All Forum Posts by: Paolo Ruggieri

It’s not illegal -PM me and I will put in you in contact with watershed person that will look up tenant balance (after you prove that you own it)

Here is how I finally resolved this:

1. In my Atlanta houses I only rent section 8 (very low turnover)

2. My assistant calls someone at the watershed every 3-6 months to see who is behind

3. We put a lease violation in if a tenant is behind

4. A whole process starts beach and forth between watershed, aha (section 8), tenant 

5. In the end whatever is the unpaid balance is either picked up by the tenant or section 8 if it was a payment issue. If it was a leak issue the city will give a discount with a plumbing bill

You CANNOT have tenant be without regularly check their water bill and you HAvE to have section 8 behind you so 

1. if section 8 determine that tenant can’t afford it, they will pay it 

2. if they determine tenant can pay it (in installments) tenant has to pay it or She/he will Be kicked out of section 8

Also section 8 will take into account the install payments of the tenant in determining the split of the payment between the city and the tenant... so indirectly the will always pay for the extra water because they will pay a larger portion of rent

there is no other solution. I feel bad for people that would like to rent my house that are not on section 8, but section 8 in my opinion is the only way to be a landlord in Atlanta and have a good experience (or find a tenant with a very large income, which is still difficult for Sw Atlanta)

Here is how I finally resolved this:

1. In my Atlanta houses I only rent section 8 (very low turnover)

2. My assistant calls someone at the watershed every 3-6 months to see who is behind

3. We put a lease violation in if a tenant is behind

4. A whole process starts beach and forth between watershed, aha (section 8), tenant 

5. In the end whatever is the unpaid balance is either picked up by the tenant or section 8 if it was a payment issue. If it was a leak issue the city will give a discount with a plumbing bill

You CANNOT have tenant be without regularly check their water bill and you HAvE to have section 8 behind you so 

1. if section 8 determine that tenant can’t afford it, they will pay it 

2. if they determine tenant can pay it (in installments) tenant has to pay it or She/he will Be kicked out of section 8

Also section 8 will take into account the install payments of the tenant in determining the split of the payment between the city and the tenant... so indirectly the will always pay for the extra water because they will pay a larger portion of rent

there is no other solution. I feel bad for people that would like to rent my house that are not on section 8, but section 8 in my opinion is the only way to be a landlord in Atlanta and have a good experience (or find a tenant with a very large income, which is still difficult for Sw Atlanta)

2 different lawyers told me that after 7 years a debt is not collectable. So when you sell a house of debt was generated from a water bill closed more than 7 years back you should be ok. Based on it, I decided that I will keep my properties long enough to have gentrification happen, have more wealthy tenants move in that pay their bills, wait 7 more years and then sell. I got long term financing 30years fixed with lending one. It stinks as basically I can’t sell these homes for 20 years or the water bills will kill it. I believe it is a question of enforcing turning off utilities if tenant does not pay. You can call the city and ask for the balance on your tenant water bill and you can ask city to shut it off BUT then tenant leaves and you are stuck as it is NOT easy to get it back turned on once they force shut it. I also had a situation where they did shut off the tenant water and the tenant did some type of work to illegally hook up . It ended up still on property owner. A decent solution has been when the city had an “amnesty “ month couple of years ago. Where for one month they gave employees authority to write off balances in exchange of small immediate payments. In my opinion it’s best to have water bill in Tenants names and wait 20 years to sell - or if we have enough people do a classaction lawsuit. However, I believe that amnesty month came from a class action lawsuit.... and we are now back at square one 2 years later . Investing in the city of Atlanta has been very good for long term appreciation, but it comes with a lot of headaches ... we  are squeezed between tough tenants and tough city . 

I also have a friend that won because he got a bill that was too high ... he got a $64,000 bill ... it was high enough to call the news and they got it completely removed before the news started their report. I told him it was better a $64,000 bill than a $6,400

If you raise more than 50 people - count me in

Thanks - I will stick to vinyl planks as I have been doing - thanks

I have 20 properties in section 8 (Atlanta). There is a very high demand - no issue in getting tenants . Rents are based on comps that section 8 decides to pull. I have been thinking to try this flooring going forward as it is 50c per square foot , almost no labor involved , easy to change if a piece get damaged, 100% water proof .... it’s very unconventional though . Thoughts?

https://www.walmart.com/ip/Eve...

Not sure I agree... buying a NNN property with a corporate guarantee tenant is the easy way... which everyone wants... and therefore is costly. I can buy it, but that's it... I can't get my money back quick.

The same building vacant (or with lease expiring) is much cheaper. I would like my next deal to be a vacant single tenant building where I find the tenant. I buy low because is vacant, my team (and I) hussles to get a good tenant, once secured the tenant the building is worth a lot more. I can then cash out refinance, get back through my cash out money I put in and enjoy years of hands off additional cash flow while I use cash out refinance to repeat. Similar to the BRRRR strategy, but a with A LOT less day-day management of maintenance, evictions etc... I like BRRRR, but would like to move away from heavy management of a mass of tenants losing their job, toilet leaks, section 8 red tape etc etc. I do realize that the strategy I would like to work in will include a ton of hard work (ie. cold call corporations, talk with local franchise owners etc. etc.) to get a tenant (not as easy as to put a property for rent on the MLS).... but it might be much more of a fit for me than constantly increasing Single Family Home portfolio.

Back to my initial question... who is in the BP Community out there that does this today?

A triple net lease (triple-Net or nnn) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three "nets") on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.).... which means means that is a lot less hands on for the landlord....  it is almost exclusively used in commercial real estate, almost never for residential  ... and as any commercial transaction  it takes more time/effort to find (Good) tenant. Not sure though what you mean with O love NNN.

After cracking the code on traditional single family rentals, I would like to expand and network with NNN investors ... next investment I do is going to be different than the last 30 Residential rental properties in my portfolio. I am specifically interested in acquiring cash a single tenant commercial building that is Vacant (or close to be vacant), add value by renting it to a good credit tenant (ideally with corporate guarantee) and then sell or cash out finance it at a higher value.... with the idea that NNN properties should be almost management free once rented. I also would consider any NNN property where seller is distressed and is looking for quick cash deal. I am sure as everything in life it is easier said than done. It took me many years to master a large residential portfolio only to find out how much day - day involvement is needed even with the best property managers if your residential portfolio is large enough.

I truly enjoy customized complex deal making more than day to day operations so am looking to expand in NNN type deals that Probably fit the part of real estate what I enjoy the most.

Anyone out there that has some experience on NNN deals that wants to network for future mutual benefit relationship?