All Forum Posts by: Ryan Konen

Once you've verbally accepted a Section 8 applicant, here's the general process to move forward with HUD:

1. **Request for Tenancy Approval (RTA)**: Yes, your next step is to submit the RTA form. This form, completed by both you and the tenant, requests HUD's approval of the tenancy and triggers the inspection process. Make sure it's filled out accurately to avoid delays.

2. **Property Inspection**: After submitting the RTA, HUD will schedule an inspection to ensure your property meets HUD's Housing Quality Standards. The timing of the inspection varies by location, but it often takes 1-3 weeks from the RTA submission.

3. **Lease and HAP Contract**: Once the property passes inspection, you can sign the lease with your tenant, and HUD will set up a Housing Assistance Payment (HAP) contract with you to begin rent payments. HUD typically covers their portion of the rent directly to you each month.

4. **Estimated Timeline**: The whole process, from RTA submission to HAP contract approval, can take about 3-6 weeks. This can vary depending on the local Public Housing Authority’s (PHA) workflow and the timing of inspections.

5. **Proactive Steps**:

- **Prepare for Inspection**: Ensure the property is in excellent condition, with all necessary safety items in place (e.g., smoke detectors, proper handrails). Check local PHA guidelines, as they may have specific inspection checklists.

- **Follow Up with PHA**: After submitting the RTA, you can call the PHA to confirm receipt and inquire about the estimated timeline for inspection.

- **Have Documents Ready**: Prepare all necessary documents for the lease and HAP contract so you can move quickly once the inspection passes.

Each PHA operates slightly differently, so reaching out directly can also give you the best insight into expected timelines in your area. Good luck with your first Section 8 tenant!

Here’s how you might handle each of these questions when working with multiple brokers:

1. **Mentioning Other Brokers**: Yes, it’s generally okay to mention that you’re speaking with other brokers, as they often expect this in commercial real estate. Letting them know you’re casting a wide net can motivate them to find stronger deals to stand out among your options. However, be clear about the types of properties or areas each broker should focus on to avoid overlap.

2. **Off-Market Deals and Representation**: If a broker brings you an off-market deal, it’s typically expected that they represent you on that transaction, handling both sides. Most brokers will want to protect their exclusivity on an off-market deal, as they put in extra effort to source it directly for you.

3. **On-Market Deals**: For on-market listings, you have more flexibility. If you’ve established a buyer’s agent, they can represent you and handle negotiations, with the listing broker representing the seller. In this case, your broker’s experience and relationship with the listing agent could provide valuable leverage.

Ultimately, clarify with each broker upfront about your intentions to avoid misunderstandings and ensure they’re comfortable with the arrangement.

Quality over speed saves time and money in the long run. Rushed work often leads to bigger, more expensive problems down the road. Taking the time to plan and invest in quality materials or professional help usually pays off with fewer repairs and greater peace of mind.

When working with a realtor under a one-year exclusive buyer representation agreement, the terms of exclusivity and commissions can vary, so it’s essential to clarify these details upfront. Here’s how this typically works in commercial real estate:

1. **Exclusive Representation Clause**: Many exclusive agreements mean that if you buy a property during the term of the contract, your realtor is entitled to a commission, even if you find the property independently. This is because the agreement obligates you to work with them on any transactions within that period.

2. **Carve-Outs for Independent Deals**: Some investors negotiate carve-outs or exceptions to this exclusivity. For example, you might stipulate that if you identify a property on your own or work with a property that already has dual representation, you can proceed without involving your realtor. This may require the realtor’s written agreement.

3. **Dual Representation or Referral Options**: If you’re open to a co-brokerage scenario, you could also work out terms where your realtor earns a referral fee instead of the full buyer commission. Some realtors are open to this arrangement if it’s part of the initial contract.

4. **Negotiating Flexibility**: Discuss these scenarios with your realtor and outline specific conditions under which you can proceed independently. Having clear, mutually agreeable terms can prevent misunderstandings and keep your options open.

It’s always best to consult a real estate attorney to ensure the contract aligns with your interests, particularly if you foresee independent deals.

Yes, as an investor, you can request an extension with HUD, though approval isn't guaranteed. Extensions may be granted for valid reasons, like needing more time to secure financing or complete due diligence. Typically, HUD charges a daily fee for extensions, which varies depending on the property type and the number of extensions requested.

