All Forum Posts by: David Thornton

Good stuff Kevin…Thanks

David, getting police reports for these types of things has proven incredibly difficult.  Unless the police see the crime committed they won't even write a report.  Any suggestions on getting the police to be more proactive would be great.

As far as late rent, these are people that always pay, they are on month to month leases, so here in Wisconsin I just give them a 28 day notice that states we will not longer rent to them.  If they stay past the 28 days then we evict.

I am just trying to find a good "go to" answer to the question "why won't you rent to me anymore?"

Thanks John, I have thought about that.  It may be a good way to go, that way they will be the ones who choose to leave.  It puts the ball in there court.

I have been cleaning house a bit lately.  Getting rid of some bad tenants even though they do pay rent and take pretty good care of the units.  Most of the problems are reported by other residents, noise, smoking, smoking dope, fighting at all hours and confronting the good resents who report the problems.  I have giving a number of warnings but the problems continue.

I don't want to lose the good residents that live around them so the bad ones have to go.

They always want to know why we are not going to rent to them anymore.  I don't want tell them that we still are getting bad reports about them.  But I never really know quite what to say.  Any ideas?

 I agree on everything above.  Apartments are almost impossible to find, I am actively looking for off market deals.  Thanks for the reassurance and suggestions on marketing.

O.K. so I have reached the tipping point with Scatter site properties.  We have about 70 buildings totaling 165 units.  

I have started my search for apartment buildings 10 units and up, but the CASH FLOWS ARE HORRIBLE.

In my area a million dollars can buy you 20 scatter site properties with total cash flow of around $60,000 per year.  On any apartment building deal in my area your lucky to make $10,000 a year on the same million dollar investment.  And people are buying them.

Am I missing something here? Why would people buy with such poor cash flow numbers?

Normally the borrower is the LLC, but you are the guarantor on the loan. So they look at all your personal financials and determine if they will lend to you and your LLC.

I just checked and the contract states they will credit me for any pre collected rents.  That is the standard contract terms, there was no other option to choose.  So it sounds like it is fine the way it is being done.  And I learned something for next time.

I'm wondering if that is normal for most peoples deals.

I am getting a deep discount on the property, as it is mismanaged, I am guessing I will be evicting those two unpaid units.  I will most likely turn over all the tenants in the next 6 months.  They only reason the rest pay is because they are on a state program.

Thanks for your help

I am purchasing a 5 unit and 2 unit from another investor this week.  The seller wants to only credit me for rents they have collected and leave it up to me to collect rents that have not been paid.

They have collect from 5 units and are owed for 2, a total of $1200 in rents are still due.

Is it normal to make the buyer collect rents that should have already been collected?