All Forum Posts by: Robert Herrera

Promissory note and Deed of Trust need to be filed out. You can go right down to where you file the docs in your area, they should have copies. I would do this ASAP. You are never too late to file, until it's sold. 

@Bryan Templin I usually call these tenants "Government Babies." This is because a lot of them seem like children. They are grown adults, but can't seem to get life together. I'm not saying some don't need assistance, etc. I just don't like to be the one who deals with them. I've personally had to evict 3 of these types of tenants. 

#1 For not paying THEIR PORTION.

Section 8 only pays the larger portion of the rent. The tenant is still responsible for a certain amount of that. If they have no income, they don't pay that portion and act like it's OK, because the government is paying the rest. Usually the rest is your Cashflow. 

#2 Not caring about the home, as it's not theirs, and they probably will never own one. Usually destroying a lot of stuff. Repairs also go up as they just use stuff very ruffly and don't do any preventative maintenance. 

I had one tenant with a sewage leak in the basement. They didn't pay their rent. They were trying to use that as an excuse after we found out about it. The city wouldn't turn off the water and said the tenant would have to shut it off... The tenant refused to shut it off and continued to flush diapers and other things down the toilet to try and destroy it more. Called all of the appropriate contacts in the city but none of them would come out and look and see what they were doing. We ended up having a crew down there while they were using the water. They had to fix it while it was still going on. Man was that a headache. 

Then, after we repaired everything, the Health Department decided to show up. They decided i needed to do some upgrades and repairs to the water heater, and gave me a ticket. It was crazy. Anyway we ended up getting them out.

As you can see, it's probably a lot easier to just have regular tenants. I will NEVER work with them again. That is my 2cents.

Malinn Lee how about partnering with the home owner. Creat an LLC that you both own 50/50. Quit claim the property into LLC. Make sure they move out before you pay the past due, and change the locks. or they could stay there and you would be s.o.l. If they try and stay. This is better for the owner and now they can make some money too. It's easier to negotiate something like this. Split the cashflow, split the equity.

Lee Cruz No. This isn't meth. This is Marijuana. Just pay for a professional cleaning to get the smell out.

@Cody Hyman If you are in the LINE of Improvement, I would Expect the property to go up a lot in value. Building a new home and Hoping the government will pay What You Think fair market value is, and what they consider far market, might not be the same. In springs they are experiencing people putting in offers Over the List price. This is driving prices up more. The Government doesn't fight with potential other buyers. They are the ONLY Buyer when they decide to take it over. They could care less that everyone else is over offering on these houses. That being said, who knows how long they will take to actually buy your lot with houses, or they decide not to. If you are building a house, make sure you are doing it for the Cash Flow you can gain from it. That way no matter what they Government does, you can still make money while you wait.

David Dachtera we are both saying the same thing. They will have more money, and it has to come from somewhere. More money means more spending. More spending, more demand. More demand less supply... less supply higher prices. http://www.denverpost.com/2016/11/12/colorado-rising-minimum-wage/ Business owners looking to slash hrs and Lower the Headcount... aka layoffs.

@Erin Shine I see that it did pass for $12. Either way, it's a 56% increase. That's a lot of money coming in. More every year until it hits. Imaging getting a 56% raise at work. WOW.

@Wade Stahle If you have the Title, you own it. You can have any financing on your land, as that is not a condition. Holding title is the most important part. No one knows you have a loan on the land. It's not like FHA looks at you land, does a check on it, etc. All of that is handled at closing, by the title company, who will pay off the loan to the lien holder.

Just want to put my $.02. Remember, Colorado is one of the States that voted for the $15/hr minimum wage increase. This doesn't go fully into effect until 2020. That means the low end consumers will have more money then ever before at that time. This will push up prices all around the board. I feel the areas with more low income buyers, will pick up do to them having more money. This will cause more inflation, but we can go rounds about that. 

Norberto Villanueva I meant replies. Sorry for the confusion