All Forum Posts by: Kai Van Leuven

@Shiloh Lundahl

Good:

I really like your model. I think you can reach people that normally would sit on the sidelines

Don’t give people equity. The reason they want it is because they don’t know how to source deals and want to ride your coattails. They think it’s a 30 minute HGTV show and making 100k.

Your investor terms, I feel like are really reasonable.

Bad:

I think your 3-5 year term is too long. I remember watching your video you sent over on PM. You also said that none had sold on this model. That is probably drying up the cash. It’s too long to relinquish control. Why not do an 18 month term and collect on the option renewal or have them buy it?

@Alyssa K.

Here is the response from Cozy. In all honesty it worries me more than not having a response. It seemed like an issue that might be all too common. I just don’t know what to do at this point...

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Hey Kai,

Thanks for reaching out. I'd be happy to provide clarity.

I've worked in payment processing for a while now and disputes are always a downside to any business processing payments.

When it comes to a dispute of any kind, payment processors are required to refund the money to the tenant immediately after this is initiated. In the case of ACH, the refund automatically goes to the tenant's bank account and landlords are unable to submit evidence to fight these disputes.

In the case of a card payment, the funds can sometimes get refunded to the tenant directly or may sit in a holding pattern at the bank until the dispute review is over. This is where that 90 day process comes in. It's where landlords have the ability to submit evidence within a week or two of the dispute being filed by the tenant, and then the tenant's bank reviews everything. They then come to a determination if Cozy "wins" or "loses" on behalf of the landlord.

Unfortunately, this is not a feature of Cozy's. This is payment processing and banking industry standard that we must follow. I definitely understand your point of view, as I've been all sides of this situation, and it can be stressful to deal with. However, what's unfortunate is that it is totally out of our hands. Our processor must follow these guidelines to be compliant.

I know this isn't great news, as it's not great for us either, but I hope I was able to provide some context on this.

Let me know if you have any additional questions on this.

Kindly,

“Cozy Rep”

@Alyssa K.

I just sent a message to Cozy.co. I am interested in their response.

Cozy,

I am a part of BiggerPockets and have noticed that other landlords have seen problems with your system. Mostly that when someone pays with a credit card, they can “dispute” the charges and receive 90 days of payments back to them. What is the company doing to eliminate this feature? I am worried that I will have to change companies if I feel at risk. Any correspondence would be appreciated.

Sincerely,

Kai Van Leuven

@Chris Seveney

Sounds good. Thanks!

@Jeremey J.

I like the article. It is good to know the form, promissory note, to structure the loan. I didn’t know it was a common practice to borrow from your company.

@Alan Pederson

This is common, at least for me. The big thing is putting your nose to the grindstone and keep working.

I was running one day and this thought came;

“Right now you are running uphill and it’s hard. Soon enough you will be going downhill. Enjoy the times you are going downhill, and keep your head down and put one foot in front of the other on the uphill.”

On the downhill- focus of improving your systems (contractors, improving systems, maintenance).

On the uphill- do whatever it takes. Fight like your head is underwater!

I have a house that is going to close on Friday. My lender took too long on the financing and now I am forced to buy the house cash through my "working capital" LOC on a property that is owned by my LLC. I have really made an effort to separate my personal from the LLC to avoid commingling.

Question: what is the proper way to loan money to myself from the LLC? Do I have to record it with the county or can it just sit in my filing cabinet?

Any help is appreciated.

*My wife and I are the sole owners of the LLC

@Cameron Price

The tax code is messed up. You can say it has logic but it is set up to benefit those who can make there way through the system.

I would say one of my greatest strengths is navigating an “ugly situation”.

It is like that ugly house that has been on the market for a long time. Every investor and wannabe has been through it but no one wants to tackle it head on... I once bought a house that had 60 agent cards on the kitchen counter.

Spend the time, learn the game, and you will benefit.

@Jay Hinrichs

I am glad rent control is illegal in Washington State. The city of Seattle, city council,has tried many times to put in rent controls. Each time they have voted them in, a judge strikes them down.

There are so many unintended consequences that come from short-sited legislation. The market is efficient. Right now rents are going up. When they decrease in the future will the government be handing out subsidies to the “now victim” landlords, lol.

@Levi Klein

I talked to Jim years ago at his RV Park in Smokey Point (SP BLVD and 173rd). My folks own a business on 173rd next to Alfys. He gave me some good advice back then and let me pick his brain.

It’s hard with family. My dad told me I would lose my shorts buying an apartment complex. He has now seen how it performs and is building one. You just have to bet on yourself and make it happen.