElroy (12:41):
That’s right. That’s, and again that’s what I’m saying is that I work with a lot of entrepreneurs. I got a big team, we’ve got about in terms of trainers, we’ve got about 450 of them deployed around the world. I mean they’re their own business guys, they’re entrepreneurs, but they are all part of the same group and you know, working with them and pulling them together and just cross Pawnee, well this is working for you, that what’s working for you, what’s working for you and people going, I tried that to do that joint venture. Let me share your posts. And if you’ve got a network, it’s probably even if you got nothing right now, my suggestion is you jump on a network, jump on a net, become part of one part of something. Yeah. Because being alone is two problems. First of all, you gotta, you gotta lose out.
Ken McElroy (13:23):
Second thing, it’s not good for your mental health. The first sign of depression is isolation. So if you isolate yourself and say, well, I’m not going to, you know, you’re not doing your, you’re not doing your little voice and your mindset any good at all. And we, I’ve seen a lot of that right now. So if nothing else, pull your team together, creates the connection, creates energy, the energy creates confidence, et cetera, et cetera. So kind of wants walk through like, you know, there’s people, you know, going through different stages at different times, you know what I mean? What the first stage is typically shock, denial, right? Right. I mean, and so the question is, is how resilient are you? Right, right. Yeah. I mean, obviously we’re all in shock and denial, but then you have to, you have to just dust yourself off. He goes, Nope.
Ken McElroy (14:15):
You know, no one’s watching. No one cares. You know, everybody’s pretty selfish, right? So nobody’s like judging you. Nobody cares. Nobody cares. They care about themselves and what’s happening next. You know, there’s no one watching. That’s right. You know what I mean? This is your time. This is your time to do something for yourself and your family. You know, and, and it’s interesting you say that too, is that I, Robert was at work, I was at Robert’s house the other day and we’re talking about sales and he goes, okay, so if you’re going to help people with sales, what is it all boiled down to? What’s the big, what is, you know, you know how it gets in your face?
Blair Singer (14:52):
What’s the thing? No, it’s not that. No, it’s not that he’s yelling at me or the yell. Okay, so what do you want? He goes, what is it? I go, it’s, it’s, it’s, it’s, it’s fucking discipline. He goes, yeah, discipline. And it just popped out. I mean, he’s brilliant that way. Right? And so, and so it’s like, he goes, explain to me, discipline. I go, well, in my life and in your life, we, all of our lives, there’s something that you’re probably very disciplined in something that you’re going to do. Cause you know, it’s the right thing. It could be your health can be working for me. It’s health, it’s working out. You know, it’s honing my personal, my personal skills and I’m really, I’m really diligent about that and studying and those things. And so then out of the question is right now, if you’re going to generate income, you got to take that discipline and that area of your life and now move it to this area of the life because that’s what’s going to keep you going.
Blair Singer (15:45):
I mean that’s what’s true for me. It’s kind of like what Mac dude said. Totally. Totally. So I’m working out with him online, right? So he’s doing everything online and he’s are the workouts now online are harder than what? I’m in his freaking studio. I’m going, he goes, he yells at me, he goes, Hey, what’s the temperature in your room? Cause he always turns it up really hot. Look, and I could lie to him, but I got to, it goes 75 turn it up to 90 right? So he’s putting, so he’s going through this workout and I’m dripping wet and I’m thinking to myself, this is what I need right now. Me, I’m not saying you, I’m saying me because it reminds me that I can do this. I can do that. I can be disciplined here, I can be disciplined there. We all know that you’re, you know, you’re the leader in that area.
Blair Singer (16:32):
How many times have you climbed Kilimanjaro? Uh, 11, 11 times. So, okay. Blair is a rockstar when it comes to health and some of you are, and some of you are not. Right? Right. And so the question is, what’s your financial health exactly? What’s your spiritual health? What’s your relationship? You know, everybody focuses on their physical health, you know, which is super important, right? Yeah. It’s a balance. Yeah. And, and you know, and different parts of your life in different times of your life, you’re gonna be called upon with a crisis or a challenge. And what I got from Mac is the only reason it’s a crisis because you kick the can down the road too long. And you and I have had this discussion more than once when you’ve been in my face and you probably just heard this guy say, I told you.
