All Forum Posts by: Tony Christian

Tony Christian has started 2 posts and replied 32 times.

Hey Kevin,

You’re smart to pause here before signing anything new. A couple of things to think about from a landlord’s perspective (not legal advice, just what I’d do in your shoes):

Everyone on the lease is still responsible right now. Since you rolled into month-to-month, they both remain on the hook until you have something signed that changes that. You can’t just take one name off because the other asks—both need to agree in writing.

Don’t cut corners on documentation. If the wife is being removed, you’ll want a written release or addendum signed by both parties. Otherwise, you risk her coming back later saying she still has rights to occupy.

Re-qualifying is smart. If the husband wants to be the only tenant going forward, it’s reasonable to have him re-apply as if he were a new tenant. That way you can confirm he qualifies on his own. A divorce can change finances quickly (child support, legal costs, etc.).

Think about your long-term flexibility. Staying month-to-month might actually work in your favor while the divorce shakes out. That way you’re not locked into a 12-month lease if things get messy.

Know the CA tenant laws. You already know they lean tenant-friendly. All the more reason to get the paperwork airtight and avoid verbal agreements.

If it were me, I’d hold steady on the month-to-month until the dust settles and everyone is on the same page legally. Better to take a little extra time now than inherit someone else’s legal fight.

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Orange County, California

I’m with you on this, Alan.

For me, the pain wasn’t just maintenance, it was deposits. More than once, I had a tenant move out and hit me with, “It was like that when I moved in.” Same thing mid-lease. Stains, busted blind, cracked tile… whatever. And without proof? Just their word against mine. I'm ashamed to admit, I ended up eating it a few times.

Now I do it differently:

Move-in: pics, quick video, checklist, both of us sign off. borderline stuff gets noted.
Routine checks: not to snoop, just to catch stuff early and have a time-stamped trail.
Move-out: side by side with move-in docs—no gray area anymore.

I got so tired of juggling random pics/notes/folders that I finally started building a little mobile app for myself to keep it organized. My old way was a mess, and it cost me.

Inspections aren’t “busywork.” They protect your wallet.

Oh, and +1 on stashing extra tile. I keep a box in the AC closet so I’m not scrambling years later when the style’s discontinued.

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Philadelphia, Pennsylvania

Quote from @Joel Bongco:

Quote from @Iris L.:

Hi everyone, I’m a new landlord and my tenants changed a door lock without asking. They have never told me that they were unhappy about the lock. They emailed me that the lock didn't work well so they changed it, along with a photo afterward, asking me to pay for it. The lease clearly says no alterations or improvements including changing or adding lock without my written approval, and tenants are responsible for any costs or damages from unauthorized changes.

I’m very upset because they didn’t ask for my permission—this is my property—and I also feel uncomfortable with the request for payment.

I’m worried: if I don’t pay, they might withhold the key; if I do, they might demand more changes in the future. I’m a young woman in my mid-20s, and my tenants are middle-aged men, so I’m nervous about confrontation. I have to visit the house for other issues. So must do it in person.

I’d appreciate advice on how to handle this safely and protect my rights.

Aloha Iris,

I’ve dealt with similar situations with our rentals. First off, don’t reimburse them. Since your lease clearly prohibits alterations without your written consent, you’re within your rights not to cover the cost. If you pay for it, you set the precedent that they can make changes whenever they want and send you the bill.

Seattle law also requires that you, as the landlord, maintain access to the unit. That means you must have a working key. If they don’t give you one, they’re in violation of both the lease and the city’s rental code. I’d send a calm but firm email reminding them of this and requesting a copy of the new key immediately.

You can also point out that if the lock truly wasn’t working, they should have reported it to you first and you would have had it repaired or replaced properly. That way you control the quality of the work and make sure it’s safe and secure.

Since you mentioned being nervous about confrontation, I’d avoid going there alone. Either bring someone with you or require them to deliver the key by mail or leave it in a lockbox. You don’t have to meet face-to-face if you’re uncomfortable.

