All Forum Posts by: Josiah Halverson

I pulled up a letter from more than 5 years ago and grabbed a section out of it. Hindsight, I was way too nice. I'll paste it here but I think your beyond that. Save yourself time, money, and headache by starting the eviction on day 6 of your 5 day notice. They should see it coming any way. Here it is:

" We understand that you may have life circumstances which make payment difficult. Unfortunately, we need to uphold the contract and hold you to your agreement to pay in order for us to allow you to stay. We have tried to be fair to you by having you choose a date that you thought was possible to be fully caught up. This is the extent of our leniency and expect you to be current by September 15th. If we have not received all funds by this date, regardless of postal service problems, we regret to inform you that we will start the eviction process. As we have said over the phone, we like having you as tenants and hope you will be able to meet the deadline so you can be happy living there. However, we must be fair and follow our agreements made in the contract. Thank you."

Again, this 6 yr old letter is too personal and too nice IMO, but maybe it will spark some thoughts for you. I've learned the hard way. Maybe something like this would be good if you were renting to a friend or family member. If not, then I would put it as @Matthew Paul put it, "GET OUT!!!!!"

I've been reading about this lately. There are similar posts on this subject so I will just regurgitate what I found. My conclusion is that your intent at the time of closing is what counts. If your intent is to swindle the system and not live in the property, then you would be falsifying a document while trying to sway the it in your favor. That would be fraud. If circumstances change after you purchase and live in it for a few months, no biggie.

What also seems to be the case is that many are still violating this clause. Did we not learn from the 2008 crash the importance of honesty? After talking with people, my ear gets filled with justifications.

From a black and white perspective, it's unlawful, licenses get revoked, and judgments are served. From a gray area standpoint, it's as bad as going 5 over the speed limit, or as bad as accepting that burned DVD copy from your buddy. And what matters more is that the lender is receiving on-time payments. I personally stand on the black and white side.I don't feed good justifying it.

Is it common for an attorney to be competent in the areas of business, accounting, tax, AND real estate? Since I'm new to rehabs and subject to deals, I feel that paying for professional guidance up front will teach me good habits which will profit me later on, but who do I hire? -please don't say all of them! :`( Do you know anyone that can help me with the following?

1. Develop a business plan and include licensing advice specific to Utah, specific to rehabs, rentals, and subject to deals, and specific to a new small business owner in my tax bracket.
2. Analyze my strategy and tell me what is cost effective and what is not.
3. Develop deal contracts and helping me see them through.

Ideally, I would have 3 or 4 references to attorneys skilled in all areas, but that may not be possible.

Thanks for your thoughts.

Josiah Halverson

Sandy, UT

(801) 389-6080

josiahh@hotmail.com

Gary Keller gives some good advice in his book, Flip. His summarized guidance is:

"Prior to making an offer, analyze the property and make an improvement plan. Base your level of finish (basic, standard, designer, or custom) on the neighborhood norm. "

I work full time, and I'm inexperience with construction so I am choosing to hire a general contractor to walk through the property with me (before the offer) to get a thorough and accurate estimate (no rules of thumb). I am also considering hiring an interior designer to include in the improvement plan because my thoughts are to have everyone on the same page sharing the same vision from the get go. I believe this would probably help with communication and with the overall outcome of the rehab because everyone's experiencing the same first impressions together, sharing initial thoughts with each other, coming to conclusions together, and forming the same rehab vision, but I'm not sure. Prior to the walk through, I would gather neighborhood comps to provide level of finish information. That way, the three of us could come up with a promising improvement plan.

An interior designer can make the property look better with less money. They have the artistic talent and design knowledge to do so. As an example, why spend extra money on custom lighting when a lighter color of paint would have the same effect? You get the idea.

Does anyone have enough experience with interior designers to know whether the designer costs offset the value gained from their services? Or do you find that contractors have this ability also so hiring an interior designer would be a waste of money?

Thank you for your time!

M. Josiah Halverson

(801) 389-6080

Sandy, UT

My faith in property managers is about as much as I trust my 5 year old to drive me to work.

I went through two property managers (Gage Froerer Century 21 and Accuity Property Management) and realize one has to choose property managers as carefully as you choose your tenants. I DO NOT RECOMMEND THESE TWO PM'S. So after two bad experiences, I manage my one rental myself (which is now more possible because I live 1 mile away from it now versus 1 hour as before moving). I even have a friend who owns a PM company that said, "business is so good that I don't even answer my phone any more". How disheartening! With that said, I would some day give another a try but only after careful scrutiny!

As far as where to invest....Where do you want to live? That's where! (IMO)

Thanks, Holly. I actually lived in Ogden for 6 years so I've been up your way. Good luck on the test! My wife is looking into training so she can help me do flips. Thanks again!

Thanks @Brian H. . ! I failed to mention that I am also a vet. I was in the Utah Army National Guard for 9 years and served in Iraq in 2004. Did intelligence and electronic repair. Got three kids now so glad I'm out.

@Jordan Meyer , Holliday is a great place (not to mention expensive). My sister lives there and her husband, Paul Stanworth, is a realtor.

@Paul Timmins , great advice. I will plan on attending Salt Lake's REIA meeting on February 12th. I failed to mention that I have also been a member of the Utah Apartment Association for more than 5 years now. For those in Utah, the UAA is a TREMENDOUS source for landlord training and documents.

Thanks @Gary Parker

@Gary Parker

@Gary Parker

I'm so happy to have found such a useful online community. I've been listening to BP podcasts during my short commutes to work and find it to answer so many of my questions.

I am a full time electrical engineer for the power company and want to start flipping and lease optioning homes in the Sandy, Utah area as a part-time business.

I'm 32 years old, have a wife and 3 kids, have 7 years landlord experience, enjoy mountain biking and bodybuilding.

Currently reading Gary Kellers book, Flip: How to find, fix, and sell houses for profit. It has been so helpful!

I hope to make some good connection and help out where I can. As I've said, I've got landlord training and experience so I can always help out in that area.

Sincerely,

Josiah Halverson

Sandy, UT