All Forum Posts by: Account Closed

 Jason,

Perhaps I misunderstood. My apologies.

I own seven small car dealerships in addition to my RE investing so I agree wholeheartedly about treating your customers well. Have to to grow, want to to be a human being.

Disagree a little bit about the economy. It may not care about my hundred grand or hard work, but it sure does care about all our hundred grands and hard work cumulatively.  Without producers, consumers have nothing to consume and cease to exist along with our economy.

Gary

@Account Closed aside from you going on every post on BP and trying to desperately make your point... that LL's have a responsibility to support their tenants (other grown adults) and aside from you starting a thread telling landlords "to enjoy foreclosure"? in which the thread was ultimately removed... 

Don't know about you but having options available to tenants such as paying via credit card or taking out a temporary loan to make ends meet or waving certain fees... are options... which somehow you seem to disagree with because they aren't 'free'. Not saying LL's can't offer assistance but if they do... it is their decision to make... not an entitlement now and will never be, some just can't. Any assistance a LL can offer aside from their normal operations should be sees as a courtesy even if that option is solely the ability for the Tenant to make ends meet via CC - don't have to use it but for goddess sake stop asking for 'free' - all should take responsibility for their financial situation and stop expecting others to pick up their slack. I don't any landlord here wouldn't love to have any non-paying tenant END their lease and move out... so not quite sure what the argument is... MOST LL's WOULD ALLOW NON-PAYING TENANTS TO MOVE OUT... the reality which you fail to mention but which you are likely very aware as well as all other LL's is... that most non-paying tenants will not move out, so back to taking responsibility for your own situation... if a Tenant is unable to afford it and all the options offered to them just aren't their 'cup of tea' they can always downsize i.e. end lease and move out - most don't as we all very well know. 

 

@James Wise, the original poster does not own properties. He has an interest in piling on landlords because he (proports) to have numerous outstanding leases on a number of rentals that he sublets on Airbnb. When things were going good, he told us all we were fools... now that things have gone south he wants to be able to simply "walk away" from the leases... He has started this thread purely out of self-interest. He has absolutely no interest in business models or anyone else's side of the story.

 Jason,

So now I'm a greedy pig because I expect people to pay me rent on a home I have a hundred grand invested in. As a "professional investor" I have purchased, renovated and made available a residence for a renter who would otherwise not be able to inhabit such a nice home. So then, I should allow them just not to pay me because times got tough for a minute.

News flash: It took years of hard work and sacrifice to build a Real Estate portfolio. Not 30 days of hardship.

Based on your less then brilliant criteria, there would be no "professional investors" in real estate any longer.  The masses would have no nice places to live and all would be fine in your make believe world.

Gary

james you being on the firing line with hundreds if not a thousand plus homes to manage I have to think you have had strategy communication with your owners and your tenants.. I just have one rental that is run by a PM and i have been getting updates from them on how they are planning to handle our tenant/property.. these are high end white collar professionals that i believe are still working.

I think the issue is not really a moral issue.. but it certainly is a reality issue.. Now 30 days ago I was pretty certain that without govmit help we were going to have an apocalypse in work force housing owners.. And made a post 30 days ago wanting to know how landlords would handle this as a business owner.. Most responded if they dont pay its not my problem and we evict etc.

As one who had to work out about 200 plus bad loans in the GFC that i held the paper on.. that taught me that workouts are best if you can do it.  No one should not pay their rent if they have the means.

And with all the fear on BP the last two weeks it appears through the stim package unemployment etc Big brother is going to come to the rescue and there should not be massive no pays.. at least I am thinking that.. 

The risk I see though for landlords is again kind of like the GFC were you had strategic defaults.. people made money they Could pay their mortgage but they chose to let their credit get trashed and squatted for years in many cases or walked.  I know at least how our C/D class renters operate and think ( having had 300 of those) and they get checks and I fear the last thing they are going to do is pay rent if they think there is a moratorium on paying etc.. that is where I see risk right now.

But working with tenants through this is just a REALITY and my thought is and us lenders learned the hard way that taking a tough stand with someone who cant pay you anyway is just going to lead to more trouble.

the idea that most renters have a 401k they can draw from or a big savings etc again in my experience at least in work force housing this thing dont really exist for many if not most.

