Coronavirus and late or no rent payments
Most Popular Reply
Brian BoydPro Member
USA · Member since 2019 · 305 posts · 536 votesArthur,
I was speaking with my wife about this very issue this morning. We have not yet felt the effects of the hit our tenants will feel if they cannot or do not pay their rent. However, we have decided, and this is not for everyone, that we will require them to forfeit their deposits for the month they miss. If they miss again, we will evict.
Like you, we finance our properties and the banks are not going to allow us to miss paying our notes. It's a business transaction. Thus, we treat our tenants the same way: it's a business transaction. They have a place to live in exchange for paying their rent.
This is not a hard line, it is a real world line. We don't get to miss our house payment. We have saved for these possibilities. Once they make their lack of preparedness my problem, I will deal with it like its my problem. That may mean they are without a place to live, which is not my problem.
Others will disagree with me, but others are not paying my bills or paying for my properties. You need to do what is best for you.
Good luck!
694 Replies
- Investor · Member since 2019 · 17 posts · 11 votes6y
Apparently, the Fed is going to release money to the banks/don't know what this involves. What I would suggest is that everyone work with their banks and Congressional representatives to get short term loan programs /federally guaranteed/ in place to fund rent deferrals or to cover mortgage payments for investors who are affected.
The easiest for owners would be if the bank would take applications from renters, but they might prefer to work with owners (or both). There is a reasonable likelihood that things will be back to 90% normal in a few months and you're not going to get any rent from an empty rental.
This forum has people from all over the country, so get a specific proposal together for the SBA and notify your congressperson and Senator
- Member since 2019 · 38 posts · 8 votes6y
@Paul Doherty this is what every investor in this country deserves. This is the culture in America: Leverage leverage leverage leverage leverage leverage. The hedge fund SOBs levered up the markets and now that the apocalypse happen the companies will come out and steal tax payer money to stay alive. After atrocious corporate buybacks for the past 6 months.
I heard the markets been great for landlords for the past few years - should have saved.
Yes I am also an investor - and I am ashamed at the way “investing” works in the world now - investing with other peoples money. You deserves to lose the property - this is fundamentally the risk you engaged in when you used leverage instead of paying for the house in cash. You thought there would be no downside??
I swear if there is a sickle and hammer on the American flag anytime soon - we “investors” and greedy walstreet scrimmages and greedy corporations literally helped design the flag.
- Member since 2019 · 1 post · 0 votes6y
Is anyone buying right now or waiting to see what happens.
- Rental Property Investor · Mc Kinney, TX · Member since 2013 · 50 posts · 50 votes6y
I’m not sure why you think it’s landlord’s “fault” that they use leverage to buy property - pretty much everyone does. What percentage of all people do you think pay cash for homes they live in or rent?
Having said that, why should a renter who not only had the wherewithal to purchase a home themselves, instead relying on us to do so, but also didn’t have an emergency fund for events like this, and that means somehow that landlords should have their funds drained? I don’t follow that logic... at all.Looks like 90+% of mortgages will be modified:
https://money.yahoo.com/corona...
My stance at this point is, if a renter can document a job loss or decrease of income/livelihood, I will make a claim with the lender under this, which means I will stop paying on that mortgage (or pay interest only or send several months of payments to the end of the loan, extending the total mortgage timeframe, etc) and I will adjust downward rent for that renter accordingly.
- Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes6y
If you have't already contacted your tenants than you should do so. We will work out some type of payment plan to pay back over several months if needed. I do have money in reserves for worst case scenario. No doubt this is not the ideal situation and there will be many people losing homes or evicted in the next year or two.
- Member since 2019 · 50 posts · 11 votes6y
I really don't know how to tag someone but @shashi p.
I have worked with great tenants before with reduced rent.
the tenant I am evicting is not a good tenant. he doesnt pay on time. didnt pay in march . has 3 pit bulls and no pet deposits . the last time I heard from him is February 8th. he is unwilling to communicate.
I have no problem with pets. one of my tenants has a great dane. but they paid a pet deposit.
