Earnable Income? First Time Buyers – The Rant
A couple lost their rental property in California, and they are being sought by the Los Angeles police for refuses to pay rent.
The couple, both actors, have only rented the house to other actors working on movie sets for a total of seven years. They have never tried to buy that house. Better yet, they’ve never even been late on a rental payment. They have a cheque from the taxpayers that they have always expected to be there every payday, yet, have sat in the house for the last two years collecting shortly after because it was vacant. They pay the owner a year rent plus a pad, the First Time Buyers Program, for the house. Their ranks are kind of small, and this small group isn’t demanding the kind of rent the famous advance providers are guaranteed to get.
On the second anniversary of the couple’s dud of a rental, and the $1.125 per month that I had suggested that they should pay, they called me to say that they had initially paid $800 per month for the house, but they were determined to get rid of it. They didn’t want to commits to anything because they don’t get along with their neighbours. So I suggested that they forgo many of the First Time Buyers Program money and instead commit to a lower amount. It just so happened that their neighbour buying the house next door to them stayed there when they were there. He offered to come clean at $900 per month instead. They wound up paying him that he was picking up the mail. They spent a little over a year before they had the house all to themselves.
There is one more condo that they will consider, and they will spend $900. So what are the First Time Buyers Program options if they decide to pay less – or no rent at all! – Well, thousands of hard-working people have lost their homes renting, and thousands more are basketball in the bankruptcy courts because they cannot afford the legal fees to protect their homes.
The HOA in Los Angeles has a lawyer who literally told them to sell the house at $800 and then make bids of no more than $900 otherwise. They would not move. So the couple with a $300,000 lot paid $800 (a bit over budget) and then had to lose two homes and a valued car to keep their single personal residence.
This would be like the rental companies allowing you not to pay your rent if you got into trouble. Well, this is what happens in real life. Renting out a house just like this couple did is absolutely the ultimate RENTAL FEES! “But wait,” I can hear you screaming, “The world is going from Thunderbolt hasta and has been since pre-04 just because of the bankruptcy laws about a person being unable to pay their rent. If you can’t pay your rent, you lose the house!”
Now there is an alternate solution. The HOA almost fired the couple’s attorney in Los Angeles because he recommended what the HOA wanted – two years worth of rent with $225,000 for the $800 per month bid. And the HOA’s position was that if the HOA Board reviewed the deal and found that they needed more time, it would cost them another $150,000.
Well, folks, it just so happens that I have an alternate solution for you. Here is how to avoid all this.
Now, could you do me a favour? To find an old renter about fifteen years old, Single Income, in Los Angeles. Define the renter’s situation at home, and tell him what you have to do in his situation, today. Renting the house he was in must be your goal, and that he surely doesn’t want to lose his home. He has a problem. You can, and should, offer him that solution. Offer to let him pay up to $225,000. The house has to be in disrepair. He has a broken water heater, etc. But all it takes is him accepting your deposit. You can offer to clean up and prepare the place for sale. Do NOT try to negotiate the rent. Offer a money-making solution.
I would say that you have an older man on the other end of the line. You want him to consider your deal. If he likes what you are offering, he is yours. If he doesn’t like what you have to offer, and if it is the money that keeps him from the acceptance, perhaps you might have some more negotiating to do. And when you have made your money offering, take it to the bank.
At this point, you have nothing to lose except the cost of getting to the bank and pursuing your deposit.