All Forum Posts by: Peter Stewart

I'm not. I've been in the business a decade now, and although I'm aware there are market cycles, I'm not going to turtle up and stop buying (or slow down) because people think it's "coming soon". I've been reading these types of articles my entire career - someone always thinks doom and gloom is coming. Also, if you listen back on old BP podcasts from 2015, guests were talking about the crash coming then. 3 years later and guess what, no crash. Had you listened to them, you would have missed out on many great opportunities. You can't time it. We'll only know the crash is here once it's too late. 

Also, you can buy great deals in any market, so the crash is somewhat irrelevant. Especially if you're doing buy and holds. If you're a flipper, especially in the higher end markets, then I understand being much more cautious. I'm mainly buy and hold, but for the flips I do, I focus more on the lower end, which will be impacted much less when the next downturn hits. I'm also in a very stable market that won't be affected quite as much as volatile markets like CA, Vegas, FL, etc. 

Looks like it's been said a bunch before, but, as an agent with a decade of experience, and one who works with investors, I would suggest firing that agent. 

Sure, they have every right to give you their input on your offer amounts. They should offer advice and guidance to help you achieve your goals. But, if you do want to write an offer, regardless of price/terms, they should write them up with a smile. Although we are not merely order takers, you are the client and we look out for your best interests, therefore it should not matter what the seller thinks or how they'll react. If they don't like the offer they can reject or counter the offer. And, the commission has nothing to do with it. Put your client first, focus on their goals, and when they win, you win. If an agent is whining about commission it sounds like they're not selling enough property, which typically means they aren't that great of an agent to begin with. I appreciate each and every one of my clients and treat them with equal respect, regardless if they're buying $50k homes or $500k ones.

In regards to the agent, if he's not happy with you he can always "fire" you too. I've done that with clients I felt weren't serious (not saying you are not, this is just a general statement). It's a two way street. 

While I appreciate people taking the time to respond, my question is not being answered. To reiterate, I am asking if anyone has had experience with this specific issue (or something similar). And, if so, how did they resolve it (if they were able to). I don't mean to be rude but I am only looking for people with that experience to answer this question. 

@Thomas S. I'm in agreeance with you on the buyers perspective. But, I'm not the buyer so I really don't care what they think. If they decide to move forward, it's on them. To answer your question though, they are consulting with their attorney and trying to learn their legal options (and the legality of this restriction) before pulling the plug on the deal. In turn, I'm doing my due diligence as well. Ultimately though, yes, it's not worth a costly and lengthy court battle. Luckily I found a new buyer today willing to pay the same price, so we're just waiting on a mutual release from the buyers before moving forward and rendering this issue moot. 

@Davido Davido

Of course I read the CCR's. I've also consulted with the HOA management company, the HOA president, and the HOA's legal counsel.

To be specific, here is what they say:

Occupancy Restriction. The maximum number of Persons who may reside

in any Unit is two (2) Persons per bedroom plus one additional Person for the Unit. For

purposes of this restriction, "reside" shall mean the use, residency, or occupancy of any

Unit by any Person for more than thirty (30) consecutive days or more than sixty (60)

aggregate days, whether or not consecutive, in any one calendar year.

Have a situation and I'm curious if anyone has had a similar issue, and if so, wondering what the outcome was.

I own a 2br 980sq ft condo in Inglewood, CA that I am currently selling. I am under contract and the buyers are a family of 6 (husband, wife, 4 kids). Halfway through the transaction we found out that the CCR's restrict occupancy to 5 people (the 2+1 rule). Per the HOA management company, the HOA, and the HOA's legal counsel, the rules are the rules, and they cannot be changed (even if the board/homeowners vote...it could be overturned). Basically they said "too bad".

Initially both the buyers and I felt this was a clear fair housing violation (familial status). I've spoken to HUD (no help) as well as the code enforcement dept of Inglewood (who HUD told me to call, also no help). I have also been in touch with an RE attorney in LA as well as my agents legal counsel. I'm not really getting any solid answers. It seems like a big grey area, and one that would require an expensive and lengthy lawsuit to (attempt) to solve.

Of course the obvious answer is to cancel the contract and find a new buyer that doesn't have 4 kids. My issue is that we're under contract at a very good price, and a new buyer could mean tens of thousands of dollars less for me. Not to mention delays in closing. So, I'm highly motivated to find a way to make this work for my buyers.

Has anyone else run into a similar issue? If so, how did you resolve it?

@Joshua S. for this particular tenant I made a HUGE error and didn't screen them. Long story short they were a friend of a friend, and that friend vouched for them. I went against my gut and rented to him without doing any screening. Never, ever, ever, will happen again.

I typically use MySmartMove through Transunion for screening. 

I had the same thing happen. For 10 months straight rent was 1-2 weeks late. Often paid in 2 installments. Drove me nuts, but, at the end of the month, the money was there, so I let it ride...UNTIL, they stopped paying. So, I evicted them and won a damages hearing for back rent, back late fees, and damages (they left the unit trashed).

So, I agree with everyone else on here - don't renew them when the lease is up. The bad behavior on payment will most likely only get worse. Give them an inch they take a mile. 

@Matt K. I only own 8 doors. Even if I had just 1, I would still recommend using a separate line. It's super easy and not a hassle at all.

Google voice has an app so you can easily access your phone records and VM's. I believe you can set up google voice to even email you a copy of the VM's that come in. 

I use GV for a different business (you can only have 1 on your phone...so I'm told) so for my rental business I use GoDaddy's Smartline app. I think it's $5/mo for the line and it also has an app that I set right next to my "regular" phone app, so I never forget to check it. Plus, it puts a little notification symbol on the app to let you know you had a missed call, VM, etc. 

Another reason I like it is to have more separation between my personal life and business life. Easier to detach sometimes when everything isn't muddled together. 

Cole I put each of my properties into separate LLC's. Sure, you can still find me if you do some digging, but it at least it makes it harder to find.

I used to. Big mistake. Nothing worse than getting texted a million times by tenants about stupid stuff. At night. On weekends. Holidays. Etc. Don't do it.

I self manage my properties. After a bad tenant eviction, and a lot of reading on BP forums, I've decided to distance myself as the owner. I started a property management company (which is easy as registering an LLC, opening a bank account, registering a website, and setting up gmail and google voice accounts).

So, I can now introduce myself as the property manager (since it's true). And, I can give out a separate email and phone number (and only have 1 phone).