Dear All,
My understanding is that when you acquire more and more IPs you get more and more involved with everyday paper shuffling tasks, bookeeping and accounting tasks, etc. I realise that some of the tasks can be delegated to property managers. However, my question is how do you balance your full/part time job commitments, family and the ever increasing number of routine tasks?
I wonder if anybody has this experience?
Boris
“A good accountant is the one that on question how much is 2×2 answers how much do you want it to be?”
At five IP’s and a full time job and I have hit the WALL! I don’t know how people handle tens and tens of them!!
Renovations also add to the problem!!Hi BorisS,
This is exactly right! It becomes VERY time consuming when you have more than 5 properties…
One of my best advice is get a good property manager and get them to sort out your bills for you (like water rates, council rates, etc…)
You will also need a good filing system.
This is also one of the major reasons why I started the APIM (Australian Property Information Manager.) software
Note: it manages information (it is not an analysis tool), and is designed to make your life a lot easier.
It will soon be finished probably by the wend of the week. I will make an announcement once it is ready as some will get a free copy.Cheers,
APIM
*************
Australian Property SoftwareComing very very soon…
*************We have 6 IP’s now and get a call by the manager re something or other at least fortnightly and repairs and waterbills +++.
We do a lot of maintenance and minor repair work ourselves to try and keep costs down.
You also have to be reasonably ok dealing with tenants.
It gets more difficult the more you have and sometimes you loose oversight a bit.
The r/managers pay a lot of the bills and the water now goes by direct debit.
Everything goes via my home equity account.
I have the Quickbooks software, which I have set up with all the loans, assetts, income and expenses.
I have found it excellent as a book-keeping means.
I do at least some book keeping every night.
If not I surf the web and look at sites such as this and also do a bit of index trading.
I am no longer working full-time and see as my second job doing all the accounts, book keeping and managing the investments.
I have tried a book keeper but worry too much that things arent done correctly.
I agree, you start to reach a stage were your limits and ability to handle such a large number of properties is affected.
Cash flow starts to be an issue, since a lot of the properties are cash flow neg, but by subdivision, hoping to get instant cash and capital gains (Well within a year or two anyway).
My accountant has everything categorised and then puts it all together, this is also starting to be a huge task and cost.
ReginaBoris
We will soon have settled 40 properties and have recently employed an admin manager who is just awesomely organised.
With her help we are now cruising pretty nicely. It was a bit of a stretch getting to the appropriate size to make it happen, but given the chance to start from fresh I guess we would have looked for someone much much sooner and been able to work ON rather that IN our business.
It is now really obvious that although we had great solicitors and accountants as part of our team, that having a professional to keep it running on the inside was just as important.
Another real plus is that it has really ‘cut the uce’ with some of our financiers who are impressed with the speed at which we can now produce reports etc etc.
The bottom line is “get your system sorted” and arrange as many additional resources as necessary to achieve your goals !
Hope that helps; good luck.
cheerio
the B [
] (who has been off line for a while juggling a few balls, but is now back !)Hi Everyone,
Thought I might add a bit more:
1) Getting a good “team” together is a must (i.e lawyer, accountants, banks, real estate agents etc…)
It takes time to get a team together, but is worth it. An important thing is that your team will start to know you better and learn how you operate.
The two MOST important people are BANKS and LAWYERS. Make sure you have good ones and that they understand what you are doing.
One thing I find important is having to say things only once and not have to waste time chasing things. (I always double check anyway, just to make sure that things are moving along.)
2) If you are going to have more than 5 properties make sure that they are BRAND NEW (or nearly new), so that you don’t have to fix them all the time. (If you are going to negatively gear make sure that the properties are worth it.)
From what I understand if you wrap it is a different story as you get the “tenant-wrapee” to fix the problems themselves.3) Try and streamline things as much as possible. Setup internet banking, it can save you A LOT of time, when you know how to use it properly.
