All Forum Posts by: Chan K.

@Shaun Reilly @Victor Ortiz @Eddie T. 

Thank you all for the recommendation.

The PayNearMe is pretty pricey 3% from business or $3.99 from tenant per transaction. 

I collect rent weekly, the expense can be very deep.

Dwolla seems more affordable, but it is an online payment only. Tenant can't just walk into the local store like 7-Eleven to pay it. It seems that you have to be "techy". It might be hard for people who don't use iphone, computer, ...... etc.

I like the deposit into the local bank (BoA ... etc) or through ACH. I am hoping the service is free or at a small fee. 

I also came across this thread, and I would like to share them 

http://www.biggerpockets.com/forums/84/topics/1378...

Hi BPers,

I would like to leverage your experience with the tenants payment system.

I guess at this point, it is getting old for me that I have to go pick up the rent from them at the property or POBox. I am growing, so it is difficult to sustain.

I am looking for service or system that allows tenants to deposit at local store directly to my bank and online direct deposit. I want both, because some senior tenants are not good with technology.

I am hoping to be introduced to low cost and affordable service provider.

Would you be willing to recommend a few services that you know or use?

I would really appreciate it! 

@Marcia Maynard 

I am speaking from experience with either the inherited and new tenants so far. Sorry if this is a strong statement. None of my section-8 is either disability, retired or veteran.

@John DeFoor 

You are correct. I was referring to the condition of the units, building or/and neighborhood. No need to check for criminal background, because caseworker already checked section-8 criminal background as part of the qualification. As per credit check, usually it is not necessary if the caseworker covers more than 70-80%. You can make the case not to accept the tenant based on the 3x income rule if the voucher is less than 70-80%. I would not take any risk.

@Aly W. 

I am shock to hear that they don't have SSN. Is not this consider illegal immigrant? You should try to understand and question the caseworker of why the people without SSN received the voucher. This program is for American and its residence. We all pay for it through our taxes deduction. I don't believe people without SSN deserve this kind of privilege.

Keep in mind, you are required to sign up with them for one year lease initially. After you finished with the first year, you can put them on a Tenant at Will. If you later have any problem or don't like them for whatever reason anymore, you can tell them that you are no longer interested in renting to them. You can also raise the rent so high until caseworker tells you the unit is no longer affordable, then she/he will tell section-8 tenant to leave. FYI: I am from MA, we don't have a cap on the rent. Landlord decides what to charge.

The best section 8 tenant is someone who has voucher that covers 100% rent rate. Most caseworker won't let you know how much the voucher is. In MA, section-8 pays 70% and tenant pays 30% (if she/he works at all). You have to tell the caseworker you need to know the voucher value to be able to determine if the tenant can afford the unit - caseworker will eventually gives it if you are persistent. 

You will love the direct deposit once you got all the initial paperwork out of the way. The inspection is pretty good if you are a responsible landlord. 

Ideally, unit to rent to section-8 is a BC. I don't recommend renting it to section-8 if your unit is an A.

Section-8 tenant is afraid of getting evicted (affecting their voucher and caseworker relationship), so they will obey most/all of what you ask. Keep in mind, you are dealing with someone who is not as educated and limited money resource.  

@Shaun Reilly and everyone else on the forum recommended that I set up an LLC bank account, then move my fund there. Once, that is established, then write a check payable right out of my LLC.

Logistically, if I set up the LLC bank account now, I won't have a check book in time to write out the down payment.

What is the pro and con of write a check (cashier check) out of my personal account right now, but P&S and everything else is under the LLC name?

@Joel Owens I am going for a commercial loan since it is a 6-units. Setting up the LLC is in progress right now.

Shaun R. and everyone else on the forum recommended that I set up an LLC bank account, then move my fund there. Once, that is established, then write a check payable right out of my LLC.

Logistically, if I set up the LLC bank account now, I won't have a check book in time to write out the down payment.

What is the pro and con of write a check (cashier check) out of my personal account right now, but P&S and everything else is under the LLC name?

@Shaun Reilly and @James Wise 

Since we are at the closing topic, I have been calling around for a closing attorney who is going to represent me at closing day.

I am not talking about the attorney who is representing the bank, but the one who is representing me (review the P&S, go to closing with me, ... etc).

Do you guy ever hired a closing attorney to represent you at closing?

Well, the first attorney did not give me a quote for the closing process, but he said he would charge me $300 per hour. He also told me that it will take 2-3 hours to review the P&S contract, about 1-2 hours to travel to closing site, and another 2 hours to sit in at closing. So, in total, I would end up paying him (2.5 hours + 4 hours)*300 = $1,950. Is this reasonable? FYI: I don't ask him to review any lease contract here.

Fortunately, I found someone who is willing to do for $650 (the whole closing process) to represent me.

I just want to get an opinion what is reasonable.

I used to review the P&S in the past myself, and it took about 45mins-1hour. I did not do this regularly, and no law experience background. I would imagine, it would take him about 1 hour or less to review the P&S with his experience and charge rate.

Paying someone almost $2k to represent me is bit high for this work. What do you guy think?

-Chan- 

Thank you everyone, @James Wise , and @Shaun Reilly for the example.

Unfortunately, the seller's agent tried to be clever on me. He put in the P&S

" .....Chan K., xyz LLC, as being the buyer .............................

Chan K.

__________                  ______________

Buyer                          Signature

XYZ, LLC

__________                  _______________

Byer                            Signature

"

I have asked my attorney to remove it and only put the LLC.

@Shaun Reilly Thank you Shaun for the confirmation and lesson learned. It is good to know.

-Chan-

Hi BPer,

During the P&S agreement, do you usually put down both your name and the LLC name on the P&S agreement as buyer? For example, "your_name, your_LLC" as being the buyer.

I have notices that for seller, he only puts down his LLC name on the "P&S Agreement".

FYI: I am the manager of the LLC, and will have all exclusive decision making.

FYI: I will write a check for the down payment out of my personal account at this point.

Would it be possible just to put my LLC in the P&S?