All Forum Posts by: Scott MacDonald

@Hen Ley you pay a realtor for the services they provide. The buyers agent should get no different compensation leading a buyer to your flip than they would leasing their buyer to any other listing. If you flip enough properties then you can hash out a deal with your listing agent as you begin to streamline the process for them but don’t go expecting that on your first listing.

So today I was working on replacing a garbage disposal unit for a tenant. I hate them at the best of times and never install them but I inherited this tenant who loves hers and it’s a small price to pay to keep a good tenant happy. So I had a small Home Depot bucket with all my tools in there that I needed. I’m working away with my head under the sink installing the new disposal and I turn round to find the tenants dog has came up behind my back and decided he needed to mark his territory. The dog has managed to urinate in my bucket soaking my tools! I like animals and have never had an issue with this dog, the house doesn’t smell and the tenant takes good care of the place but I guess there was just something he didn’t like about my tools.

Anyway I hope someone gets some enjoyment out of my bad luck Brian day!

 Thanks! I wasn't sure if it was that easy and was worried I would get landed with it after closing.

Hi Team,

I am in the process of purchasing my first deal through a wholeseller (purchased others through MLS etc) and I have ran into an issue and was looking for some advice. I just got the commitment for title back and it shows 3 liens against the property. The first is for the mortgage which is fine, the second is for $10,000 from the local housing association which the owner agrees to and has instructed title to pay at closing as well as the mortgage. However the 3rd is a Federal Tax Lien to the value of $60k placed in 2018. The seller says they know nothing about this and have called the IRS who confirm they have no active case against them. Title is telling me they will have the seller sign a "Not Same Person Affidavit" at closing to take care of the issue.

Am I correct in thinking this simply means the seller is claiming to not be that person but the lien would still be attached to the property? I am using a commercial loan on the property and the bank seem comfortable with this stating "I have run across the title company having to prepare a “not same person” affidavit numerous times. They will do their due diligence to prove that that the owner is not the same person, i.e. social security number, etc. Once they confirm that this is not the same person, they will remove the lien showing in the title work and the lien will not show up in the actual title policy."

How would I verify the lien has been removed before I close?

Any help/advice would be greatly appreciated.

Thanks

Scott

I have never heard of an 80% LTV HELOC on an investment property, only 80% on primary residence. Are you sure you are not confusing the two?

Hi Team,

I have found myself in an unusual situation and was looking for some advice. I rented a property to two room mates last year and everything has gone well until I found out last month one of them actually moved out in December. The remaining roommate didn't tell me for fear I would terminate a lease so instead has been paying both halves of the rent. The lease is ending at the end of this month and he has asked to move a different room mate in from the start of April which I dont have an issue with and feel its the least I can do given the fact he stepped up and paid 100% rent without complaining when he could have let it be my headache.

Anyway my issue now stems from how do I return the security deposit to the tenant who has gone missing? His parents went guarantors on the lease so I called them to let them know they would be relieved of their obligations from the end of the month and to see if they had contact details for their kid. They advised they have no contact with him, his phone is disconnected and he seems to have just disappeared. They asked if I could just do a bank transfer to him but I dont have his bank details (he paid his deposit with a cashiers check and monthly payments through cozy) and have now asked that I mail the checks to their address which is many states away. I am not comfortable with this because its not going directly to the tenant and he has not asked for it to be mailed there.

From what I have read my best course would just be to mail the checks certified mail to the leased address and if he has no mail forwarding (which he doesn't as his mail is still arriving at the property) it will be returned to me and I just just keep it sealed in the property file to show I made an attempt to return it.

I guess my questions are:

1. Is there any other ways to get it back to him I have not thought of? I called his employer and he is not there, his roommate has no idea where he is, his phone is disconnected etc etc.

2. How long does he have to claim the deposit back? I am wanting to return what is his but I also need to move on with my business and if he shows up in 10 years later asking for it then it might cause me some issues. I'd also like to give it to the tenant who has been paying both halves of the rent if its clear after a certain period of time.

Any help and advice would be greatly appreciated.

Thanks,

Scott

Hi @Anthony Wick, I hate to discount rent as I think that starts to set a mindset that rent can be adjusted and is not a set figure. I’d prefer to just cut her a check for  the amount and charge full rent. Although I don’t have any concerns with her perhaps my OCD is kicking in because I have the reports for every one of my tenants and I hate having holes in my files. I had not checked court records etc but that’s a great idea. Thanks!

Thanks @Mitch Messer I appreciate your insight here. It’s the first property I ever bought with tenants in place as I normally buy and renovate but this property was turn key with a sellers divorce pushing a sale price I couldn’t say no to. 

I think covering her application cost is the right thing to do but as he’s going to be a new applicant essentially then he can do his own.  

Thank you!

Hi All,

I purchased a duplex last year and the tenants were in place. I have had zero issues with the tenants (other than they can be slow to report broken things) on both sides. One side comes up for renewal the end of Feb so I called them to let them know I was going to be increasing the rent as its below market value and they agreed to the increase. She did ask that she wanted to add her boyfriend to the lease (who is also her child's father) to which I don't really have a problem with as I suspect he has been living there anyway and never caused any issues and seems a nice guy. I did state that we would need to have him do a background and finance report to make sure everything is in line. 

My question is; should I also have her do the background and finance check? I feel its in bad taste to ask her to spend $40 on a background check when she has been living there for years and been problem free for me but at the same time I would like to know more about her before signing another year long lease. I would never offer discounts or rebates on rent as that is a slippery slope but I thought about offering to cover the $40 cost of her application while he pays his own $40?

Any thoughts or advice would be greatly appreciated. I know its a nominal value but I am unsure what the correct procedure is here?

Thanks

Scott

Hi @Account Closed are lining up the upcoming events and will have some great guests/topics to cover. Thanks! Scott