All Forum Posts by: Heather Frusco

@Steve Babiak I'm sorry but your comment on 'sometimes it makes good business sense to break even' is just a soundbite.... 'breaking even' is not what you do as a business... breaking even is what do as your worse can scenario not 'good business sense' ... which I know is not what you meant... but if you are aiming for 'breaking even' without a backup plan... I hate to break it you but you've already lost... whether that means just lost rent for month or two or a property lost to foreclosure that will depend on the investor. 

Like I said for those that wish to treat it like a business, there's no need to be callus but being naive is even worse. I agree with and plan to put all of our tenants which have issues right now on a re-payment plan, alleviating the current stress but ensuring they remain responsible all the while, while still going through the steps and submitting evictions into the que once they do open back up again... JUST IN CASE some don't plan on coming through or moving out on their own accord. Now are we going to completely absorb missed rent... heck no... are we going to let all our tenants know that we'll try to work something out pre-maturely... of course not, who in world would do so and then expect an honest effort. So to recap... will we help to temporarily alleviate tenants payments concerns... sure... will we still carry out evictions as they become available and report to credit agencies if those new agreements still aren't fulfilled... you bet. 

@Michaela G. I think you would make a great chess player and someone which I would just quite honestly get enjoyment from just spending time together. I this game however, it's not a clean slate... we're playing a game that is already skewed against us. I hear your point and see it as a strategy... the kicker is do I really need to sacrifice something right now without having a closing move? --- I see being able to work out a deal with your current tenant as your sacrifice and your closing move... should it come to that is having your eviction paperwork filled and ready to go should it not pan out like you envision. I also prefer to keep my sacrifice moves close to the vest and without letting my opponent know what I plan on doing... so no need for me to forecast to all my tenants that I will work out a deal with them... because truth be told some we will workout a deal with and some we won't purely based on their payment and tenant history leading up to now. 

@Account Closed no need to get upset. Don't worry we'll still work out deals with our tenants... while the paperwork as been submitted to the city for an eviction... should it come to that... just keeping everyone honest. Now you can understand that can't you? 

@Michaela G. I think that is commendable and in my honest opinion on of the most kind things one can do, you have my respect. But that doesn't mean it makes any sense as an investor. For instance, would you pay for other tenants which are not in your own properties... would you help other tenants make rent?.... if the answer is 'No' then I can assure you didn't get into rental properties to provide housing for free or to break even. Is CVS, Walgreens, your mortgage company, your insurance company foregoing their PROFIT... they are after all in a much stronger position that all of us... the answer is 'NO' the best you see is a delay in responsibilities... not because they are callus but because it is a business... the moment you forget that and cross that line (with good intentions)... you will be corrected for it... the market will correct it and remind you that you're either a running business (profitable) or a charity... it'll make that decision for you based on how you address situations like these - some will soon see their rentals needing serious cash infusions for a myriad of reasons i.e. maintenance, repairs, debts and will soon wish they would have protected their reserves. 

I hope that your tenants will come through for you and pay you the decreased amount you have worked out with them but, just my honest opinion... because you have 'forecasted' your willingness to 'help' you will likely see many more problems with payment and for a longer period than those which don't forecast and instead take it on a private case-by-case basis while still filling for eviction (or getting in line for it)... just my take... I hope I'm wrong but...only time will tell. 

@Jay Hinrichs for sure and I agree with it all. The interesting take however, are those 'investors' / landlords on here which take it upon themselves to 'help' by forgiving  rent payments all together claiming that they have reserves in place for it - more power to them but, really... For those looking to 'carry' their tenant's debts... an honest question... 'who will carry your debts once you have blown through your reserve and you are then facing a leaky roof, a leaky water heater, taxes, insurance, mortgage and utilities'? - It's almost akin to an airplane going down and instead of these investors downing their O2 masks on first... they attempt to help someone else thinking that they're in a position to do so, only to later find themselves out cold between a rock and hard place. 

