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All Forum Posts by: JJ Conway

JJ Conway has started 11 posts and replied 157 times.

Post: Is it an insult to make an offer based on the income?

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

Am loving the ideas above... only thing to add is that the old saying "if you aren't embarrassed about your offer you offered too much" has to be tempered with reality (in your case, a sister property sold for about the asking price).  Just please don't think you're stuck offering full price in the future. I would still make the offer, explaining why they should consider it, and I wouldn't take it personal if the seller shot me down. 

Or, if you must, perhaps there's ways to be creative about it (such as offering full price with zero down or zero interest, payment terms favorable to you and a healthy balloon that's favorable to the seller).  I haven't been able to work any deals like that without first establishing a like/know/trust relationship with the seller but I hear others say it can be done.  

My mom lives and invests in SoCal and she makes it sound like people out there accept 4% ROI as a "good deal." Where I am now (Louisiana) there are many investors who've had something for decades- they're not in a rush and will wait until the price is right.

Post: For Landlords with Flooded Rentals

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

One thing I will add is that if you have a commercial space, define clearly what are considered "tenant improvements" in your lease.  Also, many commercial leases require tenants to have liability insurance, but if you are passing on maintenance of the space and all tenant improvements (carpets, walls, etc), a nice touch would be to remind them that they still need insurance coverage for their 'stuff'   

Our mall lost quite a few little shops that didn't have proper coverage and couldn't afford to rebuild.

Post: For Landlords with Flooded Rentals

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85
Full disclosure: I did not come up with these suggestions... they're from an email I received today on the Mr. Landlord mailing list. If you have any suggestions to add, please do. I moved to Louisiana next year, so even though I'm not flooded with this storm, my commercial space flooded back in April so this still hits close to home. SPECIAL NOTE FOR FELLOW LANDLORDS WITH FLOODED RENTALS (Shared by "Brad 20,000", contributor on MrLandord)

"I totally understand what you are going thru. We had a major flood a few years ago. Some of mine had water lines at my eye level up inside the home.

First - stay clam. Everyone will be in a tizzy and that leads to mistakes. Sure it boggles our minds and our sense of reality has shifted but now is the time to step back and think clearly. You are no good to anyone if overly excited.

Yes, there ARE lease laws and regulations that still work and YOU will be held to the letter of the law regarding the resident's personal property, lease terms, deposit refunds, safety issues, cleaning issues, etc. Residents and Fair Housing police can still sue you even in a time like this.

Some suggestions that helped us survive:

Stick to the lease. A proper lease ends when the home is not habitable.

Sure the house flooded but the resident needs to remove THEIR personal belongings or you will have to charge them for it. They don't get to simply leave it behind. Nothing like slogging wet mattresses and sofas thru the slippery muddy house and yard then haul to the dump. EVERYTHING will be covered in mud which makes walking very difficult. We did not refund prorated rent. We applied that and their deposit to the labor to remove their personal items.

Mold starts in 48 hours. Clean out EVERYTHING immediately, strip the home of wet drywall and insulation plus about 2 feet higher. We simply removed all the wall drywall but kept the untouched ceilings. It's easier to replace the entire wall than try to patch in a lower section. If it got wet don't even think about salvaging it. Toss it and move on.

We rebuilt the gas valves on water heaters and furnaces. The circuit boards in furnaces turned green over the next months so we wound up replacing furnaces. Bleach does not kill mold. Spic N Span or PineSol does. Powerwash (gas powered) everything touched by flood waters. Flood waters are full of every bad thing you can imagine - bacteria, sewage, farm manure, chemicals, oil...

Hurricane Katrina Blend: Spic N Span plus bleach in a bucket of water. Repeat. We also sprayed liquid pool shock but this requires extreme caution - a rubber suit and full face mask with chemical breathing filters. It is 50? times stronger than plain bleach. We finished with a hospital grade disinfectant spray from a janitorial supply house.

Families were calling us, pleading and crying for housing but we were patient to clean and repair properly. Cleaned wood (studs, floor joists) must dry for 14 days before being covered with new drywall. Buy a moisture meter and live by it. We sprayed the studs with white Zinsser sealer to prove they were cleaned.