To request an extension, contact your HUD representative or the Asset Manager handling the sale. Be prepared to explain why the extension is necessary and demonstrate your commitment to closing the deal.

In an owner-financed deal, once the sale is completed and the deed is recorded at the county level, the process generally follows these steps:

1. **Deed Recording**: The deed is submitted to the county recorder’s office, which officially documents the property transfer. This process updates ownership records at the county level and makes the sale a matter of public record.

2. **Notification to the Township**: Typically, the township is not immediately notified by the county of the sale. In most cases, they learn of the transaction only when a Certificate of Occupancy (CO) application or a permit is submitted for repairs or inspections.

3. **Property Tax Records**: Some counties do share property sale information with townships periodically for property tax purposes. However, this varies by location and may not be immediate. The township may eventually update its records based on this data, but it’s not an automatic or instant notification system.

4. **CO and Inspections**: Since there’s no CO or inspection requested right after the sale, the township may not become aware of the new ownership until the buyer initiates action, such as applying for a CO after repairs.

In summary, while the deed recording updates ownership at the county level, the township may only update its records when triggered by actions like CO applications, tax data updates, or buyer-initiated notifications.

If your property has a history of termite damage, you may be wondering whether an annual pest control service is worth the investment. A one-time termite treatment could be enough if the infestation has been fully treated and repaired. However, termites can be persistent, so a regular maintenance plan could add peace of mind and prevent future damage.

For example, your pest control company’s plan charges $995 upfront for termites and $22 per month for ongoing treatment. This could be an affordable way to keep termites at bay and protect your home long-term. While some may prefer a single treatment, opting for an annual plan with quarterly visits often pays off, especially if termites are common in your area. Regular inspections can catch any issues early, potentially saving you from costly repairs.

The TransUnion "ResidentScore" is similar to a traditional credit score but is tailored specifically for rental screening. It considers factors relevant to renting, like payment history and outstanding debt, so a low ResidentScore can indicate a higher rental risk even if it’s not a traditional credit score.

For declining an application due to a low score, here’s a respectful and straightforward way to word your response:

---

**Dear [Applicant’s Name],**

Thank you for your interest in renting [Property Address]. After reviewing your application, we’ve determined that we’re unable to move forward with the rental process at this time due to our screening criteria, which include credit-related factors. We encourage you to review your credit report for any discrepancies or areas of improvement.

Thank you again for your time and interest. We wish you the best in your housing search.

Sincerely,

[Your Name/Property Management Team]

---

This phrasing keeps it professional and avoids specifics, which can be helpful from a fair housing compliance standpoint. If you used TransUnion to screen, they are also required to provide the applicant with an "adverse action" letter, detailing the screening company’s contact information for follow-up.

For applicants on a work visa, traditional tenant screening methods can be a bit tricky if they haven’t established a U.S. credit history. Here are a few ways you can still verify their income, reliability, and background:

1. **Verify Employment and Income Directly**: Since they might lack a U.S. credit score, contacting their employer directly can help verify their job status and salary. You can request recent pay stubs, an employment letter, or bank statements that show regular income.

2. **Request an International Credit Report**: Some companies, like Nova Credit, specialize in transferring foreign credit scores to U.S. equivalents. Depending on the applicant's country of origin, this can give you insights into their credit history abroad.

3. **Request Additional References**: Ask for references from previous landlords (if available) and personal or professional contacts. References can provide a good sense of the applicant's reliability and rental history.

These steps should give you more confidence in your decision, even if their U.S. financial footprint is limited.

Based on your inspection findings, these issues could potentially be costly and complex to address. Mice infestations, especially in the attic, might indicate damage to insulation, wiring, and wood, which could become a major repair if the damage is extensive. Additionally, moisture in the basement with possible fungi growth could mean mold, which can affect air quality and require professional remediation. Given these concerns, you might consider asking the seller to either repair the issues or offer a credit to cover estimated repair costs. If the seller is unwilling to negotiate, walking away could be a wise choice to avoid unforeseen expenses and health risks. Consulting with a pest control and mold remediation professional could give you a clearer idea of the potential scope and cost before making a decision.