Recycle the Real Estate Oink
by Bryan Wittenmyer
The grandparents from my mother's side of the family had been in the butchering
business for over fifty years. As a kid I visited their butcher house with great
curiousity. The amazing thing they showed me was how virtually every part of the
animal gets processed into some salable product. There's a saying in the
slaughterhouse business--"We use everything but the oink." I will relate how all
of this fits into your real estate business in a moment. Indulge me, please.
In the meat processing business every single by-product and meat part gets used
(if you are a militant vegetarian stop reading now). The bones are sold to
fertilizer factories where they are ground into powder and dried. Ditto for most
of the blood. Blood makes fine fertilizer. The hides are obviously sold to
leather tanning companies where they too are processed. The best cuts of meat
are sold as steak and roasts, while the lesser grade cuts are ground into
hamburger with a little blood added for color enhancement. The inedible entrails
are typically sold to petfood companies where they are mashed and cooked into a
nutritous dinner for North America's pets. Some of the more unknown organ meats
are sold to Asia as various food delicacies, while some are sold to
pharmaceutical companies to extract life-saving medicines or chemical
substances. I could go on, but I think you get my point.
In your real estate business (rentals, flipping, or management services) you
need to model yourself after the butcherhouse model. How? By taking all of the
materials and supplies that you use and not waste a scrap. This means saving all
end of can paints, screws, nails, carpet pieces, vinyl scraps, wood, and 100s of
other things used in rehabbing and maintenance.
For instance. I saved about a 4X5 foot scrap of leftover vinyl used on a house 5
years ago. That house developed a hole in the vinyl. All I had to do was take
the "scrap" piece to my handyman and have him splice it into the hole area! Same
thing works with carpet--ever have tenants burn holes in carpet? Things you
should save: celing tiles, miscellaneous hardware, outet and switch covers,
nails, screws, cabinets, roofing supplies, glass panes, etc.
Next, with this philosophy, start stopping and picking up unwanted stuff left by
the curb as junk by homeowners. This means old cabinets, windows, doors, storm
window glass, vanities, etc. As you know, if you have read my book, Perpetual
Income, that I am a dumpster diver. I root through job site dumpsters. People
throw out lots of good stuff. I have carpet in several of my properties that was
gotten for free or almost-free prices.
To have long-term success in real estate you need to be frugal. Being
strategically cheap is fun. Frankly, when I use some supplies I have either
found for free or have stored in my inventory, I get a lot of kicks out of it
using them.
Do this: Save everything remotely usable. Inventory the stuff so you know what
you have. Check out buildings that are scheduled to be torn down. Strip them
(with permission). Stop and pick up freebies. Be cheap!
This works once you get going with it. You will need some storage. Buy or build
a small barn or garage out behind your house, if possible. The costs of a small
out building are extremely low--especially if you do it yourself with the many
kits available. This will payoff big in your housing business.
Bio:
Bryan Wittenmyer has been investing in real estate for the past 15 years. He's
not the new kid on the block. In the past five years he has written extensively
in the real estate field. His articles have appeared in Creative Real Estate
Magazine and the Real Estate Entrepreneur. Bryan served on the board of
directors of the Real Estate Investment Association of Berk's County for 3
years.
Although Bryan hasn't attended formal university studies, he keeps himself
educated reading a plethora of books, newsletter, journals, and listening to
hundreds of audio tape lectures. He jokingly considers himself to be an
information junkie. You can also benefit from his years of practical business
experience, having managed several income stream businesses, ranging from
automobile debt instruments to appliance paper. He also has bought numerous real
estate debt instruments - he knows the income stream business.