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All Forum Posts by: Sean McKee

Sean McKee has started 27 posts and replied 204 times.

Post: Advice on Eviction Process in Chicago. IL

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @Regina Bailey:

I'm a landlord dealing with a tenant who has been unresponsive for the past month. She is currently late on rent for the month August and still owes a remaining balance of $100 from the previous month. I've made several attempts to personally deliver a five-day notice but haven't been successful. Despite my efforts to reach her by phone, email, and text, it has been nearly impossible to get in touch. I'm at my wit's end and really can't afford to hire an attorney. Do you have any advice on how to start the eviction process? Thank you.

If you are really at the point of eviction, TRY CASH FOR KEYS. You might have to fork over 1k to 2k depending on the rent amount. This will be much faster. Send her a text, email, and post a notice on the door. Offer to waive her rent owed and offer her $$$ to move off two weeks from the notice date. 

I've had to do this. It sucks, but it's way faster than going to court and cheaper.

Even if you don't hire a lawyer you will be out months of rent and hundreds of dollars in court fees. Cook County is terrible when it comes to this.

Post: FAILED Direct Mailing Campaign (sort of)

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

Hello Everyone!

If you are direct mail marketing in today's environment how's it going for you? Are you using to sites like Listsource and Propstream to source leads? What's your best marketing piece? What's your overall response rate.

I did those sites for about 6 months and would either cold call or direct mail depending on the list. What I found when I made contact was that they had already received phone calls or letters from 20 other investors. It was a complete flop, at least for me.

I didn't quit direct mailing all together. I decided to focus on creating niched list that I knew would probably beat out the majority of the competition. My overall response rate was a little over 1% for approximately 3,500 letters sent over a 12 month time period. Which I know is not great response rate, but when I was getting calls, sellers had much more motivation and there was less competition.   I ended up landing an 2 unit deal.

My strategy is ok for now, as I only need 1 to 2 deals a year. However I will eventually need more volume and what  I'm doing is not really scalable. I would love to hear insights from people who are doing higher marketing volumes and what high level strategies are working (I know you can't reveal all your tricks).

Thanks!

Post: Rate My Direct Mail Campaign

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @Jack Medford:

Hey all! 

I recently started a direct mail campaign and am prepping for my second month's mailer. The first month was an intro letter and every month after that will be a Market Brief, which I've attached here. Curious to hear everyone's take on this style of mailer. 

Has anyone tried something similar? What were your results? 

For context, I'm a Realtor but also looking for off-market properties for flipping. I'm trying to perfect the language to attract both traditional and distressed sellers. 


 Jack looks pretty good. I like how you are adding a market update. I think that piece would speak to the more sophisticate audience. Out of curiosity how many responses did you get? 

I just bought an off market deal from a letter. I think it's still a great strategy and I'm looking to up my game.

Post: Buying a property with bad tenants

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @Jennifer Fernéz:

Im looking at properties to buy, and saw a tenant in a 4-unit property I like paid $1,000 in late fees.    They are also smokers and their unit is horrid.  They are month to month.  What are common practices to remove them?   Another tenant in the same property pays $750 a month and should be paying more around $1100.   What is the best way to increase her rent?

I just bought a two flat with a similar situation except they have 10 animals .  I would focus on a few things:

-What is the discount you are getting for dealing with the situation.  There's money to be made with dealing with problem properties and tenants. Just make sure it's worth your while. Hopefully your getting at least a 20% or higher discount on the deal. This is by far the most important factor in my opinion.


-Are the tenants generally agreeable and willing to work with you? In my case the tenants already agreed to pay an additional $300 a month in rent.

-However if they seem like they are going to cause trouble, how hard will it be to get rid of them?

-Are you in a landlord or tenant friendly state? Going in guns blazing in tenant friendly state (like mine) could see end up with months and months of lost rent.


It is a people business, so you will have to use some discretion. Talking with them ahead of time before you purchase the property can reveal a lot about the situation. 


Post: Providing tenant alternate accommodation when i need to fix the house

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @Wai Chan:

@Nathan Gesner

I agree that I have made a big mistake by being too nice to tenant. I should have drawn a clear line beforehand. I have thought of not doing the repair work but she has implied complaining that to City and said the house is not habitable.

The sad thing is that even the tenant has violated the lease and if I want to evict them with just cause, it will take 6-9 months from start to finish and 25K loss of rent + fee.

In California tenant can pretty much do whatever they want and the policy encourage them doing that. It is pretty sad.

I'm sorry this is happening. I agree with getting legal advice. I moved to evict a  non-paying tenant and they called the city. They said my attic addition was illegal. It wasn't and we had it permitted. I sorted it out and I filed for an eviction, and she jumped ship a few weeks later. We didn't even make it to the court date.

Tenants threaten these kinds of actions as a form of leverage. Take it away from her. Your already dealing with the maintenance issues. Only do what is required by law. Are you sure they need to move out for the repairs? Once any issues are dealt with, their leverage over you goes down quite a bit.  

