All Forum Posts by: Donna Smolinski

I agree with Joel. $200k is way too much to bring to the table on a SS. Most banks will consider a divorce a hardship, BUT they may not agree to write off the amount since it appears you have quite a bit of liquidity. Where is the beach house?? Can't you both agree to rent it to hold for a few yrs since the market is starting to improve? How steep would the negative be? Your husband might be right about the bank declining the SS if you are very liquid. It really depends on the bank, but I doubt they will settle for a $200k SS at this time, especially since you aren't behind in payments yet. Seems you are a bit between a rock n hard spot. Did you leave yourself an out on your current contract, if you decide to hold it? I'm kinda scratching my head on this one Jennifer. $200k is alot of money to throw away, but divorce ISN'T ALWAYS considered a complete hardship to a bank that will absorb such a big loss. I'd at least try to negotiate a reduced payoff.

Let us know how this turns out for you. Sorry you are being faced with this situation.

What a GREAT tip! Sprayers in kitchen sinks cause alot of problems (mold potential from overspraying). This is turning into another great thread. Keep the comments coming everyone. A simple shared idea like this can save a landlord thousands!

Jon, you have a bundle of knowledge in this arena (and other topics too). I've seen some of your past posts regarding SDIRA and I was hoping you would chime in on this. THANK YOU for all your knowledge and sharing.
That's good news because my brother is really good in his field and I'd like to bring him on the team. Do you think I should put him on W-2 payroll as a project manager or just pay him for specifc work performed on 1099? He will also continue working for others.

Thank you again for all you contributions you make on BP :)

I agree with you Peter, only tile hallways on the 1st floor. Too noisy to have tiled hallways on the 2nd floor.

My brother has expressed interest in doing some of the work on our rehabs, now that we're investing in his neck of the woods. Can he do some of the work at fair contract pricing for the properties we buy in our SDIRA? I know you can't sell, borrow or rent to a family member, but I'm not sure about contracting work (mostly tile & misc repair work). We will be invoiced standard rates from him for work performed, so we aren't benefiting financially. It's just that it would be nice to have someone do the work that we know and trust 100%.

I fully agree with your philosophy Kyle... point well taken about upgrades before the end of their life line. However, I still want acess to inspect interior on a quarterly basis. Here is a good example why:

I had a client that was renting (looking to buy). Their daughter ran into a hardship. Daughter & husband moved in with Mom & Dad. They were all out of town when a water pipe burst. Downstairs was flooded with beautiful HW floors. They inherited a dog and cat when their kids moved home, so they didn't want to call the landlord because of the pets that were a breach in their lease. Also, daughter now had a newborn, so there were 2 families living there, not just one that was on the lease. So they dealt with the flood and repairs on their own because they didn't want the landlord to know about the pets and additional 3 occupants that weren't on the lease. I suggested that they should inform the landlord of their situation, but they chose not to (I had no relationship with the landlord or the lease so I had no right to interfere). Any there was some permanent water damage to the hardwood floors, but it appeared very minor. If the landlord was advised of this, he could have made an insurance claim, if he chose to do so. The landlord had no idea what was going on and had no way of knowing how repairs were handled or why there was some damage to the wood floors. The tenant may have thought twice about calling him, if he knew an inspection date was approaching.

Anyway, this kind of stuff happens alot, even with good paying tenants. These folks always paid their rent and kept interior/exterior maintained well. So you just never know. I realize tenants have a right to privacy, but a quick quarterly inspection shouldn't be a big inconveience unless they have something to hide. Just my $.02

Very interesting thread here.
@J Scott , I have to agree with your $107k vs $112k scenario. The appraisals are definitely having a negative impact on value in this case, and it's certainly not an isolated case. The only thing I can suggest, is give the appraiser ALL the ammunition he/she needs to justify and support the higher value. I give them before pics, to show what a dog the property was before rehab. I give specifics on comps (new tile countertops, vs our new "granite"). Our new landscape, fence vs deferred landscape & old fence, new water heater, etc, etc. I have had appraisers thank me for giving them a detailed list of upgrades, including "before" pics and they've usually rewarded me with values that were certainly above the avg comp. All of our properties are listed above the avg FMV because they are usually way above average condition. Only twice, have we had appraisals come in slightly below sales price, but even those were slightly above the avg FMV. I can't complain about my appraisal experiences here, but then again, I feel like I've done half of the appraisers job. They are overworked and in most cases, now under paid. I've never an appraiser that didn't appreciate the data I've provided them. Of course, be careful about stepping over the line. Just give em the data, and let him know there were multiple offers, (if that was the case).

Anyway, like I said, this is a VERY interesting thread. A subject that impacts all of us. Nobody wants to see another over inflated bubble, just waiting to burst again, but come on.... these prices gotta go up again, and they've already started to. The combation of multiple offers, cash buyers and low inventory will force the market upwards. I don't believe that "most" cash deals are discounted anymore (at least not in my markets). I'm a cash buyer, and I've offered over list many times, only to lose to a higher cash buyer. And yes, I have seen many cash transactions used on appraisal reports. I've also seen appraisers throw out REO comps that needed alot of work, because it wasn't comparable to a fully rehabbed property. I'm not afraid to explain to an appraiser that I don't feel a particular comp in the neighborhood should be used (even if it's a model match), because condition was so far inferior, that it isn't even comparable anymore. They usually agree with me.

Do your homework, meet the appraiser, be courteous and professional and not pushy. Let them know you are there to provide data to try to help make his/her job a little easier. Believe it or not, "most" appraisers hate bringing values in below contract price, but sometimes they have no choice. Find the BEST data you can, be thorough and cross your fingers, lol. Can't do much more.

IMO: VALUES ARE OR WILL BE GOING UP IN MOST AREAS

So where the heck is "photobucket"?

This is where the BIG problems come in. Tenants don't call about little things, that become BIG things when overlooked. I'm starting to write an addendum to my leases... an Inspection Clause. "TENANT SHALL ALLOW LANDLORD OR LANDLORD'S CONTRACTOR TO INSPECT PROPERTY EVERY 3 MONTHS FOR DEFECTS AND NECESSARY REPAIRS. LANDLORD SHALL GIVE TENANT 7 DAY NOTICE TO ENTER FOR INSPECTION AND MAKE NECESSARY REPAIRS, IF ANY NEEDED. TENANT SHALL MAKE PROPERTY ACCESSIBLE FOR INSPECTION/REPAIRS & FAILURE TO DO SO SHALL BE CONSIDERED A BREACH IN TERMS OF LEASE". I just drafted this a few days ago, to incorporate into my next rental. If they don't like it, they can move on. We keep our rentals in top condition, usually with alot of upgrades, so it attracts quality tenants. Most quality tenants will appreciate defect inspections. I found that the biggest complaint with quality tenants, is the landlord doesn't maintain the property. This is also a clever way to gain entry to be sure they are maintaing it too.

I also like to cover all rooms except bedrooms with good tile or travertine, including hallways. Hallways seem to carry the heaviest wear n tear on carpet. I like eggshell paint. Cleans fairly well, without the ugly shine of semi-gloss. That's all I can think of. I flip more than hold, so others may have more input than me.

Dammit Will! I was hanging around to see that pic. I'm ready for a good laugh, and I'm sure it's a good pic. Don't give up. I wanna see it, LOL. I'm heading to the pool in a few minutes too. I'll look again later :) GOOD LUCK POSTING THE PIC!

Peter, nice job on the photo upload. Can you give Will & me a lesson?? lol