Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Matt Sicignano

Matt Sicignano has started 3 posts and replied 92 times.

Post: Seller declines FHA offer

Matt SicignanoPosted
  • Investor
  • Smyrna, GA
  • Posts 96
  • Votes 72

That seems like a nitpicking objection if, all things being equal, it was a good offer! Sorry to hear that. Consider your positive, and the sellers negative, which are exactly the same thing. The minimum down payment is only 3.5 percent. That's a great way to get into a home with "short" cash. However, the fact that you're planning to use an FHA loan tells the seller that the purchase may be a stretch for you - and it may be not exactly a lock that you'll get approved. And if you're in a sellers market, that's not a good thing.

Another thing is that FHA inspections could be a little more difficult to pass, although with most modern homes, that too could be a sellers misconception.

Those may not be the real reasons, and they are pretty shaky ones at that, but sometimes sellers listen to "less than qualified" advice. Maybe a pre-approval, and a limit to what the seller needs to pay for FHA mandated repairs in the contract may work?

Here's a great link that I have used from Remodelers Magazine. What I like about it is that it's trending, and also gives you area specific information.

http://www.remodeling.hw.net/cost-vs-value/2014/

Justen, you don't need to get fancy with the letter-here is a something that will satisfy the letter of the law. Now, I'm curious to see if you have any claim at all! First thing is the "60 day notice".  I'm not sure that that's enforceable. You have a written one year lease with an end date. I would think that supersedes anything about giving notice. How did you specify it in the lease? I sometimes put in that in order to renew, I want 30 days notice, but written leases are self expiring. Any one care to educate me on this? Second, the electric bill-what does it say about utilities in the lease? If not specified, you're on the hook. That only leaves the carpet-is it totally destroyed? Was it new when she moved in? She could claim that it was 50% worn when she moved in, and thus only owes $542. That leaves a refund for her! Now, as far as a suit for damages. In Georgia, it is very cheap and easy to file, and I always do when I have damages. (with 2 important caveats!) It costs about $125 to file and serve. They never usually show up, so a default judgment is usually granted, and my claims for damages are usually never contested. That is, in a default judgment, you get exactly what you asked for, with court costs, no paperwork needed. And I was once paid by a tenant who needed to get the judgment off his file when buying a house. It also serves as a red flag warning to other landlords as well. When I win, I will file a garnishment with the employer. Does that work? Absolutely! I actually had one guy quit his job after the second  garnishment but I still came out ahead, but another I received full payment from the employer, who didn't answer in time! I mentioned two caveats. First, I always have my paperwork in order. Pictures, copies of letters, leases, etc. 2nd, and most important, I always have work history and full information. That's what makes the garnishment work . If someone is on the job for 5, 6 years, likely they won't quit, and sometimes even the threat of an employer garnishment serves to get payment. So, yes, for all those reasons I always will go after delinquencies. Now, as to your case, the amount of money you may get is almost a wash-as far as I can see, she only owes you a couple of hundred at best, (plus the  court costs of $125)  and you may even owe her!

Dear Tenant, 

This letter is in regards to the security deposit of $650 that was placed on our rental contract dated X/X/X. The rental home was located at 70 E. Main Street in Anytown.  

During my move out inspection, I discovered some items that I must deduct from the security deposit. . I have charged to the security deposit, as allowed by Georgia law, rents owed due to insufficient notice. I have attached your letter to vacate the premises as proof that the property was left before the lease was officially over. 
There were a few other damages in the home. I needed to replace the carpet...... The total cost for this was $1084. Because you only lived there for one year and it was in good condition when you moved in (pictures enclosed, before and after)  I must make you 100% responsible for the new paint job. The electric bill outstanding is $200, which I will charge you. I am deducting $1284.00 from the $650.00 to cover the damages and insufficient rent payment. Amount due is $634. Please remit that promptly, or a suit may be filed to collect the balance, which will seriously affect your credit.  If you should have any questions, please feel free to contact me at 555-555-1234. 

Post: WilliamPaid.com Online Rent Review - Bad

Matt SicignanoPosted
  • Investor
  • Smyrna, GA
  • Posts 96
  • Votes 72

Cole, I wish I saw this post before going with Williampaid. You are right on the money! I have rarely seen a less intuitive website.  It's like quicksand, smooth on the surface but deadly once you're in it!   It is confusing, there are no simple steps, it's difficult to find transactions( you'll get a "no transaction found" if you don't do  exactly what their ambiguous instructions say, if you can even find them, which makes accounting a headache)  and  adding bank information to a property is a nightmare; in short, it's a tear your hair out experience. I should have known when I tried to send email invites to my tenants and I needed to create a text file. Really? It's like  their programmer quit in 1985 and they haven't found out yet.

Post: Pay Rent Online?

Matt SicignanoPosted
  • Investor
  • Smyrna, GA
  • Posts 96
  • Votes 72

My two cents. I have looked into a few of those, and all have their faults. (Amazon-are you listening? You could take this nationwide and with your interface get 99% of the market!)  Aside from cost issues, the only one I wouldn't recommend is Williampaid. It is deceptively simple, but like quicksand, hides a nasty experience. It's the clumsiest site I've ever used, nothing is intuitive, and it's impossible to do anything simply. It's as if 99% of the money went to the design and almost nothing to usability. One of the examples is email invites. it actually makes you create text file. I haven't done that since 1985! It's free, but not even worth that.

Post: application information verification

Matt SicignanoPosted
  • Investor
  • Smyrna, GA
  • Posts 96
  • Votes 72

Desperation and bad tenants go hand in hand. Some of my worst nightmares were deals I have done to get some cash flow going. Trust me-the situation is NOT going to get better. So let's see, what do you already know, without even going farther-1) they don't pay their bills and 2) they are liars. To make a rather poor analogy, if you put your hand in the lions cage, and get bit, it's not the lions fault; that's what they do! Take the known loss, and save yourself work and headaches and say no thanks!

I will always go after debtors for a money judgment in an eviction. In Georgia, if they aren't personally served (tack and mail) you can get an eviction, but no money judgment. If they are personally served, and don't show up, you have a default judgment. It's the same cost, and you can make a decision on what to do. Filing bankruptcy is not cheap, and a total wipe-out of debt (chapter 7) is harder to do these days.  If they do a 13, you'll get less but at least you'll have the court to collect! If you have a good rental application, you should have car info, job info and ss#'s. You can use that information to try to collect, especially if they have a good job history. One garnishment of mine got only one payment-the deadbeat quit and disappeared!  In another, I got full payment from the employer, who failed to answer the garnishment before the deadline. You "pays your money, you takes your chances"!

Splitting the proceeds 50/50 is worth not having the hassle, but 10 cents on the dollar for a collectible account is crazy! As you said, if it was collectible, I would have tried to! Funny story about what you go through to collect a debt. Actually found and successfully served a garnishment on a restaurant manager-he quit!

I always go for a monetary judgment along with an eviction, should the need arise. The eviction always goes a lot smoother than the collection efforts, obviously, but I was wondering if these judgements have any monetary value. Over the years I have accumulated a few and was wondering if anyone has any ideas on collections. At this point, anything I get would be a bonus!

Post: Collections Question (I'm the tenant)

Matt SicignanoPosted
  • Investor
  • Smyrna, GA
  • Posts 96
  • Votes 72

Didn't realize that, thought a collection agency won't even take it unless you have a judgement. What collection agency do you use? Is it national? But there might be a default judgement somewhere in the mix. That's why I would try to validate the debt through the credit bureau.