All Forum Posts by: Phillip Gainey

Delegated. Get your point. At the very least, get the name of the applicant they want to rent to, do a basic search of county rental court docket.

In the case mentioned above, however, it was the wife who had the numerous evictions. Husband had a clean record (not anymore). The wife wasn't mentioned or screened. They lied and snuck her in the side door of the movie theater after the husband bought his ticket and took his seat, so to speak. The applicants in places like Memphis, know all the tricks, apparently. They can even fool a "certified, turkey package approved local property manager".

Three months, and $3600 rent revenue forgone, later, you gotta move on to the next PM and try again. Or, find a better market, where people like the above actually stick out and are easier to spot.

"Oh the pain!" Dr. Smith "Lost in Space", 1967.

You didn't read my post. I said I wouldn't rent to ANYONE who has been taken to eviction court or had to be taken to court for not paying a debt.

Three separate PMs in Memphis have told me that with that criterea, you'll have a hard time getting my properties filled. That most applicants have at least one such judgement against them in Memphis. They didn't say CERTAIN AREAS of Memphis, they were talking about memphis tenants in general,. Solution, find a better market to invest in. I've owned 5 propeties and had 10 tenants in Memphis. Only two have been what I'd consider "normal", or people I'd have anything to do with otherwise.

So why would three separate PMs (including the one I'm working with) tell me this if it weren't true? I've rented to middle class tenants in 4 other states, never had any where near the problem I've had in memphis. Mostly in the suburbs or areas where the underlying demographic mirrored the national average. Places where there are plenty of rental applicants with decent rental histories. Why rent to someone who has been evicted before, if you don't have to? Apparently, in Memphis, that is a challenge.

PG

Brian,

I sent you a pm. I will send another.

No, I don't do Memphis or any other large city with a deadbeat culture. The rental biz is hard enough as it is.

Yes, I mention Clarksville. Politically conservative, biz friendly, large military population. And yes, they actually have rental applicants with clean rental histories that don't consider going to eviction courst just a "right of passage" and part of the local cultural experience.

Actually, I am not investing in any more rentals. Easier to get cash flow from making private loans, hard money loans, buying notes...etc. No toilets or tenants. Still has risk, but less of a PITA. As always, deal with people who have a track record and skin in the game.

PG

I didn't ask you for your opinion on this property.

As for the buyer, all I can tell you is he bought the property from Investor Nation in 2009, and that you were the one that worked with him. And that you were the one who recommended Lubin for the management part of your comprehensive turnkey package. You said you were with IN in 2009, didn't you?

And now here you come, taking a stab at this same company. Must be a cutthroat biz, selling turnkey packages in Memphis. Dog-eat-dog, ruff ruff!

PG

I specifically mentioned tenant rental history in my post. Whether the applicant has been taken to eviction court in the past, paid their rent on time, moved a lot...etc. Three separate memphis pms have told me how hard it is to find applicants with decent rental histories in Memphis. They said basically, it's hard to find an applicant in memphis who hasn't had at least ONE rental judgement against them in the past. Sad, very sad. Makes an investor want to invest somewhere else in TN, like Clarksville, perhaps.

PG

Sorry, that wasn't very clear.

I wouldn't rent to anyone who has ever had an eviction judgement against them, or has been taken to court for not paying their debts. Life is too short! But that is the case for most rental applicants in Memphis. So I have been told by Memphis pms. AFTER THE FACT, of course! Turnkey hawkers would mostly avoid telling you this, or at least down play it (our PMs are different, blah! blah! blah!). Had I know this before, I would have avoided Memphis. Memphis suburbs maybe.

James' statement that most rental applicants have bad credit histories may be true in his neck of the woods, but not where I'm from, or where I've invested before. Virtually ALL areas have renters. Yes there are poor rental applicants EVERYWHERE. And you have to screen them, whereever you are!

Also, since most RE is depressed now, there are plenty of good areas to invest in that are cash flowing, and you can find creditworthy, tenantworthy applicants. You don't have to invest within the city limits of Memphis, Atlanta, Detroit, Cleveland...etc. to cash flow. The SUBURBS are cash flowing! The sun belt is cashflowing!! You don't have to lower your standards for the sake of cash flow.

PG

If I gave the address, the investor wouldn't remain anonymous. What difference does it make? Are you saying you didn't recommend this PM?

Brian,

I have concerns not just about pm companies, but turnkeys and the quality of the tenants in general. I don't care what anyone says, not all renters have bad rental or credit histories. I've rented in numerous places. I've never had to rent to an applicant with who has been to eviction court before, simply because most of the applicants available have at least one such judgement on their records. I wouldn't recommend investing in such a place.

PG

Welcome. What area of Detroit do you live and invest?

PG

James,

What percentage of rental applicants within the city limits of Memphis have clean rental histories?

I've been told by more than one memphis pm that it's hard to find an applicant without "at least one judgement against them" in Memphis. Is this true? I know it's probably true in most large cities (Detroit, Cleveland, Atlanta...etc.).

PG

Then when it comes time to sell the cash draining nightmare they sold you, they offer to "help you" in selling it. How nice.

I like how they turn on each other and claim THEY are the good turkey vendor. "OH dey bad gypsies, you no buy from dem! We good gypsies. You buy from us, No?"

Live and learn, live and learn.