All Forum Posts by: Richard Ladenberg

@Frank Jiang This is perfect. However this is in Georgia. There is no pay or quit notice required to file eviction for late payment.

@Kristina Heimstaedt

They moved in 1 week ago... That's why I'm at a loss for what to do. I've had tenants that stayed for several months and then were late by a day or two, and that's forgivable. I'm flexible. I mean, I have a 4 day grace period in my lease. But this person moved in 1 week ago and is saying they won't make rent next week. I don't want to be shown as a pushover but I also don't want to be too much of a hardass going into it causing animosity because of the shared living arrangement.

I do. There is a late fee and it is cause for eviction as well in the lease for this. Was trying to think long term though since they are living with me. Don't want any animosity in the housing environment if I do the eviction and they end up paying later. I guess that's what comes with the business though.

This is in Georgia.

They texted me they can't pay October rent until they get paid on the 11th because of their car insurance deductible. I do not want to start off on the wrong foot and seen as a push-over and I obviously want to treat this as a business. I also don't want to start the relationship with them being spiteful because I follow the rules since this is a shared housing environment. So I will be posting an eviction notice. But what do I say to them? Do I not reply to the text and just talk to them in person? Suggesting they use credit cards or other means to pay their other obligations because I will post an eviction on the 1st. Can I suggest them using other means to pay their other obligations because I need the rent on the 1st through text, or will that count against me in court?

Evictions are always hopefully a last resort and this will be my first one I've ever done while doing this for 2 years. But I know it needs to be followed to the T otherwise it causes a nightmare in the long run. I've never had a late tenant either. They have only been living here a week and I can already see how they won't be a good roommate/tenant. Aside from a 60 day notice (Georgia law says 60 days from landlord, even tho it's a month to month lease) I don't need any just-cause to end the term, right?

Thanks for the reply Will. You're kicking butt in this thread. I had one more question. 

Do you do any kind of automation for these properties? Things like a key lockbox on the house they can open with a phone app for all the showings. Automated craigslist ads? Right now I rent on a room to room basis at my properties and because of the high turnover I was thinking of implementing a very thorough system I thought of with almost no face to face interaction until the very final signing. 

Especially if you have so many properties, what are general tips and tricks you use that let's you take up the least amount of your time as possible?

Awesome thread. I specialize in the same niche. I make money hand over fist on my ROI because of the premium. How do you do your advertising? I stick to craigslist only and that's left me with 0 vacancy since I've been doing it, but sometimes it's a close call/undesirable tenants. Do you advertise on campus? Do you work out a deal with campus registration? I know when I went to school they gave me a packet of apartments near the school.

It seems like a general consensus is going 50/50. What about their initial investment? Should they own 100% of the 20% they put down on the house and then we start splitting after that? Or should that be part of the 50% equity split?

Also I'm not sure a property manager would only do 10% for this kind of job. It's upwards of 6 doors per house on month-to-month leases. Lots of turnaround.

Also regarding lawyers. Yep, we will 110% get a lawyer involved. That was within the first talk we had with each other. We've been friends for about a decade now but we are keeping our hearts out of the deal. Also will be forming an LLC.

Thanks all for all the input! Looking forward to hearing more.

I'm working on a partner deal and we want to buy several properties. They will fund the 20% down on all of them and I won't bring any cash to the table. We are wanting buy & holds while I manage them as short term rentals (student housing). So there's a lot of work from me because of high turn-around, I've done this before, I have a couple other properties where I do it. They also have terrible credit so this is impossible without me (they got a windfall of money) But I'm also not bringing in any cash. The partner will be completely hands off. 

How should we split the equity in the homes and then also the net income? How should repairs be split? Obviously the answer is it's whatever i'm looking to get out of this/comfortable sacrificing my time for. But I'm also trying to be fair.

That makes sense it would come with the appraisal. Awesome info to know. Thanks!

If I do a hard money loan and need to pull a refinance later, can I rent to an LLC? I want to get a lot of properties and have my wife run the business as property manager, so it would be her getting the leases signed later. How would this best be approached? Also it wouldn't be traditional leases, it would be short stays, traveling business, etc. (month to month leases, student housing etc.) which is part of the reason i want to rent to the LLC so the entire lease is covered through the LLC that my wife would run in terms of qualifying for a refinance since they need master leases fulfilled.

@Andrew Postell What is the typical criteria for them to include the rental income of the next property? Do you have to have a lease signed before you even go into contract on the home? Are you supposed to get a lease signed while in due-diligence and finding a tenant needs to be in the contingencies?

What about setting up an LLC and renting to the LLC, would that work? Could I sign a lease with my wife who isn't on the mortgage/title?

Thanks for the reply!