All Forum Posts by: Michelle B.

@Erin O'Connor Smith 

I haven't done one in a long time and can't find the exact one that I used.  However, a quick google search found one that is good.  Here you go....

NON-REFUNDABLE HOLDING DEPOSIT
I, _________________,_____________________ received $__________representing the
a non-refundable holding deposit for _______________Apt#___, Chicago, Illinois. This
holding deposit shall be credited to tenant’s security deposit upon move-in. It will be
deposited into __________________Bank. However, if tenant does not move in for any
reason, other than Landlord’s decision not to rent the apartment, this holding deposit shall
be forever forfeited and shall not be refunded. Lastly, I retain the right to not rent to this
apartment for any reason and in my own sole discretion, however, if I so exercise my
discretion not to rent this apartment I will return the holding deposit in full.

____________________, __________
Landlord Signature Date

By my signature(s) below, I request that the landlord accept $_______ as a holding
deposit for _________________ Apt#___ , and the payment of such deposit shall result
in the Landlord not accepting any other tenant(s) for rental of this apartment up and until
the commencement of my lease on __________. I understand that this deposit will be
credited to my security deposit when I move in.

I further understand and agree that if I should change my mind or become unable to move
in for any reason, other than Landlord exercising discretion not to rent the apartment, this
holding deposit will be forfeited by me, and I will receive no refund of the deposit.

Monthly rent per lease will be due upon move in the amount of $__________.

I acknowledge and agree by my signature below that the additional security deposit I will
owe at the time of move in is calculated as follows:

Total security Deposit Per Lease of $__________.
Less Holding Deposit of $__________
Equals $_________, which is the amount of security deposit due upon move in.

Lastly, I agree and acknowledge that Landlord may choose not to rent to me for any
reason, however, upon Landlord so electing not to rent to me, I will be entitled to a full
refund of the holding deposit .

____________________, __________
Tenant 1 Signature Date

___________________, __________
Tenant 2 Signature Date

Alex C. Based on what I read it seems as though the only reason you are taking this path is because you are afraid you will make a mistake on your own. I would argue that you have an equal amount of risk (if not more) trying to find the right partner/situation/deal that is going to give you what you are actually looking for. Not everyone loses money on their first deal. Not everyone breaks even on their first deal. We made $45k on our first deal (our projection was $25k). Yes, you have to buy right, estimate expenses well, determine ARV properly, etc etc etc. However, I trust myself more than I trust others. I also learn more (and perform better) when failure is not an option. What I’m getting at is - why not just educate yourself as much as possible up front, then jump in (on your own)? Good luck! Michelle

Exactly what Alex Presnell said...

I can’t imagine any state would allow you to deduct rent money from the security deposit when they never moved in. You should have made them sign a non-refundable holding agreement. Depending on how long it was before signing and the date they agreed to pay rent - I would hold anywhere from 50% to 100% of their security deposit as a holding fee (that becomes their security deposit if the terms are met). If they don’t cough up the first’s month rent I take the holding fee and find a new tenant. Find a new management company... Good luck! Michelle

Kyle Baron It’s not always a waste of time. Not sure about your local laws, but in Ohio you can garnish. So, it depends on the specific tenant’s situation. I had a tenant stop paying rent and bailed on the lease. I was able to evict, get a judgement for the damages/unpaid rent, garnish and collect the judgement amount in FULL. The paperwork and process was simple. I didn’t even use an attorney. I had to pay the costs up front but the tenant ended up having to pay it all back via garnishment. So - if they have a decent job, and have been there a while - garnishment could be an option. Good luck! Michelle

Jay Kaltenbach Sure - just message me!

Jay Kaltenbach Take it! I quit my corporate/well paying job of 20 years last April. At the same time, I drained my 401k...my profits have/will continue to supersede my losses.. I would do it again in a heart beat. Good luck! Michelle

I would begin the eviction process. Good luck!

Rashon Pierce We do deals all the time where the homeowner has delinquent taxes. We don't ever cover the taxes. We cover all closing costs but it's their responsibility to cover any back taxes and/or liens out of their proceeds. Not sure why you would want to structure the deal where the buyer covers closing costs. To me, it just makes it messier. Good luck! Michelle

Jay Hinrichs Very well said! My primary focus is flipping but every once in a while we get a lead that we either don't want for ourselves or we don't have time to handle the rehab on. In that case, we will wholesale it. We wholesaled 2 last week. However, I never put a home under contract that I can't or won't buy myself if push comes to shove. I would never leave a seller high and dry. That's where the issue comes in. People are trying to wholesale properties that they can't/won't purchase if they can't find a buyer. That's BS. I also never put any contingencies in my contracts. Well, one exception - if I see obvious foundation issues I will put an inspection contingency in and explain to the seller my concerns. I'm in Ohio and have done this one time. Cheers! Michelle