All Forum Posts by: Chris B.

I've had tenants leave owing for past rent and damages. I didn't pursue them in my case as it wasn’t worth the hassle, but the process would usually involve a small claims case which would provide a judgement and then pass the judgement off to a collection agency who will take half of anything they collect if they do collect anything.  In your case, the exact wording of your contract would come into play to determine if you are eligable for lost rent in this situation.  Its also good to add a clause to the contract stating the loosing party in a judgement would also be responsible for collection fees.

Humboldt County REIA

This forum doesn't allow me to post email addresses or telephone numbers, but I found this through a Google search. I can't vouch for this one as I don't know them. Check into it and verify they are a non-profit and are a part of the wider country wide REIA. There should be buyers and other wholesalers you can mingle with. Also lots of financing types attend.

You need lots of cash.  If you're not in this camp like a lot of us, you need decent, stable income and a history to proove it.  Then, you can start with almost no money down or if you can muster a 20%+ down payment, you can get you the best interest rates.  You can get some loans with almost no money down but the fees can be high.  It still may be an option though.  Its also best to raise your credit score too, but thats a different subject.  Assuming you have the income to satisfy a bank, you would need roughly $60K.  $40k to put 20% down on a ready to live in $200k property and have a $20k emergency fund on the side which the bank will look for.

As mentioned above: Offer better deals. Is your markup too high? Did you really get a good deal in the first place? How much does a wholesale buyer expect the ARV discount to be in your area? 10%, 20%, more? Maybe these homes have a higher repair cost than you are estimating and thus the numbers don't work for wholesale buyers. You may need to provide a product that is a better deal than what the next guy is providing. Also offering a few good deals will get positive attention in the community.

Bigger audience: Network. Mingle with more real-estate agents. Join the local REIA organization and spread the word.

There is always liability and asking or paying your tenant to use a power tool that could hurt them increases the liability. If the blade falls off and they chop off their toe, the situation becomes an opportunity for a lawyer to look into what kind of assets you might be willing to part with. You would be surprised how many seemingly capable people can hurt themselves by accident. I have it in my contracts state that the tenant is responsible for yard maintenance and it must be maintained to HOA standards (HOA exists in my case) and provide no further details. There is liability here also, but I didn't hand a potentially dangerous tool to a tenant. They could simply hire a service or obtain their own tool if they choose. So, I'd not offer any of your tools.

You are trying to be a nice guy and offer the tenant a discount and even offer the tools to help out. In another country where common sense is more valued, this would be great. Unfortunately the litigation in this country would prevent me from offering this solution.

If you do move forward with this, I suggest you leave the lease untouched and let him know either verbally or on a separate note that you will offer $30 credit for the months you need the lawn mowed, payable on completion of the work.

I can't speak for California, but what you are seeking is the opposite of what is available in AZ.  We have, relative to the nation as a whole, very low cash flow and high appreciation here.  Also, the smaller multi-family properties frequently are in the tougher neighborhoods if this is a concern.

If you earned income in another country such as China, and you are a US citizen or resident alien, then you should have filed US taxes for those years.  Now you are in an unfilled taxes situation you need to sort out and even up on.  I'd be surprised if any normal bank will even consider giving you a loan.  At best, it looks like you haven't worked for the past several years.  At worst, possible evasion.  Consider filing the tax forms.  Depending on your income and amount of taxes paid in China, you may not owe anything and just need to file the paperwork.

Before I'd worry about a pet deposit or not, decide if this is the person you want.  Do they pass your selection criteria?  If not, no need to worry about a deposit as you won't rent to them.  If it is a person you would like to rent to, then as stated, follow the law.  Get an attorney to assist if its not clear.  You probably won't ever get a pet deposit or pet rent out of this candidate.

Sounds like you will need to have a PM for a year or so and then you can likely transition over to self-management. It will depend on what the contract requires. It might be worth it to help learn the business and may be your only option if it’s required for you.

Pamela's suggestion is great and won't cost you money as a start.  Also, thanks for sharing the names.  Some people reading this topic may know these people and be able to help.