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All Forum Posts by: Craig Smith

Craig Smith has started 5 posts and replied 54 times.

Post: Tenant Lied On Rental App. Would you Rent to them?

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14

Question: Would you rent to someone who gave you a false contact for their current Landlord?

Background (Story): Potential Tenant looks at place, Likes it, fills out application, and wants to move right in. I call the references and check the background. All good. Last thing I do is call their current landlord. I look up the address in the local tax base and notice it is an LLC with 5 properties [all of them in the rougher parts of town]. I then call Amy (the landlord/manager?) No answer. I leave a message. An hour later I get a call back. It's Amy (from the number I called, so far so good). I ask the typical questions everything sounds good. At most they are a day or two late with the rent. blah blah blah. During this time as I ask more probing questions she starts to cough, says she has something in her throat.

Then I ask: So is the only property you own. 

Amy: ahh yeah (hmm, LLC owns 5 properties) .[hacking picks up]

Me:Oh how long? 

Amy: A couple of years. (this doesn't match the LLC records). [we are really coughing hard now]

Me: Do you have it setup in an LLC?

Amy: A What? [she is now hacking uncontrollably] I will have to call you back, can't talk.

So at this point, I'm guessing I'm being played with. So to verify I goto the other houses owned by the LLC and ask for the landlord/manager's number. 3 house I get the number. Find out it's a management company. I call Bob the contact, no answer. He say's for real estate questions call Dawn. I leave a message and call Dawn. No answer. Leave a message.

Hour or 2 later I hear from Dawn. I explain the situation and she tells me that she didn't know they moving out. That they pay on time mostly, but have been about 5 days late twice. She hasn't had any problems with them and that they were really nice. However, they haven't paid this month and they were about to post notice next week. Also that they took over management of the unit at the beginning of the year, she doesn't know of any specific problems but she hasn't ever been in the house. The city was there when they took over for the city rental inspection and that Bob had been in to fix a maintenance issue the previous month. I could call him for how clean they were. I thank her. 

Ok, Now I'm curious. Why give a false landlord contact when it wasn't that bad. (so far) They could pay the rent as my rent was $50 more then their current. They already gave 1 month rent with the application. Any if approved, the have the other 2 months in cash. 

So I call the tenant, say I know you lied, however they gave you a good recommendation so I will rent to you. I can stop by their current home (this way if it's a mess I say Sorry NO) in 15 mins for the rest of the money. 

As I'm driving there, Bob calls me. Tells me how they have destroyed the house. Holes in wall, disgusting inside. When they took over from the other management company, they did a walk through and told the owner all the work needed once they move out. Owner said let them stay, as they can't do more damage then already is. Bob then tells me how they are always late. They never pay the late fees which are in the hundreds. I thank him as I finish the conversation outside the house. 

So, the moment of truth. I don't mention Bob's call and listen the tenants story. They explain how they have been having water issues in the basement and no body wants to fix it. I go inside and the kitchen and bath are clean except the kitchen smells moldy. A drawer face is off a drawer in the kitchen. But it's clean otherwise. No bags of trash.  Bedrooms have clutter but also moving boxes. Now the basement smells like sewer, and the sheetrock walls are all covered in mold. as are the lower parts of 2 couches.  Basement stairs are off the kitchen. 

 I'm getting $50 over market rate, for a house with no OSP and Gun shots a couple of times a year a few blocks away. It's a double block with thin walls to the otherside. 

So would you rent to this person?

Hey! I think I had that tub in my house. Just removed it to redo my bath, finally after 15 years. 

Renovation, looks great so far. Congrats

Post: Gas Pipe question.

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14

My guess is it was for a Gas fireplace. The outlet behind likely provided the power for the blower. I'd get some pipe dope and put a cap on it (looks like it's open). In our area the gas company will actually cap all open ends for free. 

Post: Empty Oil Tank on Property- Meaning?

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14

Be careful in NJ if it is in the ground. The cost can easily reach over $25000 and some towns recorded who had them. It has to be removed even if was opened cleaned and filled with rock. Neighbor in Bloomfield had to have it removed in order to close on their house. Wasn't an issue back when they bought it, and luckily the soil tested clean when they removed. 

If it's in a basement, list it for free on Craigslist and it will quickly disappear.

Post: If you won't rent to a lawyer, would you rent to a cop?

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14
Originally posted by @Jeff Rabinowitz:

    I will not rent to lawyers or legal aide workers. I have never, to my knowledge, had a lawyer request a showing for one of my homes. I did have a legal aide worker (I believe he was a law student) do so once. I told him I do not rent to lawyers while doing my preliminary inquiries for the showing. He became irate, told me that was illegal, and nearly threatened to sue me less than 5 minutes into a phone call. I explained that lawyers were not a protected class. He then demanded a showing and I refused saying it was obvious we would not be compatible. He validated that my policy was a good one.

