Oh and I’m back with another of my 101 cashflow accelerators. It’s so great to see you. This is part of a series when managing property, each one of the different segments of the 101 cashflow accelerators is divided into separate segments. This one focuses on managing your property. I’ve been buying, holding, and selling property now for over 40 years. Love the business. And one of the things that we do is always teach you how to have effective property management, efficient property management, and profitable property management. And this one has raised rants annually. You know, one of the big mistakes that landlords make is that they don’t raise rents. They get very confident and comfortable in their relationship with their resident and they don’t want them to move. I don’t blame you for that. I’d want to feel the same way. However, what happens is inflation is a real thing.
Hi, it’s Lou Brown and I am back with more education for you to train you to be a professional property manager, help you succeed. And the world of buy, hold, and sell. By the way, that’s the name of my upcoming new book, buy, hold and sell. And one of the great things is that we discovered that when we are in the field, so to speak, when we’re face to face with residents, you know some people are going through a world of different drama, different situations within their life. And what happens is that sometimes they don’t do what they agreed to do and when that happens, sometimes they go bonkers. I don’t, I know you’ve heard the term going postal, right? And it’s like the post office worker that works there for 30 years and has always been mild-mannered and never had any upset. But every day they were getting more and more like a powder keg.
Hey everybody is Lou Brown, welcome back, or another of 101 additional profits. Since there are ways that you can increase the amount of money that you’re receiving on every property that you do. And one of the ways that we’ve discovered that we can do that is to deal with the appliances. You know, I discovered years ago that appliances were one of the biggest headaches you can ever have. It was amazing to me. I had a whole bunch of apartments and people would have a tiny little refrigerator with a tiny little freezer and if the refrigerator went out, they would say that they had lost $400 worth of meat because the freezer went out and lost $400 worth of valuable meat. He discovered that being in the appliance business was not a business I wanted to be in. And so years ago I started just carving out and disappearing. Why is this so now if the home had a dishwasher, it still has one.
Back with another of my 101 cashflow generators. I hope you’ll love these. This one is about the discounted rent. Now years ago I invented this idea and the thought was, Hey, if we set the rent at a certain amount and then we Mark it up, say $100 per month, then when they pay on time they earn a discount down to the amount that we would actually like to collect. And if they don’t pay on time, then what happens is they pay the higher rent. They didn’t earn their discount, so it’s an earned discount, and the way they earn their discounts is by agreeing to pay on time. And so when they pay on time and they pay the lower amount of rent, which is actually the amount of rent that you would like to get for that property, and when they don’t realize that you’re going to have to spend time, energy, you may have to even spend resources to collect that.
Hi, my name’s Lou Brown. Join me here for my 101 cashflow accelerators where I help you to build your business, grow your business, and support you in protecting you from the mistakes that I’ve made in my business over the years. Always be sure that we get a lien waiver from all the contractors that are working on the project, not just a general contractor. You see the general contractor can give you a lien waiver, but what if they don’t pay the under contractors, the subcontractors that have been working under them? The problem is this, if they’ve done work on your project and they haven’t been paid, they have the right to come in and lien your project. Oh my gosh. What miserable time in your life would happen when you actually have to pay twice for the same work? Yes, pay the general contractor and now I have to pay the subcontractor again.
Lou Brown, I’m back with another mom 101 cashflow accelerator to help you be more successful in your real estate business. Well, make sure that when you are dealing with a contractor in this section, we call this renovation or success or renovating for success. Let’s be sure that we not only enter into a contract with the contractor, but we know exactly what they’re going to do with that contract. Now what I recommend is you actually do your homework and that means go through the property yourself, not with the contractor, I mean yourself, and literally break it down. What do you want to be done in each room and what do you want each trade to do in each room? So what I did in my renovation system, volume 11 what I did was actually determined each one of the different trades and then determine what they would do in each room.
Hi, this is Lou Brown. I’m back with another amount, 101 cashflow accelerators to help you build your business, grow your business and support you long-term in the success of your business. One of the things I’ve learned over the years in this section, we’ve been covering renovations. You better make sure you know the number of hours that they are going to devote to your business. And so therefore in our contract we actually state the number of hours that they’re going to devote. Uh, one of the things when you are first determining whether you’re getting a good deal or the right price from the contractor, I’ll always ask them, well, how long do you think that will take? And then as we’re going through the contract, you know, how many hours would that be and how many hours would that be and how many hours would that be? And then I’ll do my own calculations on the number of hours I expect it to take.
It’s Lou Brown, I’m back with another of my 101 cashflow accelerators to help you accelerate the cash in your business. And one of the things that I’ve always learned is that when you sign a contract with the contractor, you better be sure that you say when they’re going to get that job done. Not only that but what makes us think that’s going to happen? How many accrue sizes are they going to have on the project and what times of the day can you expect to see them there? So in my independent contractor services agreement, I’ve actually built in when they have to be there X number of days per week and during the hours of X and Y to be sure that I can expect to see them, I can drive by at any time and see them and know that the contract is being fulfilled and that my job is going to be done on time.
It’s Lou Brown. I’m back with another my 101 cash flow accelerators. Renovations can absolutely accelerate your profits. However, there are things that you must consider. One of the things that I’ve laughed about over the years, I’ve learned in doing many, many renovations is that when you’re dealing with the contractors, you better have it clear who is going to be responsible for the debris clean-up and removal from the property.
It’s Lou Brown, I’m back with another 101 cash flow accelerators to help you be more successful in your real estate business. In this section we’ve been talking about renovations and boy I tell you what, I’ve done a bunch of those. I’ve done whole subdivisions and it’s been really interesting to learn about working with contractors and getting them to behave the way you want them to behave as Austin Powers would say and they won’t unless you penalize them. Well in my contract called independent contractor services agreement, it’s available in volume 11 renovations under streetsmartinvestor.com. One of the things I have is a contract for the contractor and an important thing to have in there is penalties when they don’t complete on time. So typically we go through a list of things that need to be done. I provide that to them. It’s a contractor, it’s actually all the scope of works and it depends on which contractor I’m talking to, whether it is the general contractor or it’s plumbing, heating and air conditioning, electrical roofing, painting, carpentry, general.