I’m often told that I’m lucky to be in my current financial position because my situation or circumstances are abnormal.  Well shit.  I damn well better be abnormal because being another plebian is not a life choice that I’m looking to make for my financial future.

Luck is in my experience a misrepresentation of manufactured opportunities through years of effort and meticulous planning.

Serendipitous Examples:

1. A gym membership in NYC is on average going to cost about $100 dollars a month with a corporate discount and a one-to-two year contract.  I’m paying $30 dollars a month without a contract and the ability to opt-out anytime.
   • This opportunity came about because I like to collect licenses in my spare time.  I will generally go through almost any hoop or obstacle to obtain a greater degree of legal authority.  Thus, in my spare time I obtained a Business Teacher License with the New York State Department of State for giggles.  Now most people wondered why I would bother with something so random and I honestly couldn’t give them an answer.  But, because I was willing to constantly plan for the future and forge ahead this discount opportunity arose.  NYS Dept of Education laid-off a large percentage of their teachers and the major gym club in NYC offered a 70% lifetime discount for a limited time.  My license allowed me to capitalize on this random offer because it was a manufactured opportunity through my efforts.
2. An apartment that costs $350 dollars a month in the Upper East Side with utilities and internet included has been called “lucky.”
   • This opportunity came because I have good credit and I’ve been stalking Craigslist for years as a developed habit in order to capitalize on serendipitous deals that occasionally pop-up.  By being diligent and continuously persistent I was able to manufacture this opportunity for myself through preparation.  I was the first person to see the advertisement and I had my papers (tax returns, bank statements, credit check and etc.) ready to sign the lease in the same day.
3. A high performance laptop worth $1,800 dollars was purchased for $200 dollars cash and miscellaneous stuff that I didn’t want.
   • This opportunity came again because I developed the habit of checking Craigslist habitually and pounced on the offer immediately for purchase in cash.

Luck isn’t something that is magically gifted to certain people.  It is the result of our personalities, behaviors and habits, thus they’re manufactured opportunities.  Obviously, there will always be instances were luck is truly the only explanation, but for a majority of instances you’ll have to work for the chances we get.

I was talking to a friend (“Bob”) recently who just left his job to start his own business and he was having a hard time convincing people that the price he charged justified the service he provided.

Bob asked me how I was able to charge the rates that I do and why don’t my clients hate me?

I had a hard time answering him because I know from personally working with Bob that he is just as professionally competent as I am.  I finally came to the realization that its because…

I say, “No.”  A lot.

Saying, “No” is important because it lets the client know that you have confidence in yourself and your work product, whether it’s professional services or a tangible item.  Customers and clients alike aren’t used to hearing rejection and it’s mentally shocking.  This detachment from their normal expectation of a slave bending over-backwards for them makes them wonder why you’re so confident.

Saying, “No.” is something the client will thank you for.

People don’t like rejecting people because it usually leads to an awkward or negative experience.  Rejection isn’t something people seek out, but it is something that is said for a reason.  By letting the client know why you said, “No” helps them understand why they’re demands are bat shit crazy.  Until, you tell them, “No” they’ll keep making ridiculous demands without understanding why it’s outrageous.

Rejecting clients helps you stay clear of the crazies and saves your energies for the serious clients that want a quality product.  We’ve all experienced clients from hell and know the toll it takes on us physically and mentally.  Trust me, your next client is going to be thankful that you didn’t kill yourself on an underpaid project to be burned out on theirs.

Sample Case: A Prior Client (Samantha) I Worked With During the Desperate Early Years

Samantha was a prototypical miser know-it-all nightmare.  She essentially started the conversation with, “I purchased a product off the shelf that does most of what I want.  I just want you to make a few changes…”

I was desperate and new to the world of self-employment, so I took the project knowing I would hate myself.  As expected, at the completion of the project I provided her my invoice that corresponded to our initial quotation and she responded with disgust.

At this point, I fired Samantha as a client.

Then, I received this email a few weeks later:

Hi Cameron,

After our discussion, I sought another professional provider and it’s a complete nightmare!  He was paid $5,700 dollars (note: I was only paid $600 dollars total) and the entire product came back defective with errors.  I’m currently suing him in civil court and I’d like you to be an expert witness.  Please give me a call back as soon as possible!  Thank you!

Samantha

The original article was written just in passing, since my apartment is often an icebreaker in most conversations because people are in disbelief at the outrageous price I pay and the amenities I have.