Blair Singer (17:17):
Right? But, but we all know that, and you know it at the time that you make the decision, you know, at the time that you make the wrong decision that, that you should’ve done something else. Well now it’s all on the table and now we ought to just fricking deal with it. It’s the best of times. I tell you what this time is, it’s your financial report card. That’s what it is. Totally. Yeah. Period. Yeah. So what’s your GPA? Right, right. That’s it. So I remember Robert telling me, he’s like, yeah, Blair’s working so hard, the gym and I’m
Ken McElroy (17:50):
just riding my little bike. He’s watching you run live.
Blair Singer (17:54):
Yeah. Yeah. He goes, cause he goes, uh, well what he say? He said, I’m going to be re, I’m going to always be richer than you. And I go, yeah, well I’m going to live longer than you. Yeah. So he got this back and forth and right.
Ken McElroy (18:07):
So we don’t want to make light of what’s happening guys, but I got to tell you it’s, it’s actually a healthy release. I haven’t actually talked to Blair since all this happened. And um, you know, we have friends, family businesses, all in trouble. Yeah, we do. Right. And um, you know, it’s um, everybody’s just trying to come together and learn.
Blair Singer (18:27):
Right? That’s right. And, and your education is more important than ever. Don’t sacrifice your education because right now the universe, the marketplace, your F your financial statement is talking to you. What are a couple things people can do today? Well, if you’ve got a business, let’s go there. I mean, if you got to, if you’ve got, well, no, let’s go personal first. Personally, you got to keep your little voice in order. Okay. Because it can go pretty crazy pretty quick. Uh, that’s why one of the things we’ve been doing for years is we have a Mo, if you don’t have a morning routine, you should have a morning routine. Right. Uh, how Al rod I believe was his name, wrote the book miracle morning book. Yeah. Get that and follow that system. I follow it every single morning
Ken McElroy (19:14):
without fail is important guys. You know, cause I, I now, you know, I get up, let my dogs out, I meditate. You know, I spend time on myself, I spend time on my company. I have a routine that I do every morning. I don’t, before I get on email, before I get on tax, before I do anything, I knocked this out. It’s super important to get set your mind for the day.
Blair Singer (19:35):
That’s right. Because if you don’t, this whole crisis will dictate every action
Ken McElroy (19:40):
you’ll get up, you’ll get right on the internet and you’ll start going right into panic and fear and anxiety and stress.
Blair Singer (19:45):
That’s right. So you’d have that time, you know, for me it could take anywhere from 30 minutes to an hour and a half, depending upon, say with me how I go through it and I meditate for five minutes as honestly sometimes I meditate longer. Right, exactly. And you know, and then you get a workout somewhere in there, you know, I’ve got to get physical with this thing. Get your cause, your, your physical, mental, emotional and spiritual. And they’re all hooked together. You change one, you change them all. So that’s, and then I have a routine at the end of the day, I sit down and I do a gratitude exercise. Part of my gratitude exercise at the end of the day, list all your wins for the day. No matter how little they are, all those wins, go to bed. Okay? So that’s the first thing that I would do. Really important. Guys, you got away, I want to put his point out, cause I’ve known you a long time.
Ken McElroy (20:32):
All of those things that you just mentioned probably took you 10 years to implement, right? I mean they sound like, Oh I’m just going to go follow this checklist. No, no. Something came painfully slow. Then it was adopted. Then the next thing
Blair Singer (20:48):
was adopted a year later, two years later. Right. You know, then we let the children read the book, what, three or four years ago, try this type of meditation or that type of meditation guys, you know, don’t think that we’re just following some checklists and all of a sudden their lives are better. I mean these are, you know, these are trial and error. That’s right. Right. That’s right. And new. The good thing about it is because we’re a team and we’re friends, he said, can’t go is why try this, check it out. Go. Yeah, I’ll try that. Check that out. I hate you. And so we vet the resources together. Yeah, check out this video. Robert probably sends me almost every day a YouTube video. I say this is a book I’m reading. You know like we have a network and this is the network we’re talking about.
Blair Singer (21:30):
You know your lifeline outside of your house. That’s right. Right. You need it guys. I’ll wake up in the morning and some, and I’ll have the rich dad advisors for example. We always have a chain of something going on. Sometimes it’s a lot of smart ass stuff, which is always good and makes you laugh. But a lot of times it’s super educational because everybody looks at the world a little bit differently. Right, exactly. And what’s the business one? So the business one is two is two things. First of all, you got to create it. Well, first of all, if you’ve got a team, pull your team together because the cause, there’s synergy there, or there’s dysfunction there, one of the two. And right now you need synergy. You need to bring them together, get them together, get them to cross pollinate resources, how they’re feeling, what’s going on, and give them tasks to do.
