Renter's Hiding Behind Covid-19!

 Renters hiding behind Covid-19.  

I just read an article by Nikki J. Salgat, Esq.  an Attorney with the Arizona Association of Realtors.  Let me summarize for you in English. 

The CDC extends its moratorium on evictions until June 30, 2021.  The Consumer Financial Protection Bureau CFPB issued a rule that ANY debt collector conduct violates the Fair Debt Collection Practices Act FDCPA.  

What is “conduct”?  Those who evict Tenants for non-payment is conduct.  These businesses must provide NOTICE of what rights Tenants may have.  This ruling goes into effect May 3, 2021.

Her basic question is “Are Property Managers Debt Collectors?”  The answer is YES if the Lease was signed after Covid-19 started.  Before Covid-19, the answer is NO.  The question she doesn’t answer is, what date did Covid-19 start?

31 Dec 2019

WHO’s Country Office in the People’s Republic of China picked up a media statement by the Wuhan Municipal Health Commission from their website on cases of ‘viral pneumonia’ in Wuhan.

I think the exact date of when Covid-19 started is questionable. This date of 12/19/20219 is when a Chinese Health Commission published knowledge of the ‘viral pnuemonia’ on their website, it probably started before then.  For the sake of this argument, let’s agree that 12/19/20219 is the start date.  

Any lease created before 12/19/2019 is exempt from the rule that Property Managers = Debt Collectors.  

This is language that Ms. Salgat recommends that Property Managers put into their notices:

“Because of the global COVID-19 pandemic, you may be eligible for temporary protection from eviction under Federal or Arizona law, including an Order issued by the Centers for Disease Control and Prevention.  To understand your rights and obligations you may visit www.cfpb.gov/eviction, www.azcourts.gov, or call a housing counselor at 800-569-4287.”

Renters are in a perilous position anyway.  If they don’t pay, their bill just accrues and gets bigger.  All they are doing is stalling the eviction.  If their end game is to BK out, then they shoot themselves in the foot with respect to credit score and future rental prospects.  In my opinion, the moratorium on evictions is stupid and harmful.  Just watch the eviction and BK case skyrocket when the moratorium is lifted. It’s gonna be painful. 

If you need to sell your rental home www.5kflatfeelisting.com and save thousands, see us at www.5kflatfeelistin.com.

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

Are you covered with Rental Insurance? Is it Enough?

 Is your rental property insurance ENOUGH?

Huge question.  Just like your health insurance, if something catastrophic happens, you want to be covered, right!  Same with your rental property.  Let’s assume you have a fire in your quadruplex and a Tenant dies.  That’s bad.  Real bad.  The family sues.  Who do they sue: YOU, that’s who.  Ouch.  Did you know it costs $25,000 per day to have a trail plus prep expenses?  Don’t forget there are 2 Lawyers.  Therefore, average lawsuit will cost $50,000 per day plus prep expenses.  Says my Real Estate Attorney Dax Watson.  (great guy, hire him).

When you buy a rental, your Insurance Agent will sell you a personal or a commercial liability policy.  You had better take both.  The commercial liability policy will take precedent over the personal.  The personal is just in case. 

Your Insurance Agent will offer you both a personal umbrella policy and a commercial umbrella policy.  You had better take both.  

The Judge awards the family 2.5 Million.  Here is how the payout would work:

You bought:

Commercial Liability Policy of 1 Million per occurrence and 2 Million annual

Commercial Umbrella Policy of 3 Million

1. Commercial Liability Policy would pay the first 1 Million 

2. Commercial Umbrella Policy would pay the second 1.5 Million

If you didn’t have the Commercial Umbrella Policy, your Business and its assets would owe 1.5 Million.  Are you starting to get the drift?  

Every time you buy a new rental property and put it into your portfolio, call your Insurance Agent and reassess your risk level and policy coverages.  

If you need to sell at a www.5kflatfeelisting.com, just call or see us online.  Look forward to meeting you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

Who Pays for Tenant Damage The Landlord, Insurance or Security Deposit?

 Tenants Damage, who pays? Insurance, Security Deposit or Landlord?

I was just asked by one of my Investor Clients about this issue.  Here is the short of it:

Security Deposits are designed to pay for things the Tenant has broken during their stay and normal wear and tear. You conduct a Move-In and Move-Out and note the discrepancies.  These discrepancies are to be fixed and paid out of the Security Deposit.  Set the expectations with the Tenant upfront that your intention is to give 100% of the Security Deposit back upon completion.  Remember, you want to make a friend of your Tenant.  Always attempt to keep the relationship cordial. 

The Lease itself is designed to have financial penalties for certain behaviors (p.s. My Lease is 24 pages long just for this).   Just ask and I will send you a copy. 

