All Forum Posts by: Edward Smith

How did your tenants work out? Did you ever find an answer?

The lowest I think I can get him down to is maybe $550. The way my attorney is drawing the land contract is writing 2 separate payments. One for the bank and one for him. He mentioned that he wants to make sure the bank gets paid and to put his mind at ease I offered the Land Contract. I'm also thinking that because he uses a small community bank if they see a change of ownership they call the loan Due....I know not very likely.

Hello BP....Quick question. I had a seller reach out to me because he was having a hard time selling his home. The hard time being he didn't want to pay any realtor fees. So he reached out to me and told me the story. Moving out of state and doesn't want to be a landlord anymore. Currently rents to his Mother-in-law. So we talked and I made him an offer...

My offer was 42k(his sale price) for a 5yr land contract and a balloon for the remaining balance in month 60(3k) 

He said he needed $650 a month and before his mother moved in rent was $750.

He countered with 48k and a balloon of 9k at month 60 (comps in area 50-60k)

The property is in good condition (2bed 1bath attached garage)

My exits would be sell in year 4 and cash every one out

Small refi in year 3-4

Pay the 9k and keep as a rental.

Keep in mind there is no money of mine in this deal other that closing cost with my Attorney.

If his bank calls the mortgage Due I'll sell or refi myself

So is the extra 6k he is asking for worth it? I'm thinking this is great deal especially with no money down. And I'm not risking my own credit and there is a small cash flow.

I told my tenant this is not required. We kept the same term length. I told him exactly what my intention was and wanted to keep things as transparent as possible. I let him know that according to the lease he was on no pets are allowed. So we should probably have a new lease to add the dog and a pet deposit. I'm not sure he'll last until December but he understands how soon I can have him out if he decides to play games again.

New lease includes pet deposit 😆

So I served the 5 day notice and on day number 6...... Surprise full payment with late fees. New lease starts May 1st. We have an understanding late payments and partial payments will not be accepted and this is not personal it's business. So I have no problem starting the eviction process. We have an understanding now. I'm not your friend I'm your landlord. Thanks again for everyone's advise. much appreciated BiggerPockets...... Lesson Learned

oh god..

That makes sense. I'm a bit new to this and I'm already jaded and probably wont give anyone the benefit of the doubt again. 

Nice property bad tenant.

So here is a quick update on the property that I purchased with a bad tenant. This happened today so it is fresh in my mind. I called him yesterday to confirm the meeting and the amount of rent that was due. So I drive there today 1hr drive... I let him know that I know about the issues he's had paying on time from the previous owner and that we are starting off fresh. I told him I'd b open to selling him the home and that since I'm a mortgage banker I could help him or point him in the right direction on getting financed. I told him we have 3 options(as I hear a dog bark that's not allowed). 1 He could walk away no hard feeling. 2 keep the current lease. 3 start a new lease with me. He said he really wanted to stay there because his kids are doing great in school and they like it there.....Then he handed me less than HALF THE RENT! He had a goofy cheesy embarrassed grin on his face and I was not smiling. He started talking about the issues that the home had and I said I would get them taken care of but if he knew yesterday that he didn't have the full amount and STILL had me drive there not good. Anyway I let him know that I would have to start the Eviction process and he said he would have all the rent by the 8th. So I didn't take the rent and I left. Whats next?