All Forum Posts by: Bella Butler

Among all of our tenants, we only have two tenants who broke the payment into a few mini payments, but we are expecting both of them to pay in full by Friday this week since the stimulus checks arrived. We just maintained the communication very transparent and consistent. Unless the tenant shows that he/she is attempting to take advantage of us, we will trust them and give them some flexibility. Next month will be more challenging. We will keep doing it this way.

2 Votes

Eviction is paused here. Well, the mentioned 25% will definitely have problems paying for rent in May. We will talk with them about moving their deposit/last-month to pay the rent of May followed by a repayment plan across next few months before the last month of their lease. Meanwhile, following our suggestion, I think they already filed for unemployment. The lady whose rent is $1500 is a senior, she, in our understanding, might be eligible for Sec 8. We will encourage her to follow through Sec 8 application as well, on top of her cashing out her vacay days and the stimulus package. By this point, all of the 25% promised us that the rest of the rent will be made up by latest the 3rd week of this month. We have to trust them and their words for now. @Christen G2

@Christen G.undefined

0 Votes

So far 75% of the tenants paid in full. The other 25% asked for an extension. Eg. one of those whose rent is $1500 only were able to come up with $300 on the 1st. She planned to pay the rest by the 10th, let's see. Her plan is to ask her boss to cash out on her unused vacay days. The worst-case will be the stimulus-plan money going to the unpaid part of the rent. We made our point that this was an unprecedented black swan situation, we understand what you were facing, but we wanted to see your making effort to come up with the rent. So we will take a strong position if this tenant doesn't do what she told us. At this moment, we work with her by allowing this extension to the date that she promised. Meanwhile, we will wait to see how May goes. It might be more of a problem.

1 Vote

We have reserved enough for each property for up to eight months even if no one pays. We have 2 paid off and 3 with a low-rate mortgage. We just cash out some money at a low-interest rate from one of the paid-off properties and have enough cash to buffer for another 12 months if things are going really bad. So far we only heard from one couple that have difficulty coming up with a full-month for April, but we have their 2-month rent in hand, security deposit and the last-month. We are working on a plan with them to keep them sheltered. Plus my husband still has his W2 job, working from home, and I have made some deals from the past 3 months, waiting for my checks to come in in the next 1-2 months.

5 Votes

We are lucky to have a cushion ready to continue the mortgage payment regardless of our tenants' financial situation. The reserve funds which we've been taking out from the rent revenue since Day One for each one of our properties will be used to pay the mortgages for the next 6-8 months. Besides, we've got another layer of cushion in place if the worse scenario occurs, say a year or longer the pandemic lasts. Hopefully, long before then, our society has already come up with effective solutions and new orders to help everyone get by smoothly. At this moment, we are not approaching any tenants for a conversation until a missed payment actually happens. Cuz there is no point, given that there are still 14 days to go before the 1st, to make them even more panic or to give them an idea that the landlord might comprise on the rent. When it happens, we will reach out to understand their situation and provide options. For those who want to deprioritize the payment, we will make it clear that the rent should come before any other loans/bills they have. We'd like to come up with something creative, like a short-term loan back to the tenant, 75% or 50% of the rent paid now and the rest in installments with monthly interest as long as they agree on paper. Or to take their last month, then the security deposit to compensate for the unpaid rent. (will get legal advice from Attorney beforehand). Meanwhile, we will keep an eye on recently depreciated stocks with great potential to buy to increase our stock portfolio. Hope the financial system will not collapse before the virus dies down. The government should consider debt relief to individual borrowers and issuing subsidies to all households. Hope we will all be fine after this.

3 Votes

Smooth, thoughtful and humane

Originally posted by @Martin Smith:

I think the critical thing to think about in these unprecedented circumstances is this: what are your alternatives?

First off, many localities have begun to prohibit evictions during this pandemic. If that's the case where you are, or if you think it EVER might be, do you want to burn bridges with a tenant you may not be able to get rid of for several months? What condition will they leave a property in that you tried to evict them from right after they lost their job, but that they could stay in for months after that?

Second, assuming you can even get rid of your tenant, who else can you rent to? The Treasury Secretary just told the media that unemployment might hit 20% as a result of the recession we're just now on Day One of - your mileage may vary, but do you think it will be better or worse than that wherever your rental is?

