It's Personal

I have made a terrible mistake and I am paying for it now. I got to know a tenant. I listened to her story, gave her breaks I shouldn't have and now I have had to do my job and kick her out.

I know what I did wrong. I got caught up in her drama and her promises to pay. And, I fully believe she intended to do right. She did pay--but only often enough to keep me at bay. And, I let her, ignoring the obvious signs.

When I finally decided to kick her out, the decision was easy. I have a partner I am accountable to. The business end of this--the choice to get rid of her--was cut and dry. I called the service contract, told them not to accept partial payments. And, this time, don't call me to see if I would change my mind. Just send it back. Don't let me know. Because, I might change my mind. Then again, I might not.

I happen to like this person quite a bit. She is a great woman, fantastic mother and someone I have been proud to call my friend. What she thinks of me? I have a few ideas. Or rather, what she will think of me when she gets notice, probably isn't too pretty. It doesn't change my decision. Once my business hat was on, I could see the reality of the situation. Black and white.

I keep thinking about what is happening to her right now. The mundane stuff. Like, is she putting the kids in bed when the process server comes to the door? Or, is she relaxing with a glass of wine, reading today's headlines? Has the process server been there yet? Is she expecting the notice? Will it be a shock to her? How will she react? All these "girl friend" things I think about. Will she intellectually understand it had to happen?

I hate this part of my job. I have kicked people out before. Sometimes it has been harder than other times. This one is the worst. Because I made mistakes early on. It wasn't just that I let it get personal--though that plays a big part. But because it was personal, I let things slide too much. And what did I do? I set her up for failure by not holding her accountable. And, I set myself up too.

Now What?

Other than preparing taxes for my accountant, I just don't know what to do with myself!

Ok, I still have a few property management woes. One on probation, the other being kicked out. But, that is easy stuff now. I am a seasoned veteran when it comes to that kind of thing. And, if the person being kicked out trashes the place, well I have my new crew of handymen to fix up the place. Yep. Easy stuff.

So, now I need to figure out what next. It seems simple to me: start growing the business. I started with some basics, like researching companies--namely banks--that might want to give me money. I met with one yesterday. Although it was a lovely meeting and I would be delighted to do business with them, there is a slight drawback. They are located here. My business is over there.

The next step is finding someone over there who might want to invest in me. I have five years of a proven track-record. I can show numbers to justify what I say. I have financial partners who are willing to step up and go to bat for me.

My dear and supportive husband is not screaming too loudly when I suggest going over there once a quarter. Ususally I am heading over to take care of messy situations. I am hoping that May's visit will be different. It might involve booting someone out, but I expect the majority of the time will be selling my company.

What a nice place to be.

For Shame

The mortgage fairy doesn't exist. This was the phrase I did not use with one of the people in my program this week. I actually had someone tell me this week the reason they are constantly late is because all their bills are due on the same day.

What I did say is that due dates aren't friendly suggestions. I also mentioned that having a place for my children to live is a top priority (ok, not in those exact words).

Less than two hours later, I received a phone call from the husband. He told me this was all their fault and they would make it right. A huge change from the woe-is-me-all-of-our-bills-are-due-on-the-same-day spiel I got from his wife the day before.

It is unfortunate to have to resort to shaming someone to get to them pay their bills. But, if it gets them to take their bills seriously, I am willing to do it. It sure beats the legal route.

My Happy Place

My Big Southern Adventure

Today is my last day in the South. I have been here a week taking care of a variety of issues. One of the biggies was talking to someone (or in this case a whole mess of folks) to help me grow the company. I got ideas and feedback. The rest is up to me.

I stopped by to see the "completed" work my handyman said he finished. He has been summarily fired for lying to me and a new handyman has taken his place. Thus, fulfilling the six week prophecy. By him telling me he was done, I told others I was done and we were able to move forward. I didn't know I was misleading folks, because I didn't know until this week that I had been misled. Being the South, phrases such as "keeping one's word" and "honor" go a long way. I had a good time throwing that at him as I canned him for lessening my credibility.

