All Forum Posts by: Account Closed

Yikes - danger!   Lawyer up. Bankruptcy is a federal matter and there is likely an automatic stay on all attempts to collect debts. You may want to get a lawyer (an experienced one) to lift the stay so that you can motion toward eviction and then collect any balances. If I were in this circumstance, I would have zero direct contact with the tenant and let the lawyer speak on my behalf. I believe there are significant fines if you attempt to collect debts while a stay exists during someone's bankruptcy.

+1 for @Sam Shueh - combine what he said also with "Tenant Mutiny" - aka, tenant unions who seek to combine efforts to have no one pay rent within an apartment

Why focus on the immediate area? Expensive, capital intensive, and bad cash flow. Better places to focus on.

Ever feel like you're on the cusp of an awesome deal, but you just have a little ways to go? That's where I'm at. Calling all creating financing gurus!

Here's the scoop:    A seller is willing to create a seller financed deal (15 year, interest only) on a large rural property.  Improvements include several barns, fencing, several houses (one very nice one!). There are existing leases in place that provide half of the required income needed to cover the monthly interest payments (sellers are very willing to have this included in income requirement). I am able to cover the other half with my own rentals and other personal means. Property taxes are waived through a state program. This is a good start.

Seller is wanting $1M for a DP. I can cover $150-200K in liquid cash, so I need $800-850K for the rest. Does anyone have experience here with raising this sort of money for a DP in an unconventional scenario like this or figuring out a satisfactory scenario that is mutually beneficial?  To the seller's credit, they're extremely amenable to creative arrangements, but they do want (understandably) the DP.  What can I do? Any and every thought welcome.

Thanks
Jonny

So already, I'm seeing this draw pretty solid legal challenge at a fundamental level:  namely its a violation of the 5th Amendment "...nor shall private property be taken for public use, without just compensation". 

See Supreme Court case ruling in Stop the Beach Renourishment Inc. v. Florida Dept. of Env't Prot. (Scalia, Roberts, Thomas, Alia) - "...if [a branch of government] declares that what was once an established right of private property no longer exists, it has taken that property, no less than if the State had physically appropriated it or destroyed its value by regulation. '[A] State, by ipse dixit, may not transform private property into public property without compensation.' " 

I think we should all be financially prepared to engage this to the best of our abilities, but I would anticipate this either modifying some way (ie, through provisions to landlords) or to be removed and replaced with a more sensible alternative. This simply won't stand from a legal perspective.

 From my reading, tenants can still be evicted for criminal activity or non-compliance with lease terms. I would be interested to see what documentation could be required for confirming income loss. If anything, this is a reminder to all of us to have high standards for tenant application due diligence - be sure to acquire employer information and verify!

https://www.nar.realtor/newsroom/as-cdc-white-house-unveil-eviction-moratorium-executive-order-nar-urges-immediate-congressional?utm_source=dlvr.it&utm_medium=twitter

BiggerPockets should team up with NAR and other pro-landlord interest groups to issue a public statement to the Trump administration that this is a half-baked solution that presents hardship to tens of thousands of landlords in the US (and no doubt will ultimately have a negative impact on tenants).

This is such a poorly designed policy. To my knowledge there is only a draft that has been released meaning it’s not slyer in effect (I may we’ll be wrong). Does anyone know if it has been signed and executed?

I'm not the best authority on this here, but including a basic washer/dryer unit could at least make you attract better applicants. You could also offer the washer/dryer to the tenant for an additional $20/mo - which saves them time/money/convenience from having to go to another place to do laundry. Just my thoughts - maybe others have different opinions.