All Forum Posts by: Richard Alvarez

HI, 

Looks like a good analysis, but you might add a little for any unexpected repairs. Another factor is you need an opinion on the market in general. If you feel it is going up, then you should be fine, but if you have some insight and think it will go down, then you will need a strategy to weather the storm. I know if you can make it through the next downward cycle no matter when that might be, you will be fine. I also know if you can break even and the tenants make the mortgage payment, then you are adding principal reduction on a monthly basis and don't forget about Depreciation expense that should help. If you can break even on all that, the real bonus becomes the appreciation that will enable you to hit it out of the ballpark. Best Regards,

Richard

anyone know of any areas in the country where you can buy duplexes and up for minimal down and have at least break even numbers or area profitable. I was told of an area in Texas where you could buy a duplex with 30% down and the rent on one side would cover the whole payment and expenses. Yes, one side. Is this possible?

We finally were able to get the tenant out going through the court system. Unfortunately that tactic worked out for them, while we were out the rent for those 6 months. The California court system protects the tenant over the landlord and this delay tactic certainly worked in their favor.

Hi Bigger Pockets,

I have an opportunity to list a business for sale and didn't actually know the right way to evaluate the sales price. Any ideas? The business is a tech company for sale in San Diego County with some proprietary ownership along with equipment (expensive stuff new) as part of the purchase. Also, where do you advertise businesses for sale (LoopNet,etc.)? Gross Sales have been steady in 2013 and 2014 at about $225,000 per year. Anything would be helpful.

Richard Alvarez

760-224-9283

Thanks for your input K. Marie Poe. You mentioned additional stall tactics with an unlawful detainer, what would those be? We do have an attorney (one recommended from bigger pockets and one before that, whom everyone in this area uses) but they all seem to tell you I can get possession and the bankruptcy should not affect the case. But with both attorneys, the bankruptcy trumped everything they have tried. You had indicated, '

A good attorney can prove to a BK judge an abuse of BK filings if that's what's happening.' Will that be a hard thing to do? The two partners have both done the exact same thing, skeleton bankruptcy followed by a real bankruptcy. Will that be sufficient evidence to show that is their tactic? In addition, on the filings from the tenant, they claim that they tried to pay the rent and we would not accept it. The Lessor has provided proof against this, along with refuting other lies and the information provided to their attorney. Recently she got behind on an electric bill ($4,500) and placed a lock and chain on the doors covering the panel -- witnessed by the Lessor. Then we are told she went to where the partner now works as a chef and was loudly overheard telling him (friends of lessor) that the Lessor has put a lock and chain on the electrical panel. Since that chef left, they have absolutely no business and are lucky to get 1 or 2 tables a night (have now closed for dinner). They also have terrible reviews on the internet and a past waitress told us they are watering down the wine, taking food off plates coming back and replating and the gal is the chef with no experience cooking. We don't understand, why would they stay when they don't have any business? Finally to top it off, they are allowing the homeless into the property to sleep on night. Ever heard of this before or suggestions? 

The business is a DBA and not its own separate entity. therefore, I think along with their personal the business bankruptcy will not take hold, but will stall another potential 20 days. Ever know anyone who did what we are contemplating?

I need help and hope someone has tried this before. I have a tenant that has not paid for over 6 months rent (becoming dire), they continue with first a Skeleton Bankruptcy, followed by not completing the paperwork properly (30 Days) dismissed, then coming back with a real bankruptcy. Problem is, there are two parties on the lease and both have done this with personal bankruptcy, but now I fear they will now file business bankruptcy. It is a restaurant in Southern California and their chef has left and they have no business, but obviously this party has done this before. I already have a new tenant for the location, that wants to get in. When we have called the police, they don't get involved saying it is a civil matter. My new tenant would like to take possession of the premises, with their signed lease in hand and change the locks (the bad tenant is letting homeless people sleep inside at night). We think upon doing this, she will call the cops, but it is a civil matter and they won't get involved. She is so low on money that she took another job, working at night at a convenience store. Our concern, we are on the last leg of relief of stay and are worried it will piss off the judge and they will not grant relief of stay. Right now we are at the point of requesting the final relief of stay -- 20 days, then back to filing a 3 day pay or quit and unlawful detainer -- another 33 days. Now if they file business bankruptcy, that could delay an additional 20 days -- two and a half months -- could loose property. Has anyone taken possession of the property in that way?