Help where you can... but realize that your reserves are meant to get you through long evictions... execute a payment plan with your tenants, if needed (don't broadcast it.. FGS) and still file for eviction so that it is ready when the courts open back up... if the tenant is paying as agreed under the new agreement no harm no foul... but if still not... you can proceed swiftly through an eviction when they open up... it really is that simple.  

@Jay Hinrichs oh I know it... heck the majority go from pay-check to pay-check. But it's must something to point out to those on here that mention 'investors should have reserves in place for situations like these' and the proceed to make their point as to why they'll be deploying their reserves to 'help'. The counter argument is, 'Tenant's should also have 3-6 month's in reserves in place'... those that don't just like those investors that don't should not be expecting help from those did prepare appropriately. 

The one I thing I hear from half of the smaller time landlords on here is that they would 'forgive the rent payment due to the pandemic' and then the same LL's will highlight that investors should have 3-6 month's of reserves in place for this... I'm sorry but these same 'investors' / landlords are likely not going to be here for much longer with that thought pattern (will likely find their foreclosed properties on the market soon). Tenants and really anyone else should ALSO have 3-6 months in reserves for times such as these. So if you have a responsible tenant/citizen which has 3-6 months in reserves in place there really is no missed rent payment. 

What some of these 'investors' are failing to see it that it is not your position to cover someones living situation on your dime as in investor - that it is the state's responsibility, if that is something they would like to do. Have you seen any states instead offer to pay for a tenant's rent payment? ---- of course not and you won't because they would rather 'lean' on a landlord to 'adsorb' that cost.  Look I'm not faulting you for covering someones rent during times like these in one of you rentals but if that's the case... I have a cousin that would love to rent one of your 'rent-free' units if you like to take him up on it. 

We are certainly not callus to the situation but, any tenant's which we have that miss their rent payment on month 1 of this pandemic situation have dropped the ball they SHOULD also have 3-6 months of reserves but don't and as grown adults it is not a landlords or investor's responsibility to support another adult - heck the states don't even want to support these adults which is again why you don't see governments pay for tenant's rents - they just push it onto the landlord... how's that for an eye opener. Again not callus to the situation just realistic...if our tenant's miss payments during this whole situation, we will work with them to schedule a payment plan moving forward.... we will still file for eviction during this time and get it lined up for when the courts start processing again... and if by the time courts start processing evictions again an agreement hasn't been reached we will certainly carry out evictions as needed. 

We currently have 3-6 months in reserves for all of our rentals but guess what?.... that is exactly what the are - reserves - which are meant to carry our properties over during long term evictions such as these... not meant to support adults which failed to prepare properly. For those looking to 'carry' your tenant's debts... a word of caution and important to ask yourself 'who will carry your debts once you have blown through your reserve and you are then facing a leaky roof, a leaky water heater, taxes, insurance, mortgage and utilities'?    

@Arthur P. @Mike Wood @Brian Boyd

Just curious to hear from those which currently have vacant properties as to what they are seeing in regards to demand for their rental listings right now in the middle of the COVID-19 pandemic. Luckily our property managers are holding strong and we haven't had much push back (yet, I'm guessing) on our properties but would be curious to hear from other's on here with vacant properties on what they are seeing or experiencing with listings and showings for rental units. 

@Ricardo R. love it.... and thank you for sharing. Class 'C' landlords and especially #12 listed on that list are exactly why you have some on here trying every which way and so hard to make a point even though everyone which has more experience and has been there are trying to tell them otherwise, but to each their own - doctors with a phD in google medical studies, I guess. Thank for the article and something for some here worth reading.   

https://www.biggerpockets.com/forums/52/topics/402958-investors---are-you-a-c-class-landlord?page=1

@Ralph R. @Guy Gimenez

@Josh C. all in all good... about a 60 day delay in receiving the rents but eventually we got it all back.