All Forum Posts by: Steve K.

@Andre Galaviz I already bought Casper which is too expensive and thinking to return it now. Someone recommended Lucid. I need to buy a few and now I'm really confused. Which ones did you end up buying? Thanks

If they pay rent on time and your Water/Sewer and other LL utilities haven't gone up much; work with them. You may charge them a little more to cover the increase utilities costs. Also, additional kids means higher utilities cost but I don't see that as a violation of terms of the lease (unless specifically mentioned in your lease). 2 Dogs without approval is violation for sure and then your have to prove the violation. Don't forget the monthly pet rent. We charge a pet fee upfront, not a deposit. It is up to you to work with them or not. Be sure to check LL/Tenants laws of your municipality.

(My comments are for informational purposes only and not a legal advice)

@Vikram Sharma Many of the experts already chimed in. As someone mentioned here, tenant signed the lease, Government didn't. We also have an issue with a temporary rental assistance program from Covid times, they have paid late twice. We waived late fees once, and second time tenant paid late fees.

You're in NJ, even if your were not, work with the tenant. They should pay the difference. That difference isn't a lots of money, especially in NJ.

We are in talks of doing a loan for unrelated 3rd Party (a repetitive client of ours), to help buy 5 rental or rehab properties. A promissory note will be used, we have not decided if we will use morgages or cross-collaterization. The money from our IRA LLC will be used for a Downpayment and rest of the money will be financed by the Seller (1st lein position).

Is it OK to lein on 2nd lein position or unsecured without having SDIRA Disqualified?

1. Since one the above properties could be rehabbed and sold within one year, it's considered active/trade income per the IRS, we have concerns about UBIT or UBTI, which we may have to pay. Is that a valid concern?

2. Since we are only lending the downpayment, we have to go in Second lien position after the seller, we have UBIT/UBTI concerns again. Since unrealted 3rd party is using leverage to buy Real Estate, our ROTH IRA LLC is not, is that a valid UBIT/UBTI concern?

3. Because of the paperwork required, existing repetive business relationship and insignificant recourse options due to our 2nd lien positions. As an alternative option, can we lend ROTH IRA LLC to that unrelated LLC, using UNSECURED promissory note with personal gurantee from each unrealted LLC member, would that trigger UBIT/UBTI? Is this a valid concern?

Thanks a lot for your inputs

Steve

We were extremely courteous to them and gave them 2 additional months with no rent increase. They paid the court costs. They were not communicating, which was as usual, didn't know until last day if they would leave. I had to follow up twice and got no response. (Their relative is threatening harassments lawsuit for making follow-up calls, since I left the message saying that I will go to court again to get the Sheriff or constable, a day/24hrs before they were suppose to leave.)

The keys were overnighted and they left at the end. All neighbors, few Tenants are happy that they are gone. Few came to Thank us as well and tell me how they bothered everyone. The Unit rented the next day. Zero Vacancy!

@Steve K. An update. Municipal inspection is now clean. No habitibility issues were found in tenant's unit. The tenant was given adequate notice to quit/lease termination, per the act. About 40+ days. No communication happend after that. We followed up on the day the lease expired and the day after, to check on their plans to move out. We even mentioned that we would take legal action. All my attempts to have communication with them failed. A complaint was filed with MDJ, awaiting hearing. They withheld rent for August.

@Nathan Gesner Thank you. Marketing to our current tenants is something that is not be acceptable to me (It may be in their terms and conditions to use the free service). I think it's time for a change. Sooner it is better it would be. Here is the post you are referring to https://www.biggerpockets.com/...

My Cozy account transition didn't happen. It was supposed to be on May 28th and was postponed indefinitely. Maybe they are working on issues instead of rushing this thru. Yes, I definitely need to make this a priority as well.

@Nathan Gesner

@Nathan Gesner We have not experienced any issues with Cozy. Can you mention what issues are other users experiencing? You can PM me as well. (I know I need to move on from Cozy)

I have been searching for a new platform for a while and haven't found anything cost effective. Also thought about using Stripe to collect payments but I need an ability to pass the transaction costs to the tenant if a Credit Card was used to make the payment.  Do you know payment processor with that ability? (I eventually want to integrate everything with our CRM, it may be easier to do that now than later)

@Julien Amparan In my opinion, crash won't happen. I do anticipate a market slow down by end of this year because house prices are growing faster than wages. Market would become more balanced. Back in mid 2005, I bid way over asking price for some properties and ended up purchasing an off market investor/broker property eventually. In 2021, we have been outbid few times in last few months shopping for Primary residence. Most sellers are expecting above asking price due to shortage.

On investment side, we operate and manage rentals within few miles radius and have followed market trends over last 4-5 years. So far, we've been successful in buying Small Income producing properties at prices in 2017. We missed many opportunities along the way because we were not ready to handle those projects. There were many lessons learned along the way. Many good partnerships and relationship were built along the way, which wouldn't have been possible without being in the business. 

You need to start somewhere. Don't emotionally attach yourself to a property. Carefully run your numbers and be realistic. Be ready for a challenge. Harder it gets faster you learn. Of course, learn from other people mistakes. BP is are great resource and here to help.

We filled a rental assistance application for a tenant last week. They wanted to talk to me in person because they probably didn't feel comfortable asking over the e-mail (or maybe didn't have electronic copies of the forms). We were welcoming to the fact that they are seeking Govt. assistance when required. I think they actually can use some help. They have always paid 2-3 days before the rent is due and are current on payments. I hope they get the assistance, I'm waiting to see how it goes.