Bottom line: stay professional, stand by the lease, get the key, and document everything in writing. If they continue to push or refuse, you’ll have a paper trail if it escalates.

I couldn't have said it better myself. The only thing I can add is, follow Joel's advice. This is a test. If you don't stand by your policies now, it only gets worse.

Try to always have someone with you when you visit...if only just for moral support. Demonstrate that you have a "team" and it's not just you. You can go as far as saying you have "partners" who make the final decision. Play good cop, bad cop. That way, you can say how much you "understand" your tenant's position, but it's out of your hands.

I know it's hard, but take as much emotion out of it as you can, because you're not powerless. Project a "this is business and nothing personal" kind of confidence. And if they're adamant after you express your position, don't argue.

Create a paper trail with a notice to cure. They won't like it, but they'll respect you. Nothing scares an upset man more than a calm female. They realize that they're not in control. You are.

0 Votes

Seattle, Washington

correct

success = systems + structure + strategy

0 Votes

Charlotte, North Carolina

Quote from @Rob K.:

Quote from @Tony Christian:

Quote from @Rob K.:

Only real success I had with buying from a bank was when I had to foreclose on a second during the great recession and a bank held the first which I brought current. FDIC then seized the bank holding the first and sold the banks assets to US bank. Tried to get them to modify but they were not interested. When I offered to buy the first at a discount they were all about getting a low ball appraisal and selling at a discount and getting reimbursed through their loss share agreement with the FDIC.

So really the only time you were able to get something done with a bank was when the FDIC was involved, and even then it wasn’t much of a win on your side. That tells me not to expect too much cooperation from banks in today’s market.

It actually turned out to be a big win although it was a stressful situation at the time. I bought the 30 year note @ 8.75 % for 55 cents on the dollar and the wholly owned LLC that I transferred the property to continues to make the full mortgage payment to me each month from rents collected to this day. I report the discount portion of the principal payment on the note received as long term capital gains spread out over the term of the note.

Thanks for clarifying, Rob. Good to hear that worked out well in the end. Buying at a big discount and still having the property cash flow while the note pays out is a strong long-term play. Good reminder that even stressful deals can turn into wins if the structure is right.

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Quote from @Rob K.:

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Quote from @Jay Hinrichs:

Quote from @Don Konipol:

Quote from @Tony Christian:

I’ve been a landlord for a number of years, and I’m exploring ways to expand my investing strategy beyond just owning rentals. Buying performing or non-performing notes directly from banks has really caught my attention.

For those who’ve done it, I’d love to hear your perspective on a few things:

Which bank department typically handles note sales? (Special Assets, Loss Mitigation, Secondary Marketing?)
Do banks maintain a list of available notes, or is it all relationship-driven?
What’s the best way to approach a bank without looking like you’re just kicking tires?
Are there common pitfalls to watch out for when starting out?

I’m not coming to this as a complete newbie to real estate...just someone who’s serious about learning this side of the business and making smart moves from the start.

If you’ve made your first note purchase, how did you find it, and what do you wish you’d done differently?

I (we) mostly originate our notes but I’ve purchased about a dozen existing notes from banks and other note holders during the last 12 years.

I’ve never been able able to develop a deep relationship with any lending institution, even the ones I successfully purchased notes from, (my purchases were all “one off”, usually originating from a contact with a mortgage broker or borrower).

The reasons I’ve not developed these relationships are one or more of the following

1. The lending institution selling notes expected me to “bail” them out of bad situations (by overpaying) as a quid pro quo for allowing me “access” to bid on their other notes they wanted to sell

2. The lending institution wanted me to purchase a “package” of notes rather than individual notes

3. The lending institution provided “tapes” which I didn’t want to spend time analyzing just so I could put in a bid against a dozen other buyers

4. The selling note holder wanted a price much higher than I was willing to pay - and often got it from another buyer

5, note in which the note holder had acquired the note from a different institution often lacked “clarity” as to default, reinstatement, disagreements with borrower, extensions, etc.

I think there is a common mis conception of buying NOTES directly from BANKS . Generally speaking banks that hold notes are commercial lenders.. Very few write paper and hold it for owner occ SFR's.. And as such these smaller commercial banks generally do not have a large amount of defaulted paper.. maybe back in the GFC but not so much today.