I have offered cash for keys and out of his lease since December with no fees.
if that makes me a monster I am learning to not worry about what people think of me.
I could go on about what I do for my family, community but I dont want to feel like I owe anyone an explanation.
there is no black and white. there are a lot of grey areas. everything should be handled on a case by case basis.
- Member since 2019 · 38 posts · 8 votes6y
Originally posted by @Paul Doherty:
I’m not sure why you think it’s landlord’s “fault” that they use leverage to buy property - pretty much everyone does. What percentage of all people do you think pay cash for homes they live in or rent?
Having said that, why should a renter who not only had the wherewithal to purchase a home themselves, instead relying on us to do so, but also didn’t have an emergency fund for events like this, and that means somehow that landlords should have their funds drained? I don’t follow that logic... at all.Looks like 90+% of mortgages will be modified:
https://money.yahoo.com/corona...
My stance at this point is, if a renter can document a job loss or decrease of income/livelihood, I will make a claim with the lender under this, which means I will stop paying on that mortgage (or pay interest only or send several months of payments to the end of the loan, extending the total mortgage timeframe, etc) and I will adjust downward rent for that renter accordingly.
I get you man. The reason the renters are treated differently is because you are one vote compared to renters which Are likely 10 times more votes. I wouldn’t bother helping your kind for bad headlines if I was a politician.
- Real Estate Investor · Encinitas, CA · Member since 2013 · 225 posts · 91 votes6y
Originally posted by @Alyssa Dyer:
Originally posted by @Arthur P.:
@Brian Boyd I am actively looking for out of state investment but having a hard time finding good information and everywhere I look seems overpriced. I’m in FL now and trying to learn the area. NY investments I’ve had for years now and provide a great return but I’m thing I have to change my expectations or wait a year or two. I think this is the beginning of the next recession.
Oklahoma might be worth a look. 60-80k purchase price, 8% cap rates and Forbes called us recession proof in the last downturn. Might be worth some exploration!
The problem with Oklahoma are the property taxes and the hazard insurance. Both are CRAZY high. But if the deal makes sense even with those 2 costs factored in.... then yea.
- Member since 2019 · 38 posts · 8 votes6y
Originally posted by @Ellen A.:
I really don't know how to tag someone but @shashi p.
I have worked with great tenants before with reduced rent.
the tenant I am evicting is not a good tenant. he doesnt pay on time. didnt pay in march . has 3 pit bulls and no pet deposits . the last time I heard from him is February 8th. he is unwilling to communicate.
I have no problem with pets. one of my tenants has a great dane. but they paid a pet deposit.
I have offered cash for keys and out of his lease since December with no fees.
if that makes me a monster I am learning to not worry about what people think of me.
I could go on about what I do for my family, community but I dont want to feel like I owe anyone an explanation.
there is no black and white. there are a lot of grey areas. everything should be handled on a case by case basis.
oh I am not calling you a monster. But you will be viewed as one by the courts. Seriously brother - don’t go to a housing court - they are going trim off landlord eyebrows there and spit on your firstborn - even if you had good reason to evict. You CANNOT get an eviction through right now.
- Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes6y
Originally posted by @Shashi P.:
@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.
wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?
- Member since 2019 · 38 posts · 8 votes6y
Originally posted by @Michaela G.:
Originally posted by @Shashi P.:
@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.
wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?
You are the same breed that I am. You built your wealth off the backs of the misery and suffering that was the 2008 real estate crash - where investors and normal people alike lost their homes. The banks then put the houses out on market for 30 cents on the dollar in some places. You bought in 2009-2013. You are just the same as I am - you caught the upswing on a different crash than me. But you are the same. I sit now with money and this is my time. Why are you so appalled - this is the cycle right?? Investors = buy low, sell high. Is this the whole game. So yes I am hoping everyone looses their houses so I could do what you all chose to do in 2010 - mercilessly offer 150k for a house that was worth 350-400 just 2 years ago (or were you generous enough to offer 350?) no you weren’t because you are a investor.