Help, I manage a property and having a heck of a time getting the tenant to leave. I am in San Diego County and need a good attorney that can get this tenant out. I manage a restaurant and have a tenant that has consistently been paying late and has now stopped paying. I hired a local county guy Tierrney, Kimbal, etc. and we filed a 3 day and 30 day notice to vacate (on a month to month) and one of the tenants (partnership of 2) filed bankruptcy. It took about 30 days, but the Stay was released and then just as they were about to be re served, the other partner filed bankruptcy. Now it will take another 30 days without rent. That will be a total of 4 months without rent and the client could loose their property. What can be Done???? Do you know an attorney in San Diego that could get them out, despite all these obstacles? The tenant is constantly lying, like saying my client would not accept the rent and they said they have paid in full - lie after lie after lie. What can be done? seeking your help.

Richard

I am in California and use the standard CAR Commercial lease form and recently had a front window break. The tenant says they were not at the facility when it happened and it looks like it blew out not in. I, unfortunately don't know how that happened but do know that it also happened in the unit next door and they were at the facility when their window broke. They also said it broke from inside out. The lease says the tenant is responsible for the maintenance for the storefront windows, so that tenant is paying for the repair. My problem, the other tenant is an attorney and threw out the following:

As pursuant to the agreement on page 1 of 6, # 17, Maintenance:

“Tenant shall professionally maintain the Premises including heat, air conditioning, electrical, plumbing, and water systems, if any, and keep glass, windows, and doors in operable and safe condition….” Tenant’s contention is that Tenant maintained the Premises as directed. The windows and glass were in safe and operable condition as of April 30, 2014.

The dispute arises due to the “damage” incurred to the building during a recent bout of the Santa Ana Winds on May 1, 2014, which falls under the category of “other casualty.”Tenant refers to the Lease Agreement: page 3 of 6, #26, Damage to Premises, which states:

”If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident, OR OTHER CASUALTY, Landlord shall have the right to restore the Premises by repair or rebuilding. If Landlord elects to repair or rebuild, and is unable to complete such restoration within 90 days from the date of damage, subject to terms of this paragraph, this agreement shall remain in full force and effect. If Landlord is unable to restore the Premises within this time, OR IF LANDLORD ELECTS NOT TO RESTORE, THEN EITHER LANDLORD OR TENANT MAY TERMINATE THIS AGREEMENT BY GIVING THE OTHER WRITTEN NOTICE. RENT SHALL BE ABATED AS OF THE DATE OF THE DAMAGE. THE ABATED AMOUNT SHALL BE THE CURRENT MONTHLY BASE RENT PRORATED ON A 30-DAY BASIS….”

Clearly, the fault here does not lie with the Tenant, who was off-site during the damage, but with the structural design of the window frame/exterior walls. Tenant also notes that Tenant’s window was not the only window in Landlord’s complex to recently break for no apparent reason. Unless it is the Landlord’s stipulation that Landlord’s other tenants were somehow at fault for the breakage of their window, Landlord cannot find this Tenant at fault for the breakage, which occurred while Tenant was off-site.

When Tenant requested immediate board-up of the window in order to secure Premises, Landlord declined. When asked to fix the window, Landlord elected NOT TO RESTORE. At Tenant’s expense, Tenant removed the broken glass, and when Tenant attempted to stabilize the window, said glass broke on him, lacerating his arms. Tenant had to restore the window to keep Tenant’s property safe and because damage interfered with Tenant’s reasonable use of Premises, but Tenant does not agree that it was the Tenant’s responsibility to fix. Tenant asks for reimbursement in the amount of $692.57 for replacement of the glass. Tenant does not ask reimbursement for the wood and hardware purchased to make the wall whole until Tenant could have a professional glass repair company come and replace the window.

The compromise they are requesting, is for us to reimburse for the window and let them out of the lease 1 month early on July 31, 2014. If they vacate on that date, we will have received all the rent during the time they were actually there, we will only be out the cost of the window or to go to court and try to get August rent and the window and attorneys fees or loose our case? My tenant next door is interested and might take the space for half rent for August and full rent starting on September 1, 2014. Is there a real estate attorney out there that might know the answer?

I look forward to hearing from someone.

Thanks, Richard