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All Forum Posts by: Steve C.

Steve C. has started 19 posts and replied 55 times.

Quote from @Greg Scott:

You can get a judgment for damages, and if you don't get paid, send them to collections.  It will cost you attorney and court fees to do so which can be added to their bill.  One challenge will be serving them court papers.  Did the resident provide a forwarding address?  Many people that skip will not forward their mail so it can be hard to find them.

In Indiana, where we have property, we can serve people simultaneously for eviction and for monetary damages even though the damages hearing happens weeks later.  In our case, it almost always makes sense to continue with the damages phase.  That judgment will sit on their record forever until paid off.  If they ever want to buy a house or get an auto loan, they might need to pay them off.  Even with all these advantages, we've found we collect on maybe 10% of all judgments.

Thanks Greg. Yes, I collected the forwarding address. Any idea about the ballpark attorney and court fee?

It is surprising to me that it is not so easy to get this money back.
Quote from @Bjorn Ahlblad:

Not worth worrying about. Be glad she is out and get ready for the next tenant. Was this an inherited tenant or did you perhaps compromise your screening process just a little? All the best!

Thanks Bjorn. I accepted the tenant as some government program guaranteed the rent for a year. She was behaving fine as well. Everything was fine for 2 years, but looks like the tenant had some financial difficulty starting from 3rd year. I should have been more careful with renewing for the 3rd year. 

Our tenant recently moved out. She didn't pay the last month's rent. 

So after damage repairs, she owes us close to $3000 after deducting from security deposit. 

What should I do in this case in California?

I see in other posts that go to court for small claims. Or hire a lawyer. 

Or just move on because it might not worth the pursue. 

Any advice or suggestion here? Thank you.

Post: Florida multifamily investment

Steve C.Posted
  • San Jose, CA
  • Posts 55
  • Votes 13

Emerging Trends in Real Estate 2022 - Michigan Ross

http://www.bus.umich.edu/Kresg...

You can also reference this report to have an idea about different markets in Florida. 

I personally think Jacksonville is a great market.

Thank you @Brian Burke for sharing your insight! It is honor to talk to the author of the book! :)

I am personally more optimistic about multi family considering few factors (just my opinion, not facts).

- Multi family is more recession resilient than stocks.

- Inflation will continue to certain degree.

- Dollars will have to devalued inevitably both for internal & external reasons for the long term. 

- Interest rates can't go up aggressively although Fed strongly wants to. 

I do find Ray Dalio's book on "Changing World Order" very useful understanding macro economic & big debt cycle for the long term. 

In fact, I wonder what underwriting criterion might have survived the 2009 crisis in terms of assumptions for cap rate, economic vacancy, LTV, reserves etc for syndication deals.

@Brian Burke Thank you Brian for sharing your perspective & insight!

What assumption do you make for cap rate when you are underwriting these days considering we are heading into recession?

- I see syndications making 1% margin for exit cap rate considering potential recession. Do you think this is safe enough?

If I check historical data from 2009 crisis, I personally think maybe 2% margin for cap rate might be good enough. What do you think?

- Also, even if there is a recession, as long as the properties are cash flowing, can syndications just hold on to them and sell once the cap rate becomes more favorable again?

Btw, I recently finished your book! It was a greatly enjoyed and learned from it. Thank you so much for writing amazing book!

I read your book

Post: Setting up a eQRP vs. SDIRA

Steve C.Posted
  • San Jose, CA
  • Posts 55
  • Votes 13

Thank you @Bernard Reisz for clarification. Makes sense!

Post: Setting up a eQRP vs. SDIRA

Steve C.Posted
  • San Jose, CA
  • Posts 55
  • Votes 13
Thank you @Bernard Reisz for the info!

(b) UBIT coming from UDFI does not override the financial benefits of using an SDIRA to invest in real estate. 

I didn't understand this last part. Are you suggesting SDIRA can be more beneficial even with UBIT?

As you mentioned, this depends on the situation, but when will this be true?

For my personal situation, I think QRP (including solo 401k) makes sense for me when trying to invest syndication deals or to buy turn key properties.

Post: Setting up a eQRP vs. SDIRA

Steve C.Posted
  • San Jose, CA
  • Posts 55
  • Votes 13

Thank you @Brian Eastman for the detailed explanation!!