Lastly one of my bizz partners owns a 150 unit B class in the northwest his manager sent an email and said be prepared for 40% no pays for one to three months.. now with all this bail out I dont think it will be that bad..  And for him who basically owns it free and clear its just lost revenue not a huge nut to crack..  But if you have 40% non pay with the crop of newbie syndicators and highly leveraged deals there could be some failures in those assets if this persisted for any length of time.

So bottom line now with bail out and with landlords being polite yet firm this should not be the worse case scenario many are worried about.

It has been a wake up call to highly  leveraged landlords though that 2 to 3 months reserves maybe inadequate for safety.

 What does staying in business have to do with your thread? You haven't advocated for anything that would assist a struggling business from going under. Nor am I confident you'd even be qualified to do so.

@Jason Allen, a very refreshing post. Too often, people develop inflated egos and forget their own humble beginnings. Assuming of course there wasn't a sliver spoon involved. We are all in this together. In the commercial/industrial world there is a clause, namely "Force Majeure" which legally allows a tenant and landlord to breach contractual obligations. I am not certain if this is present in the residential realm. Personally, I do not advocate rental decreases. But I do think there is room for payment arrangements or outright breaches of contract. I feel some tenants are taking unfair advantage of the pandemic and others are genuinely struggling. Interesting point of discussion!

@Jason Allen I think honestly tenants should be able to pay rent with this new bill passed, if your tenants are laid off or unemployed for any reason the are getting an ADDITIONAL 600 a WEEK for 4 months on top of their regular unemployment. I live in PA and the max Unemployment 450 a week (it might be more or loss depending on where you live).

Now with the new stimulus bill they will be getting 950 a week in PA. PLUS on top of that they will also in may be getting 1200 a person and 500 a child, so if you have 4 tenants living in a household 2 adults and 2 children that would be 2400 for the adults and 1000 for the children for a total of 3400!.

I currently rent an apartment and our landlord already sent a letter out saying if we can’t pay April and May rent he will add an additional 100 a month after may until the 2 months of rent is paid off which I think is very reasonable.

Me becoming an investor I see it as this; family of 4 getting 3400 in May about 950 a week for 3800 a month *2 = 7600 + 3400= 11000 by the end of may.

If they are still unemployed they will keep getting 3800 a month until the end of July.

Their is ABSOLUTELY NO REASON PEOPLE CANT PAY THEIR RENT AT ALL. Even better is if people already filed their taxes they already have money in their savings like I do. Again no reason people can’t pay their rent even if they are on section 8 because my mother is on section 8 and she has no money saved but is still able to pay her rent in unemployment and then go back to work on the 13th of April.

I feel bad but the government is giving all your tenants plenty of Money to hold them until July. Oh and by the way the 950 os only for one person if both parents or the couple/ roommates are unemployed just double that to (2 People) 1900 a week and 7600 for the month *2= 15200(2 months of unemployment) + 3400(stimulus check in May) = $18600!

Again NOT EXCUSE!

Any landlord that's worth his salt will or already is working the situation out. Both landlords and tenants are responsible to cover their expenses. It all comes down to what kind of people do you choose to rent to. 

I have a lot of college students and OIT has taken everything online so the students are leaving. This means breaking their leases. My agreement with them is that if they will take the time to leave the property really clean and in good shape, that I will let them out of their leases so they can go home to families. My tenants are happy and I will have an easier time with turn over. So far, the tenants have left the units in excellent condition. It's not a good scenario for me, but I'm making the best of it. 

I do have some regular working folks and a couple have notified me that they're laid off and will do their best to pay rent. I told them to get it to me as they can and there wouldn't be late fee. The plan is to make monthly payments and I'll have the full amount by the end of the month. 

My point is that if you rent to good people, this isn't hard to work through. I treat them with respect and they return the favor. Jerk landlords will get weeded out just like bad tenants run out of good places to live. People should back off each other and let the economic crisis clean house. 

@Account Closed is a true Professional tenant! 😆

For those not aware, this tenant has lectured us on how foolish we are for owning our rentals instead of renting them from others and subleasing them on Airbnb.

Guess what happened to our favorite professional tenant who told us all to enjoy foreclosure? Yep- you guessed it, he is left with a lot of Airbnb rentals and April's rent is coming due!

So now you understand the point of the thread.