All Forum Posts by: Aron D.

I personally have never experienced this situation, but did live in a rental at one point (duplex).  An engineer moved into the other side and lived in the unit for 2-3 months and then moved out due to having to be closer to their family (elderly parents).  I spoke to the landlord and he stated the same situation as you are having.  The guy paid the rent until the next tenant was put in place.  Hopefully you can fill the unit and get them out of the situation they put themselves in.  Not sure of your price point, but if they were vetted by you, then you know they can afford the payment.

I would treat them like how I would want to be treated.  Inspect the unit and make sure nothing is missing or damaged and find another renter at your earliest convenience.  Return the security deposit when you are able if nothing is wrong and rent has been on time. 

I am interested in this topic as well.  I just own in my name and have adequate liability insurance coverage for each property and then have an umbrella over all policies. 

 I agree with exactly what Dave said.  All the knowledge, money, and resources can result in a dead end if you don't create a purpose in your life, the "WHY?".  You will need to research, conduct due diligence, and apply your knowledge to this craft in order to succeed.  A good team, time and resources can result in a life that you hope to create for yourself and your family if you want it bad enough (financial freedom).  Look at other posts from people that are working 2 jobs in addition to finding deals.  This business does not create wealth overnight.  It is not a get rich quick scheme, but with time and persistence, you should come out the other side successful in your endeavors.  If you came from nothing and do nothing, then the results will be the same.  Put your plan into action and good luck with whatever you decide.     

Crazy inspirational story!  May blessings continue to come your way.  Money doesn't sleep and neither does Fatema!

My story is the same as many other CA investors.  I was referred to a note purchase investment through my Solo 401K provider and thought I should get my cash to start working in my Solo 401K.  The company offered a 9% return that would be "hassle free" and they would provide 2 points for buying this note.  The note was tied to a property in PA.  I got consistent payments for 18 months and then the payments started to become late to non-existent.  I was informed that the company was going under and I had to try and get the property through deed in lieu of foreclosure.  Eventually, after several months of paying 2 years of back (3 different types of property tax), 2 years of delinquent utility bills, and repairs (new roof, flooring, paint, etc.).  I paid all of the interest plus, points, and additional from the Solo 401K reserves to get it into rentable condition.  It is currently rented at below market rent to stop the bleeding.  The property is on the market and only received 1 offer significantly below asking.  The value of properties in this area of PA are the cost of a down payment for a property in CA.

Something to consider is the growth of a city or area you plan to invest.  I think the area of PA the home is located is significantly depressed and can't see any future growth.  Wikipedia shows a decline in population and could explain the difficult time to sell a home in a depressed market.  I should have used this money to invest in my own rentals/flips.  I would be in control of my investment and decisions.  I can guess that the money that I invested in this note purchase went to the owners business of building new homes and other business ventures.  

As others have stated, if the investment was so good, then why would the business have to market to OOS investors?  Money follows value that is being offered.  I am sure all of these referrals from third parties get commissions as well.  It is strange to me how I post about my negative experience with TK investments and still get friend requests from TK providers in these depressed markets.  Good luck in whatever venture you decide, but like everyone has stated do some due diligence.     

Vacation homes that allow for airbnb model. 

American Modern also does vacant policy.  I have AM and Foremost.  Rates are through the roof, but cost of doing business.  Rates increase dramatically if property is in remote area away from fire hydrant/fire station.

Your purchase contract should have a financing contingency. 

It seems ridiculous for me to see that a home would need repainted every time a tenant vacates the property.  Do you have annual/bi-annual inspections to show condition of property and do they trash it?  I only had to deal with touch up paint work and nothing as extensive as you are experiencing.  $1,500 is actually pretty cheap for paint.  I have paid over $6,000 for a home to be repainted and popcorn ceiling taken down.  It also depends on quality of paint and workmanship.  I've seen varying degrees of quality from different painters and detail work is lacking in some.  For a rental property, I can't imagine having to pay $2,500 to make it turnkey.  How are you staying profitable?  Major expenses have been water heater, roof, and flooring.  Sounds like someone is making money and it probably isn't you.  Does the PM company own the painting and handyman (in-house) service as well?      

I wish I would have seen this earlier from David, since I invested in a note purchase promising 9% return.  It was supposed to be low risk and was even recommended to the company by my Solo 401K provider.  The company stopped making payments after 18 months and I had to spend countless hours of my life doing a deed in lieu of foreclosure and got ownership.  The property had 2 years of back taxes (school, borough) and 2 years of back payments for utilities.  Some of the taxes went to collections and I had to pay those, plus attorney fees.  In addition, the property was in bad shape as it needed new roof, plumbing, flooring, etc.  I will never invest in anything that I can't drive by as you will get taken to the cleaners if you aren't face to face with contractors on repairs.  I recommend keeping the property or pull out equity and find a good deal near your local area.