auburn investment properties

In this episode, I'm going to catch you up on a few things that we covered in previous episodes: 

• The Rossmere flip condo
• Taxes and accounting, and what I've learned the hard way
• Rental trends and how more turnovers can actually make you money
• Sales price trends, and what to expect there
• Changes we are seeing in local purchase contracts and the buying process in general

I had a slow week on the sales side and I can't work on my next turnover until next week, so I decided to get back in the podcast saddle after about 10 months off!  I forgot how to mix some of the sound stuff, but overall it was good to be back!

Links from this episode:​​

• Work with Me​
• ​Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, I'm going to take you back to a diner on Beale Street in Memphis, on a lonely night more than 15 years ago.  I felt like I was drifting a little, and needed some wisdom in my life about dealing with success, not feeling needed, and being kind of depressed about it. 

Around that time, I started reading classic books and plays to keep my mind active, and this particular night I sat down to read The Glass Menagerie, not even knowing what a Menagerie was, or why the play was so famous.  In fact, the play  itself was not very memorable to me - I had to look it up again and do a google search to find remember what a "menagerie" was again just so I could do this podcast!  Lucky for me, I came across something in the first few pages of the book, before the play even started, that was as memorable and influential as anything I've read before or since.  It's not often you get life advice from someone so gifted with the written word, and I'm definitely talking about Tennessee Williams here, not me!  Anyway, this is a super short episode with a very impactful lesson about your Real Estate career, and about life in general.  I hope you enjoy it as much as I did!

Links from this episode:​​

• Work with Me​
• The Catastrophe of Success, by Tennessee Williams
• ​Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, I'll talk about the genius and the beauty of a coming up with a 5 Year Plan.  They say that people often OVERestimate what they can do in 1 year, but UNDERestimate what they can do in 5 years, so I want to encourage you to look at where you are now and give yourself some goals and direction by looking 5 years out into the future.

I'll tell you how my first 5 Year Plan helped me get out of the apartment business and reshape my life, and how my dog Bodie, helped me realize it was time to come up with another.  We'll also talk a little bit about how Robert Kiyosaki (Rich Dad, Poor Dad book), and Dave Ramsey (Radio Show & Total Money Makeover book), and how their differing advice can help you see the big picture and choose a path that fits for your life situation.

Links from this episode:​​

• Work with Me​
• Rich Dad, Poor Dad, book by Robert Kiyosaki (Amazon Link)
• Ramsey Solutions, (Dave Ramsey books, budget tools, and podcasts)
• ​Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, you'll hear the second of two parts of an interview I did with my long-time Real Estate Attorney, Russell Balch of the law firm Akridge & Balch in Auburn.  Besides being my attorney, Russell has also been my office landlord for a few years too.  I met Russell through my first post-college employer (Fred & Miles of the Charter Companies) in the late 1990's, and when I started my mobile home sales business way back in 2000, Russell was my guy!  

Eventually, I moved on to single condos, and then started buying apartment buildings to turn around, or renovate and cut into condos.  Later on, Russell helped me acquire a 50+ unit portfolio with a multi-million dollar "Lease-Option" type of contract.  Well, that huge acquisition completely burned me out and I needed a break for a while, so I decided to sell all of my properties, and Russell helped me with that, too.  He's started 8 or 9 LLC's for me, either as solo businesses or with partners, and I always felt prepared for what happened next, even when one of the partners in a 3 man group actually died and the other filed bankruptcy!  The bottom line is this: a good Real Estate attorney is one of the most valuable members of your team, and Russell is a damn good one.

Listen in as Russell and I talk about: (items in bold are in this episode, the rest were discussed in the previous episode)

• Various types of closings
• The differences between Residential and Commercial Deals
• The finer points of contracts and how they can affect negotiations
• Contract and the review process for complicated deals
• Options, Due Diligence periods, and Hard Money clauses
• LLC's and how they are designed to be firm but flexible, and can be modified on the fly to fit your evolving projects
• Three types of dispute resolution (Mediation, Arbitration, and Litigation)
• Parting thoughts and words of wisdom

Links from this episode:​​

• Work with Me​
• Expert Legal Services for Real Estate: Russell Balch at Akridge & Balch, PC
• Call Russell or my go-to lady FB Henderson at (334) 887-0884
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, you'll hear the first of two parts of an interview I did with my long-time Real Estate Attorney, Russell Balch of the law firm Akridge & Balch in Auburn.  Besides being my attorney, Russell has also been my office landlord for a few years too.  I met Russell through my first post-college employer (Fred & Miles of the Charter Companies) in the late 1990's, and when I started my mobile home sales business way back in 2000, Russell was my guy!  