Lots of people have asked for specifics and to narrow the process down to its nuts and bolts.  So, I’m going to provide as much clarity as I can from my experience and how you can reproduce the same results.

Firstly, timing is everything in finding rentals or purchasing property.  Fall (Between August and December) is the busiest season for real estate because a majority of leases end in fall.  When leases end, then everyone has to either (1) resign their lease or (2) find a new apartment.

• This poses an interesting dilemma because the rental price increases the closer we get to fall, yet we can’t avoid renting in the fall because then there isn’t enough inventory outside the season.  So, your only option is to suck it up and pray you get a good deal.
• Also, don’t start calling agents or brokers earlier than 2 to 4 weeks before you’re ready to move.  Generally, the agents or brokers will refuse to work with you if you’re not willing to move in immediately because you’re just window-shopping.  But, you could look on craigslist early to obtain an understanding of the market and its prices.
• Economic downturns are awesome!  When the economy tanks, then rents follow.  Generally, it takes 6 months for the stock market to affect us in our daily lives.  When the market crashed in 2008, most people weren’t laid off the same day because HR needs to build a case or file for each employee in retaliation of lawsuits and class-action motions.  Thus, the company will build the files for 6 months to prepare for the layoffs and if the economy doesn’t improve, then they would lay off everyone.  The increase in unemployment then crashes the rental market prices.  (Due to timing I was able to get 5 months free.)  Knowing when the market will turn is an important part of negotiations.

Getting the apartment signed and next steps. 

The moment you’re positive about an apartment in NYC, you need to sign immediately.  NYC is a city that moves at the speed of light.  If you hesitate, then the apartment will probably be gone in the next 30 mins.  So, people who take action are the ones who win.

The moment you lock the apartment with an earnest deposit, they will stop showing the apartment.  At this point, you’ll try to stall the lease signing as long as possible because you’re now trying to find roommates.

• My experience was fairly simple.  I knew the economics before I signed the lease and I knew the price points everyone else was charging.  I immediately posted an add on Craigslist for $50 dollars under market, but I provided a number of amenities such as utilities, internet and etc.  This will result in a flood of emails.  You’ll have to sift through the crap and find the good eggs.
• The single most important decision you’ll make is who you’re roommate is.  So, make sure you speak to your potential roommates and obtain records of their employment, guarantor, income and personality.
• Here is a copy of the sublease that I would generally use.
• Upon signing the contract make sure that the person clearly understands the contract and it’s rules.  Specifically, that if they are late paying rent for 30 days without written permission by the landlord, then their lease is annulled and they must vacate the premise.  This is safe because you’re able to retain their deposit, so that you’re not paying out of pocket.

Final Questions:

1. Where is my apartment?
• I am in the Upper East Side with a View of the River
2. Do I rent from smaller management companies or individual owners?
• Generally not, I like the infrastructure that a large company gives you.  They make sure that the water runs, the toilets work and the superintendent is always available.   Smaller management companies and individuals are unreliable because you never know how they are until you’re moved in.
3. Are smaller management companies or individual owners more receptive?
• The answer is that they’re all the same.  As long as you can show that you’re responsible, then they’ll be willing.  But, it’s really a case-by-case situation.
4. Does a credit report and bank statement really help you trust the tenant?
• Not really, it’s the fact that they’re willing to go through the process and able to go through the effort, so that you know they’re serious and have nothing to hide.  Usually, if people are lying the “idea” of getting a background check will scare them off.
5. Do you pay the rent in advance?
• No, I never come out of pocket.  I only put up the deposit initially, which is returned to me through the deposits of the tenants.  Rent is paid through the monthly rent payments from the tenants.
6. What is the best scenario?
• I once made money by living in an apartment because I was able to charge more than my monthly rent.
7. What is the worst-case scenario?
• You lose you’re deposit and possibly a lien on your record.  I say possibly because the dirty secret that landlords don’t want you to know is that they don’t want to sue you.  The cost of suing you in court is more expensive than the money they’ll probably never get back from you.  They mostly file a lawsuit when you refuse to vacate to premise or apartment.
• Example:  I spent 5k to evict dead-beat tenants that owed me 33k in back rent because the court took a year to evict them.  They never paid even though I have a judgment against the bastards from the civil court.

Working on startups is inherently a masochistic endeavor and it’s something that will literally make you question every decision you’ll ever make on a daily basis.  The only way to keep your sanity is to keep working through the grind, so that the light at the end of the tunnel becomes a little brighter.