I also went house hunting and found a few that would be nice to purchase at the right price. I think we will put an offer in on a couple of them. I think I finally was off the clock for the first time in a week around 7 p.m. last night.

One of the nicest parts of my trip was visiting with the friends I have made along the way. I had dinner with my agent. I stayed with a friend this week--who was gracious enough to loan me the upstairs bedroom and bath. And, I have connected with a tenant and hopefully she and I will meet up today.

All in all, a productive trip. I am exhausted.

This and That

Handyman Update:

Number One: He hasn't gotten back to me. But word on the street is there was some sort of family crisis.

Number Two: Have no clue what he is doing. I am refusing to worry about it until the weekend.

Vacant House:

I have someone interested in seeing it this weekend. I am also putting an ad in the paper tomorrow afternoon.

Partner Update:

Our low-key partner was bought out by our high maintenance partner today. It was a bittersweet moment. I think this wasn't a fast enough return for Low Key Partner.

High Maintenance Partner is very happy. And, it was a good move for us and High Maintenance Partner. It has sparked more enthusiasm for him and with that has been a few e-mails asking for more information (that is a swell euphemism for work for me). What he is asking for isn't unreasonable, just time consuming.

Other Stuff:

Interest in our programs is picking up. I am hoping this is a reflection of the housing market in general.

My attorney called me back last night in between his daughters' basketball games. He had information for me. I suppose it could have waited until today to call, but I was touched he put the effort into calling me last night. His youngest was with him and she was shouting "Hi" into her father's phone. I had to laugh. My kids do that.

Business Trip Planning

Next week I am going to Alabama to meet with several people. The goals are many, but primarily to look for ways to grow the company. I am smart enough to know that I am not smart enough to do this on my own. Therefore, I need to talk to those who might be able to shed some light in this area. I have several meetings set up with a variety of business-growing types.

Today I compiled a to-do list of all the activities I needed to do prior to leaving on Sunday. In there, I had such items as "update business plan" and "review prospectus." I did manage to knock off 8 of the 24 items on my list, including making contact with one other person I wanted to talk to while I was there.

And, I printed out maps to all the places I am scheduled to go next week, as well as maps to the local library, Kinkos, Costco and Starbucks. Sound silly? Not really when I might need Internet access at a moment's notice, inexpensive gasoline, a place to update my business plan and a refreshed iced tea and a berry scone.

Perhaps tomorrow I will get my White Paper together.

Update on the vacant house

My painters were in and out today. The house is officially painted. Except for the bathroom. Which, apparently the handyman hasn't finished (even though he told me he had). From what I understand, it was a paint party--kind of like barn raising, but in this case, you had Southern men of multiple generations, slathering on a rich coat of Navajo white (eggshell finish) over the neon lime green.

The handyman has not been seen since last week. I would take this as a very bad sign if I wasn't in week five of this project. I know I have one more week of him no matter what. From what I understand the house looks decent, minus the bathroom which isn't finished and the hardwoods which are sanded but not stained.

This is apparently what the bathroom looks like since the Handyman has gotten hold of the room. It looks pretty good actually. Just needs one consistent color on the walls and a towel bar.

The Vacant House

A few months ago, my tenant was in trouble and told me she was moving out. She then gave me a laundry list of everything wrong with the house. This was the first I had heard of some of these things. Even better, once she moved out there were additional items she neglected to mention.

She told me the hot water heater didn't work, the bathtub was badly stained and there were holes in the vinyl flooring.

She did not tell me her son's car was permanently affixed to the front yard, there was a slight leak in the bathtub that had turned larger, the doorbell didn't work, the furnace needed help, the back yard could easily be mistaken for a portion of the Brazilian rain forest and her dogs had done a number on the hardwood floors and--no matter what I did--I would need to seal the floors to stop the stench of pet urine before I did anything else. Oh wait! She painted the entire interior neon lime green.

The hot water heater was easy. The power company is giving them away to anyone who wants to convert from gas to electric. The handyman I hired made it through the primer before disappearing off the face of the Earth. Doing nothing else but leaving me scratching my head.