Investors are vulture looking for dead carcasses that can someday become racehorses.
- Chicago · Member since 2018 · 216 posts · 165 votes6y
See brandon turner's video.
A tip I've shared to potentially avoid Covoid 19 for landlords and tenants
Finally, some personal advice to all. I've sent this message to all my tenants. I've been listening to hours of interviews with doctors and the epidemiologist expert at Johns Hopkins. He said the common cold/flu is a type of corona virus, just not this one. Based on that, and knowing the common cold is seasonal and correlated to low D-3 levels in the body, it is obvious that having high or at least normal D3 levels could prevent the Novocorona Virus. Covoid19.My brother is a doctor who has been in a decade-long-term Vitamin D-3 research project. Take 5,000 IUs of Vitamin D-3 a day. If you have not been supplementing with D-3 (your multi is too low, only 4-800 IU) previously take 50,000 IU a day for 5 days. Then drop down to 5K a day.
He also said that all the docs he works with take 50K a day when they feel a cold or flu coming on and it seems to knock it right out. I've done that as well with some success. Not always. - Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes6y
Originally posted by @Shashi P.:
Originally posted by @Michaela G.:
Originally posted by @Shashi P.:
@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.
wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?
You are the same breed that I am. You built your wealth off the backs of the misery and suffering that was the 2008 real estate crash - where investors and normal people alike lost their homes. The banks then put the houses out on market for 30 cents on the dollar in some places. You bought in 2009-2013. You are just the same as I am - you caught the upswing on a different crash than me. But you are the same. I sit now with money and this is my time. Why are you so appalled - this is the cycle right?? Investors = buy low, sell high. Is this the whole game. So yes I am hoping everyone looses their houses so I could do what you all chose to do in 2010 - mercilessly offer 150k for a house that was worth 350-400 just 2 years ago (or were you generous enough to offer 350?) no you weren’t because you are a investor.
Investors are vulture looking for dead carcasses that can someday become racehorses.
There's a huuuuge difference between us. I took advantage of an opportunity that was not of my making. I didn't want anyone to foreclose or lose their business and I did nothing to make that happen. I bought REOs that were offered by the banks after the fact.
But you actually wish for all of us to lose everything, so that you can profit of that. That's makes you an absolutely horrible person !!!
- Investor · Donnelly, ID · Member since 2013 · 8 posts · 4 votes6y
If going the rental deferral route, check out this link which includes deferral criteria and lease addendum.
https://www.uaahq.org/need2know.html - Member since 2019 · 38 posts · 8 votes6y
Originally posted by @Michaela G.:
Originally posted by @Shashi P.:
Originally posted by @Michaela G.:
Originally posted by @Shashi P.:
@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.
wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?
You are the same breed that I am. You built your wealth off the backs of the misery and suffering that was the 2008 real estate crash - where investors and normal people alike lost their homes. The banks then put the houses out on market for 30 cents on the dollar in some places. You bought in 2009-2013. You are just the same as I am - you caught the upswing on a different crash than me. But you are the same. I sit now with money and this is my time. Why are you so appalled - this is the cycle right?? Investors = buy low, sell high. Is this the whole game. So yes I am hoping everyone looses their houses so I could do what you all chose to do in 2010 - mercilessly offer 150k for a house that was worth 350-400 just 2 years ago (or were you generous enough to offer 350?) no you weren’t because you are a investor.
Investors are vulture looking for dead carcasses that can someday become racehorses.
There's a huuuuge difference between us. I took advantage of an opportunity that was not of my making. I didn't want anyone to foreclose or lose their business and I did nothing to make that happen. I bought REOs that were offered by the banks after the fact.
But you actually wish for all of us to lose everything, so that you can profit of that. That's makes you an absolutely horrible person !!!
We are getting stuck in semantics. You can phrase it saying I wish you all lost your stuff. Which sounds bad. I can and will phrase it as “I hope the real estate prices become lower so I can buy in” sounds nice finance like but it’s the same thing.
Also I am not actively making anything happen for you all to loose stuff - I am just hoping for it so the prices go lower.
