All Forum Posts by: Brendan M Loftus

 Thanks Rick!

 Thanks Greg for your response.

1. My #1 goal is to make things right with the tenant and once I have the full details I will repay whatever amount is owed to the tenant.

2. This is helpful. Thank you.

3. I don't want to shift the blame towards my PM. However, they onboarded the property via the housing authority portal and there had been one lease renewal. I would have expected them to review the HAP agreement. I am following up to better understand their process and whether this should have been caught earlier. 

4. I am glad the overpayment was identified. Again, I was unaware the tenant was overpaying until a couple weeks ago.  

 Hi Greg - thanks for your insight. The tenant was most certainly being overcharged. The details should be settled in the next few days but comments like yours have been very helpful.

Hi All,

I purchased a house in Atlanta back in early 2021 and I took on the current tenant who was with the section 8 program. The seller informed me the monthly rent was $1,550 including the tenant and city payments. This was also the amount stipulated in the lease, however I failed to review the HAP agreement as I was newer to RE investing at this time. I handed the property over to my PM, however, the Atlanta Housing Authority (AHA) recently informed my PM the portion of rent being charged to the tenant was significantly overstated. In other words, the seller was overcharging the tenant by about $200/month, which the housing authority didn't agree to and as a result, I will have to credit back the tenant about ~$4.5k from the last two years.

I understand it is my responsibility as a buyer to conduct my own due diligence, for which I take full responsibility not verifying the stated rent via the HAP agreement. However, I believe I was mislead by the seller who sold me a property with a higher monthly rent than what should have been.  My understanding is this is a federal crime to illegally charge the tenant more than the agreement with the housing authority. 

I am seeking resolution and would appreciate any input from the BP community. I will be taking the following steps:

1. Repay the tenant 100% of the amount she was overcharged.

2. Contact the seller. Seek full or partial recourse.

3. Seek resolution with my property manager. They are working with the city to correct the rent amount. However, I am upset they did not identify this sooner. I will request a copy of their errors & omissions policy. 

4. Learn from my mistakes and conduct better diligence going forward.

Any insight is appreciated. Thank you.

 Hi Rick - I will pay back 100% to the tenant. I am working with my property manager on the resolution. I am not happy my PM or myself did not catch this. My question now is if I have any recourse from the individual I purchased the property from. My understanding is this is a federal crime to overcharge the tenant rent portion. I will certainly report the seller to the city.

 Hi Rick, the latter is correct. The AHA didn't agree to what the seller told me to charge the tenant and is now forcing me to repay the excess rent charged for the last two years. Any advice you have would be appreciated. 

Best,

Brendan

Hi All,

I purchased a house in Atlanta back in early 2021 and I took on the current tenant who was with the section 8 program. One of the reasons I kept the tenant was because the seller advertised she was paying $1,550 monthly rent. This has been the case for the last two years, however, the Atlanta Housing Authority (AHA) recently informed me the portion of rent being charged to the tenant was significantly overstated. As a result, I will have to credit back the tenant about ~$4k from the last two years.

For those with legal experience, is this simply negligence or was I deceived by the seller? I understand it is my responsibility as a buyer to conduct my own due diligence, however it is often times difficult to confirm figures with the city, who tends to be slow to respond, when under a tight close. 

Any insight would be appreciated.

Hi Nicole! No updates to report! I've been respectful of the family's timeline while remaining persistent!

Hi All,

Here's a brief summary of a flip deal I'm looking at (off market). A close friend has offered for me to buy their family home located in Rolling Hills Estates. The home is about 2,500 sq ft and sits on a +3/4 acre lot. The home hasn't been taken care of and needs a LOT of work including major systems replacement, roof replacement, landscaping, kitchens & baths, the works, etc.

In general, I am looking to connect with investors who know this market. Any color on the below items would also be helpful:

-This is a relatively large deal for me so I'm partnering with my friend. Any advice on structuring the partnership? We expect to take out a joint loan and fund the rehab with cash.

-We are also considering ways to incentivize our contractor. Does anyone have experience structuring deals that compensate contractors on the back end or know of other creative ways to incentive contractors?

-Does anyone have experience working with the Rolling Hills HOA? This is something I am looking into.

-Are there any other nuances around investing in Rolling Hills / Palos verdes? I am based in Manhattan Beach and don't know the market as well. Has Palos Verdes become a more attractive place to live during the pandemic?

Thanks in advance and I appreciate any help. Would be great to connect if you invest in PV.

Best,

Brendan