Handyman number 2 (who was originally number 1 if you have been following this blog) stepped up and was to have finished...wait for it... last week. He still is not done. Apparently he has made significant progress though and now has the hot water heater installed, the flooring almost done, the bathtub re-epoxied and the leak fixed.

My lawn guy came by today and graciously gave me the good customer rate. He didn't mention if his machete needs honing after this one. I was afraid to ask. My property manager went by to check and announced there is a shed in the back yard he had never seen before. The grass had been too high.

I got an e-mail from my former tenant saying she hoped this wouldn't affect our friendship. And, she finally had the car removed. It won't. I like her. A lot.

I have my property manager looking for Handyman number 3 to finish this job. I am letting Handyman 2 go when he is done with his stuff. Because, today, in a moment of unprofessionalism, he vaguely threatened my property manger.

So, there is still the painting, doorbell, etc. I need someone eager and willing to work--and willing and eager to work with my property manager for that matter. Because, my ultimate goal is to rent it back out.

The Bookkeeper. The Car. The Appraiser

My bookkeeper tells me today that she hears from me more when I am not busy, so she figured I must be swamped. I called her to find out if she needed anything from me. She snorted (probably held back her first comment) and then said she was fine and for me to have a nice day. It is tax season, so I need her to focus on my zillions of reports.

The vacant house has a car sitting in the driveway. The vacant house alone is grounds for another post. Anyway, I can't seem to get the former owner to remove his car. It has been suggested I call a few chop shops and say come get it for parts. Something to consider.

We were/are refinancing the vacant home. Except the appraiser decided to sneak her head back in for one final look. Unbeknown to me, the current handyman had apparently demolished more than he had repaired. So, the appraiser said no loan until everything is put back together. The handyman has no phone. The handyman isn't returning e-mail--but did send me this picture.

A Year in Review

There is so much that happened, I doubt I could condense 2007 into one entry. It was a stressful year.

If 2006 was infancy, 2007 was toddlerhood--with my company struggling to find independence, testing boundaries and reverting back to safety nets and when necessary. I definitely needed naps. Lots of them. And, there might have been a couple of temper tantrums.

Here's a quick recap:

1. My fabulous real estate agent turned out to have a bit of anger management and personality issues. She also could not grasp my big-picture. I could have lived with that had she been a bit less bitchy to me. I canned her after she bit my head off for not calling her back quickly enough. Somewhere in there she forgot I was the client. After I fired her, I found out she had been unkind to a few tenants, did a few things on my behalf that are questionably legal and has a bad reputation among Birmingham agents. When this came down, she told me my company wouldn't survive without her. When asked about her, I just say she chose to focus her business in a different direction.

2. I found a different agent who sees the big picture vision and is a delight to work with. But, he doesn't do property management and made this very clear. So, I have taken on property management responsibilities.

3. I have needed serious help this year and found a few folks who have stepped up to help. I am very grateful to them. One collects the rent, another handles some handyman work (once every six weeks) and both will drive by properties when necessary to make sure the places look ok. There are a couple others I have been fortunate enough to call upon when I need an errand or two.

4. We bought two houses, and foreclosed on two existing mortgages. We had a worst-case scenario happen--one we weren't prepared for. I had three vacant homes at one time--all managed long distance.

5. I let too much slide, figuring it was easier to let time fix it instead of taking care of the issue when it came up. In a few cases, time helped. In a few more cases it didn't.

6. I started flying out every three months to take care of business. We have permission from my husband's company to move--but our house has to sell. So far, it hasn't.

Looking back, it seems like there was much more drama than this, but now I can't remember anything else. Our company is now ready for preschool.

The Care and Feeding of Handymen

Good
Fast
Cheap

When working with vendors, in this case, repairmen, I find that I set my standards pretty low. I will take two of the three. If I can get good and fast, or fast and cheap, it is a bonus. There might be handymen out there who can delivery all three: good, fast AND cheap, but they are in such hot demand, they will eventually raise their price, thus offering two out of three.

Because I am so far away, I ask a lot of questions when I talk to these contractors. The one that seems to floor them every time is, "how much does it cost and what do I get for my money." This often causes a lot of stammering on the other end, with the poor guy feeling the need to justify his price. It isn't that I am offended by their pricing. It is just that I want to know what I am paying for.

