All Forum Posts by: Jennifer McElliott

ok thanks - yeah that's what I figured and told the tenants that I accidentally sent it to.  We're going to cross it out and initial it - I liked the way the lease was worded, so we're going to stick with it.

thanks for the feedback!

Has anyone used the free WA Lease forms?  I filled one out to use for a house we're renting in Snohomish County and then realized that I used one that was created for the City of Seattle... does anyone know if this will be a problem?  Can we go ahead and use it anyway?

Thanks - everyone - this was very helpful and informative.  In the end, I searched for a new lease agreement that had other verbiage around caring for the property (seemed to be more current) and left out this holdover period clause (but has the month to month verbiage that's more common.)

hmm that's not what the language of the above lease clause appears to say though... it seems to be directly addressing the new month to month rate at which the lease will fall over to after the first term expires

Yeah from my searches online it seems more common in commercial leases where they can raise it 150%-200%!  Another residential landlord (out of CO) mentioned using it with a standard $100 increase for the next year and for it being m-m (seems reasonable in our area where the rent is going to be $3000 a month, so percentage wise it's pretty minimal, but still I'm afraid of scaring he tenants)

I downloaded a lease agreement (WA residential leases) to use and found an unusual section - has anyone else included this clause here around the new rent rate after the first term expires?

"TENANT'S HOLD OVER. If Tenant remains in possession of the Premises with the

consent of Landlord after the natural expiration of this Agreement, a new tenancy from month-

to-month shall be created between Landlord and Tenant which shall be subject to all of the terms

and conditions hereof except that rent shall then be due and owing at

______________________________________________________________ DOLLARS

($__________________) per month and except that such tenancy shall be terminable upon thirty

(30) days written notice served by either party."

Thanks!

oh yes, all of that is completely understood and expected from my end, but of course what I'm asking is more is it normal to have these PPM docs reviewed b/c asside from normal verbiage, investor need to look out for potential red flags that get buried in all that legalese?  I understand that this is at minimum a 5year horizon for the bigger payout, and from talking to that SEC lawyer, I now have heard that during the interim years when you are being taxed for any distributions some projects pay out to the investors to cover this tax. 

I guess in the end, I wanted to see if other investors normally make the spend on the review, and make sure that what we were going to pay was in line with what others pay since this is our first time and I don't want to be burned just b/c we're ignorant in these matters ;). THats what the bigger pockets forums are for right??  :).

So thanks all for the input, it was very helpful.  

Thanks Joel and Zach.  I spoke w/ a lawyer who specializes in SEC and Corporate law today.  His fee is $450 an hour, and said that it'd probably take him 1-2 hours... does that sound in line with what you'd expect to pay?  Is this a normal and regular step that you guys perform as part of due diligence for every investment that you get involved with?

Hi folks - just wondering if as an accredited investor, do you normally take the PPMs that you are considering to an SEC lawyer to review on your behalf?  and/or what other types of due diligence do you perform before engaging in the investment?

Hi @Ted Klein - and welcome to BP!  I have great flooring guys who actually just completed our primary home last weekend - they were fast, efficient, and honest.  I think he normally works w/ contractors, so he does these side jobs for cash - his name is Nixon PM me and I'll send you more info!  Congrats on landing your Duplex!