All Forum Posts by: Dustin Beam
Dustin Beam has started 51 posts and replied 607 times.
Post: Multi investor pay out calculator, know of any?
- Kansas City, MO
- Posts 609
- Votes 321
I'm assuming you're asking about a tool for prections. If so, I think you could take any calculator out there and just modify it a little. For instance, I have a calculator to estimated profit on a property. Since it's total property, you would just need to create a small table with something like this:
Investor A cells: Contribution, percentage ownership (contribution/total investment), profit amount (percent ownership X profit for time period X).
That's if I understood your question correctly.
Post: Are Application Fees worth it?
- Kansas City, MO
- Posts 609
- Votes 321
I don't charge people to fill out a piece of paper. But if everything on the app looks good, I let them know they will have to pay for the background check. I let them know upfront what will disqualify them.
Post: Finding the Money for a Good Multifamily Without Credit History
- Kansas City, MO
- Posts 609
- Votes 321
Maybe I've always misunderstood "commercial" property vs "residential" and their lending types.
I know that 5+ units require commercial lending, but to my knowledge, you can still get a commercial loan for a 4 plex. You simply have the option to go traditional lending vs commercial lending. Maybe I'm wrong?
But I hear a lot of advice saying that the loaning structure is split based on units, whereas I understand it to mean that while you're forced to go commerical at 5+, nothing is mandatory at 4 or less. If I'm correct, and maybe I'm not, but if I am, then Page can get a commercial loan for under 5 units and they will primarily look at property income instead of his personal income. My bank looked at both though when I bought 12 units, fwiw.
The easiest thing the OP should do is call a bank and see what they say. Go with a smaller local bank and you'll probably get a better response, I know I did. Good luck!
Post: Inheriting Tenants Security Deposit
- Kansas City, MO
- Posts 609
- Votes 321
Deposit money does not belong to the landlord so it should transfer to a new owner one way or another.
Post: Skipping last month's rent
- Kansas City, MO
- Posts 609
- Votes 321
Originally posted by @Rick S.:
Originally posted by @Dustin Beam:
Originally posted by @Will Gaston:
@Dustin Beam I require the security deposit AND the first month's rent AND the last month's rent upon move in. So if I'm renting a house for $1,000/month, then they'll need $3,000 to move in. It helps with tenants skipping the last month's rent and, in my experience, it also weeds out bad tenants when you tell them that.
I may try that at some point in the future but I think my apartments are in an area where that may be a tall order.
Dustin, could you collect deposit and first month's rent then collect the last month's rent over the first few months of the lease with a payment plan?
That's not a bad idea.
This is the first occurrence in a year, though. If it becomes common, I'll definitely consider getting last month's rent early.
Post: Skipping last month's rent
- Kansas City, MO
- Posts 609
- Votes 321
Originally posted by @Will Gaston:
@Dustin Beam I require the security deposit AND the first month's rent AND the last month's rent upon move in. So if I'm renting a house for $1,000/month, then they'll need $3,000 to move in. It helps with tenants skipping the last month's rent and, in my experience, it also weeds out bad tenants when you tell them that.
I may try that at some point in the future but I think my apartments are in an area where that may be a tall order.
Post: Skipping last month's rent
- Kansas City, MO
- Posts 609
- Votes 321
Originally posted by @Jason Turo:
Don't forget to put yourself in her shoes to understand where she is coming from. I'm sure it's not fun to live in a place that feels like it is falling apart above you (whether it actually is or not, she may feel that way).
With my experiences in the past, I found it best to move on and get a new tenant in right away, but that's a personal thing. I prefer not to waste my time in the hopes I get some money back. Move forward and start collecting new money on a better tenant.
If you do pursue it, it would be great to hear how it all pans out over the next few weeks. Good luck!
