All Forum Posts by: Brandon Chidester

Interesting points! I have a differing outlook I'd like to share.

In 2019 I worked for investor and collected $21,000 in back rent for his business. I will share the information that made this possible. 

Tenant Vs. Landlord Mindset Having the approach of “well you should have been saving, have reserves, made better choices, you have to pay your bills” etc.... is too late in the game. We are not suddenly going to change the mindset of a tenant. There is a reason (stemming from life choices) why some individuals are meant to be landlords and others are meant to be tenants.

Fighting Fire with Fire Attempting to justify & lecture why paying rent is the right thing to do and not paying is the wrong decision is just going to frustrate your tenant further. Some tenants may think of you as a greedy politician, and if you start lecturing now, they certainty wont pay. 

Here is your best shot at collecting! Anyone familiar with Chris Voss? Never Split the Difference is his book on negotiation. What will get you the furthest with your tenants and collecting payment is: 

1. Let them be heard, let them give their story, and sympathize with them. Be genuine! You may find yourself saying "Wow, that has got to be frustrating" "Sounds like it's been a tough month, huh?"

2. Get them to say "that's right" if your tenant feels understood, they wont argue your side. They just want to feel understood for the bad position they are in. 

3. They will only listen to you Once they feel heard, now they will listen to your side of the story. 

Conclusion Have communication with your tenant that is falling behind on rent.  Call them and let them you know it's a frustrating time and you want to understand their situation a bit better. Get them to say "that's right". Explain the position you'll be put in if you cant collect any rent. Find middle ground!

Be well, good luck to all! 

Brandon Chidester 

Gallagher Portfolio Insurance 

@Account Closed Your explanation of setting up an S-Corp was very helpful. I appreciate you sharing your professional knowledge. Thank you 

@Bob Norton Thank you for the direction Bob! I appreciate the advice you've given. 

I appreciate anyone willing to share some tax advice! I am currently a full time W2 Employee. I also do real estate transactions on the side as a 1099 Real Estate agent. I have to believe there is a great number of individuals in the BP community that do something similar. 

I would like to limit the amount I owe in 1099 taxes by writing off Real Estate training courses I've attended, my mileage, business cards, etc. I have been told that filing a 1099 form and writing off against the taxes owed can be difficult when you also have W2 income. 

Can anyone advise on how they have done this in years past? Or if there are some tips I should keep in mind?

Thank you!

Brandon

@Charles Seaman I am interested as well and I will add that I am not an experienced Airbnb host. I have been a guest however to 10+ locations and this is the first time I have seen formal reminders. I have experienced handwritten notes from the host but those often get lost or thrown away the very first night of stay. 

@Hubert Kim @Jonathan Taylor Smith 

My basic tips to anyone looking to collect back rent is to be kind, reasonable, fair, patient, and stern. Please keep in mind for most of these collections it took numerous (3-6) points of contact/negotiation. For those whose phone numbers I had I called (always call if you can). 

My Approach: I came in acting as a third party wedging myself in-between the landlord (my boss) and the past tenant. Stating "I have recently been hired to clear up outstanding balances and take to court any past tenants not willing to cooperate." I made it clear that I am calling to help them clear this situation up and avoid court but if they don't make progress with payments then my hands are tied and I have to serve court papers. I sympathized with them and most of these past tenants didn't mind working with me. Don't be rude, be understanding and find common ground. 

Automate It: Getting someone to physically bring in a paper check once a month for a house they lived in 2 years ago is a large favor to ask. So what I found most beneficial was pushing for an automated online payment. Most of these tenants have set up auto payments with their bank. 

@Jonathan Taylor Smith @Jim K.@Jim Cummings @Kyle J.@Dennis M. 

Thanks for the support and advice. Since March I have been able to collect $11,015.12 between payment plans and garnishments. Netting myself a nice commission. Happy to share what I've learned to anyone who is interested. 

Hello! Can anyone touch on PMI? I'd like to avoid it with a conventional loan but I also like the advantages of a low FHA downpayment.

Has anyone experienced both and can touch on preference/experience? Thank you much BP! 

@Kyle J. Thanks a lot for the positive and thoughtful response. I voluntarily offered to help collect some of this debt and I am optimistic that I can recover a portion of it. There are a number of working individuals who would want to avoid credit damage and again I'm confident we can collect even a portion of what is owed. Based on your advice I am going to sort the individuals to a list of those who are worth my while. 

I'll let you know if I have success! Rent Recovery Service or AOA Debt Reporting Service were great suggestions! Thanks again Kyle