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All Forum Posts by: Account Closed

Account Closed has started 12 posts and replied 576 times.

Post: First slip and fall lawsuit - any advice?

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Karen F.:

I guess it had to happen, after ten years in the business.  Just got notice of our first slip and fall lawsuit.  The tenant was at the time being evicted for non-payment of rent, was evicted, and now, about six months later, we got a letter from an injury lawyer saying that he's suing us for unspecified injuries that he claims occurred right at the time that he was being evicted.

So, I'm assuming that we just give it to the insurance and don't give it another thought, but I know the insurance will be motivated to just settle it for the deductible.  We have a $5000 deductible. We doubt that  he sustained any injury on our property, he claimed that he was having surgery on his leg about 2 weeks before he sustained the injury, he may  even have moved out before the date of the injury.  In addition, the man is on social security disability fraudulently - he works under the table as a roofer, and we have texts from him about it.

So, what do we do?  Any advice from anyone who has been through this would be welcome.

You can approach it a couple of different ways. First realize that if your insurance gets involved both you and the property will go into the ever lasting computer of claims. Make sure it's worth it before you involve them.

Now, I have a little bit of background in legal matters so I'd be inclined to write a letter to the injury attorney.

I'd tell him that I understand his client would have to prove he injured himself on my property because of my negligence and that is going to be pretty hard to prove. Your client had been evicted and if he was on my property and if he was hurt, he was unlawfully trespassing. He never mentioned the incident to anyone nor did he file a police report.

I'd also mention that if said character was fraudulently on SS disability (you can't say that he was until it is proven) then that of course would come up in court and we would bring in the roofing company he was working for simultaneous to his disability claim.

Mr Attorney, it would seem odd that someone on SS disability had clearance from SS to work in a hazardous job like roofing while collecting disability. And, as another oddity, we've kept the communications from him about his contemporaneous work for the roofing company. As you know, this becomes part of the interrogatories and evidence and of course would necessitate notifying SS of our little disagreement here. So, either he was unlawfully working as a roofer while on SS disability or he lied in the communications we've preserved and you have a "not credible" witness. Which of those two do you want to argue in front of a judge about?

Now, if your client wants to proceed with this charade, please feel free to request my attorney's information.

respectfully,

NAME

CC: File, pending attorney

***********

If you hear from the attorney again, tell them you will respond when you receive the complaint in the mail.

You'll never hear back, if your facts are as presented.

(This is not legal advice, it was all made up as a flight of fancy on a slow friday afternoon)

But hey, That's how I handle these.

Post: Phoenix Metro Boots on the ground help

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @John Daniels:

I’m new to investing, but just purchased my first triplex out of state. One of the realizations during the process was that it would have been helpful to have a boots on the ground person doing informal inspections on the property. For the past 4 years I have been working as a commissioning agent so I am constantly looking at the Mechanical/Electrical/Plumbing side of commercial buildings, and I am always in the position of working as the owner’s eyes and ears during construction or renovation.

I have lived in Gilbert Arizona, east of the Phoenix metro area, for over 10 years. The market is fantastic here! Any out of state investors need a boots on the ground informal inspection of your property, feel free to PM me.

I can take renovating photos/videos, general quality inspections, walk the layout, etc.

I’m not a licensed home or building inspector, and I don’t want any money, I just want to learn the business!

Depending on what you are looking for, I might be able to help you.

Post: How long does it take to complete first deal

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Robert Sierra:

I’m a beginner in real estate I have no idea how to generate my first deal, so some feedback on how to complete a first one would be great.

 It really depends how much you have to invest and whether you have already arranged for financing. It takes about 14 to 60 days to get financing in place. It could take a month or three months to find the right property. Then it's about 30 days to get the transaction through escrow. Or, if you have cash and the right property it's about 7 to 14 days.

Post: Any thoughts on how to approach seller financed deals?

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Jacob Graves:

@John Farady

I am confused what would be an accurate "down payment" at the end of the day. Also what would typical interest payments be?

Here is an actual deal I am currently putting together. I bought Turnkey from my provider in Phoenix. I then am selling it on a Lease Option. The market value of the property is about $220,000. I am selling it for $230,000 on the L.O. with $20,000 as a Option fee (down payment if you will). Properties are getting about $1200 a month in the neighborhood and I am getting $1650 for payments. They saw the property today and we are putting the paperwork together.The $20,000 is about 8.7% down on $230,000 - you take the sales price and subtract the down so $230,000 - $20,000 leaves $210,000 mortgage with a payment of $1650. Take the payment of $1,650 subtract taxes and insurance and that leaves about $1,490 that goes toward the $210,000. So when you figure for interest $1,490 payment on $210,000 on a 30 year fixed, it is about 7.5% on this one.