I have also found there seems to be some sort of genetic make necessary to be an effective handyman. Yes, knowing how to slap on a coat of paint is quite useful. But that is not what I mean. Anyone can learn how to install a ceiling fan. There are certain qualities you will see in just about every handyman:

1) They talk a LOT. In fact, the more cell minutes they can use up on your phone call, the longer they have been in business. I think I would drop dead from astonishment if a handyman called me and said, "The job is done, have a nice day." Click.

2) They underestimate and over promise. It isn't personal. And, this has nothing to do with good, fast and cheap. If you think it should take a day to paint a room, and your handyman tells you it will take a week, expect ten days and thank your lucky stars if they actually can do it within two weeks. Also, be sure to budget a bit extra for that $300 job. But, in all fairness, have you ever budgeted $300 for a $300 job, went to Home Depot and returned with just $300 worth of supplies? Nope, it doesn't happen.

3) They are only somewhat reliable for a maximum of six weeks. I have yet to have a handyman last more than six weeks at a stretch. Don't count on the same person you hired being reliable seven weeks later. It just doesn't happen. There is a fishing hole/vacation/drinking bender calling their name. It doesn't mean they are slackers. They are just ready to move on.

4) They know everything. Well, they do. That is why you hired them. And, their time is worth something, so pay them according. Otherwise get out there and install that tile flooring yourself--and make it look just as good.

With all that I do in two different states, I have yet to meet a handyman I didn't like. And, I have met many. But, know what you are getting into when you go there. They require a bit more maintenance than your average vendor. Frustration only leads to more problems, so give them their space and give them a job that should take no longer than four weeks.

Back Again

It seems it has been more than a year since my last blog. But, I am back and have lots to say. I hope maybe someday I can either:

1. look back at this and shake my head in pity
2. help someone else who thinks being their own boss would be the least bit fun
3. give my kids ammunition when they are old enough to comprehend this.

I certainly don't expect to update a busy year in one post. So, relax. But I will start at today and work backwards.

I currently have a vacant house. The tenant left me a mess. Not trashed, but let's just say her taste in home decor didn't really click with mine. And, she had three large dogs. And, her standards of pet discipline and mine weren't the same. I am left with neon lime green walls and pet urine stains on the hardwoods. And, there were several other goodies that need to be taken care of--like a new hot water heater.

My lesson from this is a vacant house isn't the end of the world. It isn't fun either. On Dec. 1, I had three vacant homes. Armageddon didn't happen then either. There are worse things. Like not having anyone reliable to help you out.

A Test of My Good Nature

It seems people have suddenly mistaken me for a doormat. This is odd, because I don't look like a doormat! However in the past 24 hours:

1. I have a tenant that left me a chirpy voice mail yesterday at 6:30 a.m. saying that she would be paying a partial payment and would give me the rest of this later. No negotiation, just see, ya! Bye. I called her this morning to tell her that was unacceptable. SHE WAS SURPRISED! "I thought you guys had money. You are for profit aren't you?" she says. We are for profit when people pay!!!

2. I have another tentant who asked if it would be ok to skip a month and what was the worst that could happen?? Huh? How about the house gets foreclosed upon by the bank because I don't have the money to pay the mortgage? I might have come across as a bit brusque when she called. She recanted.

3. My most avid partner asked me to handle some data entry for him today. My response included something about slavery being outlawed 140 years ago. I am sure that really ticked him off. At this moment, I just don't care.

Yucky Business

Now comes the part of the business that keeps me awake at night.

I have two tenants who did not make rent this month. Tenant 1 moved in late July and was last her first month. She never contacted me this month to tell me why I don't have her rent. I have not heard from her and do not know if she is living in the house. Her work voicemail says she is out of the office until further notice. She might have had a family emergency and left town? Whatever the case, she has either forgotten about rent or thinks it is optional.

Tenant 2 has a small family and got laid off at the end of August. He has been a good tenant and acts as a handyman for me. I know his situation is short-term and with time he can get back on his feet.