Why didn’t you help the banks out?? Offer them more than asking price in your day - bet you bargained then right down to the bone - you knew they were desperate and savored every advantage you could from it. You know the last crash was a bloodbath for many smaller banks right? Those are people - those are jobs - those are families. Easy to point fingers at the rats and vultures like the rest of us when you already done the same and already built up the fat reserves.
I am not a horrible person. I didn’t create Coronavirus. I did start a business which has generated a lot of cash in the past few years along with my job before that. I saved it and say out 2018 and 2019 and felt stupid missing those upswings because I thought a crash would come. Now it’s here and I will enrich myself off of this - like you. I didn’t create the Coronavirus - the Chinese did. Call them horrible - not me. We are Both Americans, let us stock together against the real enemy - the country who has stolen our jobs and now given us this virus - the criminal Communist leadership is to blame here.
- Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes6y
@Paul Doherty, ALL of my rental are financed with conventional loans, not Fanny or Freddie. It looks like I’m screwed if this thing goes longer than I have cash/income. :-(
- Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes6y
I wrote a long piece on with recommendations for how property managers should handle coronavirus both with regards to operating your business and collecting rents that many of those following this thre may find helpful: https://www.biggerpockets.com/blog/coronavirus-covid-19-economy-real-estate-market-what-investors-need-to-know
- Real Estate Investor · Encinitas, CA · Member since 2013 · 225 posts · 91 votes6y
Originally posted by @Account Closed:
What would make sense for me for the Feds to do would be to push some money into HUD to temporarily increase the HUD certificates that can go out and decrease the time to qualify for one. So, for example, the once solvent tenant who is now unemployed with minimal prospects can get a HUD certificate that would pay the Landlords a portion of rent (not a huge money-making portion but an amount that would help them meet their expenses).
For example something like this:
Tenant loses job and after 30 days of unemployment they can get this special new certificate that will pay X amount (determined by city and # of rooms). So the landlord who was once getting $1100 for his 3 br house might now get 650 but it will protect both the tenant and the landlord in case this doesn't get resolved within the next 6 months.
I don't think this should be a period where tenants are in jeopardy and I believe that landlords should at least be made whole enough to stay solvent enough to keep the property and not be in a position of total insolvency after this is all over.
As great as an idea as this sounds on paper.. if you have ever dealt with typical local housing office, then you know it's not realistic on the ground. They are god awful slow. I am in process right now with a local office... and it took then 30 days just to SCHEDULE an inspection.
- Real Estate Investor · Encinitas, CA · Member since 2013 · 225 posts · 91 votes6y
Originally posted by @Jay Hinrichs:
Originally posted by @Stephen Keighery:
@Arthur P. Get them to file for unemployment ASAP
I dont think unemployment benefits will handle all the bills for most folks..
Correct but... Chuck Schumer is pushing what he calls "unemployment on steroids". If enacted it would pay 100% of someone's salary for 4 months. Let's hope McConnell gets on that train.
- 6yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Mark Whittlesey:
Originally posted by @Jay Hinrichs:
Originally posted by @Stephen Keighery:
@Arthur P. Get them to file for unemployment ASAP
I dont think unemployment benefits will handle all the bills for most folks..
Correct but... Chuck Schumer is pushing what he calls "unemployment on steroids". If enacted it would pay 100% of someone's salary for 4 months. Let's hope McConnell gets on that train.
that my man would be awesome.. frankly I am pretty proud the way govmit is jumping in here this go around compared to what happened in the GFC.. Much heart ache could have been avoided had the mortgage market just worked with borrowers.
- Rental Property Investor · Mc Kinney, TX · Member since 2013 · 50 posts · 50 votes6y
Originally posted by @Shashi P.:
Originally posted by @Michaela G.:
Originally posted by @Shashi P.:
@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.
wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?