As long as you are addressing the issues you should be fine. You start getting in trouble when you do absolutely nothing, which is doesn't sound like you are doing. If this tenant is as bad as you say they are, they won't stop there. They will continue to demand more and threaten more.

I'm in a slow eviction city as well, so I understand the fear of losing money for a long period. But an eviction is mutually destructive for both parties. You lose money and they end up with an eviction on their record. They get black listed from housing, etc. Most tenants are equally if not more fearful of this, than you are of losing money.




Post: Best Practices to Determine the names of Squatters in your Property?

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @James McGovern:

What are the Best Practices to Determine the names of Squatters in your Property? In my state, you can evict using John and Jane Doe but it is usually more efficient to have the real names of people you want to evict? What options exist when they don't want to tell you their names?

If they have been there a while you could try a site like Whitepages. If you reverse look up the address sometimes the residents names show up.

Can’t you just serve the paperwork to “unknown occupants”?

Post: Applicants with varying credit scores

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @Yannie Gold:

I require my tenants to have a minimum credit score of 680. A group of four are applying together for my 4 bdrm property. They are an engaged couple, the guy’s mother, and the woman’s brother. I was told that out of the four adults, two have credit scores above 700, one has 650, another has 600. Their combined income does exceed 3x the rent. But none qualifies with just one person’s income. I haven’t run the credit checks yet because I normally would simply reject when I was informed the required credit scores weren’t met.

Assuming what they told me about their credit scores is true, would you rent to them? I‘m also concerned that the boyfriend and girlfriend may break up and one moves out. My contract does specify that everyone on the lease is responsible for paying the entire rent. But it still created trouble in the past when some tenants wanted to leave earlier due to a deteriorating relationship.  

I would say some of this would depend on the market. My class C rentals this is a common scenario and I have this situation frequently. My nicer units I might be more hesitant on the situation, especially if I know I could get occupants that all met the criteria.

I’ve had multiple relationships end and someone moves off. I let whoever moves off know they are still fully responsible for the terms of the lease. I credit report and have yet had a major issue.

Post: Tenant wants me to accept deposit as last months rent

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @Dan Miles:

Hi Everyone!  I have a dilemma with a tenant.  I am not signing a new lease with her.  Nothing was done because she’s a horrible tenant, it’s just a personal issue that requires me possessing the property.  I have given 3 months notice ahead of her lease ending that we would not be signing again.  She is stating she can be out one month earlier than lease ending (which I’m fine with) but is now half month late on rent.  She is asking if she is out by the 1st of September if I can accept the deposit as the current months(last month) rent payment.  Supposedly has been approved for another rental. Thoughts?  I feel like I’m opening the possibility of problems with a stay over, or the place is left with damage and cleanliness problems without recourse.  But, if I don’t accept and she doesn’t pay then I’m possibly in the eviction process after she’s left which means I’m still not paid and I’m out time and money for court.  Any ideas?


 Unless this is an outright eviction scenario, absolutely do not give her security deposit back. I've had people ask me this on numerous occasions and I have refused. Every time they left there were damages that I would have had to cover. If she is behind on rent you have several options. You could start reporting her late to the credit bureaus(it would get reported once it's 30 days past due), that might get her attention. Alternatively you can start the eviction process. MOST tenants are bluffing and don't want an eviction on their credit/background.

I would tell her she needs to pay in accordance with state law or you will start the eviction process. I would hold off on cash for keys until she's around 30 days past due. I would not be afraid of the going to court. I know it sucks, but it's one of your best leverage points as a landlord. So far(knock on wood) I've only had to file for an eviction once, and the tenant vacated before the actual court date. Again most tenants won't go this route.

Post: Berwyn: Potential 2 Flat Purchase

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @Sean McKee:
Quote from @John Warren:

@Sean McKee we have just under 100 units in Berwyn. the answer to your question will depend mostly on the quality of the unit. A lot of 2 bed/1 bath units will rent in the $1250-1550 range depending on the size, condition, amenities, parking, pet fees, etc. We have been targeting $1350 recently and that has been going well. 

In terms of the building you are under contract on, is it brick or frame? Berwyn has so many amazing brick buildings and a lot of times the frame buildings can be tough when it comes to the Berwyn compliance inspection. 


 Thanks Warren for the insight! It’s frame actually. It was updated to through the town compliance process in 2012. What makes frames so much tougher in Berwyn?

Sorry I meant John!

Post: Berwyn: Potential 2 Flat Purchase

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148
Quote from @John Warren:

@Sean McKee we have just under 100 units in Berwyn. the answer to your question will depend mostly on the quality of the unit. A lot of 2 bed/1 bath units will rent in the $1250-1550 range depending on the size, condition, amenities, parking, pet fees, etc. We have been targeting $1350 recently and that has been going well. 

In terms of the building you are under contract on, is it brick or frame? Berwyn has so many amazing brick buildings and a lot of times the frame buildings can be tough when it comes to the Berwyn compliance inspection. 


 Thanks Warren for the insight! It’s frame actually. It was updated to through the town compliance process in 2012. What makes frames so much tougher in Berwyn?