All Forum Posts by: Kimberly Jones

Loving the answers. This is exactly why I wanted to seek opinions before I opened my mouth.

I was NEVER planning to fire Mr. Fix It, I just couldn't quite make up my mind whether I should have a talk with him or just let it go. 

That means today is not your lucky day @Craig Brouillette. ;) But to answer your questions, she does not have a job, it is the boyfriend that works 12 hours a day and pays the bills. I don't suppose I will have too many times that I will have to send Mr. Fix It into occupied units but I will say this... @Mike Freidenbergerreally is right. This is a situation that would not be quite as unnerving if I had not witnessed it myself. I am a very straightforward person, if you ask me a question I am going to answer it. That might put me in a very strange position if the boyfriend (the one that pays me rent) were to get word of the activities and come to ask me about it. Were the property not right across the street, I would know nothing. Some things really are better off "hidden."

@Linda Weygant I confess, I do have prior knowledge of his "womanizing." He has told me straight out more than once. I just thought with a million other options in this city he wouldn't (as my mother used to say) "poop where he eats."

@Mike Hurney I could care less what my tenant does behind closed doors (provided it's not going to need a visit from people in hazmat suits). My only concern is the professionalism of people who can be construed as representing me. 

It isn't so much about crossing a legal line as it is about professionalism. Just as I would not have a friendship type relationship with my tenants, I expect anyone who works for me to act in a professional manner. Anything else could blow up in your face.

Say for instance the boyfriend had come home and found my guy there OR simply finds out he spent the night. Boyfriend gets angry and refuses to pay rent. I have to go through the eviction process and most likely will find myself trying to explain to a judge why my tenant came home and found his girl in bed with my "employee." Worse still, what if the boyfriend is angry enough to destroy the pretty new rehab that this guy he found in bed with his girlfriend just completed?

In other words, it isn't so much about legalities as it is about ramifications. I agree that I have one in a million with Mr. Fix It, but I am highly concerned about his actions biting me in the ***.

I have been in this business a LONG time and I thought I had pretty much seen it all by now. This latest episode in the life of a landlord has actually left me speechless. I would love to hear what you guys think.

Anyone who does rehabs knows that the contractor can make the process flow smoothly OR they can make life a living hell. Through the years I have gone through more of them than I can count. I have had good ones and I have had some that I almost went to prison over because I surely wanted to choke them. I FINALLY found one that I absolutely love working with. He isn't just a contractor, he is a craftsman. Being that I often buy properties that are historical, it takes a special kind of contractor to help me put them back together. I thought I had finally found my bliss.

I have recently began to hold for rentals instead of flipping and a big part of that change was because I finally have someone that can fix just about anything, quickly, and usually for a fraction of the price I would pay to replace. 

One of the properties that I am holding happens to be across the street from the house I live in. It's a classic New Orleans shotgun double and it is at least 100 years old. I have put huge amounts of blood, sweat and tears into the rehab, as well as a ton of money. We finally wrapped up the first side and new tenants moved in on Friday. Nice couple in their late 20's, he is a chef and works at least 12 hours a day. She is a student. References check out. Everything seems to be just swell.

Sunday morning I am awakened by my Son because the female tenant is sitting on my front porch crying. She tells me that they had an argument and he locked her out and left. I give her another key and call him to get his side. He tells me he is going to stay with a friend for a few days while they work it out. I am already cussing myself...I don't watch much TV but I have seen snippets of shows and it appears chefs sometimes take great pride in being ********, maybe I should have weighed that against his steady income and good references??? Anyway, I explain that drama is not something that I am going to deal with and they both assure me that all is well and it won't happen again. They have been through some recent stress and they just need a few days apart to clear their heads. I am a landlord, not a relationship counselor. I explain that it better not happen again or I will immediately evict them.

Monday morning comes and my Mr. Fix It shows up as always. We are still working on the vacant unit and there were a couple of little things to do in the newly rented unit. I introduce the female tenant to Mr. Fix It and I stay over there while he is working on hers. The boyfriend/chef even stops by to check on her and to pick up a few things he needed while he stays a few days with friends. Mr. Fix it quickly knocks out what needed to be done and he goes to work on the vacant side. I go back to my day. Mr. Fix It knocks off as usual around 5pm and everything seems normal.

Around 10pm I step out on my porch and to my surprise I see Mr. Fix It's truck parked in front of the rental. Midnight, he is still there. This morning he steps out of her unit around 10 am and goes to work on the vacant unit. I have yet to speak to him today because I am afraid that I really might choke this one for real!

I would love to hear from other landlords on this one. Am I the only one that sees nothing but doom and gloom coming from my maintenance guy spending the night with my tenant, on the first day that they meet no less??? I have a hundred scenarios running through my head, not one of them good....

