All Forum Posts by: Nicki Shelton

It really depends if I agree with the appraisal. Sometimes I know we went over budget and it is what is. We can live with it, so we leave some money in the property.

If I disagree with the appraisal, I call the appraiser (with permission) to make my case. One time, for example, he didn't count a finished basement bathroom. Another time, a guy used an REO as a comp, etc. I've gotten appraisals raised a few times, but it's usually $5000-10,000.

I've also dropped properties from portfolios to be refinanced (say we brought seven to a bank, two came back bad, so we dropped those two and refinanced the other 5). Then got a new appraisal on that proeprty with a new bank. We haven't given up and sold one, but that's also an option.

@Michale A lot of could of/what of/should of for you to learn on the next deal and everyone who reads this thread to consider for their next deal. Along with the estoppel letter we put in our PA’s that the landlord (be it the seller or previous management co) will provide us with this info at close along with a owner/management transfer letter at close or before. That way, we have something in writing to show the tenants. If it isn’t done, we don’t have to close.

That said, we manage hundreds and hundreds of doors and as such we take over management from other “Bad” companies all the time and they rarely corporate.

If you have tenant info call/email/text and always door knock and leave a package for each tenant that has your intro letter and other doc’s like the estoppel or the goodbye letter if you have them. Letter should be friendly but give them X days to contact you, a deadline is a must and it should be short. Then if you do not hear from them have your attorney, send them a 30 day notice along with a letter that says hey, we don’t want to kick you out but you have not responded to our requests, please call. This gets all but the most stubborn tenants to call.

@Nicki the best time to close if you have an agent/seller/management co who isn’t corporation is the middle of the month. More on the earlier then the later middle. Not the beginning and not the end. You want the current month rent to be prorated on the closing doc’s. This gives the tenant enough time to pay the current month and you enough time to make an introduction. Just last Friday, April 29th a client transferred a property to us out of the blue, could not be a worse time to transfer a property!

Keep in mind some tenants see a change in management a great time to test the boundaries. Don’t let them. You can be the nice guy, let your attorney be the bad guy and do not be shy about this. You have a small window to let tenants know you’re the proper person to be talking too.

Also, remember, for tenants this can be a scary time. Especially with 4/5 being on month to month. And when people get nervous they turtle. If you show them some compassion and tell them upfront you want them to stay as tenants that may help too. Help calm their nerves….your lawyers should too in the letter they send by saying the same thing. Your goal is to establish communication and a new lease, not evict, but you need to set a deadline etc….