All Forum Posts by: Al D.

Joshua Lyon : Not clear from your statement whether you knew ahead of time that this was an international wire transfer. This FDIC page may be a good start on what your protections are and what to do now in that case: https://www.fdic.gov/consumers/consumer/news/cnsum13/sending-money-abroad.html In any case, you should file a “complaint” with the FTC and request a cancellation of the transfer from the banking institution on your end (this will not get your money back, but it’s a step you need to take.) There was a lawsuit brought up by First American Title against a real estate agent who allegedly failed to secure his email account. I don’t know where that lawsuit stands - could have been dismissed.

@Sagar S.: I don’t think that you should think the worst of AWB at this point - if the place is rented and they are pocketing your money, it would be beyond what I think of them.  It would be criminal.

But you should wonder. When I used their PM arm "REI," after buying turnkey from AWB, I got the place already tenanted. That tenant got evicted less than six months later for non-payment of rent. In this case, I tend to believe that REI did nothing wrong (except that it took me to tell them that the tenant missed a payment before they contacted the tenant to ask why they did not pay as of over 20 days before.)

After that eviction, the property sat empty for four months (late October - late January, slow months.) REI was on the hook to pay me the rent-equivalent; I was on the hook to cover utilities. Then they got me another tenant. A month later, I decided to self-manage; I fired REI over some suspicions I had, and got the then-current tenant's application. The tenant should have never qualified to rent the property, as her listed income was not even 2x the rent - despite REI's claim that 3x is their minimum to qualify. No one else was on the application, and no other adult signed the lease. I suspect that REI was willing to put any warm body in the property to stop paying me out of their own pocket for what could have been another three months.

The following month, the tenant stopped paying and did not answer my attempts to communicate. Once I served her with the eviction notice, she contacted me, claiming she lost her job. Under the circumstances - and after a long fight, which made me think that the company's management team is absolutely unprofessional - REI made me mostly whole. To be clear: REI still violated terms of our new agreement with each other to make me whole. I had to start picking my fights.

After the “jobless” tenant moved out, the property again sat empty from early January until late April - under a different PM this time.  I also lowered the rent from $1,250/mo to $1,195/mo.  There were applicants, but their credit was bad - I preferred to wait.

So, it is not unusual, in my experience, to have properties there stay empty for two+ months. Although, given the time of the year, I would think it should not be the case. I just can't imagine that REI would go as low as has been suggested here.

As for the original question of this post: AWB/REI came across as nice people when I met with them and during the purchase and our early relationship. But I would absolutely not do business with them again.

Charlene McNamara , congratulations on making the out of state leap. Depending on where you bought in the NE Ohio area, you may find the following link useful: https://www.biggerpockets.com/forums/731/topics/485533-cleveland-sfr-water-and-sewer-bills (It is not just about water and sewer bills.)

That depends on your original contract. Did the tenant fulfill the original term? (Sounds like he did.) Did the original (written?) contract state what was to happen at the expiration of the original term? (Like, was it automatically to become a month-to-month?) Did the original contract provide for the tenant (and you) to give a (x-number of days) written notice before move out? (Sounds like he did not adhere to that - this may be his only fault in this case.) Did the original contract state that any changes/extensions/etc would need to be in writing? (I would not take a verbal “extension” to court to begin with, but especially with that clause in the written contract.) IMO (if your written contract supports the above,) you may reasonably be able to claim up to a month (unless you get a replacement tenant sooner than that - than the actual prorated loss) in court. Personally, in this type of situation, I would not bother. I’d try to re-rent it as soon as possible. Next question for you is: if your original contract supports your claim (but be sure that it does), and you still have the security deposit, “charge” against that. In any case, be sure to let the former tenant know the itemized disposition of his security deposit within whatever amount of time your local laws say - in some jurisdictions, failing to do so may result in having to pay the tenant back more than just the original security deposit. The tenant left no forwarding address to return the security deposit? Be sure to document every phone call (other methods) you use to track him down, especially if your efforts should fail in the end. You are not expected to take “heroic” steps - just a reasonable attempt to return the deposit/provide an itemized statement on its disposition.

If she is current on rent - and especially if not - start the eviction process under “quiet enjoyment” if your locality allows it, or under anything else you can factually claim, ASAP. The fact that she has not been arrested yet is likely only because a case like this goes from the victim (1) learning about the crime, (2) contacting credit card to confirm, (3) making a police report. Given that you were able to track down these two victims, it is clear who the suspect is - (4) (because this is not a case where the suspect was still there when the cops arrived, or “hot pursuit”) the police report goes to the DA’s office, and an arrest warrant gets issued. What that means is that she is likely about to spend some time in jail, pre-trial (does not sound like she can afford bail,) and perhaps be sentenced to a term. In any case, no work, no money. The only potential benefit in that case to you is in serving her - you know where to find her, and can have the sheriff do it. But you don’t know how the eviction judge may look at the whole situation. And who will be taking care of the animal if she gets arrested away from the residence - the cops don’t know there is an unattended animal at her (your) place... Time is of the essence. Don’t be hard on yourself - you did a background check, which fell short. (Though, I’d be curious to know how you later learned about the fraud cases - perhaps you should not explain publicly.) From your story it is clear that she is a scammer. I’ve had those, and may again. I am yet to meet anyone who is 100% immune 100% of the time. Still waiting for that vaccine to hit the market.

