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All Forum Posts by: Richard Dunlop

Richard Dunlop has started 7 posts and replied 714 times.

Post: Unbelievable Water Bill- Detroit

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461

@Saul L.

I'll pay the $46.80 

You guys can pay the $13,981

Originally posted by @Keith Jourdan:

I talked to her and hinted at the option of her paying me the 2 months she is behind,. rent is $650 per month. She said " i can have 650 to you on friday....".

Tell her "$650 Friday is fine" "As long as it is LAST FRIDAY" "GOODBYE"

Post: Unbelievable Water Bill- Detroit

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461
Originally posted by @Steve Babiak:

Well, at the closing of your sale, you very likely signed a document that basically says that after settlement you will cover any expenses that would have been your obligation in the event that such expenses come to light. Based on that, I predict you will be asked to pay that entire bill, not just the $300 they held back. 

Let us know how this ends ...

I agree that the current Escrow/Title co will not foot the bill.

A compounding problem is dividing the usage prior to @Saul L. 's purchase and after, neither of which were being properly billed.

Post: Unbelievable Water Bill- Detroit

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461
Originally posted by @Vladimir K.:
Originally posted by @Richard Dunlop:

The Realtors here will hate me but E&O insurance if you bought it without a real actual read through a Real Estate Agent.

Hm.. not sure how things work in your State or in Michigan, but in IL, E&O insurance for Real Estate Brokers would only apply if the Agent was negligent in some way. So, in the OP's situation, if the Agent/Broker knew about the bill but failed to disclose, maybe you can take it up with their E&O. But if the Agent/Broker had no knowledge, at least in my state (IL) you would have to take this up with Title Co.

It is an Omission (negligence) if a Real Estate agent just said there was no bill but failed to require an actual read of the meter.

Post: Unbelievable Water Bill- Detroit

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461
Originally posted by @Vladimir K.:
Originally posted by @Richard Dunlop:

Post: Unbelievable Water Bill- Detroit

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461
Originally posted by @Saul L.:

Thanks Richard, as always your advice is spot on and I can see it was learned the hard way from hands on experience....  Any suggestions?

Slim chance the tenant put bill in their name? (leave responsibility with tenant and city to fight it out)

Did property manager tell you the tenant put the water bill in their name? Did he verify that?

Should be part of the process of getting tenants moved in.  Was tenant in place? Does original placing property manager have proof?

The Realtors here will hate me but E&O insurance if you bought it without a real actual read through a Real Estate Agent.

Post: Unbelievable Water Bill- Detroit

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461


Originally posted by @Max T.:

eat the 300

move on

I don't think @Saul L. is worried about the $300 but rather the liability of the $5353.

Let me add a few more steps since the subject came up.

Always have an actual read done as part of a purchase.

Since the meters are in the basement most reads in the past were estimated reads and an actual read may reveal under billing of a humongous amount of money.

I have one that was over $13,000 (the bank really liked paying for that one). I will post a picture when I have time to dig it out.

Always make sure usage shows on a house that is occupied. Even if it has a satellite reader the reader can be disconnected and still cause a problem for you as the owner.

And of course make sure water bill is paid before refunding deposits to a tenant.

Post: Unbelievable Water Bill- Detroit

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461

@Saul L.  

There are 25 minefields in Detroit this is but one of them.

 @Dom K.

The process to make the tenant responsible for the water bill has been in place since I have been investing in Detroit it is not new.

Always make the tenant go in person to the water dept. (This part is new)

ALWAYS GET A COPY OF THEIR PAPERWORK (their records tend to disappear) You often have to prove the tenant put it in their name when you are turning in the notice that the tenant vacated.

Always notify the city before 20 days after tenant vacates. (They have a form for this)

This is actually one of the benefits of Detroit city vs the smaller Detroit suburbs most of which will add unpaid water bills to your taxes even if the bill was in a tenants name.

Post: Good help is hard to find?

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461
Originally posted by @Megan Shelton:

...Has anyone else had this issue when investing in another state? How did YOU build a team?

I still have RE agents and contractors that don't answer my calls because

 I kept the California number I had had for 6 years prior to 

relocating to Detroit.

Post: Acquiring Rentals in an Appreciating Market

Richard DunlopPosted
  • Investor
  • Detroit, MI
  • Posts 754
  • Votes 461
Originally posted by @Russell Brazil:

I dont know anything about San Antonio, but unless it is a dying city like Detroit...

Stop reading the 10 year old newspaper strips your mother put in your outhouse for toilet paper. I'll pay for a magazine subscription for you so you can catch up with what the rest of the world already knows about Detroit.