All Forum Posts by: Christopher Watson

 Agreed.  Thanks for sharing that info.

Yep...higher interest rates absolutely kill what little cash flow you may be able to earn.  Adjust down your 7% to a 4% (old rates) and you see what I mean.  Surely someone else will add other variables to keep in mind.

Yikes Marita!  That's horrible and hopefully no one is sick because of the issue.

 In CA I always use a C.A.R. LRM form (LEASE/RENTAL MOLD AND VENTILATION ADDENDUM) which clearly outlines the tenants responsibility to keep the property clean.  This form really defines the obligation of the tenant quite clearly and further indemnifies the owner from liability due to the tenants failure to follow the well-defined rules.  Not sure if you have a form similar in PA (if that's where your property is) although hopefully you do.

There are a variety of potential scenarios that can lead to issues.  It's almost impossible to cover everything although skilled agents/landlords can usually figure out ways to tick plenty of boxes to limit landlord/owner exposure.

Renny

You bring up an excellent question.  And I agree that it simply isn't worth doing paperwork you are not familiar with and could suffer severe liability if you make a mistake.  So...did a real estate agent originally list your property for lease?  If a real estate agent helped you at the start there is certainly a listing agreement which will likely provide commission to your agent in the event of a purchase by the tenant.

In the event that you did not use an agent and found the tenant on your own...congratulations.  As an agent I will tell you that all agent fees are negotiable (although very few people ever negotiate).  I do not know what an attorney will charge for paperwork although you could always try to negotiate a point or two for an agent to handle all the necessary paperwork.  The most important function of the agent/attorney will be to protect you from any type of future liability surrounding the sale.  Ask around and you'll find the right fit.

Just my .02.  

It's always a case-by-case scenario with tenant's offering to prepay rent.  Where I live in Los Angeles it is very common for a tenant to offer up-front money because the rental market is extremely competitive and good inventory is scarce.  That being said I have never offered a discount on prepaid rent in my property(s)/clients and for some of the reasons already mentioned.  Additionally it is critical to understand why the tenant is compelled to give cash upfront (scarcity/competition aside) so that vetting needs to be thorough.  And I always have to dig deeper to see what is really going on with a potential tenant.  Recently had an "all cash" applicant not disclose a divorce, foreclosure and subsequent bankruptcy although thanks to knowing the process was able to get the picture and dodge the bullet.  Just don't rush into a decision and keep your head.  YMMV.

 Thanks, @Wale Lawal !  Much appreciated.

Sadly...no LAM for me this year.  Also...I don't like that the route has changed.  Dodger Stadium to the beach was perfect.  How about you?  

Hello everyone.  I'm a licensed real estate agent in Los Angeles for 15+ years.  I am a husband and father, a dog-lover, avid traveler and marathon runner (although on an injured atm).  Lately I have really been wanting to move towards purchasing more cash-flowing assets.  The idea of constructing a business model/plan and moving forward really excites me.  I do have experience as an investor/landlord although for the purposes of my learning curve...I'm here as a newbie looking to absorb all the information available to me and hopefully adding where I am able.  I'm just old enough to remember those Carleton Sheets informercials from the '80's.  Hahahaha...the business has come so far and the resources today are incredible.  I look forward to learning more and beginning my journey.  I appreciate you being here.