All Forum Posts by: Jesse T.
Jesse T. has started 5 posts and replied 1198 times.
I would get the requirement to pay in writing. Also any a reference to any applicable regulations that support the payment amount.
Post: Renter offering 12 months up front
- Herndon, VA
- Posts 1,231
- Votes 324
Make sure you still do your due diligence on them. Generally good tenants can find a place to rent without paying for it upfront.
One possibility is it is one of the phony cashier check scams.
There also are reasons you may want a tenant out other than failure to pay rent. If they have paid rent, an eviction can be very difficult during the period where they are prepaid.
One option might be to do a prepaid short-term lease, e.g. 3 months. If that works out maybe offer them another one. If it is a windfall paying for this lease, what happens in month 13?
Post: How to determine whether to bill tenant for repair or pay for it?
- Herndon, VA
- Posts 1,231
- Votes 324
As others have said replacing the microwave is the way to go.
Is it a built-in or separate microwave?
Post: My tenant wont pay rent, violated the lease. I cant afford to go to court and evict her
- Herndon, VA
- Posts 1,231
- Votes 324
Originally posted by @Quynh-Chi Nguyen:
I am quite new to this but wondering what is the point of the rental agreement and the lease are for? The tenant is the one that break the agreement and the landlord has to pay to get the tenant out? So it's not like if don't pay for your electricity bill then the company just shut it off?
It actually isn't that different than an unpaid utility bill. If you don't pay your utility bill there is a process that the utility has to follow before cutting off service. The landlord is in a similar situation in that they have to follow the eviction process to get the property back. Another similarity is the process/requirements will be different depending on the jurisdiction.
Paying to get a tenant deadbeat out isn't fair. However it may the least bad option for a situation. This approach is used general used when the incentive to the tenant is less than the expected loss in terms of lost rent due to a long eviction and potential damages to the property. Those can often be mitigated if the tenant leaves somewhat willingly.
Post: My tenant wont pay rent, violated the lease. I cant afford to go to court and evict her
- Herndon, VA
- Posts 1,231
- Votes 324
Originally posted by @Daniel Mohnkern:
Hahaha! Move in with them? How about if your banker moved in with you if, for some reason, you went without paying your mortgage for a while? Legal? I think not. Funny thought though. Thanks for making me smile tonight.
lol
Will the next post from this poster be "I can't pay my loan and now the banker is moving into the property.."?
Post: My friend defaulted on full recourse loan and have a question
- Herndon, VA
- Posts 1,231
- Votes 324
Originally posted by @Jimmy Klein:
Ok so here is the summary. A class C apartment was bought by my friend not too long ago. I invested 20% as a silent partner and there are two other partners. The loan balance when the complex was bought was $2 million. The apartment was unable to service its debt about a year in. So the bank tried to renegotiate the principal with us. We took an additional haircut of $200k on principal from $1.9 million (outstanding balance at time) to $1.7 million. The property was still underperforming and the bank sold the note to a private buyer for $1.3 million. The loan is full recourse with personal guarantees. My question, can the bank still come after us even after the note is sold. The bank took a total hit of 600k ($200k from cut and a loss on sale of the note). Are the banks tough in enforcing these full recourse guarantees even if they no longer hold the note?
I think having a lawyer specifically look at your original loan documentation and the documents related to the principal reduction will be the best way to proceed.
Whether the recourse rights transferred with the loan sale or not, they will still exist.
Post: New member from Washington DC metro
- Herndon, VA
- Posts 1,231
- Votes 324
What do you do in terms of furniture for staging? Do you use the client's furniture or rent furniture?
Post: New member from Washington DC metro
- Herndon, VA
- Posts 1,231
- Votes 324
welcome to BP
Post: 1031 Exchange a Rental Sale Profit into 4-5 long distance turnkey properties
- Herndon, VA
- Posts 1,231
- Votes 324
Originally posted by @Charles Moore:
Perhaps I could buy just a single property within the next year with a cash down payment first just to test the waters, and if the experience agrees with me, I could pursue more with the 1031.
If you are going with a property less than 1//3 of the proceeds, it might be better to take the tax hit and get the flexibility in being able to take your time selecting a property.
Post: 1031 Exchange a Rental Sale Profit into 4-5 long distance turnkey properties
- Herndon, VA
- Posts 1,231
- Votes 324
One thing you might want to consider is a partial 1031 exchange. It looks like with transaction costs you would end up at about 25% equity. If you did an exchange for 1/2 of it looks like after taxes you could be at 40% equity. You would still have unrealized capital gains and depreciation that could potentially be recaptured.
I agree it makes sense to sell your current investment property, but I wouldn't rush into buying the target properties just to complete a full 1031 exchange.