All Forum Posts by: PG Henderford

I am in a similar situation and have the same need. Have you found someone, OP? I would be grateful for any referrals you are willing to share.  TIA

The thread is old, but I want to add my thoughts. My lease requires payment via online bank transfer or such other electronic/ACH/EFT payment method as I may approve in writing. I strongly prefer Chase QuickPay and/or clearXchange (or, what I call Chase QP for non-Chase customers) because (1) tenant initiates payment and (2) I accept it. My (meanest, but) best tenant is not particularly sophisticated, but has rent scheduled as a recurring auto-payment, God bless her. The notice arrives in my inbox; I login and accept, and all is right with the world. Beyond the fact that the money transfers soon after I hit "accept," this two-step process virtually eliminates attempts at "partial rent payment." At another property, I recently inherited a tenant who opted to use RentShare, but found a workaround that let him pay only 2/3 of the rent (via credit card). The money went straight into my account. This was a problem on several levels, not least because Landlord acceptance of less than the full amount of rent can complicate matters should eviction become necessary. Arranging for RentShare to reverse the transaction was a nuisance for RentShare and for me, but I wasn't about to cut Mr. Workaround Tenant a check for a "refund" on a credit card bill not yet paid (nice try). Weird as it sounds, the only way to prevent him from sliding another partial-payment into my account was to (1) delete his RentShare account AND (2) change the RentShare Landlord username; RentShare is not constructed to thwart nitwits trying to game the system. In yet another property, however, my two tenants happily use RentShare to pay rent early. 

Needless to say, issues with the troublesome tenant run beyond rent payment and gears are turning on that process. The point of my reply is meant to address online rent payment methods.

You ask about central AC and appraised value. I can't comment on that specific point except to say that the difference could matter in terms of the income approach to appraisal. The income approach is more common in larger and commercial MF appraisals, but I have seen appraisals use the income approach to further support the appraised value *especially* when the market is so transitional as to offer few comps (gutted, rehabbed 1940 duplex across from shanty around corner from 6 new townhouses across street from well-maintained but not really updated brick duplex...next door to church, and so on). Depending on whether comps exist, the income approach might be relevant.

My point? Shop the rental market in Independence Heights as a prospective tenant. Where I own (Midtown and Third Ward), the area is "transitioning" also.  The rental housing stock includes a good number of duplex/small MF units. I'll tell you this much straight out => 2/1 apts with central air command a higher rent than those that don't.  Visit hotpads, craigslist, whatever.  If addition of central AC results in significantly higher rents, you have something to consider.

Can't speak on mini-split systems, btw, but notice more and more retrofits around town.

@Christopher Mori (Augh! Can't get this Android to mention, d $/^%+!) 

Your suggestion encouraged and validated my approach. I have walked before on decent deals, some of which probably called for creative problem-solving. Sure, the EM was returned, but not other valuable resources like time. My realtor has put time and energy into submitting low offers and negotiating on value-add properties at price points below her norm on my behalf. It's her job, but I don't want a rep as a skittish or shaky Buyer who waffles or won't close. The proof is in the results, whether measured by her commissions, my acquisition goals or the balance sheet. At least this realtor knows that I am good for repeat business, I am closer to my portfolio goals, and the numbers work all around.

@Michael Sato 

Unfortunately, adding the space did not work. Thanks, just the same.

So: just as I predicted, property did not appraise. The appraisal report came in 1 week later than promised, 4 days after Seller relisted property, and 2 or 3 days after Seller learned the meaning of EM "deposited in escrow." Appraised value was $2k less than contract price. Btw, failure to appraise would effectively let me out of the contract and return of EM.

My realtor told listing agent that the property appraised below contract price (and not much more).  After extensive consultation with lender, I made Seller cash offer for smidgen less than appraised value with invitation to close in 24 hours. We closed today, with EM and option fee credited against sales price as outlined in original agreement. 

I am cautiously pleased. Next actions include working with lender to immediately apply appraisal, paperwork and all to pull out at least 50% equity. If all goes as planned, I will be mightily pleased. But then, what could possibly go wrong ; )?

A significant factor in deciding not to walk away: completely unrelated BP forum thread about insurance led me to shop for quotes based on my humble portfolio. Found BP reference to Benchmark Insurance and that company came through in no small way. With the increase in cash flow, I couldn't square walking away (-$$) without one more stint at problem-solving (+$). All in all, it's enough to make me upgrade my membership.