Of she felt like her place was falling apart she could have simply accept my offer to fix it. ;)
Post: Skipping last month's rent
- Kansas City, MO
- Posts 609
- Votes 321
Originally posted by @Andrew Johnson:
@Dustin Beam Ah, I must have misread. I thought she was out of the property already. She's in there for the next couple of weeks but just won't pay the last months rent? Maybe the practical answer is to tell (ask) her to leave this weekend if she doesn't want to go to court. Again, it doesn't help the moral side of things but pissed renters can turn a bad situation into a nightmare. If she's gone and the locks are changed it's a little different than if she's still in the unit. My youth was all about people falling behind on rent, getting a notice, and then *poof* they were gone. So you'd have to track them down (literally) before you could do anything and hope to recapture money.
Yea, she's still there. The back story goes like this:
Her lease was expiring and she said she wasn't sure what she was going to do as she was thinking about moving. I said ok, let's go month to month and we'll revisit in June. Here I was trying to help her out. Whoops
Anyway, in between then and now, there was a leak from the apartment above. I got the leak fixed above and offered to come fix her ceiling (some drywall tape came down). She never responded. I assumed she basically decided to move and she didn't care since she didn't respond. Well now she says that's why she shouldn't have to pay rent. It's BS, but that's her reason.
So she was moving out at the end of the month anyway, supposedly. But I went ahead and had my attorney file against her as there was no guarantee she'd move out like she said she would, and it might cost a few hundred to clean that apartment out depending. So if that was teh case, I'd be out hundreds of dollars.
And if my attorney is correct and we can garnish her checks, I'll get the money either way. But what I don't know is how easy/hard it is for a person to "disappear" and no garnishment takes place.
I dunno, live and learn either way i guess.
Post: Skipping last month's rent
- Kansas City, MO
- Posts 609
- Votes 321
Originally posted by @Andrew Johnson:
@Dustin Beam So you basically have 3 issues:
1.) You shouldn't want to let it go easily. It's not right. It's to the benefit of the entire "landlord ecosystem" if we all know who deadbeat tenants are. And, let's face it, you're owed the money. You'll prove your point, it will be a moral victor but...
2.) ...on the practical ROI side of things, I'd imagine you're going to have a hard time collecting. Maybe you will, maybe you won't, but it's going to cost money to (hopefully) get money. And if the tenant had money in the first place they probably wouldn't have bailed out of the blue. In my experience (going back to my youth) if a tenant bailed there were always non-standard wear-and-tear items that obliterated that security deposit quickly.
3.) Time also matters. I would prioritize getting the unit rent-ready and re-rented first. If going down the road of getting money from a deadbeat renter distracts you from that, I wouldn't do it. Even if it just delays getting the unit rent-ready a couple of weeks, that's 1/2 a months rent you'll never get back. Yes, you can try and recapture that money as well but I'd take the bird-in-hand of a new renter to get the cash-flow going again.
Again, I'm no expert in all of this, these are just the experiences of growing up in a family with a small portfolio of SFRs and duplexes. For all I know it's easier in 2017 to chase down tenants, recapture money, have things progress quickly through small claims court, etc.
To your points:
1: Agreed. I'm a landlord that will work with tenants as long as they are open about the situation and work w/ me back. But the instance anyone in my life is intentionally trying to get over on me, I simply don't take it well and do everything I can do disallow it.
2: Attorney thinks garnishment is a strong possibility. I just don't know since I haven't ever tried that. I know that the condition of the apartment is ok in general, but needs flooring and paint (she smoked). Evicting her may actually increase the likely hood of more damage. I don't know.
3: As far as getting it ready, I have people lined up to paint and replace flooring. So that won't be instant, but hoping it will be no more than two weeks before it's looking great. Maybe as soon as a week if things go well. Either way, I'm not delayed because I'm doing this.
Post: Reasonable time for repair/replace oven?
- Kansas City, MO
- Posts 609
- Votes 321
Originally posted by @CJ Ashton:
I only manage a couple of properties so take my $0.02 for what it's worth.
I always have my service providers call the tenant and schedule directly with them. That way, the tenant is responsible for managing their own schedule and any delay in the problem getting repaired is on them. I've found that most service providers have fairly flexible schedules and can get the job done in a time that is convenient for the tenant's work schedule.
Yep, pretty much exactly what I do. I reduces the back and forth and any potential headaches that come along w/ doing any of that yourself. I haven't had much trouble so far w/ that method.