Welcome to the Federal Fair Housing laws. I can't grant a reprieve for tenant 2--whom I think is in a temporary situation--without granting a reprieve for tenant 1. I know I can argue the logic of both are stealing from me and taking money from my family. I know they both owe the money. Because of Fair Housing, both got a summons on Friday. Because of Fair Housing, I have to evict both of them. Even if I think tenant 2 can make it up to me.

I know very little about tenant 1. She might be the most responsible person East of the Mississippi. But, she hasn't communicated anything to me. Tenant 2 could be pulling the wool over my eyes and has me duped. He has done a great job if that is the case.

I have been praying for both families. Maybe I will have checks from both tomorrow. I hope so. I hate evicting. I am sure I will hate having extra mortgage payments two months from now if I were to do nothing. Not to mention, I am not sure how I could convince my partner to start a charity.

Momentum

I started this blog as therapy. I never have (or will) expect anyone to care about my life. But, there are things I just cannot discuss with the general public and it gets old to have a one topic conversation with my family and friends.

After my last post, I have been thinking quite a bit about some of the changes I need to make. I have also been thinking about my eager-beaver somewhat silent partner. It occurred to me that he believes in what we are doing and wants more. So, today I asked him to go to lunch to discuss the future growth of our company. I just want his input and I made it clear I didn't want to discuss financial. Lunch isn't set up just yet. But I am interested in seeing what happens. It is ok if we don't meet. But it is time for another's perspective.

After my last post, I also started thinking about what I want to accomplish. I want to help people. Oh, and I want to make money too. But, putting the business aspect aside. I really do want to do some good. I know what this looks like in the context of my company. But, I have seen, today alone, an unusual offshoot. I heard from three tenants today.

Tenant 1: wanted advice about starting his own company.
Tenant 2: wanted my opinion about matters of the heart
Tenant 3: just wanted to say "hey!"

Nobody called to tell me they had a leaking sink. These people really don't know me. I have met two of them face-to-face once, for three hours. I am floored. I really have a great group of tenants--and I know it. And, I am grateful.

I threw back out to Nos: 2 and 3 some ideas I am kicking around about growing our company, hoping they will share with me their perspective. One gave me some interesting suggestions. I don't know if the other will or not. My goal really is to open up to the universe my wanting of help to grow. It is also my way of recommitting to what I have started.

Inertia

Well dear reader, it certainly has been a while.

I once heard that satan tempts us when we are at our weakest. I am finding that to be true. In all honesty, I have lost my nerve. It isn't so much that I don't want to continue with what I am doing, I am just feeling like I don't know how.

For example, we lost one of our business partners this summer. I knew he was bailing our, but it didn't change the fact I wasn't able to inspire him. In many ways, it was a good thing he left. This isn't a business for him. He wasn't a good fit and we weren't savvy enough to know it. Another business partner seems to be pulling back. Not good or bad. It is just what is.

Our most avid partner is having trouble letting go of things he has no understanding and experience with. Essentially it isn't that he doesn't know his place, he doesn't like his "place" and wants more control of the minor details. It doesn't change the outward appearance of the company, but it exhausts time, money and resources to have to explain owner's equity doesn't show on an income statement and the debits he is seeing on the bank statement are good thing. It is money coming into the bank account--not out of it. No, there really isn't any animosity. I think what is really going on is he sees this as managing homes. We see it as building a business. His part is minimal compared to the big picture and he wants a larger role in the process. However, he doesn't know enough to do so. This just hit me. Maybe he senses my reluctance to grow and this is his way of showing concern.

This year has been a year of change for our company. I have improved processes, created systems and streamlined our product. I have replaced most of my vendors who didn't deliver what needed to be delivered. I am currently noodling ways to find better tenants and better prospects. I don't have an answer to this one just yet. There are other vendor changes on the horizon--a major one--I see that need to be made too. But, I am not ready to go there.