Thank you, some of this information is very, very helpful. Of course a Seller can't force an amendment or compel the sale; I was only trying to salvage costs on all sides before we part ways. I used the term "extortion" not bc I am disinclined to contribute more toward the deal (I wanted to pay the contractor if I could get arrangement structured), but because she wanted money then...that day, whereas demand for additional EM would not achieve that purpose. Sure - all probably will walk away and lose, only she certainly didn't get what she wanted (EM within 24 hours to pay contractor). 

As for appraisal process, etc., I'm done with mortgages for a while. What good is sterling credit and even decent terms (fixed,15-year conventional, around 4%) when delays and process hang up deals, especially since few really know the new rules? Am reworking model around cash purchases. Might even come back with cash offer on this once ... but probably not. 

Thx also for info on SD rules for SFR but not duplexes. I still say that if Seller signs a contract that requires (via special provision) disclosures, lease agreement, etc. before OP ends, the contract shd count for something.

By the way, I should apologize for posting this inquiry in a non-legal setting. The TREC Sales Agreement form essentially requires that a Seller cannot execute a Lease after the date of execution without written approval of Buyer (read). Other regs dictate disclosure of Seller Disclosure and the consequences for failure to disclose timely. Specific provisions of the Sales Agreement under new rules speak directly to circumstances under which the Buyer with financing forfeits EM and, oh, never mind....

I thank @Charlie Fitzgerald (don't know how to tag) for the helpful response!

The point is that Seller failed at every step to disclose in accord with written agreement between parties and agreed to extensions premised/required because she failed to hold up her end. Then, when her delays caused delays in appraisal under new lending rules, Seller said that she needed extra money to pay her contractor.  Anyone who operates in Texas knows that a Seller cannot extort additional EM from Buyer to cover contractor costs. EM is placed in escrow and therefore not available before closing unless the parties agree otherwise. Seller signed agreement that required her to present lease within a defined time period, then didn't. When her failure to disclose caused delay in appraisal process, she demanded more money. Where do you all operate such that additional EM is available BEFORE CLOSING? If she wants to terminate, I understand. If she wants to terminate "to get the EM" to pay her contractor, despite failure to disclose numerous documents (like Seller Disclosure) as legally required or promised in written sales contract, she should not expect my agreement to release EM. As I type, she has no sale and no EM. She has only whatever debts were already pressing, a paper trail of written promises she failed to keep, and a Buyer left with decisions as to how to recover costs incurred based on those promises. She is back to Square 1, as opposed to the alternative.

I appreciate the opinions from those who appreciate my wish to minimize damages on all sides by helping the Seller to closing without running afoul of any regulations that restrict such financial arrangements. I get that I don't always express myself clearly, can't expect just anyone to understand, and don't trouble myself with those who don't. Thanks, nevertheless, to those who read, re-read, and suggest based on benefit of doubt!

OK, BP-Landia, to pass the time waiting to hear back from my lawyers, allow me to share the following tale, edited here for brevity (believe it or not):

Duplex in Houston TX, listed at $X68k; after extended negotiations, which purportedly included a new tenant on a year lease at $1400/month and promised repairs, went under contract for $X56.5k w 3d party financing. SD was a week+ late. Seller agreed to extend OP & closing bc lease "not ready"; Seller informed that  delay was holding up appraisal bc I wasn't "putting out" without pre-agreed baseline disclosures. Eventually I received an almost-valid lease that Seller executed without my written approval (not ok). Idk, I thought (not really, but this is a family show), but the deal would put me right where I wanted to be for the right dollar amount, even w questionable tenant. Besides, my research suggested additional negotiations if property didn't appraise for several reasons. 

Skip to last week. Seller is freaked by news of new delay based on no-shows by appraiser. Listing agent calls my rep to demand additional $3k in EM "bc Seller needs to pay contractor." ?!!?? Why not arrange for mechanic's lien settled at closing? Response: Seller can't wait, won't acknowledge amendment re new closing, plans to relist property and "use EM to settle with contractor." Wtf? Two days ago, Seller's agent relisted property. Yesterday, Seller called title company to request EM and got feelings hurt. Sent me letter requesting release of EM. We are through the looking - glass. I am mightily annoyed, not least bc this will now cost Seller and everyone way more than Seller can possibly understand.

Anyway, I do not seek legal advice in this forum, but solicit comment. Is there some above-board way in Texas for Buyer to offer Seller a short-term loan to cover costs of poor planning, etc., to be settled from proceeds at closing? My realtor won't touch the topic. I would love to find a way to assist this jewel of a Seller from wreaking more havoc than she can comprehend. I'd much rather complete transaction than pay lawyers/sue for damages, etc.

Opinions?