You are the same breed that I am. You built your wealth off the backs of the misery and suffering that was the 2008 real estate crash - where investors and normal people alike lost their homes. The banks then put the houses out on market for 30 cents on the dollar in some places. You bought in 2009-2013. You are just the same as I am - you caught the upswing on a different crash than me. But you are the same. I sit now with money and this is my time. Why are you so appalled - this is the cycle right?? Investors = buy low, sell high. Is this the whole game. So yes I am hoping everyone looses their houses so I could do what you all chose to do in 2010 - mercilessly offer 150k for a house that was worth 350-400 just 2 years ago (or were you generous enough to offer 350?) no you weren’t because you are a investor.
Investors are vulture looking for dead carcasses that can someday become racehorses.
The world is so black/white and simple in your view, but it isn’t nearly so. For example, my area (Dallas) didn’t get hit hard at all by the 2008 recession; the houses here barely lost 10%, because they were inexpensive to begin with. Do I deserve to lose property, since I bought mine at realistic values and wasn’t buying from foreclosures? Why or why not?
- 6yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Brian Boyd:
@Shashi P. There is no “getting away with it” given this will be a renegotiation of the lease agreement. While evictions are stayed the contract is not stayed and cannot be stayed. No court has that authority. Rents are still owed.
While the current situation has everyone looking at the tenants, those on this forum need to consider how to protect their investments. People on this forum have a large amount of their net worth tied up in these properties.
Does anyone believe their banks are going to let them not pay their mortgages? The money is still owed. This is the same situation but on a smaller scale than the banks. Moreover, when the cure t situation passes, does anyone have the notion that we all won’t go back to work as usual and courts will open and processes start again?
Finally, I hope you stay safe and healthy. Take care of you and yours. We will get through this.
Good luck and god speed.
from my personal experience owning over 300 C class rentals in MS TN IN AL if you don't collect rent its going to be very hard to ever collect it again.. Tenants just up and move.. LOL.. now you might have a better clientele base than we did .. with our work force housing.. but if they don't have it they don't have it.. Judgements are worthless as you probably know in these situations..
Lenders are for sure going to help out investors that can prove they have a problem.. I talked with my banker last week and they are already formulating work outs.. Mainly for their dentist who cant practice right now and the few cosmetic surgery outfits.
The mortgage holders Servicers etc no one wants a repeat of 08 to 2011.. they though will want you to prove you have run through your reserves or are down to fumes and make sure you put off discretionary capital improvements.
that's my thought anyway. A failure in the mortgage markets will lead to another credit freeze then we are all Screwed royally.
- Member since 2019 · 38 posts · 8 votes6y
Originally posted by @Paul Doherty:
Originally posted by @Shashi P.:
Originally posted by @Michaela G.:
Originally posted by @Shashi P.:
@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.
wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?
You are the same breed that I am. You built your wealth off the backs of the misery and suffering that was the 2008 real estate crash - where investors and normal people alike lost their homes. The banks then put the houses out on market for 30 cents on the dollar in some places. You bought in 2009-2013. You are just the same as I am - you caught the upswing on a different crash than me. But you are the same. I sit now with money and this is my time. Why are you so appalled - this is the cycle right?? Investors = buy low, sell high. Is this the whole game. So yes I am hoping everyone looses their houses so I could do what you all chose to do in 2010 - mercilessly offer 150k for a house that was worth 350-400 just 2 years ago (or were you generous enough to offer 350?) no you weren’t because you are a investor.
Investors are vulture looking for dead carcasses that can someday become racehorses.
The world is so black/white and simple in your view, but it isn’t nearly so. For example, my area (Dallas) didn’t get hit hard at all by the 2008 recession; the houses here barely lost 10%, because they were inexpensive to begin with. Do I deserve to lose property, since I bought mine at realistic values and wasn’t buying from foreclosures? Why or why not?
That would depend - if you for instance saw your houses skyrocket as they did in the in Dallas. Did you refinance and pull the cash out to buy more properties - then perhaps it’s deserved. But if you were responsible - then no.
