Terminating a sandwich LP

[Doug Pretorius (ON) 9]

Mark, I agree with Adam, you've got to find out if there's anyway you can get this jerk off your back by giving him some or all of that $3k back. If so, you can then make it all back by assigning your deal with the seller to someone new ... assuming the seller will go for managing someone. Perhaps this way you can get out with your skin and your reputation intact.

 

 

Pete, you sound an awful lot like an associate in my own market. He's not quite as much into the physical intimidation (he's not as big as you) but he gets the same result. Basically he tells them the same thing you do, that if they pay on time and don't give him any grief, then he'll be the best landlord they've ever had. But if they cross him in any way, he will ruin them. He says he'll see to it that they never get a mortgage, car loan or so much as a credit card for years to come, and that no landlord in town will rent to them. So far he hasn't had a single problem and I believe he's at somewhere around 70-80 units.

[Mark in St. Louis 0]

I want to thank everyone for their posts, feedback, and suggestions.

 

I have had a night to sleep on this since I found out the news and am a little bit more calm.

 

I will be talking with my attorney today to find out exactly what was said in court yesterday...and just what it is that the dirtbag wants.

 

After that I will formulate a plan of attack.

 

I doubt I will offer him back his option deposit. Heck, that doesn't even cover his arrearage. I might let him out with no additional charges or possibly give him $500 moving money however.

 

I'll make sure to keep this post going so everyone can learn from this experience.

 

One more question....should I go ahead and report this guy to the agencies or should I wait until he is out of the house?

[puls1234 0]

Doug,

 

Thanks for the post on what your friend does intimidation wise with his 70-80 units. It really does work great. Little do they know I would never ever ever get physical or anything of the sort but if you act the part its amazing to me how that check arrives each month. Hang in there Mark. All will turn out well.

 

Pete

[Adam King (MI) 1]

Mark,

I got some sleep too.

 

"Wait a day" is one of the best pieces of advice that I've ever heard. I would usually jump the gun before I knew my enemy and that can be a big problem. It usually leads to me looking like an arse, or even worse. Someone less knowledgeable than I truly am.

 

I'm glad to see you're going to see what the deal is. I'm dying to know too. And as for reporting the guy to anyone, I would wait until it's clear what your dilemma really is. There are unfortunately always two sides to the story. Integrity is not always something easy to swallow, but it always goes down better than dirt in the long run.

Keep us posted and good luck!

Adam

[Mark in St. Louis 0]

Ok folks...here is the latest update.

 

I spoke with my attorney and here is what happened yesterday.

 

The TB's attorney is a lawyer in the country in question. He knows the court's docket is very very backed up.

 

He knew that filing a stay would buy his client more time in the house.

 

His attorney told my attorney that his client is plannng to move out but just needs some more time.

 

I have told my attorney to offer that I will forgive all past arrearages, and take what he has paid thus far as liquidated damages if he can be out in two weeks....and sign something to that effect.

 

Ball is now back in his court.

 

Stay tuned.

[-Tony- 0]

Great option I think.

 

P.S. So do you think you will screen t/b's differently? Also, Do you think you will allow them to move in without the full option $? I Guess I am Blessed with my t/b I pulled there credit but went with my gut feeling.

[Adam King (MI) 1]

Mark,

I would (If you haven't already) let them know that you have this property on terms. This means that you have the potential of losing over $20K or more because of his arrogance. I would let his attorney know that it was imperative for him to go, or there could be further consequences because of your loss of investment.

Looks like this one may work out with the "honey" approach though. Get this thing sold again fast!

Adam

[Gary (MO) 0]

Thanks for posting this Mark, it sure sounds like a load of experience for you when it's all said and done with. I know that I've sure learned a lot. I agree with Adam and Doug...it's your integrity that really matters here. Hang in there!

Gary

[MichaelC 160]

Just want to say one more thing about this situation, folks. Keep in mind that the occasional problem tenant and resulting eviction are a reality in this business. Truth be told, there isn't a landlord on the planet who doesn't have their own "tenant from hell" tale. Our objective is, of course, to keep these experiences to a minmum.

My experience has been that a lease purchase with a tenant/buyer goes a long way towards doing just that. A tenant in a straight lease is much more likely to view the "rich, fat cat" landlord with disdain, much more readily than the tenant/buyer. Now, a tenant/buyer is no guarantee that all will go according to plan, as we all can read. However, giving someone an option to buy a property, giving them something to lose by not behaving correctly and following through on that option, and using our careful due diligence when selecting a t/b for our property will go a long way towards avoiding these ugly situations. What we're after is minimizing and reducing our risks. There is no way to guarantee their complete elimination.

So, don't let one bad personal experience scare you off. Or, the bad experience of another. Be careful, be smart, and in the long run you'll do well in this business with a minimal amount of aggravation and stress.

[Adam King (MI) 1]

MC,

Amen.....

[Mark in St. Louis 0]

This experience reminds me of one of my favorite books. "Failing Forward" by John Maxwell. Everyone should read it. I will warn you though that Maxwell started his career as a Christian minister...and he does let his faith carry throughout his books.

 

I know for a fact that when this experience is finally over, I will be a better person, and better real estate investor as a result of it.

 

I am a little embarrased at my initial posts here, but at the same time I'm glad this board is here and Michael is the type of person to let people post the good and bad of this business. He could have easily yanked my post and make this board a warm, fuzzy place with the appearance that real estate investing is all good with no downsides.

 

Instead, he takes the high road, and lets everyone see both sides. Thank you for that Michael.

 

This board gave me a place to vent my frustrations on the day I found out the bad news. It felt good to do that.

 

I slept on it and am now in the process of getting this thing corrected...all the while keeping my integrity intact.

[MichaelC 160]

Nice sentiments and post, Mark. I'm glad you've been sharing this whole episode with us. If I put this board out there as being educational, then it must include the good, the bad, and the ugly.

It may be difficult to see this now, but you'll look back on this someday in the near future as a valuable learning experience, and one that made you a wiser and more profitable investor as a result of it.

[Courtney Kostelecky 0]

After reading the above post, I can see a couple of things to watch out for.

 

First, he did not pay all of the option money before taking posession of the property. If they did not have the 6k needed, but had 3k now, I would take the 3k and add $500-1000 per month ON TOP of the monthly rent.

 

I also would not have waited this long before starting the eviction process. I know from renting experience, that once I was a few days late paying rent, after the 3rd day after rent was due, I got a 3 day notice to pay or quit. I think the key is to let them know up front that if you pay late, you forfeit your rent credits, as well, as the eviction process will start.

 

Courtney Kostelecky

http://www.DebtFreeNews.com

The FREE Newsletter that can save you THOUSANDS!

[Mark in St. Louis 0]

Well, here is an update....although it is not much of an update.

 

I finally go ahold of my attorney. He has left messages with the TB's attorney.

 

The TB's attorney has not returned any of my attorney's calls.

 

My attorney said it is possible he may not becuase he knows that they now have until the trial date to remain in the home....which is mid June.

 

I am feeing very much that I am not in control here. Very frustrating how the damn legal system works. It screws over the honest landlord and favors the dirtbag tenants.

 

Any suggestions on what to try next?

[Courtney Kostelecky 0]

What about if you scheduled a "total house fumigation" You know the kind where they tent the whole house up and the people have to leave!

 

Just a thought.

 

Courtney Kostelecky

http://www.DebtFreeNews.com

The FREE Newsletter that can save you THOUSANDS!