All Forum Posts by: Richard C.

I'm always amused that when this kind of thing happens, some know it all BP investor plays the blame game,.....yeah let's blame it on the smart Alec scam merchant GURU.

Yeah it's his fault. None of their techniques work anyway...right? This poor lady is a possible victim of those callous Gurus!! Disgraceful !!

My suggestion to you lady is take your lumps and move on. Be lucky you didn't suffer a huge "seminar" by going thru with it.

My suggestion to you is don't believe everything you read here either. After all, this is just a forum with the vast majority a bunch of wannabes. Full of half baked opinions and theories. With fancy dialogue. Look beyond this place and try to find a mentor who does this thing week in week out.

That's how I got going many years ago. Do NOT feel bad about it. Move on and take this as learning. You just have to get the right knowledge and meet the right people to help you.

Realize that BP is OK but like any forum, has its drawbacks. Don't put all of your eggs in this basket. Experience is a great teacher. Just don't get caught again

Good luck.

Thanks Chris, you mirrored my own sentiments exactly!!! I am a new investor and am educating myself so I can avoid being in this young man's position. I don't think he deserved to be lambasted and am disappointed and disgusted. So to you "know it alls" who felt the need to be so overly critical and judgemental, when was the last time you walked on water? How would you feel if this were done to you? I agree about pointing out the flaws in his plan but it was done in a very negative and accusatory manner. Not at all in keeping with the spirit of the BP site as I understand it. We are here to learn, not be condescended to and ridiculed. You are the reason people won't post.

P.S. before proclaiming perfection, you may want spell/grammar check your posts first.

He did something very "negative" and he absolutely deserved to be "lambasted."

He lied. He LIED. He did not make a mistake. He did not get stuck because he didn't know some detail of real estate law or his market. He LIED to the seller.

He may not have realized he was wrong, which is why I at least tried to be gentle. But telling a seller you are an "Acquisition Partner" is a LIE. It is not a "flaw in his plan."

1 Vote

Originally posted by @Lisa Henrich:

I had someone reach out to me this morning with a question regarding their rental property. Currently, there is negative cash flow by a few hundred each month if you also include maintenance and vacancies into the list below. This is a distant property so they are paying a property manager $50/mo. Bottom line is that they obtained their mortgage at the height of the housing boom for $120K and now it is only worth $40K. They currently owe $83K. If they sell they will owe taxes on the difference. Is there a solution that makes sense either way? If they short sale they will be financially penalized and it will hurt their credit. Please advise. Thank you, Lisa

Rent: 1100/mo

Manager: 50/mo

Mortgage: 405/mo

Taxes: 383/mo

HOA: 165/mo

Trash: 25/mo

Water/Sewer: 150-200/mo

Short sale or deed-in-lieu. Really their only options as far as I can see.

0 Votes

Originally posted by @Chris Holmes:

I'm always amused that when this kind of thing happens, some know it all BP investor plays the blame game,.....yeah let's blame it on the smart Alec scam merchant GURU.

Yeah it's his fault. None of their techniques work anyway...right? This poor lady is a possible victim of those callous Gurus!! Disgraceful !!

My suggestion to you lady is take your lumps and move on. Be lucky you didn't suffer a huge "seminar" by going thru with it.

That's how I got going many years ago. Do NOT feel bad about it. Move on and take this as learning. You just have to get the right knowledge and meet the right people to help you.

Realize that BP is OK but like any forum, has its drawbacks. Don't put all of your eggs in this basket. Experience is a great teacher. Just don't get caught again

Good luck.

No one said anything about gurus. Do you know what the word "projection" means?

And Darrell appears to be a gentleman, not a lady.

0 Votes

Originally posted by @John Thedford:

Originally posted by @Richard C.:

@John Thedford I told the homeowner that I work with a partner and my partner helps fund the properties and I'm the acquisition partner.

Why did you do that? That is a lie. Based on what you said, the seller has every right to expect that 2 weeks from now, there will be a closing and they will sell.

This is a really lousy thing to do to someone. The summer is the best time to sell in New England. By keeping this house off the market during the peak of the sales season, you are actively hurting someone who has done nothing wrong (who in fact has worked with you by lowering the price already) and who has a perfectly reasonable expectation that their house is sold.

Go back to the owner, apologize that you will not be able to close, and tear up the contract. Let them get it back on the market.

And please don't do this sort of thing again. I won't trash you because you probably just didn't know what you were doing. But now you do. This is trashy, unethical behavior. Don't do it again.

Richard I quoted the OP. This is a exactly what is wrong with "wholesalers".

I know John, I wasn't directing that at you. I just block quoted what he posted and it tagged you.

