All Forum Posts by: Charles Carillo

@Rosalyn Scofield

I always suggest that investors and homeowners avoid home warranties.

"the typical home warranty costs $450 annually, and only 25% of premiums are paid to homeowners. The company providing the warranty keeps most premiums as revenue and profit."

Every time I hear about property warranties, it is when something major goes wrong, and the tenants are complaining (rightfully so). The warranty company takes its time accessing the situation, and then they tell you there is a deductible; they will only cover so much; you need to use their preferred company, and it will take three weeks. All the while, the AC is out, and it is July.

It is much better to have a reserve fund and add it monthly. If you know that something major will need replacement in the future, increase the monthly amount you are depositing into your reserve fund. When something goes wrong, you can find the best contractor for the job, who can make the repairs right away, and now your tenants are happy, and you have minimized the time you would have spent speaking to your tenants about the delay or fighting a warranty company.

@JehuVirginie Dongmo

I do not know the details of your specific situation (amounts owed, class of property, etc.), but, in my experience, it wastes time and money. You could take them to small claims court and get a judgment, which is great, but let's be honest: if someone does not pay rent for the property they are living in, do you think they will pay a judgment off? They will wait 7 years for it to fall off their record. In the meantime, they will apply for credit, apartments, and utilities through someone else's name.

@Damon Diddit

I would contact your real estate attorney now for an honest opinion on costs and timelines if this did go to eviction. I would also ask them about cash for keys since I would initially offer the tenant this. 

When I have inherited tenants, I have been most successful when I have provided longer non-renewal notices, like 60-90 days, and offered to assist with moving costs. I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues. I know this is above and beyond what most municipalities require, but being fair will make the whole process easier.

Additionally, a new landlord can reduce the 60-90-day notice by offering more moving assistance (cash and/or labor) if they move sooner rather than later.

@Bob Judge

We have partners who are foreign investors. DM me, and I will send you contacts for attorneys, lenders, and accountants they have previously used. It is important that you hire professionals who have experience working with foreign investors.

@April Taylor

I wouldn't worry about the basement not being finished, but I would worry about the stairs if they are unsafe (or anything else that is unsafe). It is best to have the washer and dryer in the basement if the washer or hoses leaks/overflows. 

@Shannon Vistisen

I would definitely purchase it and do it yourself. I would also purchase the property and not the LLC unless you are a seasoned investor with a good attorney. Purchasing the LLC gives you ownership of the property, but it also opens you up to additional legal exposure since the entity has been active, and there is no way to really know for sure what else they used the LLC for. Many people utilize LLCs for many different ventures because they do not want to go through the hassle of opening another LLC. If this was the case, you risk putting yourself and the property at risk.

@Treza Edwards

I would suggest speaking to local banks, and credit unions. Whenever I am having an issue with financing, I normally reach out to local institutions. They are much more reasonable and are more intertwined in a community than some lender states away. The credit committee is usually made up of local people who are familiar with the market they are in. Lastly, they like building relationships. Once you find a lender that finances properties similar to yours, start building a relationship.

@Tom Ochieng

I would reach out to a real estate attorney for specific advice on this situation since you already have one tenant who is being difficult.

On a side note, when I have inherited tenants, I have been most successful when I have provided longer non-renewal notices, like 60-90 days, and offered to assist with moving costs. I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues. I know this is above and beyond what most municipalities require, but being fair will make the whole process easier.

Additionally, a new landlord can reduce the 60-90-day notice by offering more moving assistance (cash and/or labor) if they move sooner rather than later.

@Brian Dolbeare

I have never purchased a property with no off-street parking. Though I have purchased some with a mix where 330+ days a year, people parked in the driveway and the street except when there were snow bans, but there was enough room to fit everyone in the driveway/parking lot, and that was a hassle to deal with some days. 

A mentor of mine told me never to purchase a property without off-street parking because he always thought he got better tenants when they had cars. Now, of course, every market is different. NYC apartments will have a different car requirement from Orlando, but he used that methodology in this specific small city and was an investor from the 1980s-2000s, so a lot has changed, but I believe there is still some truth to it.

@Brice Alef-Torrisi

Having one checking account per property is an excellent way to keep your property finances separate from one another and your personal finances. Additionally, I have one savings account for reserves for all my properties, which I add to every month.