All Forum Posts by: Charley C.

OK I been checking that pet screening service out and I think these fake ESA people would be able to still fake their way in to my apartments if I used them

1) there messaged me back indicating to me they might accept letters from NOT limited to licensed heath care professionals. 

2) no phone number to talk to the pet screening company 

Once they allowed letters from people who are not licensed to medically diagnose (they said they would accept a letter from a social worker), they moved beyond what FHA wrote as guidance. That makes me wonder why? then I thought about it, the bogus people with bogus ESA needs must be their primary customers or may be their only customers for that matter. I still say the market is still prime and underserved for the landlord side of this service dog fad.

@Mike S. thanks !! I will take a run at it and see if really works

I build then lease student housing near a local university in East Texas. Unfortunately that university accepted those silly internet based service dog letters. When these kids come out of the dorms to find a new apartment, they of course, think its going to work. Many of us are nowhere near as gullible or apathetic as an RA for a college dorm.

I have many 4 bedrooms, I lease them room by room. Think about what I got to deal with when 3 people get a room and the 4th roommate has a big dog with a bad attitude and smells the place while barking at any little sound in the night. Another problem here is east Texas is ringworm that might stay in that unit for years.

I have yet to see a letter from a real doctor to legitimize any of these ESA dogs.  Finally I put my foot down but its such a pain. I would gladly pay a monthly fee to a fund that fights that abuse and gives guidance (publications) and yes some rare legal litigation if a tenant is stupid enough to fight it

If I were a lawyer, I could make a fortune at this. Like any other "insurance" styled business, I would not allow people to jump in to the plan only after they needed it. Only accept cases where the lease was signed after the plan was in effect.. that simple

Just giving people publications with a licensed state (Texas in my case)  lawyers address name and warnings, will run 99% of these abusive people away from me and on to an easier target. 

@Rebecca Palermo if you follow the herd investors you will only find trampled ground. You got find your niche areas. Areas that have more people wanting something ready to go rather than fixing it up. Also I seen people find good flips but totally screw up on how to fix it up. Got to have a good source of people working for you to help you get the house fixed up. Its a multi-skilled pursuit. 

To find good areas? get in your car and drive, like a hound dog following the trail. Internet searches like the MLS, Zillow, Loopnet and what ever else just opens the map up and gives you an overall view, rarely finds you a specific deal.

I like the dear hunting analogy. (maybe this makes sense to some) I know people with big trophies on the wall that paid a lot of money to get them, big deal.. I also know people with even bigger trophies that paid very little, they do it by scouting then getting to go hunt a month sooner and ON FOOT with stealth and put in productive time to hone the skill of a bow. These same hunters will not tell me exactly where they got their deer if I can hunt there too.

Good luck and happy hunting  

Not a lawyer but I take it you are asking this question to know how to minimize your expense and interaction with the $cost of consorting with the legal community

If its just you as the one sole owner, then the answer is different that if its with a group.  

When its just me. I just go to mycorporation or legal zoom, somebody like that. Stick to the rules laid out in the bi-laws, $5-600. Keep it simple, keep your minutes and do not loose your documents

However, if its with a group. Anyone you share a ownership with is more of a potential advisory than even your customers (look at the history of all long term shared ownership scenarios) . Go line by line with a lawyer and you're spending close to 4 to 5 digits upfront. Have CLEAR well thought out rules and you will hold more friendships.  

You now have heard how a whole nation of landlords think.. believe me when I tell you the exact opposite will be in your tenants mind. They will think you should and will be grateful and owe them big time.  

The tenant still needs to respect you and the property that YOU own. Make that clear. At least that. 

It sounds like you don't mind what they did but just concerned about the quality of work, then get it inspected at their expense..

The pattern of disrespect will repeat. Next improvement may not be improving anything you wanted if you just let this go.  What next? you are there, you know them better than I do so my advice from here is only so good. I would follow up with some more written agreements saying they will never ever do that again, something like that.. don't let what they did be the status quo 

Lots of moving parts to the equation so I can't say that is not good advice but it was not good advice for me when I was told that same thing. 

I made my down payment instead a loan to my LLC. Now I pay myself back the loan over time with my cashflow. The business pays 20% taxes (that is the same 20% on my net cashflow, not the loan I gave it) so it "can pay me back". while I personally would pay a lot more than 20%. That seems to fit my planning but everyone has their own circumstances. Might want to ask your lender on how all that effects your (or the LLCs) borrowing power. In my case, it seemed to help but do ask your lender.

I know of an investor that actually filed a mechanics lien on their own property to protect their "loan" incase a legal attack would get too costly for the LLC to remain. You might want to ask your lawyer a price on doing that and how effective that really is anyway. The lien would have to predate any claim against the company

If you are doing a partnership instead of an LLC, then when you consider contributions and K1s and all that?? you need a CPA to lay it out for you. I think when your investment makes some money, it can pay you back your contribution tax free because you were already taxed. You may want to explore that closely.

@Melissa Walker Fortunately for me none of my tenants have giving me that notice.

Did those tenants file that in small claims? or did they hire a lawyer? what kind of court? 

And it is sad how any and all government officials (elected or not, local or federal) just cave under any pressure when it involves covid. I'm with you there. 

Keep in mind, you can run credit checks much like any other lease.

I tried to dabble with section 8 but it was a non starter over here. If HUD would pay me like HUD pays in other areas, it would work. My area is semi-rural about 50 miles north of Houston; only paying about $500 and something? (hard to get a hold of them to ask them again) that was for a for a 2 bedroom. There is nothing I can build or buy to make a dime with that. Hud goes by how they uniquely define the "market rate" its more political science than hard science, leave it at that.

I bet in Mass. you guys get paid really good by HUD (whole lot better than us), you should look in to it and just keep good consistent credit rules when scrutinizing applicants

There are thousands upon thousands of people trying to get in to a section 8 lease but unable to find a property over here. I don't know about your area but if you can pick and choose from thousands of people, you can find really good tenants section 8 or not