Blair Singer (22:13):
Give them meaningful things to do. Don’t let them sit around. I heard somebody say a real good quote the other day, go fear lives in stagnant water. That’s not a good one. That is, yeah, this is the time for leadership. Yeah, this is it. And right now you’re finding the people that that can lead. And you know, so that’s number one. Pull your team together. Number two is you must freaking sell. Don’t stop selling. And you, and on top of that is you gotta get your team to sell. We’ve always talked about this for years and years. Everybody on the team must sell. Well, now everybody’s got to sell. I mean, in my office, everybody’s got a sales quota every day. A number of calls I gotta make. Even people, you know, customer service, even my bookkeeper, she, okay, I’ll just call these people, check in with them.
Blair Singer (22:58):
How are they doing? I was there any way we can help them. How can we support them? You’ve got to keep that flowing out there. Um, because this is a, you know, we talk, we call them touch points, right? Yeah. How many times we’re not trying to, you know, you’re not necessarily trying to sell them on anything. You’re trying to keep the relationship. That’s right. Let them know your existing clients right now guys are gold. Exactly right. Goal. Yeah. Some of the other thing is, is that sometimes when you’re selling in these days, you’re not just selling your coaching. You’re actually coaching your clients. You know, cause some of them, they’re sitting on the edge, right? They’re like, well, I don’t know what we going to do. So you’re not just selling your product or your service to them. You’re actually coaching them. So how’s it going on for you?
Blair Singer (23:42):
How can I support you? What’s going on here? I saw this video over here. Can I send it to you? Will that help you? How can I support you? How can I support you? That’s it. You know, and I even have people that go, well, I don’t have anything to sell. Okay, here’s, I’m going to give you one other thing to do. If you don’t have anything to sell, go out and help somebody. Just help somebody serve some, find something that people want and need and help them get it, which is basically all sales is anyway, and there’s a tremendous amount of gratitude around.
Ken McElroy (24:09):
What a great episode. I hope you learn something new from today’s guest. For full show notes, check out Ken macra.com if you enjoyed the episode, then jump on iTunes, subscribe and leave a five star review. Also, if you can check me out at Ken McElroy official on Instagram for daily real estate advice. See you next week.
There are many tenant screening tips that can be beneficial to you long term in the real estate business. When looking for tenants to rent your properties, you want to be sure that they are individuals that you want to be able to form a professional relationship, often long term. You want to be able to trust many factors, that they will treat your property with respect, pay their rent on time and not cause you any unnecessary issues while they are a tenant in your property.
There are some tips that I can give you when interviewing with new tenants that you may not have previously thought of. One that may not come to mind for everyone is to walk the applicants back out to their car after you speak with them. If they keep an unkept vehicle, they will commonly treat your property the same way. Also, instead of asking them whether or not they have an animal, ask them how many animals that they have. This is a good way to catch them off guard because if they do have animals, they will assume that you already know about them. Do not let them try to assure you that their animal lives elsewhere, this will not be the case. The animal will live on the property that you are leasing and should be tied to the application as such.
Background checks are extremely important when verifying possible tenants for your properties. Always, with no exceptions, do a credit and a background check on any tenant and all adults that will be possibly occupying your properties. Do not accept anyone that has a history of being a felon to rent at any of your properties. They will normally violate your HOA and cause general problems for you and your property. You will also need to be up to date on other laws in your areas concerning things such as service dogs. Service dog laws are generally different state by state. There are only certain animals that will be considered a service animal by the state and they need to have the proper papers in order as well. You subsequently cannot charge them any kind
of additional deposit or pet rent for any service animal.
Understanding these initial key tips for screening possible tenants will help you long term find the best tenants and save you headaches down the road. Paying attention to the small details in the beginning is a good way to make sure that you will have the right tenants moving in in the first place and be able to move forward with a rental agreement with less issues to worry about during their lease period. This may seem like a lot of paperwork in the short term, but there will be even more paperwork in the long term if you do not take these steps from the start of the process. This is also a good reason to look into possibly hiring a solid management company for your properties to handle all of the screening for you.