All Forum Posts by: Pete Bhanshali

@Brie Schmidt is correct most likely I will end up paying the tenant 2x plus court cost on mere .10 cents missed interest payment. 

@Kar Sun mentioned get out of Chicago rental, that is the plan. I am genuinely tired of idiotic progressive laws, which end up hurting the little guy!

Thank You everyone for your input, all landlords reading this, please follow the Chicago BS deposit laws. 

Happy New-Year BP family

Pete....

@Michael K. agree for my low tier properties I only do non-refundable move-in fee but this was perfect example why security deposit was required. When will Chicago wake up and start following common sense laws. 

@Nathan Gesner

Good point, I am definitely consulting with an attorney before replying to any of their threats. Since this is a easy gravy train for the attorneys they rarely settle. 

Pete...

@Long Dang - thank you for the link to "Illinois Compiled Statutes", now this is a condo high rise and I own one of the units. Yes I do have the proof that the deposit was being held in separate interest bearing account. 

I sent over the statement of condition less then 5 days. 

I will definitely post the final outcome of this nightmare. 

Pete...

Hello Everyone, 

Running into weird issue, I had a tenant in my condo. As per law I kept the deposit in separate interest bearing account. The Law states I should pay them the interest from the deposit at the end of every year, it amounts to few pennies. I forgot to pay them the interest for first two years (about .10 cents). In the final walk through they had scratched the floor in multiple places, it required complete refinishing of the floor, the cost to refinishing was more than the deposit, I sent them the quote with breakdown of all the expenses to fix the floor. I ended up keeping the whole deposit.

I received a certified mail from the law firm that they are suing me, per Chicago law they are allowed 2x the deposit plus court costs. These types of cases are gravy train for the law firms per quick google research. So if you are landlord and are collecting deposit plz follow the deposit laws.

My question: Do they have a case if the deposit was being held in interest bearing account and nothing was ever withdrawn, my only mistake was that I didn't give them interest from the account?

Can anyone recommend an attorney that specializes in this type of cases. 

Thank You in advance for your feedback. 

Pete....

@Andy Nahan can you please forward "Joe the plumber's info", I am in north side. 

Thank You, 

Pete...

Hello Julie,

Since you are just starting, why not go with conventional loan and put it under your name, you will get great interest rate. Make sure to get Umbrella insurance. Plus you will have all the same benefits from deductions perspective as LLC. I just don't see a benefit in LLC when you are starting out, unless it''s 4+ multiplex then you will have no choice but to get a commercial loan.

In a lawsuit good lawyer will find a way to go through LLC without any issues, your best protection is insurance and umbrella policy.

.Just me .02 cents. 

Hello Caroline, 

I am in similar boat as Julie, can you please elaborate further on "Lots of options", I already check all the boxes of High Fico, showing net income....what type of lender should I be searching for?

Thank You,

Pete... 

For my rental over concrete, I prefer glue down vinyl planks, vs snap and click. Reason 1, flooring is not expensive and it's durable, Reason 2, if it needs to be repaired cut the ripped/worn out area and put in new piece.

https://www.homedepot.com/p/Tr...
Walnut Ember Java 6 in. x 36 in. Vinyl Peel and Stick Vinyl Plank (36 sq. ft. / case)

.97c sq ft. Most Home Depot's have this in stock. 

Pete....

  

@Gaurav Chaudhari, only sign up with company that the has rating of  A to A- (confirm the rating by googling the company) , also make sure to get dp3 coverage and replacement cost and not actual value. 

I usually buy properties that are not making decent profit or none at all due to below market rents, most times TLC fixes this issue(Paint, light fixture, faucets). My rent are in the middle, not the lowest or highest this way my turnover is extremely low. Make sure to analyze the rental comps. I think Ben Mallah coined this phrase: Buy a crappy property in a good area, because you can always update the property but can't do much with the area.

Lot of people will offer you to buy into their system/turnkey, I am not a fan of this idea. I like doing my own due diligence and enjoy the challenge. 

Finally I like some of the content from Clayton Morris has posted, especially on heloc, leveraging credit card.... I personally have done six figure rehab projects using my credit card with zero% interest.  Do not buy into his program, he is getting sued for ripping of quite a few people. I think he is still selling turnkey properties.