Been a little while BP! I actually quit my professional career a couple of weeks ago at a Fortune 500 company to make more time for real estate investing and to take care of the kids :-). We currently have 4 units and we just put an offer on 6 more units! The seller was already willing to work with us on a special financing arrangement so it is looking promising that she will accept (fingers crossed). Obtaining 10 units in our first year of 7-8 months of doing business would be awesome!
My question is, some of the tenants are section 8 tenants. Some all, some portioned for their rent. If we do win these units, how do I go about changing ownership of the units to collect the metro housing payments? Do I need to start any part of the process BEFORE we actually close? Do I personally need to become an 'authorized provider' or since the units are already authorized does it matter?
Also, these will technically be the first units that are occupied already at our possession. What are some tips for meeting/calling the tenants? I was thinking of sending them a letter initially explaining that ownership is changing but that their leases will not be affected etc, etc and then personally meet each of them briefly. Good approach? Thanks!
@Sarah Miller Check with your local Housing Authority for the specifics, but generally they make it an easy process. They will likely just need a few things signed (like a w-9 and direct deposit information) as well as proof of the change of ownership. They will then start paying you at the beginning of the next month, it will be up to you to make sure prorated rents for the month you close in are part of escrow. There won't be any additional inspections or anything required, just the normal annual ones moving forward, which you'll be notified of. Definitely ask your Housing Authority when you're transferring everything if any annual inspections are currently scheduled, as something like that could get lost in the changeover.
A good positive letter with an invitation to meet face to face and your contact information, as well as a token gift ($5 gift card to starbucks or something home-y), should leave your tenants with a great opinion of you and will hopefully encourage them to give you and your new units the same respect you'll be giving them.
Good luck and let us know if your deal goes through!
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