Here`s my noob story in short:
Good heart, yes, inexperience for sure!
My first purchase was for a family that wanted a Rent to Own. All good. Same profile as myself when I started in business and had my difficulties. NO verified income, one month loads of cash, next month nothing, way behind in taxes, crappy credit etc.
They tell me, everything`s good and we want to buy the property in a year instead of the 3 that we are scheduled for.
Here are my MAJOR mistakes:
1. Signed them to a 3 yes...THREE year lease.
2. Gracioulsy let them move in HOURS after the house closed "because we already scheduled the delivery of our new appliances"
3. Overlooked getting 2 years NOAs
4. Did not push to check on his credit "because my credit is so bad, there is no use for you to check it. I`m already telling you."
5. Because they are carpenters, wanted to help them out and get them more business (this is my good heart and emotions talking again and in reality, LACK OF EXPERIENCE) so I connected some personal friends to them.
After the second month, all things went to hell. Cheques bounced, rude emails to my friends about not having the decency to make a split second decision to use them etc.
After all of this started happening, I knew it was over. They moved in August, and November until March there was 0 payment in rent.
I still, as a good landlord sent a christmas card WITH a 100$ Kelseys gift card. I followed all the rules with the LTB via my PM and we had a court ruling in our favour in April after they did not show up. They paid MOST of the back rent but still owe substantial amount.
I can have my own BLOG with the emails and excuses they came up with since October of last year.
As of today, they are being evicted.
THE GOOD PART TO ALL OF THIS:
I was wise enough to get a HUGE deposit of $10,000 for the rent to own that carries the house for me so I am not out of pocket.
And everyone will tell you that your first purchase is where you learn a lot. Well, I`ve learned MY share of `welcome to LL hell."
All I can say is that it is not a discouragement it is a true learning experience and it has helped me in my last 3 tenant placements.
I also have everyone on this board for their stories and advice as I would have never known how to react to such a rookie move.
So there it is, my heart on my sleeve - now you can pick apart my in experience and maybe some of the new members can learn from my mistakes.