All Forum Posts by: Robert Shedden

We had a potential tenant give us a verbal commitment that he would sign our lease and move into our rental unit on November 6 (3 days from today). We sent him our lease via DocuSign last night. He viewed it last night and told us he would sign it this morning, send the security deposit via CashApp today, and send us the first full month's rent tomorrow. Well, he sent us the $1,500 security deposit this morning but DID NOT SIGN THE LEASE. He called us late tonight and said something came up and we would not be moving in or signing the lease. He obviously wants his full security deposit back. However, we took down the listing and already turned two people away. The property is located in Illinois outside of Cook County.

Are we under any obligation to return his security deposit in full? Do we return the deposit less the daily rate for each day it takes us to find a new tenant? Would you give him his full deposit back if you were in this position? We haven't made a decision yet and wanted the check in with the BP Community.

And, no, I am not looking for legal advice. I have an attorney and returning the full deposit will not put us in any financial distress. I am looking for an interesting discussion and to get a variety of viewpoints! :)

@Joshua Haynes

Check out the northern “suburbs” of Rockford... Machesney Park and Loves Park. I own two fourplexes in Machesney Park; cash-flowing roughly $200 per door.

@Tim Jensen

I attended a few meetings last summer; met some good people. I’ve been meaning to make it back there, I’ve finally got my rentals stabilized and I’m focused on purchasing another one.

@Chris Coleman

I am looking to connect with other investors and people who know people. You never know where the next deal will come from. I plan to make some meaningful connections and then follow up. I’ll try to add value to others before asking for any favors...

@Tim Jensen

Yeah, it's been a while... Is the Rockford REIA Meeting tonight or next Wednesday?

Hey everyone, I am posting a new forum to talk about your best networking advice. I know this only tangential related to Real Estate, but I have a feeling the RE investors that are more successful, are also excellent at networking...

I received an invite to the Rockford, IL Chamber of Commerce annual dinner from one of my lenders. This event is $125 a plate for non-members like myself. I just realized what an excellent opportunity this would be to network with local investors and entrepreneurs in my town. However, this will be a lot different than the local REIA meetings I found through BP! Not everyone in the room will be looking to gush for hours about ARV and Cap Rates!

I am looking for any advice folks can provide to network in a room that is more of a "who's who" of the local community, rather than a group of real estate junkies. Tips, strategies, what-not-to-do... all comments welcome!

@William Goodlett

I agree. A local/regional bank will know the market better and have more options to offer. Banks like Chase, Wells Fargo, etc. are huge but not flexible. They have too many controls in place to “protect” the large corporation.

Blaine,

Get it under contract, dig DEEP into the details, then present your deal to as many investors as possible. If it is good/great deal, it will speak for itself and you should be able to find someone willing to provide funding. Best of luck!

@George Owusu

I agree with you. I think Raymond should get rid of all the tenants, complete the rehab/transform the building. Then look for new, good tenants that will pay the increased rent. Only if his budget allows of course.

We are still having issues with inherited tenants in the two properties we recently bought and are in the process of renovating. Only three left to go, can’t wait till they’re gone.

@Daniel Infante

Some things to look for... can you add a bedroom somewhere or cheaply add some desired amenities? Is the square footage accurate (is there a lot more than the MLS is showing?). Is there extra land that can be built upon, or sold off separately? Are taxes extremely high compared to nearby homes, and can be protested and lowered? In today's tight market, try to find value where others can't (or are too lazy) to find...