All Forum Posts by: Robert Steele

And of course remember that often when it rains it pours.

I had smooth sailing this year with only minor to no repairs until June and then all hell broke loose. It has just been one multi-thousand dollar repair after another since then. They are getting very creative too. For instance, someone poisoned a huge 80 year old oak tree that I had to have cut down. Who the hell can plan for these things?

Forget silver - buy gold. For the same reason that central banks don't hold silver or platinum in their vaults.

One of my tenants wanted to focus on their small business so they sold their house and applied the equity to their business. They rented with me for about 2-3 years and then bought a bigger place by the lake.

Another one has no interest in buying ever. They have rented their whole lives. I think they like the fact that they can relocate whenever they want and that they don't have to spend money on repairs.

A couple of others just moved into the state and wanted to look around first before buying. So they rented for a couple of years.

But that is $2K you will get every month and when they move out you won't have to spend $$K more in repairs because some scumbag tenant trashed your place.

Thanks Dion DePaoli

Very informative.

I don't have any circumstances. This is purely hypothetical for me.

That is one thing I was wondering about - who has the lease. I would figure no lease - no protection under the law. I am figuring that the tenant must have a copy of the lease (if they had half a mind to keep their copy). If they could not present that to the bank wouldn't the bank just evict them? Surely it is easier to sell a vacant property? If the bank does not have the lease then are they letting these people live their for free or are they collecting some sort of rent via a property management company?

Once you get possession I imagine it would be a simple matter of asking the tenant to show you the lease. No lease - start eviction.

The one I was looking at, the selling agent was able to tell me the terms of the lease, and it wasn't that appealing. It doesn't expire until Dec 2014 and is at slightly below market rent.

Still, circling back to my original question it seems to me that even with protection under the act you could still evict them for any minor breach of lease. And if I know tenants they always slip up somewhere.

No. I am not the tenant. :)

I am looking at buying a REO with a tenant in it.

I am aware of the Protecting Tenants at Foreclosure Act of 2009 but I was wondering if anyone has had any direct experience with buying a foreclosure with a tenant in it?

For instance, I assume to get protected from eviction under this law that the tenant is required to:
a) have a written lease
b) give you a copy of the lease

How do you verify that lease is authentic?
Is an aural lease good enough to prevent eviction?

What is stopping you from forcing them out due to a breach of lease for;
a) not maintaining the yard
b) being 1 day past the day the rent is considered late
c) any other minor thing that may be in the lease

Thoughts? Opinions? Experiences?

Yes I am. But I think like all wholesalers you are over enthusiastic about the ARV.

Sales in the last 6 months:
11700165 SLD 7116 Desco Drive 4,649 sq.ft. $ 440,000
11716953 SLD 6924 Stefani Drive 4,287 sq.ft. $ 475,000
11753007 SLD 7039 Lupton Drive 3,433 sq.ft. $ 487,000

I don't know about 10 years - but 20 is doable.

I bought and sold properties over the past 10 years and now have a portfolio of 10 SFH worth around $2MM.

This year I stopped purchasing any more rentals and instead started using the cash flow (including all maintenance and vacancies) to pay off the mortgages. My spreadsheets say it should take about another 10 years to do that.