Pay your bills using Bpay because you can do it all with a click of a button (from your internet banking that is. I presume most banks allow you to do this.)APIM
*************
Australian Property SoftwareComing very very soon…
*************Hi everyone,
Boris you ask:
However, my question is how do you balance your full/part time job commitments, family and the ever increasing number of routine tasks?
and
I wonder if anybody has this experience?
YES YES YESI can relate your first question to my husband who’s 2nd biggest problem is juggling activities (shh Steve, let’s not pick on Moogie [
], softly does it). Sometimes it is not a matter of HOW, but what’s stopping you [?]
MINDSET is often the hardest hurdle to overcome. Recognizing or getting someone to admit ([]) that there is a mindset issue, is the hardest of all. Once you know what the roadblock is, then it may be easier to find a solution. I am not suggesting that this is your situation as I believe your question to be a very very very valid point. [^]
Many times I’m just on a winder and I just go go go like an everready bunny. I flake into bed and wonder how I accomplished that days chores.Today, I was feeling bluggghhh, but I wrote a list and ticked off as much as I could. It’s 9:30pm and I’ve only done 3/4 of what I wanted but tomorrow brings fresh possibilities. That’s the way I HAVE to look at things.
Capital growth on houses, creative tax stratergies, positive cash flow, osterich farms, deer farms, stud farms, professional gambling, retail, industrial etc. The possibilities are endless but time isn’t [] Time is your most precious comodity. How do you protect that [?]
Sometimes choices need to be made on how to best delegate the work, so that you can manage. I agree with the idea of having time partners and all types of managers working for you, but you still need to work out how to establish if these managers or management stratergies will work for you, or if they will in fact take up more of your time.
If IP is going to be like working and very stressful, maybe a more passive approach is needed.
When I mentioned to Steve about being a time partner (it’s more detailed than this, but the gist was)for my hubby.. Steve said “And who will look after your children [?] ” I was silent. Why (Sooshie is very rarely silent []) because I could easily pay for someone to look after my children, but I would still need to spend time, telling the babysitter where the food is, where their clothes are, what their routine is, how to comfort them when they are crying, what dose medication etc etc etc.
Surely if they are experienced they can find their way around my house and my children, but the point is, 1) Would this free up my time or would it be faster to do the things myself ? 2) What care factor have they invested into my children [?] As much as I would [?] Doubtfull.I can’t wait till Steve’s book is out. [
][][] He answers many questions. (I don’t get paid to promote Steve…I hope everyone out there realises this. I do it, because I actually respect what Steve, Dave and the team do.)Whatever choice you make, make sure you weigh up the pros and cons of any type of investing. If it will eat into your time…your call.
Sooshie’s essay for the evening. [
]Cheers all and Boris, If I didn’t know better, I would have thought the question had come from my hubby [:0)] So thank you for posing the question and I hope I haven’t made a mess of your neat question.
A tired Sooshie
[|)][|)][|)]
But still smiling [
]There are no problems, only solutions
Thank you guys! I feel I’m not alone in this world now.[
]Recently,
I’ve started scanning all the property related documents so I can
1) have a backup copy and
2) everything is stored in one place with an easy access to it (enough of going through numerous folders!)Boris
“A good accountant is the one that on question how much is 2×2 answers how much do you want it to be?”
I think there’s a book on creativerealestate.com.au by Barry Black that shows how he managed 179 properties with 1 x A4 folder!
Renovations also add to the problem!!
] (who has been off line for a while juggling a few balls, but is now back !)
], softly does it). Sometimes it is not a matter of HOW, but what’s stopping you [?]
]) that there is a mindset issue, is the hardest of all. Once you know what the roadblock is, then it may be easier to find a solution. I am not suggesting that this is your situation as I believe your question to be a very very very valid point. [^]
] Time is your most precious comodity. How do you protect that [?]
]) because I could easily pay for someone to look after my children, but I would still need to spend time, telling the babysitter where the food is, where their clothes are, what their routine is, how to comfort them when they are crying, what dose medication etc etc etc.
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