This is the second part of a two-part series. We have Julia here again and we're going to actually go through what we're doing in order to make sure that we are providing really great housing for our tenants in our California assets. So we're going to talk about our inspections. Julia has just finished up inspecting a bunch of units, because I've owned my units for a long time, and I don't get to see them every day. She is going to give me a briefing on the inspection results.
Why do we do this?
Last week we talked about revenue and this week we will talk about expenses. We must manage our expenses thus, performing routine inspections is a normal part of owning income-producing real estate assets.
Most of my buildings are more than 30 years old. I am over 30 years old myself. So sometimes when you're that age, things may not work as well. So in order to make sure that they stay working well. We do inspections just to make sure nothing breaks down.
You can be proactive and you could do what's called preventive maintenance. And it really helps to keep your emergencies down as well as your expenses.
It is all just to keep our costs down.
As a property owner, you cannot be scared of expense. But let me assure you, if you do things right, the income will offset the expense. What we're going to do is kind of go through each one of the properties and look at exactly what needs to get done.
Here's another thing that Julia and I are working together, I'm actually in the process of doing another cash-out refinance. And all my properties can do so much, so much, so much debt-equity. And so I really would like to make sure that everything is good all the time. But I work really, really closely with Julia, because guess what I don't get paid till she pays me she controls all my money.
After she collects all the money gets what she does, she pays the mortgage.
She pays the expenses. And then what's leftover? It actually comes to me and her.
We both get paid handsomely. Because I purchased all my assets at a great price and with Julia's help, we have increased the rent quite a bit in the past five years or more. And my assets are well protected compared with other buildings which may have been purchased at the peak.
These buildings are our babies, thus we take really good care of all of our children as any responsible loving parent.
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