All Forum Posts by: Kevin Yeats

There is a reason why bank exist.

Banks have the training and experience to underwrite all different types of loans including small loans (under $10,000) and unsecured.  Bank offer credit cards which allow the cardholder to get a cash advance.

Banks will looks at the borrower's credit history, credit score, income and ability to repay BEFORE providing a credit card or other loan.

If a coworker approached me with this offer, I would send that coworker to a bank or search for credit card offers on the internet.

In other words "NO"

Darren, an investor approached me a couple years ago with that exact scenario.  He is a licensed attorney and he would seek out homeowners who were or close to underwater on their mortgages.  He would pay the homeowners to vacate and then lease the property to a tenant and collect about 2 years of rent while he applied his knowledge of the court system to tie up the foreclosure.  He earned a pretty high return on the zero dollars that he had invested in the property.

He wanted additional funding to apply this strategy on other houses.  Since he didn't own any of these houses, he could not use them as collateral.  I declined to assist him.

@Nat C., I'm sure you learned enough lessons from this experience.

There is a reason that charities exist.  Charities staffed with people who have the training and experience to deal with people who need some help.  The next time you or any one here in BP Nation feels the compassion to help someone else, direct them to a charity (or church) and make a donation from the profits that you make to support that charity.

As a good friend told me in reference to helping others  ... "You have to save yourself"

This discussion reminds me of the story of Paul Feldman, a cubicle-imprisoned bureaucrat in Washington DC who escaped by starting a Bagel & cream cheese /doughnut delivery service in various office buildings around and including his former employer.  A very low capital business especially the way he ran it ---- on the honor system.  He dropped off the merchandise and a collection box in the break room at various employers before 8 AM and returned around the noon hour and collected the day's revenues and leftover bagels.

This business provided him with insight into consumers honesty .... they are surprisingly honest.

A gumball machine on eBay can range from $40 to over $100 per machine.  A vendor can also purchase gumballs on eBay for $8 to $20 for 500.  Since these are mechanical machines, there is not electricity required.  The only other costs would be delivery/pickup and replacing machines that get stolen/damaged.  The vendor may have to pay rent or share the revenue to place the gumball machine in a particular location.

If the gumball machine owner can find a location with no charge for placing the machine and can secure the the machine against theft, the return could be substantial --- at least based on return on capital invested.  The trouble would come from any attempts to scale up.

To read more on Paul Feldman, click here for a NY Times article

A Wonderful place to live .... My hometown (P'ville) .... but I don't live there anymore.

I remember reading someone's post here on BP that this other landlord has a clause IN THE LEASE that states that any money collected from the tenant goes to pay for damages first, next to pay late fees and past rents and finally to pay current rent.

In your case, when the tenant paid the rent late, the first dollars ($20 in your case) would go to pay the late fees thus leaving the tenant $20 short on current month's rent IF THAT CLAUSE IS IN THE LEASE.

Not legal advice.

My vote: evict.

Keep reading landlording posts here on BP to get more tips.  I really like Eric Drenckhahn's Nononsense Landlord.

I'd say it is time to replace the PM

I remember reading a similar thread here on BP where a young gal decided to overstay her lease, knowing that it would take several months for the landlord to evict her.

The landlord showed up one Saturday AM (early) with two burly, unshaven men and announced to her "You are correct that it will take several months to evict YOU.  It will also take several months to evict these two.  Meet your NEW ROOMMATES."

She decided to move out that morning.

Since this is a lease issue instead of an ownership issue, the overstaying tenant cannot claim that he has a higher or better claim to the leased property if you tried this approach.  perhaps even having a signed lease ready to show.

NO LEGAL ADVICE.  Consult an attorney where appropriate.

First, read "The Occupants from Hell" thread here on BP when you have a few hours (seriously).  That is the worst of the worst of the worst.

Second, if the owner has dies "a few years ago" then this asset should have passed through probate court by now (I'm not an attorney and do not know the probate laws in any state nor do I know the average time that it take for property to pass through probate).

The probate court records should show the transfer to a new owner who could be this girlfriend or it could be some long lost family that may lay claim to this property.  The more dollars involved, the more of a "rough sea" that you will face from the squatter or long lost heirs.

As another poster mentioned, a good place to start is by talking to an attorney ..... that conversation could save much heartache and many dollars down the road.

Good Luck

Pass .... and keep your money in your checking account.

What lender will lend at 3% (slightly more than T-Bond rates) and take all the risk involved in lending to private companies or real estate investors?