Customer Service in the Pumpkin Patch

A Blog based on the principles of The Pumpkin Plan: A Simple Strategy To Grow a Remarkable Business in Any Field by Mike Michalowicz It goes without saying that customer service involves “customers”. After reading a review of Mike Michalowicz’s book: The Pumpkin Plan, I began to weigh the whole issue of customer service. How do I determine the best approach to customer service and handling the needs of my customers when my time is limited? I first needed to look at my customer base and within that base what customers added the most value to my business. Then I needed to determine what customers were the worst and of the worst I would see what method I could put in place to ditch them (FIRE THEM!). For the customers that added value to my business, I would nurture them; blow them away with customer service and let them know by my action how much I appreciate them. These are the customers that don’t require a lot of attention, and provide me with great referrals, and are not demanding. For the customers that attempt to suck the energy out of me, I would FIRE THEM. I would show them the path to go somewhere else and suck the energy out of someone else (my competitor, perhaps). By firing a customer I am able to regain my TIME which is extremely valuable to me and my company. Landmark Group provides property management services in the Omaha, Nebraska area and has served it’s customers for 25 years.

Painters/ house and home

Home Maintenance is often troubling and confusing. Who is reliable, will the work be satisfactory? The questions can be endless. Landmark Contracting has a wide scope of talent that can handle your maintenance needs whether they be large or small. When shopping for a contractor, why not give us a call?
If you are considering having someone paint the exterior of your house there are some questions you will need to ask. Are you a registered contractor? Are you lead paint certified? What quality of paint do you intend to use? Who is responsible for the clean up?
The interior of your house also generates questions. If the property is vacant the problems are different than one that is occupied. The occupied house needs the flooring and furnishings protected. The clean up is very important to the owner. Unoccupied homes are easier to paint but still a certain level of care must be maintained.
Landmark Contracting is not limited to painting, we can help you with any and all of your property needs.
Give us a call and we will be more than happy to visit you and give you and estimate for your requests. You will be pleased with the costs, as well as the quick and courteous service.

Understanding Rental Operating Expenses.

 The truth is that the vast majority of new real estate investors fail and they fail in a relatively short period of time. The number one reason they fail is that they don't understand operating expenses. Let me say that again - THE VAST MAJORITY OF NEW INVESTORS FAIL BECAUSE THEY DON'T UNDERSTAND OPERATING EXPENSES! 

Before we continue, we need to define operating expenses. Operating expenses are very simply those expenses that are associated with operating your business. Now, before we go too far, let me tell you that THIS definition of operating expenses is not strictly in line with the way that many accountants would define operating expenses, but my definition is a practical definition that includes ALL of the real world expenses that rental property owners incur. So, basically, operating expenses include all the expenses that we incur EXCEPT DEBT. In other words, operating expenses are ALL of the expenses except the mortgage payment (the principal and interest only). 

Let me go a little farther and list most of the operating expenses that a typical landlord will have: property taxes, landlord insurance, management (even if you do it yourself), maintenance, advertising, vacancy expense, office supplies, utilities (even if only during vacancies), entity maintenance (LLC expenses), legal fees, evictions, set out

Now that you understand what operating expenses are, let's talk about the main thing that causes most new landlords to fail. Throughout the United States, operating expenses for rental properties run 45% to 50% of gross rents. To be conservative, let's just say 50%. This is whats call The 50% Rule! 

So, now that we know the little secret of rental properties (how high the operating expenses are in the real world), how do we apply that knowledge? This is the beautiful part of The 50% Rule - its simplicity! We know that the operating expenses take 50% (half) of the monthly rents. If we carry that logic one step farther, the remaining half of the gross rents minus the mortgage payment (principal and interest only) will give us the cash flow for the property. If the cash flow is positive, you should make money over time. If the cash flow is negative, you will lose money over time. 

Before we try a couple of examples, we need to define one more term: Net Operating Income. Net Operating Income, abbreviated as NOI, is the income from a property after the operating expenses are deducted but before any debt (mortgage payment) is paid. For instance, if we had a rental property that had a monthly rent of $1,000 and the operating expenses were $500 (from the 50% rule), then the NOI would be $500. SIMPLE!

Now that you understand the basics, let's take a look at a couple of rental properties to see if they will make money (cash flow). 

Example 1: 

This is a 3 bedroom, 1 bath, single-family house on a beautiful street. The house is located near a school and shopping center, and the area is generally considered to be a nice place to live. The purchase price for this property is $80,000 and the monthly rent is $800. Is this a good deal? Let's take a look: 

The gross rents are $800 per month. 
The operating expenses will be $400 per month (per the 50% rule). 
The NOI is therefore $400 per month (subtracting the operating expenses from the gross rents) 

The mortgage payment is found by entering the pertinent information into a mortgage calculator. Let's just assume that we are borrowing the entire $80,000 purchase price and that we get a loan for 30 years at 7% interest. With those terms, the mortgage payment (principal and interest only) is $532 per month. 

With this information, we can now find the monthly cash flow, which is determined by subtracting the mortgage payment from the NOI. Therefore, in our example, the cash flow would be $400 - $532 = - $132. In other words, we would LOSE $132 per month on this property! OUCH! 

Now, let's look at another example: 

Example 2: 

This is a also a 3 bedroom, 1 bath, single-family house. The house is located in a working class neighborhood that has many other rentals. The owner has lived in this house for more than 20 years, but lost his job about 6 months ago. He is DESPERATE to sell this house NOW and even though it has a market value of about $60,000, he is willing to sell it to you for $30,000, which is what he owes on his loan. He just wants OUT! The monthly rent is $600. Is this a good deal? Let's take a look: 

The gross rents are $600 per month. 
The operating expenses will be $300 per month (the 50% rule) 
The NOI is $300 per month (subtracting the operating expenses from the gross rents) 

Let's assume that we are borrowing the entire $30,000 purchase price and that we get a loan for 30 years at 7% interest. With those terms, the mortgage payment (principal and interest only) is $200 per month. 

With this information, we can now find the monthly cash flow, which is determined by subtracting the mortgage payment from the NOI. Therefore, in our example, the cash flow would be $300 - $200 = $100. In other words, we would MAKE $100 per month in positive cash flow on this property! That is good! 

To summarize: 

Throughout the United States, operating expenses run 45% to 50% of the gross rents. 

To determine the cash flow you'll get (over time) from a rental property, subtract the mortgage payment from one-half of the gross rents (the NOI). If that number is positive, you will make money. If that number is negative, you will lose money. 

What you should know when looking for the right apartment

It's beautiful, in Little Italy downtown with everything you've ever dreamed of. Hard wooden floors, a view of the city, all appliances included... But you are not the only one that has had that same dream of living there and that vision. So what can you do to make this reality happen? Here are a few helpful tips to secure exactly what you are looking for:

• Approach your rental search like you would a job search. Come to your appointment organized, serious, and professional. This will help you stand out as the most qualified for the unit you want. 

• Know exactly what you want!!! Landmark posts all of their available rental properties on Craigslist, and all the details of the rental can be viewed there first. Be prepared to make a decision and act upon it, leave a deposit:cashiers check or money order. This will assure that the place is yours.

• Also, come prepared with the information you will need to complete the application  prior address, landlord reference, and a personal reference. It is also important to have a copy of the most recent paycheck stub available, and a driver's license or other form of photo ID.

• Walk or drive around the neighborhood. Ask a neighbor what the area is like and if they like living there. While you are looking at the place to rent check out the parking areas, hallways, and the common areas of the buildings. 

Covering all of your bases and making sure you are prepared can help make the rental process fast and successful. Making sure that you are completely satisfied with your new home is very important because it will be your home for a year or more. 

