All Forum Posts by: Douglas Snook

I agree with Bill. Don't get worked up just yet. If they are current and plan on staying, they will most likely keep paying. It does not sound like they owe you any back rent and therefore are not looking to be discharged from that debt.  They could void any lease with you if they wanted to or reaffirm it. I would check with their attorney and see what their plan is for you. 

Although Bankruptcy is a Federal law, the details can vary some what state to state so check with your own attorney as well on the details. 

It was not the tenant that suggested it, it was YOU. I am sure she only remembers that part about you promising a months free rent. Forget the legal consideration issue. It was an offer made by you and she accepted.

The bottom line is Do you want to take your chances and try to evict her for not paying a months rent and take this in front of a judge or worse et a jury (not sure if that is available in NY but it is in MA)? Has she been an otherwise good tenant? If so do you really want to upset the cart over something you offered?

If I was a judge and you came before me on an eviction over a missed month of rent based on this, I would throw the case out and assess costs against you also.

I like the idea of an addendum to the lease to allow her to live there. As long as he would qualify on his own and does not need her income to pay the rent. Then when the lease is up, you can see about adding her as a responsible party.

The problem with adding her may come if they have a falling out and he leaves, he most likely will stop paying rent. If he wants her out for some reason, I would think that if she is on the lease then she is going to say she has a right to be there

Just curious, can you provide an update?

Glad you were not physically hurt.

I think you acted appropriately. Maybe you could have called the cops when was happening but who needs the drama and if it ticked off the tenant and she really trashes the place, who needs that.

When is the tenant leaving, at the end of November? As soon as she is gone, get into the apartment even if you have to drill the locks and change them. As long as the place is in the same condition as when you walked through, send her her money back and rehab what needs to be done. Put this behind you and go forward.

Just my thoughts.

Search "turn key" on here. There are several threads, some with horror stories. There is a site that reviews/rates turn key providers that would help with your diligence.

An other option may be to partner with some one here in the area where you want to invest and they could be your boots on the ground sort to speak. Again you want to do due diligence on that person.

You need to talk to a bankruptcy attorney who knows the rules in your jurisdiction. You need to review the bankruptcy plan and see how the second is getting treated.

For example, in MA one reason owners file a Chapter 13 is to get current with the first AND potentially stripe off the second. They are able to do this if they are upside down on the first. The second is then treated as unsecured and paid whatever the other unsecured are getting under the plan, if anything. Since values have been  rising not as easy to do this.

You may also need permission from the Court to buy the loan

I think John has given you a good start. You want to make sure the title company has done the kid of deal you are doing (wholesale), how long have the been in business and can they give you an idea of what they charge for fees.

Andy, since you are about to close, I think it is too late to get the soon to be former owner to evict. 

The day you close be sure to send them all notice you are the new owner and where to send their rent (you may want to mention the amount you were told they are paying) who to contact for emergencies etc.

Since you are being told there are no leases, find out how to terminate an at will tenancy and do that while offering them a new tenancy AFTER they complete an application and sign a lease, pay a deposit etc. (if thats they way you want to go) You may want to wait a month or two to see if they voluntarily start paying

And be sure to get it in writing, sign by the Seller that there are no deposits or leases and let him know that if one of the tenants claims otherwise, you will sue him

What is the rest of the kitchen like? Did you replace the cabinets and counter tops? Are they high end too?

From a purely personal point of view as the one who does the cooking I would prefer a hood exhaust as opposed to some counter top exhaust and a double oven.

What if you didn't decide but go with some kind of builder(flipper) credit and let the buyer decide up to a certain value?

Just my two cents worth