“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”–Dave Ramsey
Success at anything – especially investing – comes in many forms. I’d like to share my most recent success, that, at first glance, may not be the success you’re looking for – but oh – it was a blessing in disguise!
I have 6 duplexes in Hollywood Florida, on a property in Pompano Beach. On August 25th, I closed after 3 months of due diligence appraisals, loan approvals, negotiations over inspection items etc.
They are all insured, but the news of a Level 5 hurricane passing through those neighborhoods might have scared even the most confident of investors. But not me!
The good news for my tenants is that in the end, the storm went west, away from the Miami area, (still sending love to those who have been hardest by the hurricanes). But the real good news for any investor is the test of your team and their ability to act in emergency.
When we found out that Irma was getting closer, my property manager was under forced evacuation from her home in Miami Beach.
She went to her parents’ house to secure their property for the storm and took care of my properties. Calmly texting back and forth even as she was at risk, she went to all the properties 3 days before and posted notices that the tenants should get to safety, reminding them also that the landlord insurance does not cover their belongings.
She secured the storm windows on all units, and I received reports through the weekend on how she is and if there were any calls. She had no electricity at that point.
After the storm passed she went to the units and talked to the tenants who had stayed about any damage. She saw lots of debris but no damage to the properties’ roofs, windows.
Only pieces of an old fence ripped out at the Pompano Beach units which we were going to replace. Her partner drove 80 miles to get an internet connection to send out an email about what was going on and when people would be able to reach them.
In addition I got similar messages from the insurance company saying that they are fine and to call immediately if we think we have a claim.
Thank goodness my property manager had been through several hurricanes and wasn’t phased by this tremendous storm. She was confident that they were doing everything that needed to be done, and placed the rest in God’s hands.
As a side note, that the rents were paid by 5 out of 12 tenants in Hollywood and banks are not open so I needed to pay the mortgages out of reserves unit I can get the rest of the rents collected and deposited on the 22nd. Though emergencies such as this latest hurricane don’t come up often, they do come up. Investors do need to have reserves for emergencies.
The lesson learned from this destructive storm was that while we can’t control Mother Nature, we can make sure that we are prepared.
As I always say: Successful investing is all about having an excellent team with excellent communication to take care of an asset. Better an excellent team and mediocre asset than a mediocre team and a prized asset. The former is success the latter is disaster.