All Forum Posts by: Tariq B.

Hello all, I took over a property last year and inherited tenants. The lease I have on file for them expires Oct 18 so we went month to month. It was a two year lease. I issued them a lease renewal with a rent increase. They are now saying they had a verbal contract with the prior landlord, who apparently said they had could have a 3 year lease (not sure why when it clearly states 24 months on the lease)

I know verbal contracts can be legally binding but what proof do I have? They could be lying for all I know. 

Would love to see what everyone has to add! Thanks 

-Tariq

My advice and you probably won't like it but take it for what's it's worth. As mentioned the mistakes you make now will show up later. I started about 5 years ago and just now are the mistakes I made along the way hitting me all at once this year. CAPEX wise this has been an awful year. Thankfully I had reserves to ride out the storm. My point is if you scale too fast you may be setting yourself up for failure. I was able to get through this tough time because I had bumps along the way to give me exposure to issues but if I had no experience handling repairs I would of probably cried myself to sleep and sold everything. If you have one AC unit go out you aren't in bad shape.

Take it slow learn the management game, much easier to learn with 11 than 50. Congrats on getting the portfolio. However, If there is one thing I learned this year it's that anyone can buy a property, but can they keep it. 

@Austin Works Wow, thanks for digging this up. It's always interesting to look back on these old posts and see how far I have come! But to answer your question and I'm not sure it is going to be any help to you, I ended up ripping out the oil boiler and putting in a gas boiler on this property. I have however on other properties since then put in baseboard heating and it did not fail. No where have I read that baseboard heating is not allowed. If in doubt bring it up to the inspectors sup. 

It's a great deal guys, but I have had a lot of success following my gut in this industry. He wanted an unrealistic time to close that just wasn't going to work with HM. So I will pass on this one. Other less shady deals will come! 

Hey All,

I have a property on my radar that will make for a really good deal numbers wise, that I want to flip. I actually found the place on Craigslist. Which is out of the norm for me. Generally I go though wholesalers who I have met in person or heard though word of mouth. In other words someone can vouch for them.

To make it short. I found the place last night. Contacted the person on the ad this morning and went to view it later in the day. The guy apparently owns it and is an investor too who wants to sell this. According to him they do tons of deals in the area. So we continue to chat and I give him my offer which is about 5k off asking. He doesn't counter back and accepts with a close in 14 days and 5K EMD that will be held by a title company on the other side of the state, 7 hours away.

Generally my wholesalers ask for 1-2K. Am I being paranoid that this could be a scam? I have seen other wholesalers ask for 5K, but on a purchase that is less than 100K it seems a lot.  I have little to no rapport with this guy and the money is going to a title company I have no control over or can even visit. This makes me feel uneasy.

How can I protect myself here? He is also very pushy on the 14 days, which has me concerned because that is a short amount of time to get HM lined up.

Would love to hear others take.

Tariq

Greerings All,

I have a couple of PMs in different areas and one particular I'm having issues with is a big box franchise one.

I'm a nutshell they are charging 2 to 4 times on any fix I have them do. It has gotten to the point now any time there is a fix I have to step in and send my own handyman or contractor.

As an example,  when they first rented out on of the places they sent their vendor for a leaking toilet. The quote you ask? 1200....I was blown away he said there was a leak in the bathtub as well as the toilet. A tile needed to be put back (drop ceilings) and there were two electrical issues. I stepped in sent my handy man. He charged less than $300 to fix everything and some other items...and he confirmed there was no leak in the bathtub. I was livid and felt lied to. And the kicker was they wanted to charge $150 diagnostic fee. I called the PM he said he would look into the company and I would not have to pay the fee...ok cool hope is restored in them. 

Example 2: they wanted 300-400 to fix broken glass in door. I again stepped in and got it done for less than 100 bucks.

Example 3: just a couple days ago tenants said water came into the basement, PM said it's a blocked drain. They sent their vendor out there to snake it guess the cost?......$575...to sneak a basement drain...I said noway!!! I'll send my guy he can do it for $175. PM says ok then calls back 2 mins later. The vendor said since he is there already he can do it for $175. This sent  red flags  flying this feels like example 1 all over again. There was some remediation in the basement  that had to be done which I had my guy step in and do. I asked him to check the drain and he said there was no evidence of the drain being touched and he couldn't even remove it (possibly cemented in he said) and according to the tenant "No work had been done they just took pictures of the carper".

What leg do I have to stand on in firing them? If there is a contact between us that states they are owed a certain amount of monies for early termination. But they also are not holding up to what they promised. Which is being an effective manager and looking out for my best interest.

Or would y'all. It fire them? 

Look forward to hearing the response. 

Tariq 

Hey Everyone,

Just curious if anyone has a source for a company that will do A HELOC on a rental. A nationwide lender or one that works with FL and MD. Thanks!

No way would I stand behind that method, not without any experience. Take it slow, save up and like @Steve Vaughan said put some hard work into building your business. You will appreciate you empire much more when you realize all the small sacrifices you had to make made big impacts, trust me. Then again I'm not your typical investor who loves to use credit for everything. I like to stay more conservative in my debts. So take it for what it's worth.

@Nghi Le I tried the 2 position option with the seller but no dice. Yes I do have experience over 5 years 10+ deals. 

@Bob Green it would be a turnkey. 

@JJ Bliss would other credits only go towards closing costs? 

Hi all,

Just curious has anyone recently pulled off a hard money loan with 10% down on a comemercial apartment (9 units) 

Is that possible?  I know it is possible for flips but this is a different situation. 

Thanks!