All Forum Posts by: Charles Patterson

I found the link that she was quoting from.  If anyone was wondering...

http://www.splas.org/housing-artic-agree.html

Not here to evaluate the deal, but to evaluate a stipulation that the seller has.

The numbers of the deal works out to $100 per door on a duplex using seller financing on a free and clear property.

However, during the negotiations the seller comes up with this statement.

"You also need to understand your risk in the event of default on the loan. I understand that isn’t your intention, but in the event of default, I can “foreclose”, and any payments you’ve made will be considered as rent leaving you without an equity position. Also, since the mortgage payment will be significantly less that the rental income from both units, I could sue for the difference. Of course, I hope we would never end up in this situation, but I’m more comfortable knowing you understand these components."

We are in a stable market, but anything can happen during the course of the loan (as all of you know).

I came back and told the seller that I am fine with a full recourse loan, but none of this whole "considered as rent" statement.

She responded with

"However, if the buyer defaults, fails to make a payment for example, many agreements allow the seller to deem the payments “rent” and the agreement a lease. As such, the seller will often then proceed to evict the buyer under the theory that the buyer, now a tenant, has failed to pay rent. This is perfectly legal. In other words, when a buyer defaults - fails to pay a due installment or otherwise breaches another condition of the sales agreement - the seller will now exercise his right to deem the agreement a lease and proceed against the buyer under standard landlord and tenant law. He will evict the buyer and keep all the moneys previously paid. He may even be able to sue for moneys not yet paid.

This paragraph comes right off the Southwestern PA Legal Services website..."

And my final position (where we leave off the story right now) is that I am fine with a full recourse loan, but not the whole "treated as rent" stuff...

So.... What would you do and why?

I think you would be hurt more if your cover was blown while living in the house vs if it was blown outside of it.

While I agree that it makes you jave a stronger stance to assume when dealing with tennants, if they find out and live with you every day it could cause problems.

In this instance I suggest being upfront but firm. Remember, this is a business relationship you are building with the tennant, not a friendship.

@Account Closed
Until this forum post I never really realized just how much the laws on pet deposits, rents, and/or fees change by state.  And how calling it one thing or another mattered so much based on the law of that state.  Been a real eye opener there.

@Linda S.

You had some excellent points that I have never considered.  It is one plus side to the larger dog is that people tend to not use the pee-pads with them.  The pads never even crossed my mind.

All of our rentals we try to use some type of hard surfaced flooring as well.  That way when there are accidents of any type it lasts longer.

how do you go about shot record verification and license verification? Just accept the paperwork, or do you get the paperwork from the vet itself. More red tape, but ensures authenticity.

If you allow pets in your rentals, and your state allows you to asses an extra pet rent amount... how much do you charge?

We allow up to 2 animals, and all dogs must be licensed and releases signed so that we can contact vet to get shot records and such.  Also we have to meet the dogs as well.

We charge an extra $250-350 per animal (depending on size and area of rental).
Cats and Small dogs (lt 15 lbs) = +$25 / month
Medium dogs (15 - 25 lbs) = +$30 / month
Large dogs (gt 25 lbs) = +$35 / month

So... what do you charge and why?  Do you find larger or smaller dogs to be better on your properties?

thank you everyone.

And to Jason, I will be sure to reach our to you. The Sharon/hermitage area is within my area I am willing to commute for properties.

Which do you use and why?

I am trying to find the balance between features and affordability.

I have been listening to some of the earlier podcasts and a whole seller (somewhere in the 30s of podcasts) said that they used different numbers for different types of marketing so that they could track where the calls were being generated from.

What I am looking for personally is something that I can have forwarded to my phone during certain times of the day, otherwise have it kick over to voicemail.  And to be able to tell on my phone that the incoming call is from a virtual phone number (so that I can answer my cell phone professionally rather than personally).

What are your suggestions BP?

Did you ever have success in this?

I recently had to find out where someone moved too but could not find any record of it.  If they did mail forwarding to the post office then mail them a letter, but put the "Return Service Requested" line above the address.  Just like the junk mail that you get.  If they have forwarding set up, instead of the mail going to their new address it is returned to you with their new address as one of those undeliverable yellow stickers.

There are some instructions from the USPS on how far above the address on what font all this should be, but I do not know it off hand.  I am sure a quick google search can tell you that information.