All Forum Posts by: Tim Mitchell

Kevin,

I am an adjuster for that company you mentioned. We always recommend if the claim is $2500 or under you should take it out of your pocket, not turn it into a claim,  if the claim is $2800 you will pay that amount back plus a few hundred more over a five year period.

Not sure what kind of pain the tenant would experience with a small piece of drywall falling on his or her head, Personally I would question it, understand we have the right to refuse to pay a claim, sure the attorney could file lawsuit against State Farm, where would it go, not far, would never go to court because it would be turned over to the fraud department inside State Farm, this would be held against you, not the tenant since you are the policy holder.

The tenant is trying to gain some quick cash.

You stated you are planning on making the tenant pay for damages, the tenant does NOT have to pay any invoice you send him unless you had it in writing in your lease, which I'm it's in there.

Here in my area, we have to file a small claims suit, cost is 65.00 if I recall it's 90.00 in Pennsylvania, at the court hearing your presenting your case and what had happen to the pipes, ceiling and whatever else PLUS add in the fact of any damage that you will have to repair after the tenant moves out, of course you will keep the deposit money.

Steps I recommend taking in this order starting tomorrow:  Look at all your expenses to repair pipes, drywall paint whatever else there was or is going to be.

File a small claim in small claims court, stated above under 100. file for damages, present your claim, then the tenant will be allowed to talk to judge, upon doing so if tenant does not mention it the judge will probably ask why did pipes freeze if your living in the house? tenants response will probably be we had the heat off to save money, You just won the case right there, I have been in court probably 50 times in last ten years, I've won every time with claims and evictions.  

IF he is planning on moving has he given you a 30 day notice? if not you can go after another months rent, or you have, (my best choice) is send a certified letter to tenants stating you are NOT going to renew their lease when it ends April 30th 2015, if none of this has taken place, Get on it, send the letter tomorrow as Tenants have 30 days by law.

The tenant DOES NOT control your insurance only you do, NO tenant can file a insurance claim, if your tenant was somehow able to file a fraud claim, that can be a police criminal case.

Questions I would have are: Was there bad drywall on ceiling in order for it to fall? did the pipes freeze because of the tenants not having heat on?  (A side note, when you rent, don't care to who, taken photos of interior, all rooms, I do before they move in 99% of time while they, the tenants are there so they see me taking photos and they can point anything out they want to me, helps me big time and sucks for them saying this or that when they move out and want deposit back, when maybe the walls need re-painted, carpet needs replaced, you get the point.) I charge for everything, repainting walls, carpets cleaned, etc.

Wish I could see that attorney letter, I would be more then happy to help you respond to it in writing.

In My opinion this is NOT a insurance or an attorney case, it's a basic tenant trying to gain a personal benefit from you, thinking we as investors have tons of money.

Attorney claims you stated 2000. NOW you have to deduct the cost of repair, it's the tenant fault that the pipes froze, I take it, not yours. so NO there is NO attorney case, the tenant has feed the attorney a bunch of BS in order for him to take the case.

Sorry to have this so long, trying to explain everything here in steps.

Tim Mitchell

[email protected]

260-433-2062

Sarah, A lot of GREAT comments have been posted.  NOT sure what your trying to do, wholesale or fix and flip, if your wholesaling, WHY do you need private lenders? if your wholesaling then no private lenders are needed.

You are in Canton, OH, Do a little research in your area for some, talk to a few realtors, there is a "BIG" private lender in Canton, many millions available, that's all I can say on here. although the numbers MUST be right or he will tell you it's not a good deal. It works like this, you present him a deal, he will then tell you to go get it under contract, also provide proof of funds that anyone, like a seller or a realtor can call him to verify.

If it's not a good deal for YOU he will tell you not to do it.

@Kevin,   Here is a big help of advice, I'm a Full time Insurance adjuster with a  large national carrier (well known), wholesale Investor and investor of 24 rentals.

1st), I need to state this is 100% Fraud, I would NOT pay the claim if I was the one to get the case as an adjuster, as everyone knows we do carry a book of checks to write to homeowner on site. Let me state this thou, not sure what insurance company you have for property, a small claim like this may be handled over the phone.

2nd), IT IS the tenant's responsibility to keep the heat on in the house during cold season, "IF" the house was "Vacant" THEN and only THEN it would be YOUR responsibility to keep house at a decent temp so the pipes do not freeze, "IF" you the property owner had no heat on in house during cold winter and the pipes busted, we still DO NOT have to pay the claim because of the lack of responsibility of homeowner.

3rd), Even if the 2x2 small piece of drywall fell on tenant from ceiling, that is not going to hurt anyone, IF, say fell on him, is there a hospital bill?

I tell everyone, same as your agent would tell you, you should not file a claim for under $2,500, knowing your rate will increase the following renewal time, will also be on state insurance claim records for 5 years which follows property, Not you.   

What is he trying to gain here?

Personally I would recommend as an Insurance Adjuster since he got an attorney, file a Insurance fraud claim with your state, file a counter claim against tenant for NOT heating house and causing damage, Normally I know in most states you can make the tenant pay for ALL damages, also HOW does your Lease read?, I see you stated month to month, but I would hope that at some point he signed a lease, IF he did not sign a lease, WHY is he there.

BUT this is NO legal advice, just a full time adjustor       

Is there an easy way to found out real quick what a property is worth besides looking up the assessors office page?? is there software others are using to figure it? or ?? While I was at a property for another business that I operate doing a insurance inspection, a daughter informed me their mom passed away last week and wanting to sell house NOW, she informed me her mom paid $40,000 4 years ago, I said, I'm an investor, she ask what I would offer, I told her $11,000, she accepted, I was blown away, I see on assessors page it's worth 78,000... NOT wanting to over pay or under pay for a property, how are others figuring what to offer? and what it's worth. Thanks