Eventually, I moved on to single condos, and then started buying apartment buildings to turn around, or renovate and cut into condos.  Later on, Russell helped me acquire a 50+ unit portfolio with a multi-million dollar "Lease-Option" type of contract.  Well, that huge acquisition completely burned me out and I needed a break for a while, so I decided to sell all of my properties, and Russell helped me with that, too.  He's started 8 or 9 LLC's for me, either as solo businesses or with partners, and I always felt prepared for what happened next, even when one of the partners in a 3 man group actually died and the other filed bankruptcy!  The bottom line is this: a good Real Estate attorney is one of the most valuable members of your team, and Russell is a damn good one.

Listen in as Russell and I talk about: (items in bold are in this episode, the rest were discussed in the previous episode)

• Various types of closings
• The differences between Residential and Commercial Deals
• The finer points of contracts and how they can affect negotiations
• Contract and the review process for complicated deals
• Options, Due Diligence periods, and Hard Money clauses
• LLC's and how they are designed to be firm but flexible, and can be modified on the fly to fit your evolving projects
• Three types of dispute resolution (Mediation, Arbitration, and Litigation)
• Parting thoughts and words of wisdom

Links from this episode:​​

• Work with Me​
• Expert Legal Services for Real Estate: Russell Balch at Akridge & Balch, PC
• Call Russell or my go-to lady FB Henderson at (334) 887-0884
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, I'll talk with Auburn Mayor Ron Anders about a variety of topics and a "State of Auburn" recap at this interesting and challenging time in Auburn's history.  We'll tall about how his family got started in the school book business, and what's on the horizon for that location, as well a ton of other interesting topics.  We talked about the smashing success of the "pop up" Covid vaccine clinic across from the mall, the impact Covid has had on local small businesses, the University, and the places those 2 worlds intersect.  We'll also look at the health of the city revenues before and after Covid shut everything down, how we're doing now, and his projections for the future, and some big time news about healthcare in Auburn in particular. 

Other topics we covered were population growth, the AU President search, and how that might change student enrolment numbers, as well as an update on new apartment plans in both the student and "grown up" markets.  We can't leave out the Short Term Rentals decision that is now set for a while, and what that looks like in reality.  I'll outline the general concepts below:

Auburn Short Term Rentals (STR's)

• Only allowed in certain zoning districts (many single family home areas near campus are excluded)
  • Excluded Zoning Districts: NC, DDH, LDD, LLRD, NRDW - W of Donahue, CRDW-W West of Donahue
  • Click here for City of Auburn Zoning Map
• IF Short Term Rentals (STR's) are allowed on your property, you have 2 options:
  • Non-Primary Rentals:
    • The owner DOESN'T live there full time
    • Limited to 240 days per year, max
    • That means the other 125 days the owner can be there or it must remain
    • Needs Zoning Certificate and Business License
  • Homestays:
    • The owner DOES live there, and files Homestead there with the Tax office
    • Owner lives there 180 days of the year, minimum
    • Owner can rent a single bedroom 365 days (no limit)
    • Owner can rent 90 days if they are gone
    • Needs Home Occupation Permit

Links from this episode:​​

• Work with Me
• Covid Clinic Volunteer Sign-Up
• Auburn Apartment Guide
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, you'll hear the second of of two interviews with Jim Andrews, who publishes the Auburn Apartment Guide and the Tuscaloosa Apartment Guide.  Jim got started as a Property Manager, did a little teaching on the subject at the college level, and has been in the multifamily business in one way or another ever since.  He is also involved in the financing side of the multifamily business and an investor in properties and projects himself.

The framework of the 2 episode series is a historical look at the multi-family and/or student housing options here and how they have evolved over time.  We'll cover everything from trailer parks and duplexes to downtown redevelopment, and everything in between in roughly 10 year chunks. 

This first episode covered the 1980's through about 2005ish, and this episode picks up in the 2000's and goes all the way up until today's projects. 

Links from this episode:​​

• Work with Me
• Auburn Apartment Guide
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, you'll hear the first of two interviews with Jim Andrews, who publishes the Auburn Apartment Guide and the Tuscaloosa Apartment Guide.  Jim got started as a Property Manager, did a little teaching on the subject at the college level, and he has been in the apartment business in one way or another ever since.  He is also involved in the financing side of the multifamily business and an investor in properties and projects himself.

The framework of the 2 episode series is a historical look at the multi-family and/or student housing options here and how they have evolved over time.  We'll cover everything from trailer parks and duplexes to downtown redevelopment, and everything in between in roughly 10 year chunks.  

This first episode is going to cover the 1980's through about 2005ish, and the second episode picks up in the 2000's and goes all the way up until today's projects.  

In this Episode, I'll share 9 or 10 of the Real Estate books that I would recommend to someone no matter which stage they are in as an investor.  Some are inspirational, some are more about urban economics, the history of cities, or even how to prioritize your work when you are feeling overwhelmed. 