- Investor · Union, NJ · Member since 2020 · 81 posts · 312 votes6y
The one I thing I hear from half of the smaller time landlords on here is that they would 'forgive the rent payment due to the pandemic' and then the same LL's will highlight that investors should have 3-6 month's of reserves in place for this... I'm sorry but these same 'investors' / landlords are likely not going to be here for much longer with that thought pattern (will likely find their foreclosed properties on the market soon). Tenants and really anyone else should ALSO have 3-6 months in reserves for times such as these. So if you have a responsible tenant/citizen which has 3-6 months in reserves in place there really is no missed rent payment.
What some of these 'investors' are failing to see it that it is not your position to cover someones living situation on your dime as in investor - that it is the state's responsibility, if that is something they would like to do. Have you seen any states instead offer to pay for a tenant's rent payment? ---- of course not and you won't because they would rather 'lean' on a landlord to 'adsorb' that cost. Look I'm not faulting you for covering someones rent during times like these in one of you rentals but if that's the case... I have a cousin that would love to rent one of your 'rent-free' units if you like to take him up on it.
We are certainly not callus to the situation but, any tenant's which we have that miss their rent payment on month 1 of this pandemic situation have dropped the ball they SHOULD also have 3-6 months of reserves but don't and as grown adults it is not a landlords or investor's responsibility to support another adult - heck the states don't even want to support these adults which is again why you don't see governments pay for tenant's rents - they just push it onto the landlord... how's that for an eye opener. Again not callus to the situation just realistic...if our tenant's miss payments during this whole situation, we will work with them to schedule a payment plan moving forward.... we will still file for eviction during this time and get it lined up for when the courts start processing again... and if by the time courts start processing evictions again an agreement hasn't been reached we will certainly carry out evictions as needed.
We currently have 3-6 months in reserves for all of our rentals but guess what?.... that is exactly what the are - reserves - which are meant to carry our properties over during long term evictions such as these... not meant to support adults which failed to prepare properly. For those looking to 'carry' your tenant's debts... a word of caution and important to ask yourself 'who will carry your debts once you have blown through your reserve and you are then facing a leaky roof, a leaky water heater, taxes, insurance, mortgage and utilities'? - 6yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Paul Doherty:
Originally posted by @Shashi P.:
Originally posted by @Michaela G.:
Originally posted by @Shashi P.:
@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.
wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?
You are the same breed that I am. You built your wealth off the backs of the misery and suffering that was the 2008 real estate crash - where investors and normal people alike lost their homes. The banks then put the houses out on market for 30 cents on the dollar in some places. You bought in 2009-2013. You are just the same as I am - you caught the upswing on a different crash than me. But you are the same. I sit now with money and this is my time. Why are you so appalled - this is the cycle right?? Investors = buy low, sell high. Is this the whole game. So yes I am hoping everyone looses their houses so I could do what you all chose to do in 2010 - mercilessly offer 150k for a house that was worth 350-400 just 2 years ago (or were you generous enough to offer 350?) no you weren’t because you are a investor.
Investors are vulture looking for dead carcasses that can someday become racehorses.
The world is so black/white and simple in your view, but it isn’t nearly so. For example, my area (Dallas) didn’t get hit hard at all by the 2008 recession; the houses here barely lost 10%, because they were inexpensive to begin with. Do I deserve to lose property, since I bought mine at realistic values and wasn’t buying from foreclosures? Why or why not?
Ya NO ONE DESERVE anything in real estate.. all we can all do is play the cards that are dealt to us at a particular time in the market.
there is no question that a whole generation got started after the crash and got the buying opps of a lifetime.. on the flip side this is why our markets are very stable. And back in 2012 or so before I found BP I used to post on the Australian version of BP and there was an out of country forum and raging debates on what was better Texas because prices did not fall or ATL because they did fall 50 to 80% in some areas or FLA like fort Meyers. I think the ATL and FLA were better buys as they have bounced back and you have had massive appreciation . I think Texas appreciated as well just not as much.. I can tell you one of the great plays though was Vegas.. a client of mine just sold his 4 plex last week for 430k that he bought in 2012 for 170k and put 40k into it.. so who said appreciation is LUCK. LOL it knowledge
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