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All Forum Posts by: Rob Hakes

Rob Hakes has started 10 posts and replied 153 times.

Post: Disregarding the 1% rule?

Rob HakesPosted
  • Murray, UT
  • Posts 155
  • Votes 151

Remember when the 1% rule was the 2% rule?  About 4 months ago it was turning into the .8% rule.

Post: COVID 19 benefiting note investing

Rob HakesPosted
  • Murray, UT
  • Posts 155
  • Votes 151

@Bradley Ritter

I think immediately there may be a drop in performing note prices.  

Say a note has been performing for 12 months.  In the past you would pay a premium if it had a good rate and was clean.

Right now unfortunately past payment history doesn't mean much which should push prices down if a seller needs to get rid of it.  Or in other words, I wouldn't pay full price for a performing right now regardless of payment history unless you were fairly confident the borrower had a solid job and was not going to jump on the 'forbearance' train.

@Jordan Meyer

The reason we pay a PM is because we primarily need them to manage people.  This cant just be automated.  Any good PM already has a full array of automation in place for their systems, but a great one will know how to manage your tenants.  This takes a lot more than some fancy software.  I will gladly pay a PM 10% if they know how to manage my tenants.

Post: What is going on with grant cardone????

Rob HakesPosted
  • Murray, UT
  • Posts 155
  • Votes 151

Maybe a Deep Fake?  Totally bizarre.

Post: What is going on with grant cardone????

Rob HakesPosted
  • Murray, UT
  • Posts 155
  • Votes 151

@Will G.

Wow! He must have been following his own advice.

Not surprised.

Fortunately not all landlords are subject to what Trump think he dictates behind the microphone.  The CARES act only applies to homes that have loans that are federally backed (fannie and freddie) and the remaining is up to the states.  Some states made the same mandate similar to giving surgery with a cleaver rather than a scoupel.  

In Utah the governor has mandated that eviction be put on hold till mid may if: The tenant was current by March 31st and they have documentation that they have been affected by Covid-19.  That sounds reasonable and makes me feel like some state sovereignty is still in tact.

Unfortunately for me though, my only Utah property is federally backed and the tenant was behind before the Corona hit, so I cant take any action till late July.

@Anthony Wick

I agree with your sentiment that a blanket discount is just bad business.  However in this situation with these being OOS properties, a turnkey provider, and quite an unprecedented world circumstance I am not inclined to try and work this out with each tenant on an individual basis.  Though i would typically expect my PM to take care of this, its hard to know how this high volume of 'work outs' will go with current work restrictions.

I think i will handle my renters that i live close too and personally manage more similarly to @Joseph Hammel.  Love the credit card idea.  Let them pay the cc company back over the next 6 months rather than you.

Also, i think we underestimate the large amount of tenants out there that COULD pay but will use the Covid free pass as long as they can (not knowing that they may still need to backpay) once it all blows over.  Anything i can do to weed that out the better.

@Gwen Fyfe @Solomon Morris

Below is a portion of the letter they sent out.  It is obvious that they are extremely overwhelmed as each landlord and each tenant will be effected In some way.  

They give the option for the landlord to opt out as it will be at my expense.

"In an effort to encourage tenants who are minimally affected to pay rent on time, if April rent is paid on or before April 5, 2020, the tenant will receive a $75 credit towards their April rent. We will also have the same procedures for the month of May. Everyone has been affected in some way, and this is an opportunity for us to provide some financial relief during this difficult and uncertain time. If the rent is not paid on or before the 5th of the month, the tenant will not receive the $75 credit.
If you are opposed to this, please let us know. Please ONLY respond to this email if you are opposed to this new arrangement. It is impossible for us to reach out to every tenant individually, but if we do hear from your tenant we will update you directly. Otherwise, please look to the owner portal for all updates in the coming days and weeks. We are experiencing a high volume of emails and currently have limited access, and we are prioritizing essential communication first. We appreciate your patience and we will try to respond to all emails as quickly as possible.
Since some of our tenants have been affected more than others, we will be sending out a mass survey to each tenant to see how they have directly been impacted. This will give us a better idea about how our tenants are being impacted as a whole."

Just got an email from my PM stating that they will offer tenants a $75.00 discount if they pay rent in April or May.  From first glance i am okay with this.  I think this might weed out those that won't pay due to Covid, but probably still could.  As much as we can mitigate massive repayment plans that probably wont work, i think i need to know who the tenants are that may still be able to pay.

Any thoughts on this?