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All Forum Posts by: Jason A.

Jason A. has started 4 posts and replied 53 times.

Post: Is Anyone Tired of INCREASED Insurance Premiums and cancelled their policies?

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

I've actually done this. It's called "self insurance". I felt that the main risk to insure myself against was not so much property damage, but liability, and was able to get that coverage under my umbrella policy. I took on the risk myself for any property damage. It was a calculated risk as in this case the neighbors were extremely watchful of one another's properties. Sometimes, you have little choice because a vacant property is simply uninsurable or the insurance cost is astronomically high. Although in my case, I saved literally thousands of dollars by being willing to assume the risk myself, I wouldn't recommend this as a good strategy for any case in general.

Post: Remove tenants before? acquriing

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

You didn't mention what kind of lease or rental agreement they have/had with the previous owner. I used to acquire units all the time that had tenants with no written agreements (tenants at will). If they are tenants at will, you are (somewhat) in luck. I say somewhat because any move that might involve eviction can be quite unlucky for you indeed, if you are in a tenant paradise state like MA (or, unfortunately, in your case RI).

In practically all these cases, the first thing I did was serve them with a 30-day notice to quit to terminate the old tenancy. For the ones I wanted to keep, I would offer to create a new tenancy, which would be a written tenancy at will (no leases, thanks), and usually at a higher rent, since their rents were all usually below market. Also, I would put the requirement in there for a deposit (with signed statement of condition) and last month's rent. Often, the landlord had failed to collect these or had already used these monies for occasions where the tenant had not paid (improperly, of course, in the case of a deposit). For the ones I didn't want to keep, the 30-day notice got the eviction process started.

For multi-family rentals, keep in mind that often the reason a landlord is selling out (sometimes at a ridiculously low price) is exactly because one or more tenants are creating problems, sometimes very serious and costly ones. It's always a good idea to do a little research (no, a LOT of research) before you close on the property to get a sense of the hornet's nest you may be buying into. If you think it might be so, see if the landlord is willing or able to remove the problem tenant(s) before closing. If not, at the very least have a talk with a local attorney that specializes in evictions to get some sense of what you are up against and what the worst-case scenario might turn out to be for you cost-wise and aggravation-wise. 

Just a few thoughts from an older but wiser ex-landlord.

Post: Using a buyer's agent versus contacting the seller's agent every time and why REALTORS need a special level of TRUST with their "investors"

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

@Mark Updegraff - unless I am missing something, it sounds like most if not all the problems you are describing would be solved by, before committing any substantial (billable) amount of time to any buyer, having the buyer sign a well-written Exclusive Buyer's Broker Agreement. Your commission would be protected in the event the buyer attempts to use any other broker to buy a property. 

Post: Question on Lease - It's not a valid lease right?

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28
Originally posted by @Matthew Paul:

If the applicant doesnt have a copy of the lease , does a lease exist ? 

Well, the more important issue is: does a tenancy exist? Unwritten tenancies are created all the time (e.g., Tenancy At Will). They have been given the keys (possession). Again, seek legal advice.

Post: Question on Lease - It's not a valid lease right?

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

If you gave them the keys, they are not trespassing.

Signed lease, partial payment, transfer of possession and control of the premises smells like a tenancy to me.

You would be wise to see an attorney, and quickly. Good luck with the eviction.

Post: am I allowed to accept a tenant who PREPAY several months in advance?

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

Check your state laws. Here in the glorious "tenant friendly" (please, please, let's not be so harsh to use the term "anti-landlord") state of MA, my understanding is that it is ILLEGAL to collect anything more than the following in advance: 1) first month's rent, 2) last month's rent, 3) a security deposit in an amount not to exceed the first month's rent, and 4) the purchase and installation cost of a new lock and key. In addition, there are separate legal requirements for handling a security deposit, the failure to satisfy any one of which subjects the landlord to TRIPLE damages if it is raised in court.

I just did a quick check for NY, and it appears there is no statute in regard to prepaid rent:

NY Rental Laws

BUT, when it comes to landlord-tenant law, it pays not to assume anything, so I'd strongly recommend contacting an attorney for a definitive answer. As a landlord, you'll probably need one on call anyway.

Post: Ethical or unethical?

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28
Originally posted by @Cappy Jones:

My question to you all, is it (wise, dumb, ethical, unethical) to use the seller’s desperate situation to my advantage by offering more than I intend to pay just to tie up the deal, gain access to the property, have it inspected and reduce my offer?

The way you've framed the question, I think you already know the answer. Of course it's not ethical.  The key to the answer is in your intent.  

Post: What is the Purpose of Casting a Vote on a BP Post?

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

Rules for likes:

1. Puppy photos get lots of likes and rightly so! 

2. But cats in cars? Hmmmm...

Post: Will Barnard Speaking in March.

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

Any chance of someone videoing this and putting it up as a BP webinar? I'd certainly watch!

Post: Newbie from the Caribbean

Jason A.
Pro Member
Posted
  • Investor
  • Hopkinton, MA
  • Posts 53
  • Votes 28

Welcome! I visited St. Kitts a few years ago and loved it. I remember seeing an abandoned real estate project there (small bungalows overlooking that beautiful blue ocean) and fantasizing about what it might be like to take that project over and live there year round.

I'm saying this as I'm looking out my window at over two feet of snow! Ugh.

Anyway, hope you will enjoy biggerpockets!