Insurance is designed to pay for accidental items.  Like a kitchen fire, like the hot water heater burst, etc.  

Insurance loves to exclude things, right?  What would be considered excluded from your Policy if a Tenant damages the unit?  The answer is INTENTIONAL Tenant damage and normal wear and tear.  A carpet will naturally get a rut in it over time, that’s wear and tear.  If your Tenant pours cement down your drains, that’s INTENTIONAL and NOT COVERED!

A Court Judgment will be expensive to pursue and you are basically attempting to squeeze blood out of a turnup.  It’s just not going to happen.  A Judgement is a piece of paper and is generally worthless if the Defendant doesn’t have any money.  One Strategy could be to get the judgment and re-affirm it every 5 years.  In AZ where I live, it will grow at 10% per year.  Then in 20 years down the line, you hope these people have a career, a car, a boat or some asset that the Court can take for you to pay off your re-affirmed judgment.  It’s a long-term play that may never pay off.  

Insurance Products that can help:  Renters insurance for contents, with you as an additional insured.  Rent Replacement Insurance, should damage take a long time to repair or in the event of a disaster.  Tenant Protection Plan for Tenant caused losses and skipping last months rent coverage.  Ask your Insurance Agent about all the Tenant related products.  If you need a referral, give me a call.  See us at  www.5kflatfeelisting.com for more information.  Look forward to working with you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

Lincoln Dr. Fix and Flip

 Fix and Flip Grand Slam!

I am fix and flipping a high-end home off Lincoln Drive near Paradise Valley.  Super swanky neighborhood.  Here is the basic math:

Purchase                 1,970,000

Rehab                    300,000

After Repair Value 3,200,000

Expected Profit           362,000 after all expenses

See video for all the pesky details of the expenses.  Today’s goal, finish locking it up under contract.  Secondary goal, fix the house faster than 9 months.  Wish me luck!  Don’t forget to see us in action at www.5kflatfeelisting.com.

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

3800 E Lincoln Drive Mystery

 3800 E. Lincoln Drive Mystery

I got a call from my favorite Hard Money Lender saying there is a 5000 sqft house in pre-foreclosure and the auction is next week.  Naturally, I said “Fantastic”, lets help them out.  In doing the due diligence on this property.  Here is what I found:

1. They have owned it outright since 1996

2. In 2001, they put 965k loan on it

3. Its 5033 sqft on a 6160 sqft lot

4. Built in 1987

5. Very nice part of town near Paradise Valley

6. Lien #1 720k

7. Lien #2 232k

8. HOA Lien 12k

9. Judgment 865k

10. Total encumbrance 1.83Mil

Most Investors would stop there.  I think ARV could top 3Mil.  So I am definitely interested.  I attempted to skip trace the phone and email address.  No luck.  So I built a small intro package and drove it over there.  

Unfortunately, this is a guard gated community with a real Guard.  He was very nice and attempted to call the Owner.  Owner was not home.  As he was shooing me away.  I asked if he could get the package to her.  He said YES and took the package.  

There is no way that I know of to contact someone in distress than by phone, email or knock.  My plan B is to have my Social Media Assistant see if she can find her on SM.  We shall see.  Will let you know if more develops.  

I could help this lady thru buying her house and paying off all the debts or I could list the house using my www.5kflatfeelisting.com service.  Either way, it gets them out of hot water.  Let me know how I might be able to help you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

Kalil Coming Soon Property Details!

 Kalil Coming Soon Property details!

I met this guy and his wife at an Open House I was holding.  They seemed somewhat interested in my www.5kflatfeelisting.com.  Since I had 300+ at the open, I really didn’t think much about it.  They called weeks later to schedule a Listing Appointment.  He wants to sell at 1.2Mil.  She wants to add-on and stay.  So they are having an internal marriage disagreement.  OUCH!  I surely don’t want to be in the middle of that.

So I recommended a Strategy that would satisfy both desires.  My recommendation was to list for only 30 days at the “MAKE ME MOVE PRICE”.  If you get it, the husband was right and you take a huge chunk of money off the table.  If it does not sell, the wife was right and they should begin the planning process on the addition. 

In the interim, I meet Atanas at The Sicilian Butcher and he tells me he is a Builder.  So I soft pitch the Kalil property and he is interested.  I trial ballooned 1.3Mil and he didn’t flinch.  (p.s. the Husband told me that I can keep anything over 1.2Mil).  We shall see about that. 

So the showing is next Monday.  I will do a video and let you see the property and let you know how it went.  This is how we work.  Everybody is interested in real estate.  You never know who you are talking to and you never know what they will do.  Its very easy to bring up real estate and the market.  Everyone is open to that conversation.  So if you are thinking of Selling or Buying.  Check us out at www.5kflatfeelisting.com.

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection

FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona