Mr. Partner

Mr. Partner has owned rental properties for twenty years. In fact, as his real estate agent, I have helped him buy and sell several of his homes. Though his enthusiasm is a bit overwhelming, the main thing that has really been a saving grace is Mr. Partner has always looked at what we are doing as a business—not an investment, or worse, a hobby.

For the first few years, Mr. Partner and I clashed. Two alpha landlords with quick tempers is not a good way to run any business. And, given that I am the managing partner—something written in our contract from the beginning, I was pretty sure this was my turf.

Mr. Partner has never really fully comprehended this. At least now we do have some sort unspoken agreement. And our truce slightly stronger than anything the Middle East may produce.

During one of the more maddening occasions with Mr. Partner, Marty Sunshine and I went out and bought some properties without him. Mr. Partner’s antics at the time were too annoying to deal with. Once Mr. Partner realized we still didn't need him, he became much more cooperative.

It isn’t that Mr. Partner doesn’t deserve to know what is going on. In fact, I feel very strongly in keeping Mr. Partner appraised at all times. It is that I don’t really have the time or energy to run to him every time we need a plumber/exterminator/convicted murderer lawn guy. He hears about repairs in a timely fashion. If something will cost an extraordinary amount of money, he hears about it sooner than later. He's good with that as well. Keeping him posted ensures I have more credibility. After all, it is his money too.

Once Mr. Partner got the bug invest, we began expanding very quickly. Mr. Partner has a maniacal streak. Our credit is exceptional. Money was cheap. Loans were easy to get. So we bought and bought. We grew fast, not smart.

The good news about this business model is when we do have a vacant home, we aren’t panicking. The bad news is when we have a situation like last June where we had three vacancies, two evictions and one bankruptcy in the same month, it can be harrowing. However, three vacancies, two evictions and one bankruptcy all at once doesn’t usually happen. And, if you are taking notes, it shouldn’t happen to you. It would be akin to lightening striking the same place six times in a row.

to be continued