Ditto!!

Seeing as how you called out my 3 favorite cities, I can give you my little 2 cents.

I have tried dealing with the contractors every way you can think of. I have played in Atlanta, Houston and New Orleans and I rehab in New Orleans today. I rehabbed here after Katrina, when the job included removing 3 ft of mud before you could do anything else. I am also a female. I have been ripped off, bent over and straight up screwed a time or two (more like many) and the one way I have found works the best is to have the contractor bid the job and give you a time frame. Break it down by the week and pay them on Friday (provided the work is satisfactory). 

I am VERY hands on though, I also buy all materials myself and I get them to the jobsite. Many contractors can't roll with my level of micromanagement and that's OK. Regular homeowners have their kinda contractors and investors have another kind. We need contractors that are going to work WITH us. They are definitely hard to find AND worth their weight in gold. It is, in my opinion, the most crucial part of a rehabbers world. They can make or break a deal in a heartbeat, if you let them. 

The best thing you can do is keep it fair on both sides. They only risk a week of no money and you only risk a week of ****** work (or no work at all). Whatever you do, do NOT hand over a bunch of money before you know the level of work they are capable of. I don't care who might have referred them, don't do it. Maybe once you have a solid working relationship, but even then it can be risky. 

Now, since you are asking as a contractor and an investor, (and the contracter part of you is likely already calling me an *******) let me throw a few "what if's" at you. What if I pay you $9k up front on Monday morning, and you cash the check and get run over by a bus? What if I pay you $9k on Monday morning and your wife or husband cleans out your bank account by 5pm? I could go on and on with real life stories that you would swear were made up. The point is even good people with the best intentions can disappear overnight. It isn't about whether you trust the person, it is simply about life.

Just today I had a plumber looking for his Friday money, so I showed up with a check in one hand and a water key in the other. Apparently he didn't think I know we don't have to have water service turned on to check his work. 10 minutes later we had a river running down the street and that check came home with me. He can come back and fix it, or I can pay someone else to fix it next week. Either way, I am not paying for something that I did not receive. 

@Braden Smith can hook you up.

The City is required to notify the lienholders of the demolition. You are not required to maintain the property, is is simply your right to be informed. Technically, if you take control of the property, you would have to pay for the demo because it is part of the tax bill. You would also have to pay any other outstanding taxes. If you do not care about the money you have into it thus far, you do not need to worry. Just sit back and wait to see if anyone ever steps up to pay.

Did you have anyone to guide you when you originally bought the tax notes? Are you aware of the horrors of tax note investing in Orleans Parish? (I am assuming you bought in Orleans, but your definition of New Orleans may include Jefferson)

Do you have any idea what the real condition is? The City has been known to demo houses that could easily be saved and at the same time, they leave some of the worst untouched. If this property is still able to be saved, you may want to get proactive. You can certainly take control of the property at this point. There are plenty of us out here rehabbing these properties. If you are dealt a decent hand and play your cards right, you could make some money. Even if you do not personally want to rehab it, you can always sell it to one of us. Get the money you have invested PLUS some on the flip. Beats being stuck with an empty lot that nobody wants.

What zip code is it in?

My geometry teacher used to tell us that we weren't getting the correct answer because we were over thinking and making it more complicated than it actually is.

There is no conspiracy to garner higher interest rates. The lenders/servicers are just following the rules set in the Note. It really is that simple. 

I have to ask...if you know good and well your lender would NOT allow you to close in your LLC, why do you think it's OK after you close??

If you want to hold property in your LLC you need to go with a business/commercial loan. They happen to be pretty abundant right now with decent rates and you can even go stated income with scores down to 650.

I know I will likely not make any friends with this statement but far too many people seem to lack true understanding of the way a lender/borrower relationship works. They are the ones with the money and they get to make the rules. They do not trick you, it is all written in the Mortgage docs for you to read before you sign. If you do not like the terms, do not take their money. 

Creativity and deal weaving is one thing. Trying to outsmart lenders is something else altogether.

Ironic that Hollygrove is in the news this morning....http://uptownmessenger.com/2015/03/nine-people-arrested-two-guns-seized-in-probation-sweep-around-hollygrovegert-town/

I almost forgot your question about the banks. Don't count on lenders redeeming. For starters, some of the properties here are so far gone that the lenders aren't even interested anymore.  Also a large number of lenders will hold out to the bitter end and beyond. I have sold thousands of REOs over the past 6 years and nearly all of them riddled with tax liens.

As I expect you know, if the day comes that you foreclose on the tax note you will have to notify any lenders and they would have to pay you off or be wiped out by the foreclosure.