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All Forum Posts by: Francesco Barbati

Francesco Barbati has started 8 posts and replied 110 times.

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Matthew Olszak:

@Francesco Barbati Don't take this post the wrong way. Personally, just for this reason, I ALWAYS have tenants, employees, etc charge me for work performed. Early on, in a different industry, I'd have to fire someone and then I'd get an earful about how they didn't take lunch, they didn't charge me for this and that, etc. And that was the justification for them working on the side with my clients - their $500 worth of "time" or "work" to me costing me $1000s in lost revenue and liability. Hence why any employee of mine absolutely must take their 30min lunch per law irregardless of if they are hungry or not - when things go sour those times always seep out of the woodwork.

This relates to you because I feel like you are justifying something you know is wrong - shafting the rent from your friend by saying you deserve it because you did so much to improve the unit. What would have been the right way to do things would have been to come to an agreement that for $100 reduction in rent over the course of a year, you'll perform X improvements.

I've rented apartments before to friends at less than market rate. I did that because I wanted to help MY FRIEND. Help them to save money, help them to get on their feet, help them to have an apartment to live in that they can be proud of. I was thankful of the opportunities provided to me to be able to do so and wanted to pass it along. If I found out they took advantage of that and re-rented it for more, I'd be pissed. If they fixed it up, I'd expect to discuss beforehand and pay accordingly. But never would I be OK with a friend going behind my back and making money off MY investment without my knowledge.

If you want to do this right, come clean and get the OK from the owner.

  How could I possibly take this post the wrong way? You are super clear and I agree with everything you said, and it could partially be applied to my situation as well.

Anyway I got the OK from the owner already and I am pretty sure I said that in a previous post. What I need is the OK in writing. 

Why do you (and everyone else reading this post) think I was going behind his back? Because I was planning on subleasing it for higher than the original rent? Is that not a common practice??

Post: Did anyone see the new Solar Roof from Elon Musk?

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17

The idea is great, like almost all his ideas. I wonder if it can make sense installing the solar tiles in a big apartments building and selling electricity to the tenants. Also the more people bet against him the more he proves everybody wrong... 

Elon Musk is Steve Jobs on steroids!

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Robert Nason:

I think it's your betrayal of someone who's done something very nice for you that is upsetting people

 Wait a second! Who do you think was doing something very nice to who?

I would expect experienced investors been able to read between the lines, but I was wrong again.

The fact that I was renting below market value does not mean that I was renting below the "rentable" value of the place, and the fact that I was rehabbing it myself should have been a clear indication of that. He would have never been able to rent that place, and it would have kept not being able to pay the HOA (and subsequently risking to lose the place) and get in more trouble. Since it was obviously conveniente more me also to move there, and not only financially but for family reasons, I said ok, let's help each other out (I am very humble and frugal and don't need to live in mansion) and at the end it turned out that I was helping him more that the other way around and keep in mind this is only a part of the whole story. I have also paid rent much earlier when he need it.

I would expect seasoned investors and mature folks not to just read a couple of line, get emotional like teens and spew opinions or insult some one they don't even know, but on the other hand I admit I completely failed in telling the story, conveying a message, and asking the right questions so I apologize again and I thank every one for his time and critics, and I also apologize for pissing people off.

I should probably take more time think thoroughly before posting, but circumstances don't always help.

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Robert Nason:

@Francesco Barbati 

I did read your entire post and I come to the same conclusion. You are a scum bag. When you said you were totally renovated his apartment and he doesn't even know about it. I would have you in court so fast your head would spin. And when you ask questions in the open forum expect the good bad and the ugly. If you want legal advise consult an attorney. 

And scumbag be, if it makes you happy man and it doesn't hurt anyone, feel free.

Anyway, did you really think this through?  What do you know about me to have such a strong judgment. A couple of online forum posts? I definitely take some responsibilities for not being able to convey clearly my situation and also for not taking the time to disclose all the details and only the necessary infos, but I didn't not think people would heat up so easily for basically nothing here. I apologize and I'll try to be more detailed in next time!

Peace out Robert!

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Matthew Olszak:

@Francesco Barbati Sounds like a lot of risk for you to shoulder if you want to do this properly. If you lease from him, and someone else leases from you, YOU owe the rent to the owner every month irregardless of if your tenant pays you. What's the spread between what you pay and what you can rent it for? Could you just place the tenant for the owner and have him pay you that spread or slightly less based upon a year lease?

 That actually is a very good point that I didn't consider. I pay $1,000/m and I believe I could realistically sublease it for $1,100-1,250/m. How would you calculate the risk? Do you think it would be worth it?

Not a bad idea, but at that point would I be like a property manager? I don't have a real estate license so I am not sure I can be a property manager legally in Florida.

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Robert Nason:

So what you're saying is someone has been nice enough to rent you an apartment at below market rate and now you want to take advantage of their kindness? Scumbag

 Why? Do you really have no higher and better use for you time? At least read all the story before sharing such an opinion...

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Brent Coombs:

Tax-wise, any sub-letting profit in your pocket MUST be declared, right? Well, you asked...

[But, I don't actually know if there's any income that need not be declared. Tax Agents do!]

Seems obvious to me too, it has never been a doubt. Actually I don't understand why people don't pay taxes. The risk/reward output never makes sense, it is a signal of financial ignorance and it is bad karma.

Post: $120k cash borrowed, now what?

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17

Quick update:

I have found my path and I just wanted to thank everybody for your time and insight!

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Thomas S.:

"Also he knows that I am going to rent the place out for him,"

This statement has you on a entirely different footing. Either you are renting the place out for him or you are subletting the place. Legally 180 degrees apart.

If you are finding a new tenant, charge him a higher rent and skimming off the top that would be illegal.

Why would he agree to allow you to sublet rather than simply finding a new tenant. It sounds very much like you are being deceptive in which case you could easily end up in court. 

Sounds dishonest to me.

Thank you very much for your explanation! I was using "subleasing" and "renting for" interchangeably, and to define the same activity. No I understand all the misunderstanding.

I am aware that I take all the risks and responsibilities subleasing and I am ok with that, and that is why I though that charging a bit more "for my services and time" was a fair thing to do and I was not feeling dishonest or deceptive, and also I didn't want to be taken advantage of (like is has happened already).

Post: How to legally SUBLEASE a month-to-month without contract

Francesco BarbatiPosted
  • Real Estate Professional
  • Boca Raton, FL
  • Posts 116
  • Votes 17
Originally posted by @Nathan Gesner:

@Francesco Barbati Your original question was, "How do I do this legally?"

My answer: gain approval from the Landlord, preferably in writing. Verbal agreements in the State of Florida are legally binding and equally enforceable as written agreements. The Landlord authorized you to reside in the unit. He did not authorize you to add more tenants, sublease, etc. Legally, you should notify him of any changes you intend to make to the original agreement. This would include "rehabbing" his rental.

The next time you want to know what is legal without personal opinion, talk to an attorney. When you post on a public forum, you are asking for public opinion. This opinion may include the observation that you appear to have a sense of entitlement and a basic misunderstanding of legality and morality.

 I absolutely agree, but I when I was writing the post I was in a rush! My bad.

Also he knows that I am going to rent the place out for him, so he doesn't have to fly here in Florida from California and he thanked me of course. So he authorized me just to be clear. I did notify him, but everything is verbal so your post is extremely helpful! Thanks!

I should probably rewrite the post with all the info also...