All Forum Posts by: Michael Healy

Thanks @John Mathewson!

Assuming loan would be in both of our names/entity names. Wonder if we should share a new entity or each have our own. 

I was thinking 50/50 net of his recovering money down and any excess capital contributions during life of partnership upon exit. 

How would you split a partnership where one partner brings the 25-30% down for commercial loan and the other partner brings the relationship with lender and w-2 income and local network and managing experience. This is for buy and hold multi family reposition. Property cash flows but needs improvement and rents brought to market.

How would you split a partnership where one partner brings the 25-30% down for commercial loan and the other partner brings the relationship with lender and w-2 income and local network and managing experience. This is for buy and hold multi family reposition. Property cash flows but needs improvement and rents brought to market.

my consistent policy to people who say "I can't pay that" has been to say we'll revisit in a couple of months.  I always offer an increase to everybody when renewing if it's been at least 12 months since their last one. 

Thanks everyone. I said my general  long term policy is to increase modestly every year because taxes and expenses increase, but that I know she's job searching so I offered a month to month at the same rent saying we'll revisit in the spring. I got two other expired tenants to increase so two out of four isnt so bad. 

And also in these cases their leases have been expired and it'll have been 15-16 months since their last increase.

Thanks everybody. I'm trying to train my tenants to expect a modest increase every year.  And in this case I was also trying to get tenants on my lease document since the previous one had a few problems.  (eg late fee after 5 days when MA prohibits charging before 30 days.)  Anyway it seems everyone is in the middle in the job search and may have to move with 30 days notice.  

I inherited tenants in an 8-unit MFH that I recently purchased. I have given most expiring tenants a grace period of 2-3 months since their lease expiration before activating their new lease with a rent increase.  I have had a couple of tenants refuse any rent increase (typically 2%) saying their rent is already a stretch. For context, this home is located in New England in a town primarily driven by the second home economy, so I understand most of my tenant's earnings aren't great in the middle of winter.  They're mostly in their 20s and early 30s and working multiple jobs.

How do you respond when a tenant says no to a rent increase?  I've had one tenant move out already even just having brought the subject up. That was fine because I want to re-purpose the unit anyway, but are people really that fragile that a $15 increase is going to break the bank?

MH

I think part of it, too, is that these re two grand turn of the twentieth century Victorian properties. So there's a certain amount of visceral satisfaction from making them resemble inside the grandeur they have outside. Even if just on a budget.