All Forum Posts by: David Breitzmann

This question depends on the core team building the business: a question I am now asking of short term plans.

Unless - in your example - the member investing the most capital is "silent," not required to perform any labor, there's zero incentive to split profits with lesser contributors. They could just as easily form an LLC and hire out "bird-dogs" to perform the labor - retaining all of the net profit.

Consider making either the labor nil or increasing their share; otherwise, the substance - rather than the form - doesn't sound reasonable.

Bienes,

If it's been prior stated apologies:

It depends on your orientation as an investor - led by plan or led by emotion.

A business strategy - say most of the veterans - involves; a) finding your desired position, b) offering the H&B on the property, c) moving on

It's when we become too attached to a winning bid - which sometimes causes us to move outside of what the numbers say make sense - that mistakes are made.

Jon and others have said that using the above method will likely not yield a high conversion rate (offer being accepted).

It's more profitable, however, because each hour spent going a-b, b-a, a-b over one property lowers our real rate of return (if we take into account all of the sweat invested to hit a target).

Subjective, because - in all frankness - some just enjoy the patina of looking "busy."

Mariah,

A factor is also how much sand is left so to speak on the current tenant leases?

If all are relatively new the volatility of cash flow wouldn't seem to be as much of a concern (we can infer purchase price is affected here) as otherwise.

All assets are based on their ability to perform. Even a low purchase price won't mean much if you incur negative carry and cannot service the debt from sources other than rent.

The forest as opposed to the individual tree.

Mariah,

May have overlooked whether you are long or short on this property?

If it's intended to go the distance, the above may have impact on tenant turnover (and loss of improved rent position on extended leases). As folks expand their family size, this mix of units may be limiting.

Just a thought bubble.

This O/O scenario can work well for some if they understand the risks of living so proximal to their tenant.

Assuming that you: (a) have met with a competent attorney concerning the legal exposure and/or (b) have operated as an O/O landlord previously.

If either/or of the above are untrue - it may do well to consider expanding your business team.

Also, assuming that you understand the laws concerning collection of civil claims. Winning a judgment is much easier - assuming proper documentation - than collection.

This is running on as if it's complicated.

The first core problem, honestly, is you only bothered to do "a little bit of homework."

Next, in a later post you note that the nearly quarter million dollar price may be slightly too high. An investor with almost an 18,000 point influence - in two short lines- took only 4 sentences to target that number a bit more precisely: $100,000 too high.

To even consider such a huge amount of exposure without being solid on the fundamentals is beyond my understanding.

Jennifer & Jon,

Thanks. From the contents Jon, it sounds like one is as well joining discussions on BP and reading the Tao Te Ching.

Mariah,

It's always wonderful to learn - though painful at times. Just curious, what was the final sales price? Interested in the spread b/w the two numbers.

Jon,

Agreed as to the incentive weighted against risk. That impasse was, briefly, bridged when the landlord verbally informed me of the issuance of "3 days notice" upon the next instance.

That is the nodal issue - her continual violation of our mutually agreed terms.

She hasn't since met this term (all subsequent communication taking place via traceable means).

It seems the strategy of a multiple vacancy might be less effective since she recently granted me an amended period of notice of 3 days from the original lease of 30. The other parties do not have such amended terms - it shall be requested at the ADR.

If she has 30 days to fill two vacancies there's less room for negotiation; a 90% reduction of time (to 3 days) is better leverage.

The dollar amounts (obviously) aren't the main focus here - it's enforcing contracts and resolving violations.

Have had experiences where even subsequent to small claims adjudications it presents an extreme burden to cure contractual violations. NYC, for example, has a litmus test as such:

If one wins a small claims case, the debtor must be in possession of a bank balance >$1,740.

Moving is an option but poor management/enforcement is prevalent in these business relationships. If the solution isn't located in this instance, am likely to "rinse and repeat" at some juncture in the future.

Thank you gentlemen,

Jon K, that's theoretically the easiest solution. Her motivation to do so is nill because this tenant pays a large share of the monthly unit gross (nearly double the most inexpensive room).

John H, it certainly is open to interpretation. Not sure what your comfort level is sleeping with a gas stove on all evening - mine is non-existant.

The multiplier effect may be a strategy - although the consequences of anyone crying wolf would also have to be accepted.

Shall update on the alternative dispute resolution meeting to be scheduled in the upcoming weeks.

As to the difference between disturbance and nuisance, again, open to interpretation. Alas, according to the contract (which is all that operates here) though the treble test is met, there's a difference between sufficient "cause" and the remedy.

Any input as to pursuit of the rent reduction?

Unreserved thanks.