All Forum Posts by: Courtney Nguyen

@Lilly Shamam we are in Texas and it's allowed to ask for more than 1 month security deposit.  So I think I will go with that.  Thanks for the suggestion.

Quote from @Amanda Janes:

Everything checks out with the exception of the lien? I’d say, it’s probably okay. Take a look at their paystubs to see if there is a garnishment, if not, then they probably are still in process of disputing and resolution. 

I don't see any garnishment on their pay stubs, and their agent said their attorney has been working on negotiations and he thinks they will be able to settle for way less than the stated amount.

@Greg M. thanks for the input.

Hi BP community,

Today I received the application for this couple (with 1 kid, 2 small dogs) whose income is above my criteria of 3.5 x rent (rent is $2200/month), both have good credit (husband 799, wife 736), both have employment checked out, both current and previous landlords said they are very good tenant.  However, on the husband's background check there are 2 liens jump out:  one is state tax lien from State of CA in the amount of $14K, one is the federal tax lien from IRS in the amount of $65K.  When my agent asked their agent they said they are currently having their attorney working on it and should settle for way less than the amounts shown and that it should not affect their ability to pay rent.  My dilemma is I don't doubt their ability to pay at all, but that they don't want to pay others.  If they didn't pay their tax to the government then how are they going to pay me rent?  And how could they owe both state and federal that much but the husband still has a credit score of 799 (the liens are only showing on his report, not hers)?  Am I missing something here?  I am puzzled here, everything else looks good on them, except for the liens so I don't know if I should rent to them or not.  If it were you, would you rent to this couple?

Thanks for any input.

Quote from @Ronald Rohde:

Quote from @Courtney Nguyen:

Quote from @Henry Clark:

I’m cheap on things like this.  I would buy a $600 power washer and 300 feet of water hose.  Also a soap scrub brush for the building. Then hire a high schooler.   

Show them how you want it done. 

On the parking lot get gallon sizes of detergent and pour in front.  Get the degreaser kind. Nothing with ammonia.  

@Henry Clark

 Henry, I am like you I am cheap on these things too, lol.  It's not rocket science to do power wash and they want $3900 - $6000.  Unless it's something requires someone who is  so knowledgeable, skilled, and experienced  like you I am not paying anymore $6000.  Thanks a lot for taking the time to read and answer my questions.  I really appreciate it!  I now know for sure I don't have to go with these guys for power wash for commercial.  My brother has a power wash machine.  It even has the round thing that helps cover more surface areas than the nozzles (but less powerful I think.  But that's safer for parking lot).  I am thinking me and him can go and do it ourselves if we have time.  

 Its called a "surface cleaner" I'm not saying either quote is reasonable, but how much does it cost if the high schooler breaks a window? shorts out an electrical fixture?

Does your guy have insurance? What if he gets hurt on site? He's going to sue. I know you don't have traditional investors, but at some point, @Henry Clark is going to get dinged and the attorney on the plaintiff side is going to have a field day.

 Hi Ron,

I am not going to hire a high schooler for this. What I am thinking is that I will hire the Vietnamese contractor (who has insurance) to do spots treatment only. For areas where I see black moss now such as the sidewalks at the 2 end caps, dumpster area, curbs. Will leave the building and parking lot alone until next year or so. Since this will be a small job and that Vietnamese contractor so far gave the lowest quote (still high to me, but at lease he is way lower than the other 2) I think his rate will be reasonable for this. Reason why I might have to go this way is because the Thai restaurant tenant will have lease expire early next year. He has one 5 year option to renew, at 10% increase over current. He already expressed interest to renew only if we won't do that 10% increase. His reason is that he has concerns about NNN going up a lot. So with a 10% increase in rent on top of increasing NNN it will be too much for him to absorb. Now this is a very good mom and pop tenant who always pays on time and never complains about anything, no issues whatsoever so I would like to keep him of course. He also has another location near by. Anyway, I did assure him that yes NNN might go up but we are very stable now if it does go up it will not be much. If anything, I have been doing a good job at keeping it stable for the last 2 years. For 2021 our NNN came out at $10.79. For 2022 it came out at $10.74. Not only it did not go up, it did go down a little bit. To be honest, I am not so sure about this year though. Property tax assessment already came out and they increased our value up by about $350,000. So if we don't win the protest that will cause some increase, along with other things (waste pick up already went up by $350/month!). That's why I need to keep NNN below $11 for 2023 so my negotiation with Thai restaurant will be easier. Like I said, I would like to keep him but not at the price of not increasing rent for the renewal period. Still thinking of a hybrid proposal like either giving him a 1 month free, or first year at no increase then will increase as scheduled after that, or something else.

