All Forum Posts by: Eric Allgeier

My state, Kentucky, just said there will be no evictions until further notice.  I completely disagree with this tactic.  What I believe should be done is if someone is affected by this they can be compensated and therefore do not have to miss paying rent so it solves all the problems.  These payments would come from: full unemployment benefits, mandatory sick leave pay (wether its you or a family member), stimulus money that the government is talking about now and “quarantine pay” for those that have not lost their job but cannot work or get paid during this time at home.  All funded by the government. That should cover just about everyone who is affected by the current circumstances.  All the others should be able to be evicted, at least after a certain short time.  

Here’s The situation:  I am looking at buying a portfolio of single family homes for around $1m.  I’ll need 200k down.  I have investors lined up but I’m not sure how to structure the loan.  The loan would be about 150-175k and I would like to give them a certain percentage interest over a period of time.  What is normal/average for those numbers?  Interest rate and loan duration.  Are there other ways to structure such a loan?  Do they get part of the profits until the loan is paid off or is that optional?  The investor is simply looking for a safe place for his money with a good return (aren’t we all).  They may want to be paid off in 10 years or so.  I want to be able to make the terms clear to them when I bring the deal.  Right now I am all over the place.

Any help would be greatly appreciated.  Thank you.

I am an investor and I have several people close to me that would like to invest their money with me through partnerships. After tearing through the forums on BP and many sites on the internet I still don’t know what would be a good deal structure. So I made up my own and I would love comments and answers to these questions: 

Does this deal seem close to normal? 

Does this deal seem fair to all parties?

Any comments at all would be greatly appreciated.

The deal: My investor(s) put up 50% of all up front costs (down payment, closing, minor initial repairs), I put up the other 50%, I manage the property and take on any future costs for repairs or improvements. In return my investor(s) get 15% on their initial invest each year plus 50% or the equity. I get the rest.

Example with numbers: 600k 12 plex , we each put up 60k down, investors get guaranteed 9k every year and half the equity.  I get 35k every year and half the equity.  How does that sound from both ends?  

Thanks for any advice!!

 I can't. By law I have to give him 15 days notice before filing.  I gave him notice the first day he didn't meet his repayment plan.

 No that’s not what I said.  And yes, I’m evicting.  

 I very much agree.  I guess I'm just trying to figure the best way to go about all this to keep it simple for ME not necessarily HIM.  I don't want him torching the place or making this a huge pain.  I also would love to avoid storing or moving all his stuff.  I realize that's a part of the gig but I'd rather explore options first.   If he was around or communicating this would be a lot easier.  Thanks.

 That pretty much sums it up.  I'm trying to figure out what he's thinking. He's not a bad guy or an idiot so I assume he has a plan.  I guess he is just hoping things will magically work out.  He might give me the "I'm clean, I'm going to get a job, its all good" pitch.  

 According to my lease abandonment is 10 days.  I will make a post to have him contact me in that time frame.  By law I can enter the premises after 7 days of no contact /absence and it will be considered abandoned after 10 days with no contact per my lease.

Thanks for the responses.  I'm going to start the eviction today.  I didn't do it yet because I have to give 15 days notice before I evict.  And I was trying to give him options- 1- Pay what's due by May 31, 2- Be out and clean by May 31 and use owed money to find a new place, 3- Get evicted.  I was going to file today and allow it to go through if the first two options weren't satisfied.  I am still not sure how long the process takes so I gave him a cushion (mainly in hopes that he chooses option 1 or 2 to keep my stress/work level down).

One more question-  How important is it for me to hire a lawyer?  I have read the laws and followed them.  I have plenty of proof between the lease, 2 different letters outlining new payment plans that could get him on track showing that I tried to work with him and the letter I texted and hand-delivered outlining these options.  It feels pretty cut and dry.  

Thanks again! 

I have a tenant in a triplex that owes 1 month rent.  I told him I was going to start the eviction process two weeks ago and haven’t heard from him since.  (There have been ongoing problems with his rent payments). The apartment is always dark, he hasn’t collected mail and his phone won’t take calls.  Then another tenant said that the first tenant said he was going to rehab.  This made a lot of sense but I didn’t know he had a problem.  Now I don’t know what to do.  He’s gone but all his stuff is there and the future doesn’t look good for him turning things around.  Can I/should I go ahead with the eviction? I really don’t want to toss him and his stuff out with him in rehab but I need to collect rent.  Any help would be appreciated.

Thanks,

Eric