All Forum Posts by: Account Closed

@Jessica Hinman 

As an investor, you work with many different contractors (plumbers, roofers, insurance agents, brokers, lawyers, etc.).  It's important to known enough about each profession to identify when the particular contractor is needed.  As an investor, you need to learn when to involve the each contractor as you will likely never have the full expertise that each one of them possess. 

Fortunately, I've only had to evict one tenant in over 10 years, but that one occurrence was bad enough to convince me that I never wanted to do it again.  It cost me 3 months of lost rent and over $5k in attorney fees... enough to kill my cash flow for that unit for the year many times over.

This is why I recommend trying to avoid resorting to legal means it it's possible, similar to what @Dawn Anastasi proposed.  Even when you need to evict someone, being nice pays dividends, but also be extremely firm and follow-through on your promises.  This is what you should expect from a resident (responsibility and following-through on promises), and it's the behavior you should exhibit as well.  If you say you will evict if the tenant doesn't cooperate, then meet with an attorney asap and evict.

If your resident doesn't respond, it's up to you if you want to offer them money to leave.  It's not something I've done, but I'm sure there are others on BP that have done this.  If successful your overall out of pocket would likely be much lower.

Many times it can be avoided, but sometimes eviction is necessary.

@Rob Anderson 

@Jessica Hinman 

Rob,

Yes, please disregard the notice. This would be an eviction for breach of contract.

I would still use the strategy I've laid out to try to get them out prior to spending money on legal fees. 

@Jessica Hinman 

THIS IS NOT LEGAL ADVICE

Yes, evict them asap.  Serve them a 3 day notice to pay or quite. 

Through the following effort, you may save $5k+ in attorney fees (even if you prevail, you'll likely not collect attorney fees from tenant) and lost rents for the time you're evicting:

I would tell them that you will give them 10 days to vacate the property without going through eviction proceedings.  Tell them that...If they agree, let them move and DO provide a positive rental reference, which will enable them to locate another rental.  If they do not agree, tell them that you will NOT be providing a positive rental reference and you will mention that they violated the lease agreement.

While all this is going on, educate yourself on eviction proceedings.  If they don't accept and move, assuming you find accurate information and document everything (what was said/when, etc.), you'll likely not have to actually hire an attorney until your court appearance date, which will be 10 -20 days down the line (yes, lost rent if they don't pay).

Make sure you document absolutely everything.

@Nathaniel Donnelly 

I don't invest in condos. I don't like other parties (condo board/HOA) having control of my cash flow stream. That said, I do invest in SFR that have HOA with nominal (~$100 per year) HOA fees. It keeps residents lawns manicured and prevents them from parking on the lawn, leaving junk cars in front of the house, etc...

@Dawn Anastasi 

Decent cash flow. Congrats!

What are your thoughts of the market and estimate of any appreciation you might see?  Population and job growth forecasts?  What is the path of growth in Milwaukee? Where are the high end service jobs located?  Where are new Home Depots/Lowes coming in?

@Andrey Y. 

It's great to see everyone enjoying the fruits of their labor.  I believe that we should not feel guilty, but should celebrate this.  There is a vast (unlimited) amount of abundance in the world we should position ourselves to enjoy it.  Drive the BMW! Take the trip! Buy the beautiful home!  

I believe balance is key...among others...balance between giving (why I and most experienced investors are on BP) and receiving.  It is not enough to learn to gather (receive money), to be truly happy, I believe we also need to learn to be good at GIVING to OURSELVES and help OTHERS.  Based on the posts of others on BP, it appears that many of you share this belief.

@Jeff S. 

You're welcome.  I enjoyed that article as well. It helped reassure me that I've formed the right habits.

@Andrey Y.  & All,

We're not talking about frugality.  What we are all talking about is NOT WASTING/being more efficient than most with money.

@Jerry Kisasonak 

I would be angry too. But anger will not get your money back. The point of law is not justice, it's to efficiency resolve disputes. In this case, based on what you've said, the agreement did not specify of what would happen to the EMD if the transaction didn't close. Hopefully next time me you insist on additin that clause to your purchase contract.

@Andrey Y. 

There's a reason that the rich keep getting richer and it's not because they spend frivolously.  It's because they form good habits early and continue them throughout there life...ex. Warren Buffet drives an old Lincoln Town Car and eats at McDonalds, ...

I would suggest reading the book "Millionaire Next Door" as well as the following article of Billionaires living humbly:

Humble Billionaires

@Jerry Kisasonak 

You are not an attorney and are wasting your time. He won't give you your money back because he doesn't have to according to the contract you yourself signed.  If it's not in the contract, you can try threatening him, but it's unlikely you'll get a favorable response. And a lawsuit to try to get the return of $600 makes no sense.  You'll spend over $5k in attorney fees to try to do that.