I often say that our actions follow our philosophy, or in other words, we do what makes sense to us.  If that is true, then it's helpful to see the bigger picture and understand the context of our decisions beyond just what we can see right in front of our face at the moment.

Here are the books, with Amazon links:

• Rich Dad, Poor Dad, by Robert Kiyosaki
• Cashflow Quadrant, by Robert Kiyosaki
• The E-Myth Revisited, by Michael Gerber
• The Death and Life of Great American Cities, by Jane Jacobs
• The Option of Urbanism, by Christopher Leinberger
• The Rise of the Creative Class, by Richard Florida
• Who is Your City? by Richard Florida
• The World is Flat, by Thomas Friedman
• The 7 Habits of Highly Effective People, by Stephen Covey
• The One Thing, by Gary Keller
• Jim Rohn (various YouTube videos in a playlist)
• 80/20 Sales & Marketing, by Perry Marshall
• Mega-Trends, by John Naisbitt

Other Links from this episode:​​

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, I sit down with local Investor, Builder and Land Developer Andrew Parmer.  This is the first of a 2 part interview, and in this part we talk mostly about his investment properties and how he has set up the rental side of his business with less direct interaction than I had, which frees up his time for looking at land deals and building subdivisions.

In Part 2 (Episode 35), he'll go into much more detail about the Land Development business: process, schedules, financing, etc.

Links from this episode:​​

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, we'll take a look ahead to 2021.  The start of a new year is always a good time to take an honest look at where you are today, look at the things you could improve on, and come up with ways to do better in the coming year, so I'll do that in a few key areas...

• What I expect from the Auburn Market
• My Business and Investing Goals for the year
• A Few Personal Resolutions

Links from this episode:​​

• Work with Me
• Small is Beautiful - E. F. Schumacher (Amazon Link)
• The Death and Life of Great American Cities - Jane Jacobs (Amazon Link)
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, I take a quick look back at 2020.  The episode covers the impact of coronavirus on the world, and investing in general, then we zoom down to the Auburn rental market, and then my own business.  I also talk about my personal investments for the year, good and bad, and some lessons learned there.  Also, I go into some detail on the financial things I needed to change this year after several years of not being very diligent with my record keeping, and I walk you through the way I was able to do that and how my accountant and I were able to work together to make it simple, quick, and easy to stay on top of. 

Links from this episode:​​

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com

In this Episode, I go over my 10 Biggest Mistakes in my 20+ years of being a Real Estate Investor in Auburn.  It's easier to for each of us to remember the mistakes that caused us to lose money or to be super stressed.  They get embedded in our brains and come out as "common sense" from that point on, right?  But if you haven't made these mistakes yet, then maybe they aren't common sense for you.  So I'm here to pull back the curtain a little, and share some of my mistakes in order to help prevent you from making them yourself.

Let's get real... making mistakes is part of this business.  If you think you will get through a career as a Real Estate Investor without making them, you are either naive or arrogant, and I predict some expensive lessons in your future!  So let me be your tour guide, and tell you how to get where you want to go with as little trouble as possible.   

Links from this episode:​​

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• Websites & Branding: EasyLandlordWebsites.com

In this Episode, I sit down with Auburn business man and former City Council member Brent Beard, and we talk about his experience as a landlord with multiple properties in Auburn.  I've known Brent for over 10 years, and in early 2018 he came to me after selling a beach condo and asked me if I could help him find a few rental properties so he could put that money back to work right here at home. 

Brent used his 1031 Exchange money to buy 3 houses here, and he eventually picked up a 4th and 5th, which were condos close to campus.  Despite his busy work and family schedule, he and his wife Lauren decided to do their own management, and he'll tell us how that's going.  Brent bought a duplex when he was younger, right out of school, and he didn't have as much luck with his neighbor on the other side, but that was a long time ago.  This time, he asked me a lot of good questions and we were able to set his screening and leasing process up to be smooth and effective right from the start. 

Links from this episode:​​

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• Websites & Branding: EasyLandlordWebsites.com

In this Episode, I'm going to take you behind the scenes of a rehab project I'm working on.  I bought a small condo just off of N Ross & E Glenn at Rossmere Condos in November.  The condo is currently rented, and I'm getting ready to do a major rehab on it at the start of 2021.  Right there you should have already realized this is going to be an interesting project!  Since I'm still at the beginning stage with this one, I'm going to talk to you about the decision process related to flipping it for resale or rehabbing it to rent for a year or longer.  I'm also going to take you through the process of determining the rehab budget, from cabinets and flooring all the way to door knobs & light fixtures.

