Breakup Sub Niches for Big Time Savings

Posted on May 21, 2012 by Al Williamson

In our last post, we discussed sub niches and how Nick Sidoti used this tactic to rent his single family rentals for up to 3 times market rates. Since then,  I have started thinking about what my approach would be  if I found myself exploited by a monopoly .

Going with the pizza vendor analogy, we previously concluded people paid 50% more for a slice than a whole pizza only because they didn’t coordinate with each other. What if someone showed a little leadership and ask the others in the line if they wanted to split a large pizza?

For no investment at all, they would legally create a significant savings for others and for themselves. Continue reading →

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Increasing Profits with Sub-Niche Housing

Posted on April 28, 2012 by Al Williamson

I tuned into the REIClub’s webinar where they featured Dr. Cash Flow, Nick Sidoti.  Nick advocates renting rooms to high-functioning handicapped people on government assistance. He claims this private co-housing approach is cheaper and more efficient than what the government can do, so it saves social agencies money – and is therefore a sustainable model.

The nutshell summary goes like this: special needs individuals may only have an $800 housing allowance which may barely cover their rent and utilities. Nick places three or more of these type of tenants in a nice house (one per bedroom), provides a housekeeper, pays all utilities and collects $800 from each person. This is how he can gross $2,400 per month from a house that might normally rent for only $900. Solid idea – check out Nick’s website to learn more.

Dr. Cash Flow says he got this idea from an amusement park pizza vendor who sold one slice of pizza for $4 but an entire 8-slice pizza for $16.

The vendor had the ability to charge 50% more for a slice because he had a niche product for a niche customer. Continue reading →

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How Landlords Can Make Extra Money with Cell Phone Antenna Leases

Posted on April 18, 2012 by Al Williamson

It took an epileptic seizure to help Robert Lett discover this income-boosting idea. Okay, well…. it was his tenant’s seizure, not Robert’s, but the event did shake him up. Robert wasn’t able to connect with 911 from his rental.  This made him realize he needed better cell phone reception, so he started learning about ground leases for cell towers and antennas.

His first attempt to win a cell antenna lease didn’t work out, but the second one did. In 2003, he bought a fast appreciating fourplex that had a negative cash flow.

He used the lessons learned from his first exploration to secure an antenna lease that grossed $1,300 each month!

Continue reading →

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How to Collect Twice the Rent from Your Rental Property

Posted on April 11, 2012 by Al Williamson

Robert Lett in Cheyenne, Wyoming, emailed in a great idea for our $100 Idea Challenge!

He recommended setting up an apartment to provide corporate housing. The terms need to be that a company pays rent even if the unit is vacant.

A savvy Leading Landlord would then stay in contact with the company’s property manager/coordinator to find out when they didn’t need the unit. Then instead of allowing the unit to sit vacant, you rent it out on a short-term basis.

This tactic gave Robert double rent for the same apartment! Continue reading →

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Payday Loan Inspiration – $100 Idea Challenge

Posted on March 28, 2012 by Al Williamson

I saw a news blurb that the Utah Apartment Owners Association was partnering with a payday loan company so its members could refer their cash-strapped tenants to them. I originally thought the landlords might receive a referral fee, so I investigated.

A representative from the Utah Apartment Owners Association told me the payday loan company offered a 20% discount to the tenants of its members – but no kick backs to landlords.

Whew! I was really disturbed by the notation of making extra income with this tactic. It felt slimy. I posted the question to a couple of real estate forum and found that nearly everyone that responded felt the same way.

Motivated by my unfounded disgust, I decided to flip the idea.

I’ve heard stories of restaurants making customers wash dishes if they couldn’t pay their bills, but haven’t heard a landlord’s version of the idea. Continue reading →

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Convert Rental into a Youth Hostel – $100 Idea Challenge

Posted on March 18, 2012 by Al Williamson

I ran into my friend Tom at the local coffee shop. He is a new retiree so I was interested to hear what he has been up to. Among other things, Tom mentioned he was considering converting his two neighboring single-family rentals into a youth hostel. His goal is to create Sacramento’s version of the Hawthorne House, a sustainable hostel in Portland, Oregon.

Youth hostels are places that offer friendly, inexpensive accommodations to young travelers. They are meant to be hip hotels where young explorers of different cultures meet up, share rooms and common living areas.

After looking into the idea, I think it’s really good. I’m adding it to our $100 Idea Matrix under the “Active Landlord – Active Tenant” category. Click here to see an updated $100 Idea Challenge Matrix.

Continue reading →

Posted in Ideas to Boost Equity, New Income Streams | 4 Comments

Landlords Can Profit by Providing Discounted Services

Posted on March 10, 2012 by Al Williamson

REI Club’s Camille Baptiste contributed to our $100 Idea Challenge. She noticed the neighbors around her rental weren’t maintaining their lawns. She said that with very little effort, she was able to persuade them to pay her for landscaping services. Then she negotiated a group rate with her landscaper that  allowed her to collect a $70 monthly management fee.

I really like the concept of providing service(s) to a group such that   they win, the service provider wins, and you collect a fee.

Continue reading →

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Savvy Ideas to Increase Rental Property Income

Posted on March 5, 2012 by Al Williamson

I was inspired by Regina Dugan’s TED2012 talk where she illustrated that the path to innovation always contains failure. She went on to recount the many failed attempts that eventually led to the Wright Brothers’ 1903 Kitty Hawk flight.

This was deeply meaningful to me because, similar to the Wright Brothers, I’m attempting to create something many don’t believe is possible. Orville and Wilbur created a flying machine; I’m trying to create a “thing” that would increase your rental property income by $100 per month. And, just like the brothers, I can not allow failure to discourage me. Continue reading →

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How to Get Craigslist Prospects to Short List Your Rental

Posted on February 28, 2012 by Al Williamson

While at Home Depot, two men approached me and offered their mobile dent removal services.  My wife’s car had several dents and scratches, but I was skeptical. I didn’t know if these guys were legitimate.

They asked if I would allow them to prove their worth risk-free and proceeded to align the car’s frame so the hood closed properly. They also polished out a couple of scratches. Wow! They did these repairs before my eyes and made me a believer. Continue reading →

Posted in Defining Ideas, Ideas to Boost Equity | 2 Comments

Rent Billboard Space – Ground Lease for Additional Income

Posted on February 19, 2012 by Al Williamson

While staying at a San Francisco hotel, I noticed they used a little billboard to hide their utility panel. Pretty clever trick – reducing blight AND generating income.

I decided to dive deeper into this idea.  After all, renting billboard space is one of the ideas in the $100 Challenge Idea Matrix.

A summary of the business concept goes:

  • Offer your rental property as a site for an ad agency to lease billboard space (ground lease)
  • Collect passive income from the ground lease Continue reading →
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