All Forum Posts by: Cheryl C.

Eventhough the post is old, I'll chime in with something my mother (a long-time LL) taught me:

When a tenant asks for something, the first word out of your mouth should be no. In certain circumstances an "I'll think about" is ok. Never get pinned into an immediate answer. I sometimes use the "I have to run it by...my husband, accountant, contractor, etc. Don't get pushed around. I have a new tenant now that keeps asking for new stuff. No.

Whether you are liable or not, expect to be sued. This is where your liability insurance and umbrella come in. I think it's best to have the same carrier so they can't argue that the other ins. company is responsible for handling the matter. It is not necessarily actual liability but legal fee's. Your insurance buys you attorneys.

Here is an anecdote for my Contracts course in Law School ( this is not legal advice; I haven't practiced in 2 decades and am not even competent to represent myself!).

The first rule of contracts: get the fee first.

The second rule: sue everyone in sight and sit back and let them fight amongst themselves as to who is liable.

In my County (Fairfax, VA), according to the tax records for bank-owned properties, we have about 3 wks of inventory. Granted, I don't know what is in the pipeline but this is far from horrifying. Non-judicial State.

Roger, that is not too surprising seeing how very high your unemployment rate is compared to the 50 largest cities. Are you still the second worst?

By doing the immediate quit claim you become a seller of the property to him and he has no judgment search on you and no title policy to protect that transaction. You are correct that you both will have title insurance (should you buy it, and you should) from the joint purchase. But that covers the transaction from your seller. There is no protection for your buyer for any lien you may have unless he gets a new policy for the quit claim.

My son just graduated from college and had a rental with 2 roommates his senior year. This is how all the student housing leases (private LL's) worked. Rent was due in two installments. The first 6 months was due at lease signing, often months before the lease began. The second half year was due 2 months early. The rent was very high. The deposit was 2 months rent. I did not have to co-sign. They got their money well in advance and had a $300 move-out cleaning fee. My son just sent his self return envelope for his deposit return. Actually my deposit return. None of the 3 had any income.

I agree on using the same paint, although I use 2 colors of satin and then semi-gloss white trim. I use the same paint on every property. Keep the color mix info. It is much easier to touch-up than repaint. I also agree on the tile (with stain-proof grout) and darker multi colored carpet. I do have some hardwood as many of my places are rented by professionals.

Oh, and on the tile - get an extra box! If some get cracked or damaged you won't be able to match them up. Also will come in handy if you remove a wall or reconfigure a space.

Yes, I understand that you will both take title. In this juridiction, prior liens will attach the minute title goes into your name. In other words, when you deed your interests over to him the title might be encumbered by prior judgments of record against you. Jurisdictions have differing law with respect to priority, etc.

I have bought properties for relatives in the manner you are contemplating (I did it in order to give my relatives time to sell a property or obtain financing). As an investor I would never want to take title without title insurance, which is what you are asking this guy to do - nevermind the issue of your possible breach.

I am too busy watching Rory to think about the "fix", but as an investor I'd be worried that you might have judgments that would attach to the property and affect title. It could be very messy.

Thanks Grace. Yes, it's rented to a professional couple on a two yr lease. They make over 90K. How is your search going? I am going to forward something to you later. If you come across what may be a good flip that you aren't interested in, send it my way!