0 Votes

Originally posted by @Account Closed:

How likely is it to find an investor to buy a condo if the annual ROI is about 7%? I own a Chicago condo with no mortgage. It is not in need of any repairs or maintenance. There is a long-term renter who has just signed a lease extension through Fall 2016. Annual rental income is $10,800 and annual expenses (assessments, taxes) are $4,600 making annual net income $6,200. If my math is correct, an investor who would buy this at $90,000 would make 7% per year plus any price appreciation. My questions are: How likely is it to find such an investor? Are there real estate agents who specialize in this type of situation, or whom would be best to contact to help me find a buyer? Thanks for any suggestions on how to get started with this.

What exactly are you including in expenses? Just assessments and taxes? Nothing for vacancy, nothing for property management, nothing for the capex (the eventual replacement of flooring, appliances, etc? Presumable the bigger stuff is covered, since this is a condo.)

Because if you are not accounting for those expenses, than the ROI is not even 7%. In fact, it would be entirely possible to lose money.

0 Votes

@John Thedford I told the homeowner that I work with a partner and my partner helps fund the properties and I'm the acquisition partner.

Why did you do that? That is a lie. Based on what you said, the seller has every right to expect that 2 weeks from now, there will be a closing and they will sell.

Go back to the owner, apologize that you will not be able to close, and tear up the contract. Let them get it back on the market.

And please don't do this sort of thing again. I won't trash you because you probably just didn't know what you were doing. But now you do. This is trashy, unethical behavior. Don't do it again.

2 Votes

Your listing doesn't say which school zone the house is in. If I were buying a family house, "per board of ed" would not cut it, for me.

0 Votes

Originally posted by @Mike H.:

re: @Richard C.

I definitely wouldn't doubt you there since I've never had it happen. But one, I don't see how they can do that. If that was actually the case, I'd like about the age of the carpet and say it was 6 or 7. But two, even if the carpet is 10, if it has a useful life left, its worth something. And maybe for the carpet itself you don't get much. But how can they not be responsible for labor?

I just don't believe that a tenant could simply damage stuff and not have any liability. Based on your logic, if my furnace is 25 years old and they steal it, I wouldn't have any recourse either.

I just don't see how that can be possible.

So you would commit an actual crime, in order to get the carpet valued as if it were 6 years old instead of 10? If so, why not just go shoplift? Easier and probably more lucrative.

BTW, 6-7 year old carpet? Also worth $0.00.

Carpet is basically a consumable. There comes a point, pretty early on, where it just isn't worth something. Don't believe me? Pull up some 3 year old carpet and try to sell it on craigslist.

You attempted to extend the logic of my argument. I will extend the logic of yours.If you have something that has been broken into two pieces, rendering it worthless, and your tenant breaks it into THREE pieces, how much should the tenant pay? I say nothing.

There are posters on here who have said in the past that magistrates in their areas won't give any credit for carpet more than 3 years old, never mind 5 or 10.

You should probably check with your lawyer about what would be allowed in your area. I have some doubt that Illinois is the sort of state that would allow a landlord to charge in these circumstances.

Now I will cause your head to explode. You know what else you cannot charge for? Repainting a room that hasn't been painted in 5 years. Really.

1 Vote

You would have to speak with a local attorney to see what would fly in your jurisdiction. Generally I would say that you could have language that forbade tenants from conducting a business at a residential premises, and that a great big kegger with an entry fee would count as a business activity. On the other hand, I would also generally say that you would be on shaky ground trying to limit the number of guests a tenant can have. It might be your house, but it would be their home. They probably get to have a gathering of friends from time to time.

0 Votes

Originally posted by @Mike H.:

Regardless I don't see how a judge is going to ask you how old the carpet was and then give you a number based on that. Thats like saying that if the windows were 20 years old and the tenant broke every one, they wouldn't have to pay a thing.

...

A judge or magistrate will absolutely, positively, beyond any doubt ask you exactly that. It will be the very first question they will ask you when they get to that portion of the claim. And they will give you a number based on that, and for 10-year-old carpet that number will be $0.00.

0 Votes

All Forum Posts by: Richard C.

Richard C. has started 19 posts and replied 1919 times.

Post: Exit Strategy for a (possibly bad) Wholesale deal

Post: Upside Down on Rental

Post: Exit Strategy for a (possibly bad) Wholesale deal

Post: Exit Strategy for a (possibly bad) Wholesale deal

Post: How likely is it to find an investor to buy a condo if the annual ROI is about 7%?

Post: Exit Strategy for a (possibly bad) Wholesale deal

Post: Help! Flip’s not selling…price-lowering/marketing strategies?

Post: Security Deposit and Torn Carpet

Post: 2 single, young professional male roommate tenants...party concerns.

Post: Security Deposit and Torn Carpet