Third, you have to look at your own situation, and the situation and history with your tenant. Hopefully, you're not over-leveraged and you can afford to carry the entire property for a minimum of 60 days (but preferably at least 120 days!). Hopefully, you've got solid tenants that have a good rental payment history. Someone who has been a great tenant, who never complains and does basic maintenance themselves and always pays on time? Give them as much slack as you can afford. And be honest with them about what you can and cannot do. Don't offer 25% of what you can do - go to them now (or as soon as they report a problem) with your best offer as we all ride this out. Work with them in whatever ways you can - offer to drop the rent down to whatever your carrying costs are and see if they can meet you there or close to there.

That awful tenant who calls and asks for a maintenance visit to change the light bulb in the hallway that burned out and never pays on time and sends a weekly email about how they can hear the neighbor walking around? That one, maybe use this as a chance to get rid of them.

Whatever you do, communication is key. The one thing I remember from the 2008 recession is that the folks who rented from landlords that were open and honest with them were the ones who tried the hardest, and for the ones who couldn't recover quickly enough, when it came time to give up the unit, did it in the most peaceful, clean, tidy (read: cheapest to the landlord) way possible. The ones who had landlords who started screaming the minute the first rent payment was one single day late? They were the ones who stayed until the Sheriff showed up to force them out, never repaid any of the outstanding rent, and had already (literally!) sold the kitchen and laundry appliances for cash on craigslist and, in one case, even sold the new HVAC system for scrap metal, before leaving the place destroyed to the tune of thousands more than the deposit. Money the landlords never got back because the tenants declared bankruptcy shortly after and became judgement-proof.

At the end of the day, someone else is literally in physical control over an extremely valuable asset you own and need to get back. Think of it - seriously - like someone holding your loved one hostage. Don't mouth off to them. Don't threaten them. Don't be a jackass. Simple, open, honest, and clear communication is the only way out of this for both of you.

2 Votes

I am Boston too. All units are fully occupied So far no tenant approached us yet to express the rent payment pressure for the coming month though I have concerns about 2 of the tenants who are low-income and has work suspended because of this virus. One of them actually is qualified to get Sec 8 voucher. The other one lives with her partner who works in homeservices sector. Let's see, will apply both late fee and last month rent +security deposit off-set to get them to come up with the rent if they delay payments.

Originally posted by @Chandra Delaney:

We have a property that’s vacant... and I’m not sure how this virus has impacted the Boston rental market...

1 Vote

Brilliant thoughts. It might be hard for the government to consider freezing mortgage payments though. In Massachusetts, we are more in belief that the proper finacial support will be in place for those who have lower income or in a contractor's position.

Originally posted by @Don Spafford:

I like the idea of using the deposit for a month, which may allow them time to get unemployment or other government help, which I suspect there will be a lot of help coming soon for those people who can't work because if this, and hopefully a possibility of even the banks freezing mortgage payments for a couple months if it gets really bad to help homeowners and if so hopefully that will apply to rentals as well given the situation. Just would have to get true documentation for their work loss due to covid-19 and not them just saying it to get out of paying rent.

0 Votes

Investment Info:

Other buy & hold investment in Boston.

Well renovated condo that we got under the belt before it went on market.

What made you interested in investing in this type of deal?

Off market, negotiated one on one without any other competitors

How did you find this deal and how did you negotiate it?

Our neighbors, all cash, no contingencies, close within 30 days

How did you finance this deal?

Cash to close and then taking out a regular loan

How did you add value to the deal?

Off-market, the sale price is quite below the market value

Lessons learned? Challenges?

Should dig more off-market deals and get the cash ready to go in this heated market.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself and my husband, both licensed and experienced

0 Votes

Investment Info:

Other buy & hold investment in Charlestown.

Purchase price: $745,000
Cash invested: $225,000

Condo, Almost new, pristine finish targeting the higher-end market.

What made you interested in investing in this type of deal?

Off-market, below market price. Prime location. Great neighborhood and resident group.

How did you find this deal and how did you negotiate it?

Our neighbors they wanted to sell their condo that was only one year old.

How did you finance this deal?

Closing in cash and then taking out a conventional loan

How did you add value to the deal?

Off-market deal, below market price

What was the outcome?

Smooth transaction, clean deal

Lessons learned? Challenges?

Nothing, should dig and pursue more off-market deals in this heated market.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No, I was the real estate agent myself

0 Votes

All Forum Posts by: Bella Butler

Bella Butler has started 8 posts and replied 18 times.

Post: OK who has received all or most of their rent this month ?

Post: OK who has received all or most of their rent this month ?

Post: OK who has received all or most of their rent this month ?

Post: How Much Do You Have In Reserves?

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Purchase of a well-renovated Condo in Boston

Post: Purchase of a well-renovated Condo in Boston