Heartland Investment Partners - December 2022

HOW A RETIREMENT MENTOR CAN HELP YOU WIN Put Me in, Coach!

YOU AREN’T SURE WHAT TO DO WITH YOUR MONEY. While sorting out what to do with your free time is essential, how you handle your money after retirement is also important. Even if you feel like you’ve got it figured out, a retirement coach might be able to offer a bit of insight into your spending and saving habits. WHERE DO I FIND A RETIREMENT COACH? If you’re interested in a retirement coach, check out the Retirement Coaches Association at RetirementCoachesAssociation.org. This comprehensive website will help you find a coach in your state and provide a list of certified retirement coaches. You can view their bio, email, and website (for free!) to make an informed decision. Preparing for retirement is always smart, but don’t feel that you need to do it alone. Contact a retirement coach to help you find purpose and structure in a post-retirement future.

Retirement is a dream many of us use to escape the Sunday scaries or weekday woes, but knowing what to do with it can be tricky. Enter … a retirement coach! Hiring a retirement coach can help you figure out the best way to spend your new free time and answer any questions about the process.

Let’s discuss when a retirement coach and their services can be beneficial.

THE EXPECTATIONS BETWEEN YOU AND YOUR PARTNER DIFFER. Maybe you thought you would travel to see the grandkids more or even cross the globe, but your partner wants to start a home renovation project and adopt a pet. When your retirement arrives, and suddenly you’re not on the same page, a retirement coach can help. They’re an objective outsider who can help you find a middle ground and get the most out of your time without the stress of fighting. YOU’RE EXPERIENCING A ‘PURPOSE VOID.’ Some people only feel fulfilled when doing something productive, like going to work every day. If you feel like you need a goal to accomplish, a retirement coach can help you. They can pinpoint things you feel gratified by and find activities in your area, at home, or online to ensure you’re not stuck in a hopeless void.

What I Am Careful About When Investing in a Troubled Property

I just got some information yesterday on an apartment community that is currently “upside down.” What this means is the property is unable to pay its expenses, including its loan obligations. This COULD be a great project to purchase at a discount and own.

over one-half of the tenants at least a month late on rent. Let’s just say this can change the dynamics of the deal pretty quickly. So, make sure you not only get proof the units are occupied but also that rent is paid! 2. MAKE SURE YOU LOOK AT ALL THE UNITS OR ALL THE PROPERTY. Don’t fall for the line, “We can’t get in their unit; we do not have permission,” or “The unit is locked and I do not have a key.” Get one, dude. You do not need any surprises that will, again, cost you money later. This is the case NO MATTER HOW large the property is. 3. GET MORE THAN ONE LENDER READY TO FINANCE THE DEAL. If you require some type of financing, make sure you have more than one lender not only quoting the deal for you but working it, too. You not only never know when a lender will get cold feet at the last minute and back out on the deal, but you also could find a huge difference in terms.

For example, right now I am working on a re-do of a 120-plus unit project that I and our partners own. One lender is quoting us a 5.15% interest rate. Another lender is quoting a 6.55% interest rate. Another lender is at a 5.45% interest rate. Quite a difference so far!! There are many more “to-dos,” of course, and I just wanted to get some quick hits out to you this week. These are some of the items I covered today during our Heartland Investment Summit. If you missed it, we will be having another in September! Chiefly, make sure you use common sense and do NOT be in a hurry. Be in a hurry to get the property tied up and under contract, but do NOT be in a hurry to do your due diligence first. In any case, be prepared since many “troubled properties” will just want to dump their problems on you, and you don’t want that NO MATTER HOW GOOD THE DEAL LOOKS! –Darin

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It COULD BE A DISASTER!

So, what do I do? Here are a couple of quick recommendations from me to you on what I do and what I recommend you do, too, when looking at apartment community investments or other income-producing real estate projects that are “troubled” or “distressed.” And this is the case whether you are an active or passive investor. 1. CHECK AND DOUBLE-CHECK OCCUPANCY AND BACK RENT BALANCES OWED! Hey, just because an owner has a 60%, 80%, or even a 100% full building does not mean 100% of the tenants are paying rent. I had a 150-unit project I was looking at a while ago that had

2 DARINGARMAN.COM

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