First, check your rental/lease agreement to see if it addresses such an issue that you are facing now. However, even if it addresses it and says something along the lines of, “tenant is responsible for repair to HVAC under any circumstance,” does not mean that the language in the agreement is legal under PA law (just because something is in a contract - and agreed to in writing - does not always mean that it is legal if local laws may exist that specifically say that it is not legal.) But you should always start by looking at your contract. I never owned anything in PA, so had to look this up. Nolo seemed like a good start: https://www.nolo.com/legal-encyclopedia/pennsylvania-tenant-rights-withhold-rent-repair-deduct.html There are useful links from that page, specifically: http://tenant.net/Other_Areas/Penn/harris/pa-part2.html It appears that you have some options, but you must take steps - described in the link - to make sure that you are also within the law when taking them.

Reach out to David Greene . He holds events somewhere around Brentwood about once a month. He can add you to his email list.

Fresh off the press: http://abc7.com/technology/california-energy-commission-approves-requirement-for-solar-panels-on-new-homes/3450672/

I am sorry that you have a PM who does not seem knowledgeable. It sounds like you got great advice from Swanny, Rob and Holton-Wise by phone, but I don’t know the specifics (and you don’t need to share.) This may be repeating what they told you, but perhaps not: Has the manager checked to see if the door is unlocked and keys may have been left in the mailbox or inside the property, visible through a window? You/your agent need to only give a “reasonable notice” before entering an Ohio property. Ohio actually specifies 24 hours (ORC 5321.4(8): “Except in the case of emergency or if it is impracticable to do so, give the tenant reasonable notice of the landlord's intent to enter and enter only at reasonable times. Twenty-four hours is presumed to be a reasonable notice in the absence of evidence to the contrary.”) I do not see where the law defines “notice,” but would make sure that my notice was in writing - does not have to be on the door. Once, in the middle of winter, when faced with a similar situation, I treated the situation as an emergency - had to make sure that heat was left on (and it turned out that it was not.) In May, if your PM should walk up to the front door in order to place the 24 hour notice, and hear running water inside the residence or smell gas (assuming, of course, there is gas service at the property or something else along these lines that their human senses should be able to detect,) you have an emergency. Otherwise, secure the notice to the front door and take a pic with a device that automatically records the location and time (today’s newspaper in the shot is also fine.) Once inside the residence, you can tell us what your agent will see, and we can plan the next step. Maybe you’ll find the keys and a note. If there is still any security deposit that the tenant knows he may potentially get back: The clever thing to do in this case is to reach out to the tenant in writing (text/email - for expediency) to ask where to send the remainder of the security deposit. Per ORC 5321.16(B), the tenant is required to provide forwarding address in writing (but there is no prescribed penalty for the tenant, short of an inability to get something additional from you.) There is, however, a potential penalty to you, per 5321.16 ORC, if you don’t provide proper notice within 30 days of the end of tenancy (but when does the clock start in your case?) Hopefully, the tenant will respond, which should confirm that they vacated - you want need to wait on a 14 day notice. Familiarize yourself with 5321 ORC as an Ohio landlord. I have come across local cops who don’t know laws associated with being a landlord (creditor,) and agents/PMs clueless on anything out of the ordinary. Make the law your friend - there is little to guess when you know the law. Not an attorney. No legal advice given.

Adrie Moses-bailey (now the name thing is working:) If you are purchasing this property with three other friends, and especially if it may be the first such endeavor for even just one of you, I hope that you will have a solid partnership agreement that outlines all expectations and possible contingencies. One contingency to consider is what would happen if the lender were to find out that you, as the original borrower, turned around and transferred title to an entity that involves something other than your own name. The lender may decide to accelerate your loan. That is the worst case, I imagine. You may also luck out and never have an issue. Only you can figure out if the situation is worth the risk. Assuming zip 28226: 740+ FICO, 30-yr fixed, 0 points, 20% down on a $99k investment condo can be had at 6.375% today. But 25% down can bring the rate down to as low as 5.375% (PennyMac.) That is for a conforming loan that would have to be taken out by a living person. Remember that rates change all the time. I am not familiar with that market, but there is a chance that some local lender, like a credit union or a regional/community bank, may have better terms. There is also a chance of a non-confirming loan - like a “portfolio loan” - from such a lender, where they may lend to an LLC. Although, the rate and other terms would likely be worse. Good luck.