keiththedealmaker 0 Report post Posted March 11, 2010 I've been talking with one of my mentors about a possible new SIDE business venture that compliments the in and out type of lease/option deals. Anyway, whenever I do a lease/option, whether that be a CA type of deal or one that I'm involved with for the long-term, I always send the tenant/buyers a monthly statement. I've found that it's helped to minimize late payers as they're getting a statement every month. I recently just started offering this to my sellers that I'm doing a "CA" with. And just this week I've been implementing a new technique that one of my advisors has been using, which is to charge the seller a monthly fee. I just signed up my first one for $10 a month to simply send THEIR tenant/buyers a statement every month. I figure it helps the tenant/buyer, the seller, and I cover my costs, plus a TINY extra in profit. I know when I lived in an apartment complex about 5 years ago, I always received a monthly statement. It helped to get me in line to pay on time! My question is, what do you think about this little side venture? Is there any type of licensing I would need? Thoughts? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 11, 2010 From my perspective, the time and trouble isn't worth the ten bucks. I also am assuming that every tenant knows the rent is due and doesn't need a reminder. Also, if you've done a CA and you're out of the deal via the assignment, you are now acting as a property manager, which may require a license in some states. Opening you up to potential aggravation from the various people and agencies who live to make us miserable. So do be careful. Share this post Link to post Share on other sites
keiththedealmaker 0 Report post Posted March 12, 2010 Thanks Michael! You're probably right. I was thinking this as a side thing anyhow because with my own properties that I have RTO'ed out, I send all of my tenant/buyers a statement. My thoughts were, I might as well provide this service to others, cover what little costs I put out mailing to my buyers, and make a few bucks for doing what I'm already doing. Definitely thanks for your input, that's why I posted here! Share this post Link to post Share on other sites
keiththedealmaker 0 Report post Posted March 14, 2010 From my perspective, the time and trouble isn't worth the ten bucks. I also am assuming that every tenant knows the rent is due and doesn't need a reminder. Also, if you've done a CA and you're out of the deal via the assignment, you are now acting as a property manager, which may require a license in some states. Opening you up to potential aggravation from the various people and agencies who live to make us miserable. So do be careful. Michael, when you say I might be acting as a property manager, what I'm doing is simply sending out statements. I won't be managing the property just a simple service that a seller has enlisted where I'm just sending someone a monthly statement. If the buyer pays or not, or has an issue with maintenance they won't be calling me. And if they do I'll simply say to call the PM or the owner. What's your thoughts? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 14, 2010 Keith, while I agree with your take overall, you know as well as I that the bureaucrats and attorneys live for BS like this. If they can find some wiggle room to hassle you or make a buck off you, they'll try. I'd just as soon not give them the chance for such a minor amount of money.Why not run this scenario by a local real estate attorney and get his opinion? Share this post Link to post Share on other sites
