All Forum Posts by: JR C.

Do I understand correctly that I erentpayments.com allows ach debit allowing the landlord total control (tenant can not cancel the auto deduct from their account without landlord approval)?

Also, I understand that clearnow does not have this landlord control feature and the tenant can opt out of the automatic ach debit at anytime. Even without the landlord's permission. Is this correct?

That should have read "Frank Dodd" not "Frank Durbin".

I wanted to update this post after learning some legal points. Per the attorneys, Lease Option sells 'should' be avoided now since the Frank Durbin regulations came into law on 1/1/2014. It looks like that is a dead end going forward. As a matter of fact, any seller financing should be avoided (in their opinion) unless you are a licensed mortgage worker. Although a court has not given an opinion on this issue yet, who would want to be the first to be sued with all the new regs.? Not me.

I guess I will liquidate slowly as each condo's lease expires. Thank you for your replies!

I know now is not the best time to liquidate properties but I have been thinking I want to take that step. Now the question arises on how to go about it. Let me know what you all think. 1) Sell all properties (six condo's) as a package? This would be hard to do in my opinion. It would probably require a cash buyer. I need to net $500K and that is a large amount of cash for an investor to come up with. I understand banks do not offer blanket loans anymore for multiple properties. I can show on paper a 9% real return after all taxes, HOA fees, insurance, ect. Properties are paid for free and clear. 2) Sell them individually with the renters in place? I see this as most practical. The only factor is the time involved. I would much rather be a blanket deal. 3) Lease Purchase? I like the idea of a bigger price and larger monthly rents until the option is exercised but the new Frank Dodd regulations may hinder that. What is your opinion on the easiest and most efficient exit strategy? Any other ideas/comments/advise? Thanks a million.

Thanks for the replies. I have an appointment set up with my attorney to go over details. I hope Tennessee laws are a little more owner friendly than Texas. Are there any pointers I can get from Lease to Own veterans on here?

I am not sure what you mean by a foreclosure. If the buyer/renter defaults, doesn't the lease purchase become void per the contract? At that point wouldn't it become a regular eviction?

I really don't see the downside for me. I ask 5% down as the option fee, add an extra $100 to my monthly rent and as a slightly above market price for the unit. It seems like a win win for me. If the buyer/tenant decides to buy after the term, i simply do a 1035 Exchange on another one and start over. If they choose not to buy, I keep the extra funds paid.  What am I missing here?

Unfortunately, our CCR's state that a simple majority is needed to raise dues. I tried to express to them that raised rates would be cheaper than a law suit. My attorney is willing to write them a letter to warn them that forced labor can not be enforced and to basically stop with the constant emails with assigned tasks but I really don't wish to go down that road. Gestapo is a strong word. Let me downplay that to glazed over eyes power hungry.

The HOA replied to my email with.... "We have tried a volunteer only type of workday but hardly no one showed up. Plus we tried to raise the HOA dues but never get enough votes" My sympathies to them. I told them I am perusing this with the insurance company first. If that fails, I guess my only option is to simply call their bluff. I am really amazed that I am the only vocal member of the HOA that is willing to question this Gestapo type management. I have gotten several email replies from others that say they agree with me but few are willing to make a public statement I support. I submitted a list of concerns to the agent that manages our policy and have yet to get his official response. I will update when I do. I wish I would have thought of the disability persons angle earlier. That would probably have jolted some of the people. Although the board would probably just charge them the $25 non volunteer fee.

Yes. A $25 penalty per "volunteer day" if you do not help. I am checking with our insurance company to see if the liability issues are covered since the volunteers are not bonded/insured/covered by workers comp. insurance. My personal attorney says they have absolutely no power to do this and may be open for LARGE lawsuits if a volunteer is hurt or if someone gets hurt from something done by the volunteer.