The worst part is I have two startups.  My non-profit tax clinic is a lifelong project that I hope will be able to change or disrupt the entire concept of taxation for low-income families, the elderly and immigrants who don’t speak English as a first language.

My technology startup is an earnest foray into geo-locations and infographics in specific industries or niches.  Chowbyte.com serves the food truck industry and I hope to revolutionize the way they operate their businesses through social media and geo-location.

I set modest and immediate goals for myself constantly because they’re the only way to show progress in a meaningful way.  The barrier to success is made of a wall of salt as tall as Everest and you’re made to bail the salt with a teacup.  So, these small but meaningful steps are the glimmers of hope that give me the strength to carry on the project.

Examples of these small wins

1. Incorporating a non-profit in NYS took 3.5 months, 8 letters, 14 phone calls and tons of frustration.  But, I finally got my non-profit incorporated September 26^th, 2011.
2. I’ve gotten the IRS to become an official partner to support my non-profit.
3. I am the first tax clinic to be created in the Asian community.
4. I’ve gotten the Vendy Awards Dessert’s 2011 – Woolys winner as a partner in my startup and made a new friend.
5. I’ve gotten a Vendy Award Best Rookie Nominee in 2011 – Eddies Pizza Truck as a partner in my startup

It’s the little things that make the whole process worthwhile because they reaffirm everything you believe.  These are going to be the most important moments in my startup because without them I’d have given up.

A startup is inherently meant to fail in the long-run through a successful exit by an acquirer or maturation into an established company or the company would be shut-down by the founder’s choice.  A startup is a phase of a company’s life that’s meant to end at one point or another.

So, enjoy the experience and grind it day-by-day, until the end comes ultimately.

Whenever I meet another founder or startup enthusiast looking to move to New York City, their first question is “How do you afford NYC rent?”  My answer is usually, “I pay $350 dollars with utilities, internet and cable included.”  Obviously, this leads to them being completely flummoxed.

To clarify, my apartment is the following:

• 1500 Square feet total
• Four-bedrooms
• 1 full-bath and 1 half-bath
• Full-sized balcony for BBQs
• Hardwood floors
• Full-sized Kitchen with Fridge, Dishwasher and Microwave
• Utilities Included Electric, Heat, Gas and Water
• A full-sized storage closet of 100 Square feet
• Free Internet of 45mbps down and 28 up
• Free Cable including Showtime, Cinemax, HBO and TIVO
• Free Landline and Fax
• 24 hours gated security
• 24 hours superintended
• In building laundry

I pay $350 dollars a month.

How did I achieve this awesome deal?

I’m a hustler and I’m always searching for a great deal, so this was by no means a “lucky find.”  It took copious amounts of elbow grease to get this lease signed.

The first thing that people need to understand is that people have different levels of acceptable risk and that is the reason why I am able to pay so little rent.  Management companies are just like individual landlords, they’re looking to minimize their risk as much as possible and they’re willing to pay for it.

• I have strong credit and the ability to pay my annual rent in cash upfront.  Thus, I pose little to zero risk of default to the landlord.  I’m the perfect tenant because I’m young, professional and financially secure.

Everyone in New York is looking for an awesome apartment, but no one can afford to live in one themselves because NYC is expensive.  Real estate works like any other product, it gets cheaper in bulk.  The most expensive apartments per square foot is a 1 bedroom apartment at about $31.50 per square foot (Average: $2,100).  But, the cost of a 4 bedroom apartment is about $25.60 per square foot (Average: $3,200).

• Thus, the more bedrooms the more your bang for the buck.  I always rent or lease large apartments because it provides space and comfort for a lower price overall.

Most people in New York want the large open spaces with full-sized living rooms, kitchens and dinning rooms that are available to large apartments but are unable to afford it themselves.

• I take the liability of the entire lease and then sublease the apartment’s rooms to other individuals that would be able to enjoy the comforts and benefits of the overall space while only being responsible for their portion of the rent.  Apartment arbitrage is simply accepting the liability and charging a premium for it through the rentals of the individual rooms.

How do I protect myself from my tenants?  The greatest single step to being a landlord is picking the right people.  I list my extra rooms at just under market prices with above market amenities and then select the best people.  They provide me a month’s deposit and they sign a sublease that clearly states that non-payment of rent for a single month without prior written approval results in automatic cancelation of the lease and eviction (avoiding the long drawn out civil court system).

This is the general idea in a nutshell of how I wheel and deal my way to a cheap apartment with all the comforts I want.  I’ve kept the A/C on now for about 14 months straight without turning it off once and it’s amazing!