Friday, May 18, 2012

Yet Another Competition Update


I’ve been competing with my brother Rex and my friend Sha to see who will become a “millionaire” first. Sha has no idea this competition even exists and I like it that way. Rex knows about it though, and here’s a status update.

On Wednesday, Sha and I hung out after work. He was supposed to pay for lunch but later said he could only pay for lunch if it was under $20. So I paid for lunch at Pizzeria Uno. While there, we talked about a lot of things and I tried to get a gauge on how his real estate business is going (although when you own about 15 properties and don’t have the money to cover a $20 lunch, that can’t be a good sign). He lamented about his marriage, talking about how much money his wife Sonya spends and how he has to buy her a lot of useless shit, like jewelry and stuff. When I asked him why he has to buy her these things he simply said, “Because she’s a fucking wife.” He’s also paying for a 2 and a half week trip to Guyana that they’ll be taking soon. He continues to deal with mortgage foreclosures and continues to warn me not to bother with mortgages anymore. He's no longer trying to repair his credit, stating that he's "done with that shit" and his "credit is universally fucked".  After lunch we went driving around to some of his properties for various reasons.

One tenant had no hot water tank and therefore no water. His handymen are still a bunch of creepy looking bastards, one who was actually arrested this week for felony kidnapping, burglary, and robbery. In his commercial property, he’s evicting the barbershop tenants who haven’t paid in 3 months and has decided to take it over. He plans to keep all the tenants’ barber booths and rent them out while his wife runs the salon in the back. Seems like a good idea, but I see some problems ahead. The business of buying properties and renting them out for profit is simple and straightforward. Taking over and then running a barbershop and hair salon when you have no experience in the field seems like a really bad idea, with a myriad of things that can go wrong. Overall, I think he’s doing about the same that he was doing before, only now he’s taking bigger risks.

As far as my brother Rex goes, he’s back on his feet after stumbling in February due to lack of income. On his blog he wrote “Made 10% Thursday morning. Friday was NFP and I decided not to trade, though in the future I will trade NFP. I’m treating it like a business new and my head is screwed on straight.” I have no idea what that first part meant as I know very little about Forex trading, but that last part makes me think that he’s doing good business again—which is bad for me competition-wise. Getting property Charlie this year will put me in the running, but right now I’m just refining my business strategy and saving up money. Speaking of property Charlie, I went to the code enforcement offices to get a copy of any code violations for Prospective Property Charlie #1, and received a full 13 PAGES worth! Most of the issues seemed easy to fix and my initial estimate of 10k to get the place rental ready seems to be accurate. At least I know I won’t have much competition in buying the place. Once I can get my first commercial property and rent it out fully, I can start pulling ahead of Sha and start catching up with Rex.

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