One of the most interesting aspects to my company is that even though I have not put in tons of time in the past several months, it is still moving forward. The momentum from my prior work is helping keep it moving. I know that I need to step it up again if I wish to have continued success. So, now is the time to find my heart. Denounce the evil that holds me back. Work around the set backs and other challenges and step up and head this company.

My summer was tragic. We lost a dear family member. We came darn close to loosing a second one. But that isn't what caused our setbacks. It was my ultimate fear of failure. After all, if I don't do anything, I have not failed. I have just prolonged the final outcome--good or bad. The only way truly not to fail is just to do something. I have people counting on me. I have people who I have promised many things. Things I CAN deliver. It is time for action.

God is from Alabama--Just Ask Anyone Else From There

I spoke with a lender yesterday who asked me my religion. Normally, this wouldn't come up in professional conversation, but in Alabama, God is more prevalent in casual conversation than the weather. When I said I was Catholic this gentleman explained he was Baptist and then went on to mention how he knew a few people who were Catholic and how all of these folks are alright and he even recently went to a Catholic fish fry and had a nice time. Out here in the West that would be quite unusual, not to mention quite personal, but he isn't the first in Alabama to ask me my religion, recoil with horror and then either try to save my soul or explain that they will do their best to accept me.

I find it refreshing to work with people who believe in God. For the most part, people in Alabama are genuine and friendly. I have yet to meet a pretentious Alabamian. I find them to be hard working, and more importantly, grounded. They want to associate with like-minded individuals. Their faith in The Almighty is something they are proud of and it unites them under a common ground. It is one of biggest factors that attract me to these folks.

To clarify a point from my last post: Apparently Heritage Electric will return phone calls after I leave 5 of them in a week and my agent leaves her fair share too. Sadly they don't seem to grasp the concept of time zones, but we can't have everything I guess. The jury is out on the work they do.

A Fortnight in the Life...

When we last left our slightly sane heroine, she was trying to get it all together to start another advertising blitz.

So, I have now found a lender that seems to have a triple digit IQ. I have talked to a credit reporting agency who said they would fax me over an application. I called back to tell them I hadn't received it, and two weeks later, my fax machine has cobwebs. Yep, gotta love people with integrity. For the record, this company is called "Innovis."

I have found an attorney who is worth a darn. Actually apparently he is worth $200 an hour. I can't wait to get his bill! I am pleased at his assistance and am feeling better about not being sued. So, maybe it is worth all the bucks. Think of it as insurance.

I started my advertising campaign yesterday. Sadly, it is more like an advertising drip. Although, I did have more than 30 hits in the past 24 hours on our site. From that, I have received 4 calls and 1 e-mail. I might get one new person in our program from that and I certainly can't complain. But, last time we advertised, we had more than 100 calls in 24 hours.

I have an electrical issue, and worse, what stems from that is another #$*&^(*&! Birmingham vendor who refuses to work. Also for the record, if you are looking for electricians in the Birminham area, Heritage Electric does not return phone calls and a representative at Hill Electric in Anniston, AL is a rude hot head who will NEVER get a penny of my money.

A week in the life

As we are in the toddlerhood of business, we are discovering the world around us and finding ways to adapt, with the occasional temper tantrum when I can't have my way. And, just like any toddler deep in the throes of a developmental milestone, I am not sleeping; but wanting to concentrate instead on fixing/finding a new way to figure out what my latest hurdle happens to be. Unfortunately, just like grownups, my partners don't understand. It really isn't up for them to understand exactly. I would appreciate a little patience from them however.

On my list of to-dos this week. Find a lender who wasn't a complete bozo. I may have found one. Keep your fingers crossed folks. I absolutely have to get the lending thing under control before I do anything else. Next, I have a call into a couple of the credit reporting agencies trying to see if I can streamline the loan application process. Then there is the whole loan application process! Still working on that. I want to update it and include some additional pertinent information. And finally, I am interviewing my third attorney in Birmingham. I really think Birmingham attorneys go to the Alabama Plumbers' school of customer service. There are more items on my to-do list. I am just scratching the surface here. All of these little things are minor. But I have time to deal with them now. And, if I improve my processes now, I won't be trying to fix them later on when I am busier.

Just like learning to walk before I can run.