Caffeinate or Nap?

I found several interesting "tidbits" in the March Readers Digest.

An interruption of only 3 seconds doubles the chances of making an error in any task involving a series of steps.  It'd be interesting to test that theory.

Now - if you need to know when to caffeinate or nap - according to Vanessa Gregory - this is what you need to do:

If your head hurts - you should drink coffee because caffeine improves the absoprtion of pain relievers - so the combination of an aspirin and a cup of coffee will help your headache.

If you want to run faster - drink coffee - caffeine boosts your endurance and speed.

If you're grumpy and sleep-deprived - you should drink coffee and take a nap (what can be better than that!!)

If you need to ace a test - take an hour long nap - that is as effective as a night of sleep in terms of storing information.

Is It Time For A Property Manager

Renting a property requires a broad skill set to match an ever-changing set of challenges. What you might have been able to handle at one point in your career as a landlord may alter over time.

Read on for the aspects of property management that might inspire you to call in reinforcements to help you out.

Maintenance
If your stable of properties has grown, you feel like you’re losing money on repairs, or you’re just short on time, you might want help with property maintenance.  Consider how a landscaping service might do more work than you can comfortably, saving you hours that could be put to other use.

Interacting with residents
If you have a number of residents or have your properties scattered throughout the area, collecting rent and dealing with all the issues residents might have can become time-consuming. A reputable property management company can take the headaches away by collecting rent, keeping units rented, and dealing with resident problems. Property managers can also help you stay on top of maintenance, legal issues and affordable housing program paperwork. The peace of mind you get from the help will likely make the service worth every penny.

Keeping up with laws
Housing law is in constant flux. From rent control to changing codes, you need to be on top of it all to stay compliant. If you’re already feeling overwhelmed, a real estate lawyer might make your life easier by making sure you are up to date legally and that your property insurance provides adequate protection, for instance.

Taxes
If you’ve been brave enough to manage your taxes on your own, hats off to you. With a single rental property, there is a lot to keep track of in terms of deductions and how much tax you owe. With more than one property, the paperwork increases significantly.

Stress on.. Life on Pause...

Dealing with Stress...How do you Cope?

              

Lately,  I've been noticing the pressure of succeeding in my job taking a toll on my body. Physically and mentally. Ive Really noticed the changed coming down into this crunch time. Here is my take of what stress does to my head/body as well as tips on

"How to reduce Stress even when you are in  stressful situation"

Here are a few More tips that weren't mentioned in my blog, but  I think can be useful when your in that "Stress Funk"

• Learn how to say “no” – Know your limits and stick to them. Whether in your personal or professional life, refuse to accept added responsibilities when you’re close to reaching them. Taking on more than you can handle is a surefire recipe for stress.
• Avoid people who stress you out – If someone consistently causes stress in your life and you can’t turn the relationship around, limit the amount of time you spend with that person or end the relationship entirely.
• Take control of your environment – If the evening news makes you anxious, turn the TV off. If traffic’s got you tense, take a longer but less-traveled route. If going to the market is an unpleasant chore, do your grocery shopping online.
• Avoid hot-button topics – If you get upset over religion or politics, cross them off your conversation list. If you repeatedly argue about the same subject with the same people, stop bringing it up or excuse yourself when it’s the topic of discussion.
• Pare down your to-do list – Analyze your schedule, responsibilities, and daily tasks. If you’ve got too much on your plate, distinguish between the “shoulds” and the “musts.” Drop tasks that aren’t truly necessary to the bottom of the list or eliminate them entirely.
• Manage your time better. Poor time management can cause a lot of stress. When you’re stretched too thin and running behind, it’s hard to stay calm and focused. But if you plan ahead and make sure you don’t overextend yourself, you can alter the amount of stress you’re under.

                           http://www.helpguide.org/mental/stress_management_relief_coping.htm

Enjoy xoxo!