So far here are the quotes I get:

1st quote (local professional pressure wash company, with insurance): $6000

2nd quote (Vietnamese GC who has insurance): $3900

3rd quote (multi-service big company, with insurance who is currently doing pest control and landscaping for us): $9000 

(this really makes me crack.  Even with all the lease drafting/reviewing you did for us last year and that was a lot of back and forth between us it didn't add up to $9000!  And you are an attorney.  This guy must be washing people's property with liquid gold or something, if there is such a thing, lol).

Quote from @Nathan Gesner:

Quote from @Henry Clark:

My son is currently trying to figure out life. I would love to offer him a job as a handyman or to manage storage units for me, but he just hasn't shown the maturity or expressed an interest. I hope some day he'll come to me for mentoring.

Nathan.  Let him figures it out on his own first.  Then hopefully some day he will come to you and ask you to teach him about real estate.  My son was still trying to figure things out too.  He kept changing his mind, from going to medical school to pharmacy school to dentistry, etc.  then last year he expressed his interest in real estate.  Hopefully he won't change his mind again.  The important lesson I learn is to be patient and not pushy about pressing real estate investing onto him, but just casually talking about it here and there while letting him exploring other things out there.  

@Henry Clark unfortunately I don't know anything about mobile home.  But I manage 1 commercial and 22 residential (for my brother) so I start teaching him little things about property management.  We are saving money for a down payment for our rental and I will use that one to teach him about buying, financing, managing like you said.  

@Henry Clark My son also graduates in a month.  He wants to get into real estate but I told him he still needs to go to college first.  I wish we are in same area so you can take him as your helper.  I am sure he will learn so much.  I have been doing properly managing for only 2-3 years now so there are still a lot to learn myself and I am not good at teaching.  Therefore, I have been kind of looking for a mentor for him.

Quote from @Henry Clark:

I’m cheap on things like this.  I would buy a $600 power washer and 300 feet of water hose.  Also a soap scrub brush for the building. Then hire a high schooler.   

Show them how you want it done. 

On the parking lot get gallon sizes of detergent and pour in front.  Get the degreaser kind. Nothing with ammonia.  

@Henry Clark

 Henry, I am like you I am cheap on these things too, lol.  It's not rocket science to do power wash and they want $3900 - $6000.  Unless it's something requires someone who is  so knowledgeable, skilled, and experienced  like you I am not paying anymore $6000.  Thanks a lot for taking the time to read and answer my questions.  I really appreciate it!  I now know for sure I don't have to go with these guys for power wash for commercial.  My brother has a power wash machine.  It even has the round thing that helps cover more surface areas than the nozzles (but less powerful I think.  But that's safer for parking lot).  I am thinking me and him can go and do it ourselves if we have time.  

@Henry Clark  we are in Houston so we don't need to use salt.  The 2 professional commercial pressure wash companies who have come to give estimates said for the building (brick) they will do soft wash, but for parking lot (concrete) they will do pressure wash.  The first guy gave a quote of $6000 ($0.08/SF for parking lot, then a flat rate for building, sidewalks, dumpster area.  All adds up to $6000!  According to his measurements the building is 17,360 SF, parking is 46,280 SF but that's not correct.  Our building is only 15,300 SF, I don't know exactly is the SF for parking lot but if he is off with the building then I think he is off with the parking lot too).  Second guy and third guy will send estimate tomorrow/Monday.  A Vietnamese contractor (whom I use for residentials recently, just a GC, not professional in pressure wash) gave a quote of $3900 so I am wondering if I should go with him.  To me a wash is just a wash, but then again what do I know about pressure wash :)