All Forum Posts by: Wade Garrett

I am in the process of evicting a tenant. This one is going to go to court, and it is as clear as day that she hasn't paid rent and I am likely to win. 

My question is, what are the consequences for her post-eviction? Specifically, if there is a judgement against her, what is her motivation to pay back rent once she has been booted from the property? Will I ever get this money?

1. I know it hits her credit history, which is somewhat of a deterrent to not paying. 

2. I know they can garner wages, but how realistic is that? And what is the timeline?

@Joel Harris I had the exact same situation..... Purchased a 4-plex two months ago. One tenant paying  $200 under market for "managing the property." What I found IMMEDIATELY was that managing the property is their last priority. If the person doesn't properly manage, what are you going to do? Yell at them? They will not have the same accountability as a competing professional who has the risk of losing your business. It's confusing the issue of tenant / employee, when either of the relationships is tense to begin with. 

Luckily my tenant was month-to-month. So I offered a revised M2M lease "relieving" her the duty of property management, and a $150 a month increase in rent (just because I didn't feel like finding a new tenant). 

Two things; (1) you're locking in a $2,400 decrease in income, and (2) if anything goes REALLY wrong, you're going to have to hire a real professional anyway. It's your first year of ownership. Make everything on your terms for a year. Then see if you want to offer this person a deal in the future. But as a rule, best not to mix customer with vendor. 

I have my four-plex in my personal name, and would like to transfer title to my LLC. My mortgage is callable upon change of title, however. My current lender (Chase) does not close loans to LLC's. Neither does Garden State Loans, who I have done business with in the past.

Any recommendations for a lender who will refinance a fourplex into an LLC?

Thanks. 

I took ownership of a fourplex on August 4. One of the tenants asked if they could pay rent for this month on August 20, which I unfortunately agreed to. It is the 29th and I still have not been paid so tomorrow i call the county clerk and file for eviction. My end goal is to keep them in the unit, but train them not to screw around with late rent. The previous owner had no issues with them, and found them the be helpful around the property. I gave them an inch, they are trying to take a mile. Any suggestions for how to handle this situation and them going forward? Thanks

I'd definitely rent to this tenant. Sounds like an ambitious professional who is moving to a new part of the country for a new career trajectory. I've done that move myself. He/she is likely a very safe bet.

Just did my first rent increase notification to a tenant, from $900 to $1,050. Effective Nov 1. I just bought the place three weeks ago and she was m2m. I could get $1,100 for the place. Yeesh. Was a tough phone call to make, but I guess I'll need to develop thicker skin.

I buy multifamily for the exact reasons he is stating. Most Americans can't afford a $1,200 a month rent, so they very likely can't afford to buy a home, making them perma-renters. Then he cites tech companies not signing long leases in commercial buildings. And Airbnb disrupting traditional hotel models. Both fair points. But again, not multifamily. In fact, i believe demographic trends are in force to make rental demand high for a number of years. Millenials are more transient, crippled with student loan debt, and skeptical of the "American dream." All college grads in their twenties came into the workforce in the wake of the great recession. Home ownership is not a priority. Also, he should add that wages are up these days, which is inflationary and friendly to landlords.

Hi guys, I am a buy and hold investor with a fourplex and a backyard. I would like to do something to spice this up a little bit. This is half of the yard, the other half looks very much the same. 

I am not going to subdivide it for now, so I want to have some fun. 

Any ideas?

Thanks

Your traditional method is compounding annualized return, assuming each year's return is a function of the previous year's principal, which is not the case. Your "standard formula" returns are lower because the rate of return is imposed on a larger present value each year.

You engage in one purchase, one sale of a property. Use the simple arithmetic mean. 

@Thomas S. i like the idea of offering a new m2m. I was only thinking a year lease. Your idea is better.

I plan on hitting her with a late charge if she doesn't pay on time this month. Call her and tell her the next time it happens i wont give the courtesy of a call, but right to notice of eviction. Also, new m2m lease at $1,050 with no garage coming in the mail.