    I have never had a cop apply either but I would refuse to rent to them also. I had a cop living next door to one of my rentals for a while. She threw loud parties and had large dogs which she kept unchained outside and which barked loudly at all hours. She was rude, acted as if she was above the law and, for all practical purposes, she was. My tenants complained about her (this house was within 1/2 a mile from the police station) and the police never did a thing. When she moved out of that house she left an abandoned car and moved a lot of trash onto my side. I had to pay to get rid of it. I lost a good tenant because of her. I can only imagine what would have happened had she been my tenant.

    I am not saying that all lawyers or cops would be bad tenants. I am saying that the potential damage from a bad tenant who knows the system from the inside and takes advantage of the system is much greater than the potential damage from most other tenants who would pass my screens. To me, the risk is not worth it.

 2nd the legal aide ~ paralegal! My parents got a raving recommendation from the lawyer and realtor. Not only did she destroy the house,  she had a large dog that wasn't allowed which also caused damage. She knew how to delay the eviction, then at the last possible moment the lawyer she worked for filed bankruptcy for her. That got her another 4 months of free rent before she moved out sticking the water bill on my parents too. She never did complete the bankruptcy!  

Post: HELP: Current sale held up do to lot purchased via tax sale

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14

Question:

1) When a property goes up for tax sale in Pa., the sheriff sends out a notification to the creditors. In the case of a Mortgage does it matter if they send it to the Mortgagor or the trustee assigned to the mortgage?

Background: We (partner and I) bought a property. It was advertised as a house and lot that had been foreclosed. We quickly discovered that the lot was not in the banks name but was lost PRIOR to the foreclosure at a tax sale. We got a reduction in the cost of the house from our accepted bid once the bank realized the Lot was not owned by them. We then entered into a contract to purchase the lot also with the person who bought it at tax sale. Not wanting to spend $500 on title insurance for a $8000 we skipped the title insurance and got a written guarantee from the seller he would pay to correct any defects in the title of the lot.  In July we sold the house and lot together and were set to close the beginning of August. Well, the lot came back with 3 defects. 2 were quickly cleared. The third came back that the Mortgage was not properly cleared from the lot as 1) it was not foreclosed on 2) not properly served. Equity One Consumer Loan Company, INC was served via CT corporation. I was told the First American Title Company didn't know who CT corp was and how they are related. So they don't believe it to be properly served.  So today I looked up CT corp and found out they are a Registered Agent. I called them and found out they do serve Equity one. So I would think they were served properly. I called the titled company and they are going back tot he underwriter that had the issue for clarification. 

Also, somewhere along the line "the bank of NY Mellon F/K/A THE BANK OF NEW YORK as successor trustee for JPMORGAN Chase bank, NA, as trustee for the benefit of the certificateholders of popular abs inc mortgage pass-through certificates series 2006-c C/O ocwenn, ......address in FL" Now NY Mellon is who foreclosed and sold it to econohomes who we actually bought it from. 

Did NY Mellon need to be notified?

Post: 24 MONTH FLIPPING

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14
Originally posted by @Greg H.:

@Frank Rodriguez

You seem to have forgot a few things in your calculation :

Holding costs:  Property taxes, insurance, vacancies and repairs

Your 20k Appreciation : Prices can also go down in 24 months.  Why 24 months over 12 months as 12 months is the threshold ?

You also did not factor in how many times the 3-6 month flipper could turn over that money within 24 months

 Also add payments and interest if your financing in any portion of purchase price and repairs, plus potential tenant buyouts if you try to sell while a tenant is in it.

Post: Am I in the clear?

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14

LOL. Just curious. Anyone know what state he was from? 

Post: questions about discrimination

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14

@K. marie P. 

About 15 years ago over the course of say a year or two while renting out different apartments I'd get a call from a guy that would ask all the questions about my rental. He talk about all sorts of things. Then after 15 mins, he'd change tone and go "well I'm gay is that Ok?" I'd say that is fine and he say he'd call back to set up time to see the house. I would never hear from him again on that listing. (actually if you could discriminate and there were more of them in my area looking to rent, I'd only rent to Gay Men LOL )  After the 3rd time he called I started to realize I'd been through this before. After the 6th or so time of wasting another 15 mins of life I was swore the next time he called I was going say "no F****ts allowed" as soon as I realized it was him" Luckily for me, and unfortunately for my lawyer he never called again.  

Post: Ben Private Loans

Craig SmithPosted
  • Investor
  • Wilkes Barre, PA
  • Posts 54
  • Votes 14

LOL I get a ton of scammers from craigslist over the years when I list my apartments for rent. You can tell instantly by the language and the religious connections they try to use.