I had a pipe line one time to a thrift who did sfr's here in ORegon.. I would buy their paper that was going to courthouse steps about 30 days before the sale.. so i either got the property if no one bid and it reverted to lender.. or if there was a winning bidder I got the delta between opening bid and what I paid for the note.. the thrift did not want to take title to any RE. But then that manager left and the new one would not work with me.

Really interesting to hear how it played out for you, especially with the thrift setup you had in Oregon. Sounds like a great opportunity while it lasted, but also a reminder that so much of this business comes down to relationships and the people in those seats.

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Quote from @Chris Seveney:

Quote from @Tony Christian:

For those who’ve done it, I’d love to hear your perspective on a few things:

Which bank department typically handles note sales? (Special Assets, Loss Mitigation, Secondary Marketing?)
Do banks maintain a list of available notes, or is it all relationship-driven?
What’s the best way to approach a bank without looking like you’re just kicking tires?
Are there common pitfalls to watch out for when starting out?

I’m not coming to this as a complete newbie to real estate...just someone who’s serious about learning this side of the business and making smart moves from the start.

If you’ve made your first note purchase, how did you find it, and what do you wish you’d done differently?

Do not waste time calling banks. Common pitfall starting out is thinking you need to call banks for dealflow. you do not. There are plenty of places to go to buy notes.

PS if you ever do get a note from a bank they typically sell to other institutions who are ok with a 5-8% return. So you will never meet their pricing.

Appreciate the reality check, Chris. That definitely saves me from going down the wrong path. I’ll start focusing more on the channels that actually bring deal flow instead of chasing banks. Thanks for pointing me in the right direction.

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Quote from @Don Konipol:

Quote from @Tony Christian:

For those who’ve done it, I’d love to hear your perspective on a few things:

Which bank department typically handles note sales? (Special Assets, Loss Mitigation, Secondary Marketing?)
Do banks maintain a list of available notes, or is it all relationship-driven?
What’s the best way to approach a bank without looking like you’re just kicking tires?
Are there common pitfalls to watch out for when starting out?

I’m not coming to this as a complete newbie to real estate...just someone who’s serious about learning this side of the business and making smart moves from the start.

If you’ve made your first note purchase, how did you find it, and what do you wish you’d done differently?

Thanks for sharing this, Don. It's helpful to hear the real-world side of things. The part about banks wanting you to bail them out or buy big packages makes a lot of sense, Definitely something I’ll keep in mind. Sounds like it’s really about being patient and picky with the right opportunities.

0 Votes

For those who’ve done it, I’d love to hear your perspective on a few things:

Which bank department typically handles note sales? (Special Assets, Loss Mitigation, Secondary Marketing?)
Do banks maintain a list of available notes, or is it all relationship-driven?
What’s the best way to approach a bank without looking like you’re just kicking tires?
Are there common pitfalls to watch out for when starting out?

I’m not coming to this as a complete newbie to real estate...just someone who’s serious about learning this side of the business and making smart moves from the start.

If you’ve made your first note purchase, how did you find it, and what do you wish you’d done differently?

3 Votes

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All Forum Posts by: Tony Christian

Tony Christian has started 2 posts and replied 32 times.

Post: renewing lease while tenants in process of divorcing, looking for insight

Post: Why regular walkthroughs will save you money - Real Life Story!

Post: Tenants Changed Lock Without Permission – Advice Needed

Post: Don’t Sit on Your Property—Make It Work For You

Post: Experienced Landlord Looking to Buy Notes from Banks – First Steps?

Post: Experienced Landlord Looking to Buy Notes from Banks – First Steps?

Post: Experienced Landlord Looking to Buy Notes from Banks – First Steps?

Post: Experienced Landlord Looking to Buy Notes from Banks – First Steps?

Post: Experienced Landlord Looking to Buy Notes from Banks – First Steps?

Post: Experienced Landlord Looking to Buy Notes from Banks – First Steps?