So, I get a check for $20,000 (Option fee) and another check for $1,650 (1st month's rent) for them to move in. They do all maintenance & repairs, I get the tax write offs and the property is still in my name until they exercise the Option

Post: How to complete a subject to deal

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Byron Scott:

Thanks @Account Closed I am a buy and hold investor so I'm going to rent it out. I have multiple units and reserves. I am going to find out if his payment works with market rents. Do I have to have a local attorney or could I get someone that's outside of the area but in the same state and region?

It's best to use someone who practices law in the county the property is in. The idea is that if there ever is a problem, that attorney will need to protect your interests in court. Most attorneys have a hard time protecting the interest of an unusual agreement they didn't write. Use an attorney in the same county if possible.

Post: I want to invest in real estate

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Brad Haughton:

@John Farady okay any suggestion on how I can find such partner.

Look for a local REIA to join in your area.

https://nationalreia.org/

Post: Unwanted Packages!!! Not again!!!

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Michael He:

Hello all landlords out here... how do you deal with non stop packages sent to your rental property for your previous tenant?  I have spoken to the previous tenant numerous times asking them to change their mailing address for all of their future packages;  I even called the local Fedex, UPS, USPS multiple to request stop delivery all packages to my rental property under that person's name, but packages are still keep on coming even now.  My current tenant are feeling bothered by those packages because they don't like the feeling of potentially they might be responsible for those packages one day, and also too many packages stacked under the porch signals people with bad intentions that this house might have been vacant, which poses potential dangers to my current tenant.  

I live in California.  The law here says it is illegal to open or trash mails/packages that don't belong to you.  I manage the property myself and I have exhausted my ways to stop those packages.  What should I do at this point?  Can anyone who lives in CA and is familiar with the law here regarding my situation help me out here?  I would really appreciate it!!!

 You gather them up and store them until someone claims them. Also, it is likely the address is being used as a "scam address" for items purchased on stolen credit cards. The previous tenant may not be aware that their name is being used for these shipments. Once they are immediately removed and unavailable, whoever is shipping to the address will stop. Or, you can put a camera up and see who comes to claim the packages and hand the recording over to the police.

Post: I want to invest in real estate

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Brad Haughton:

How do I understand the math in real estate I watch a lot of YouTube some of the these YouTube real estate investor stay the math is pretty easy, to me it don't look easy although I'm not a math person.

 Real estate is 80% math. If the math doesn't work, you don't buy. The people who get int trouble are the ones who either don't do the math, or don't understand the math or don't do what the math tells them. Find a partner who knows and follows the math.

Post: Buyer Fraud Question

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Sue Tharp:

Just sold an office building in CA.  A few days after entering into escrow, the buyer (an attorney) requested a 7 week extension of escrow. A few days later, we were served with a meritless ADA lawsuit. (We suspect that the named Plaintiff, who sued a few businesses a month, was not aware his name was used in the suit). They demanded $12,000 right away or it would be much higher. Another few days later the buyer wanted to close escrow ASAP. We disclosed the lawsuit to our dual agency Realtor. The removal of the lawsuit was a condition of closing. After a few weeks of attempting to get the lawsuit dismissed, and the Realtor saying the buyer was asking us how the suit was going, we discovered that the plaintiff’s attorney worked at a law firm owned by the buyer. The suit was dismissed once our attorney confronted the buyer. The buyer said he saw no problem in suing us as he thought we would settle the suit by the date set for close of escrow. The buyer did buy the building, but we assume he will sue us for something, as he already threatened to come after us for not disclosing. Any ideas on how to prepare for this or discourage it? Also, he is nuts and a crappy attorney. Thanks for any ideas.

 Contact the California BAR and file a complaint explaining just what you've stated.

Post: New to RE investing live in Seattle limited funds where to start?

Account ClosedPosted
  • Specialist
  • OverTheRainbow
  • Posts 607
  • Votes 909
Originally posted by @Michael Oziel:

I am currently renting and want to start investing, I have little cash and am in need of some direction. I live in Seattle, WA, and opportunities for a great deal are hard to come by, I've been looking at websites such as Realtor.com, Zillow, the MLS, etc...My ultimate goal is to get into multi-family properties. Unfortunately, I don't have a lot of funds to allocate to my mailings just yet, so I can only do a small batch maybe 100 at a time. I can only qualify to finance about a $300,000 property, and that is tough to find in the Seattle area for any property. So, I started looking at buying a list, does anyone have a good search criteria recommendation for finding multi-family duplex, or should I consider starting out with SFR and find a way to house hack instead? I'm not sure what is the best criteria is to get biggest bang for my buck, are mailers a good way to start? Any suggestions?

 Tri Cities, Yakima, Spokane