And most importantly for first timers, in the Tips and Takeaways section, I'm going to share with you how I am handling the existing lease that goes through the end of July 2021.  That may be the most important lesson in the whole project!  This will be the first in a series that will take place over the next few months while the project moves forward.

Links from this episode:​​

• Work with Me
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• Websites & Branding: EasyLandlordWebsites.com

In this Episode, I'm going to talk to the woman whose office has handled all of my insurance for the last several years: Kathy Powell of State Farm in Auburn.  I've had some small water leaks and some massive water leaks - the kind where ceilings have caved in!  And who has gotten me through all those?  State Farm.  So I decided to bring in Kathy to answer some common questions I get about Insurance on Investment Properties, like houses and condos, but also things like Umbrella policies and we'll even talk about how life insurance can help you get a deal funded. 

Basic Topics:

1. Rental Property Owner's Insurance: The differences between this and regular homeowner's insurance
2. Considerations for Insurance on a place you just bought (an empty house with a rehab coming shortly)
3. Renters Insurance: What it covers, costs / why recommend it or even require it
4. Condo insurance: Unit owner policy vs Master Policy
5. Vehicle insurance for showing properties or pulling a UHaul trailer (emptying a place out after buying it / hauling away landscaping debris)
6. Umbrella or other Liability Insurance

Advanced Topics:

1. Borrowing against your whole life policy to come up with down payment funds?
2. Term life to pay off a property or pay off investors (low tech version of "key man" insurance)

Links from this episode:​​

• Work with Me
• My Insurance Provider: Kathy Powell, State Farm (in Auburn)
• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• Websites & Branding: EasyLandlordWebsites.com

In this Episode, we're going to take a look Future Pacing, which was a concept I brought up a few weeks ago, maybe in Episode 14 or 15, and how we can use that tool as a landlord to make our lives easier and the make things easier for our tenants.  Broadly speaking, Future Pacing is a concept that coaches, speakers, etc use to get their clients or their audience to see a vision of something in the future, and then motivating someone to take consistent action to get that result.  We'll talk about how we can use Future Pacing and the concept of a timeline of actions steps to set up our leasing process for 3 important parties: you, your vacating tenant and your incoming tenant.

A few weeks ago, I mentioned the idea of coming up with a "30 Day Checklist" for each party listed above, and decided to do this for my own rental business.  Today we're going to look at why this is important, what we can learn from a Master at Future Pacing, Dr. Martin Luther King, Jr., and then walk through what ended up on each of my 3 checklists.

If you want the Word or PDF copies for yourself, just click the Work With Me link or send me an email, and I'll send them out to you.

Links from this episode:​​

• Work with Me
• MLK Speech: I Have a Dream (YouTube)
• MLK Speech: I Have Been to the Mountaintop (YouTube)
• ​Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• Websites & Branding: EasyLandlordWebsites.com

In this Episode, we're going to take a look at the impact that Covid-19 and the Coronavirus has had on Real Estate Investing in Auburn over the past 7 months, focusing on 3 specific areas:

1. Student Housing
2. Starter Home Rentals
3. Starter Home Sales

We're also going to talk about the type of mindset an investor must develop in times of uncertainty or upheaval, and why some of the traditional moves haven't presented themselves yet.  We'll talk about the style of economic recovery happening in Auburn and how that might impact your rental performance.  Lastly, we'll briefly touch on what makes a city and a renter financially resilient, and how Auburn scores highly on both categories.

Links from this episode:​​

• Work with Me
• ​Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• Websites & Branding: EasyLandlordWebsites.com

In this episode, we'll revisit the 3 ways to make money in Real Estate, and then take a look at the timeline for a typical Real Estate investor.  We'll start at your first purchase and then your next purchase, and why it goes faster the second time around, and then we'll look further ahead and see where you might end up 5-10 years down the road when  your role might change from "deal hunter" to "asset manager" or even the coordinator of a group of other investors. 

Tips & Takeaways:
We'll look at how Warren Buffet makes a 50% return each year from just one of his investments, and how we can compare that to our returns as Real Estate Investors.  We'll also look at the hidden metric of "Cash on Cash Return", which is often a better way to evaluate your Real Estate investments and especially how to find value in doing smart renovations. 

3 Ways to Make Money in Real Estate:

1. Surplus Cash Flow from the Rent
2. Increase in Sales Price (or Appraisal Value)
3. Paying Down a Loan with Someone Else's Money

​Analyzing Your Cash on Cash Return:

• Add up all of your net income (surplus rent) for the year
• Divide that number into the amount you put into the property for your down payment
• That number is your Cash on Cash Return
• You will probably have a much higher return than you think!
• Can often be greatly improved (doubled?) with smart upgrades

 

Links from this episode:​​

• Work with Me
• ​Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• Websites & Branding: EasyLandlordWebsites.com