All Forum Posts by: Account Closed

What three lawyers have told me is basically the following...

The only likely challenge will come in an eviction case. There are a bunch of hurdles to get over... 1) Fair Debt Collection Practices Act 2) The Coinage Act of 1965 3) State law (In Texas Sec. 92.011 of the Property Code might be a huge problem. A judge would have to decide if the payment method was an "other traceable or negotiable instrument." Because of federal law, I am not sure the websites want to claim that status.) 4) HUD and other federal program regulations. 5) City codes. 6) Turning it into a civil case will also provide other methods for the tenant to pay via the court system.

Getting past the judge would be the hardest part.  This is how it might go.  Landlord shows up to eviction hearing without a lawyer and tenant has a lawyer and they claim the landlord has been refusing to take certified funds or cash.  They also argue the landlord has violated FDCPA, The Coinage Act and possibly the lease.  They ask that the judge to rule against the landlord and bar all future attempts to collect on the debt.  Of course, since the landlord has acted in bad faith by refusing payment and then bringing legal action for non payment the tenant should get all legal fees paid by the landlord.

Do you think your local judge will evict someone for not paying if they give the money to the court within a few days of the case being filed and say the landlord is refusing payment?  How much are you willing to pay a lawyer to make it happen?

It would certainly be easier to just pay a bank, lawyer, CPA, bookkeeper, or property manager to receive the checks and deposit the money.

This is not legal advice but... in some places you are required to take payments in person or by mail if they are related to real estate.  If you do not accepts payments in the methods listed in your lease you cannot evict for non payment.

Thanks.  Called him today.  He has already came out, given a bid, and scheduled the rewiring. 

You raise a good point (as you always do).  The rules are different in every state.  Before signing up for in any course I would certainly verify it was going to focus on information about places I want to invest.

Does anyone know a good electrician in Collin County?  I have a total rewire job.  It has to be someone that can pull permits and do it legit.

I think your first red flag should have been you (and I will assume they) calling the project was "turnkey."

Many people in real estate falsely call projects "turnkey."

Simply look up the standard definition of the word.  It is the exact opposite of the kind of deal you are talking about.

If the property has to be rehabbed when you first see it or read about it, it is not turnkey.  To be turnkey the property has to be "ready for immediate use."

I do not know what price range you are considering but there are other ways to get true turnkey rentals.

1)  Show new homes to tenants you have already approved.  If they like them buy the property.  This works great in builder close outs.

2)  Buy a home that has been rented for a while.

I have a real life story that I will share.  There was an auction held in Greenville, TX of a bank owned property.  The bank occupied the property and was allowing showings.  The auction was held on site. 

There was just one problem.  The bank had occupied two properties side by side when only one had been financed.  They damaged the other property and then gave a deed to both of them.

There was no title insurance policy. 

The good news was the buyer went to a bank for a rehab loan within a couple of weeks of closing. They did a title search and the problem was found.

A few calls from a lawyer and the people that listed and auctioned the properties solved it.  They got out their check books and bought it back.

If the buildings on the property had been bull dozed or a huge amount of rehab had been completed it would have been a huge nightmare instead of small nightmare. 

It is almost always worth getting a title policy.  So much so, I do not think I will explain when I would not get it.

What part of Dallas are the properties located in?

Are the properties rented?  I know people that time the closing of apartment complexes to line up perfectly with rent collection.  On the first of the month, are there going to be six rent checks coming in?

You might also want to ask property managers if they know of any properties available but not listed.