Take photos to prove you disinfected properly before reconstruction. You home will ALWAYS be suspect for mold when you sell. 4 years later people forgot about the flood and new people moved in to town. Believe it or not the flood became a non-issue, just a memory for old people to talk about.

Don't let up on your screening just because they are desperate. This is the time to operate with your head, not your heart when it comes to letting folks into your cleaned home. You cannot save everyone. And it's not your job. Your job is to protect your investment and get it repaired to re-rent.

MANY businesses closed due to flooding which put people out of work. Lots of do gooders will criticize you for not letting just any old person into your rental. Sure help serve food to workers, etc but YOUR investments will take extra protection in this wild time. Don't let the free-for-all take over your investment.

Scammers will be everywhere! Tons of people lost THOUSAND$$$ when "contractors" appeared out of nowhere, took half or full payment down, then evaporated. People who were high and dry claimed to have lots everything in the flood. Board up your windows and doors because metal thieves will be EVERYWHERE, especially now that you opened up the walls for them. Leave the top 12" of the window open for air to flow thru and help dry the house. Wiring can survive. Powerwash the electric boxes and replace the sockets with new.

We worked with the court to define "flood" in relation to rent, evictions, and landlord responsibility. We settled on defining a wet or full basement or garage as "an inconvenience but livable". The home was not livable if the water entered the living level of the home. It only takes an inch of water to ruin the floors and furniture. FEMA came in and just handed checks for $5,000 to renters. Lots of big TVs sold that week!

You will get thru this. Stay calm and don't let this disaster allow you to let down your landlord guard.

BRAD

Post: I NEEEEEED to get these people out of this house. Please HelP

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

Look forward to celebrating with you on Wed.  Just please keep in mind the deal isn't done till closing is over with a check in your hand (smile).

Post: Who is the Expert and Authority in Tax Lien and Deed here?

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

Just wanna vouch for @Ned Carey he's the man when it comes to tax sales in MD.  I wish I were still there (miss you guys).

Post: What is your WHY ?!?!?

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

More passive income which will allow me the freedom to do what I'm called to do.

https://www.biggerpockets.com/blogs/8128/62496-you-cant-buy-this-kind-of-peace-of-mind-you-can-only-earn-it

Post: Sprayer? Painting over commercial shelving panelling

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

^^^ Lol Tru Dat!

We tested a section filling in the holes, sanding, and painting the slats with kilz (using a brush). Came out pretty nice, but definitely some areas not as smooth  as a professional would get.

Thinking we will Kilz the front face of the slats by hand then spray the color.

Am still very much open to ideas and suggestions, thanks!

Post: Sprayer? Painting over commercial shelving panelling

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

We are renovating a unit with huge walls of commercial shelving panelling. It's the kind with horizontal grooves you can hook shelves and store fixtures into. Originally, we were going to take it down, but we have decided to paint over instead. 2 questions:

1. If you used an airless sprayer to paint over such panelling, and if so, do you have any recommendations/best practices to do the job right the first time?

2. When using a sprayer, do you have any tips for keeping the commercial drop in ceiling free of splatters?

A quick search of posts seems like most people say sprayers are not worth the extra prep work if you're not also painting the ceiling. Just curious your experience and recommendations, thanks!

Post: Retired at 27 with 1 rental!

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

awesome post!  Thanks for the laugh!

Post: Help! Picking the right applicant is HARD!

JJ Conway
Pro Member
Posted
  • Financial Advisor
  • Stephenville, TX
  • Posts 163
  • Votes 85

It sounds like #2 is checking out so this may be a moot point... just the same... I want to throw out one more concern about #1 - yes son is a huge red flag, especially if he has no job. The other thing that concerns me is she has no w2 income so you have little recourse if she defaults. You can't garnish her SS check or VA disability check. When looking at it as a business, which others have recommended, I'm looking at a) who meets requirements and of those people b) who can I collect against if something goes south or their priorities shift away from paying rent