Gov. Newsom's new bill allow tenants to pay only 25% of rent due (foreclosures, rentals)

[Electrician4you]

Originally Posted by vincenze

You just replied to a landlord who wants to sell his property at a steep discount the first time a tenant misses her payment.
There are millions of Californians who are jobless now. Do you think they won't miss payments?

I’m not saying that people won’t miss payments. Not sure where you got that. The person may be waiting for a check, their work may be temporary stopping etc.
not every tenant is gonna have issues. You still have to prove you’re having financial issues. You can’t just not pay because you feel like ot.

Anyway I see a lot of shoestring landlords losing their investments or putting them up for sale. And a LL can also have their family members move in. You can also be kicked out of you violate the lease in other ways besides the Covid 19 rule. So there are other ways to evict a tenant.

[Chava61]

Originally Posted by HB2HSV

Remember, it's Gov. Newsom that created this crisis in the first place by shutting down the business.

No, COVID19 caused a global crisis and all over the world in various places businesses have been shutdown because of this.

If tenants get help then small business landlords should also be getting help (loans to tide them over while the tenants aren't paying the full rent).

[amokk]

Originally Posted by Mike930

And how are they supposed to make money when they can’t get their rent? Anyone that falls that far behind is not going to be able to pay when the eviction moratorium is lifted. The landlords will be left holding the bag.

They want the income from rent and don’t want to sell the property. The property appreciation part is nonsense.

You asked why people invest in California. The answer is capital appreciation. If you don't choose to believe that so be it, I really don't care.

Cap rates right now in Socal residential markets are between a 4-4.5% cap rate for stabilized properties. I guarantee you anyone that is actually buying real estate in this market expecting significant capital appreciation over the long run. DSCR probably size to 1.20x or 1.15x at the most aggressive for traditional bank lenders which means you are getting 0.8% cash yield year 1 (assuming 4% cap and 1.2x dscr).

If all you want is cash flow then you go buy a STNL Dollar Store or w/e other credit tenant you can get out in nowhere country Kansas and cash your 6-8% yield every month.

Total Return = Cash Flow + Appreciation.

And yes, you're right with the current legislation that just passed, it does seem that landlords are going to be on the hook financially. However, I can assure you I will be completely ruining any of my tenant's credit who don't pay rent and keeping their security deposit. I'm not a slumlord so, my tenants actually have something to protect and gain by paying me rent. So far in the past 6 months I have not had anyone squat and pay zero rent. I have had to let people out of their leases and re-lease those units, but that is not nearly the disaster you seem to think is going on.

It sounds to me like you're not really cut out to be a landlord. It takes risk to put up capital and there is no guarantee of how it turns out. One of those risks is regulatory risk. If you don't see the return in purchasing the property, then clearly you don't deploy the capital and look elsewhere.

[Mike930]

Originally Posted by amokk

You asked why people invest in California. The answer is capital appreciation. If you don't choose to believe that so be it, I really don't care.

Cap rates right now in Socal residential markets are between a 4-4.5% cap rate for stabilized properties. I guarantee you anyone that is actually buying real estate in this market expecting significant capital appreciation over the long run. DSCR probably size to 1.20x or 1.15x at the most aggressive for traditional bank lenders which means you are getting 0.8% cash yield year 1 (assuming 4% cap and 1.2x dscr).

If all you want is cash flow then you go buy a STNL Dollar Store or w/e other credit tenant you can get out in nowhere country Kansas and cash your 6-8% yield every month.

Total Return = Cash Flow + Appreciation.

And yes, you're right with the current legislation that just passed, it does seem that landlords are going to be on the hook financially. However, I can assure you I will be completely ruining any of my tenant's credit who don't pay rent and keeping their security deposit. I'm not a slumlord so, my tenants actually have something to protect and gain by paying me rent. So far in the past 6 months I have not had anyone squat and pay zero rent. I have had to let people out of their leases and re-lease those units, but that is not nearly the disaster you seem to think is going on.

It sounds to me like you're not really cut out to be a landlord. It takes risk to put up capital and there is no guarantee of how it turns out. One of those risks is regulatory risk. If you don't see the return in purchasing the property, then clearly you don't deploy the capital and look elsewhere.

I never asked why people invest in California. I said I don’t know why anyone would want to be a landlord here. Read more carefully before presenting your thesis on capital appreciation.

[amokk]

Originally Posted by Mike930

I never asked why people invest in California. I said I don’t know why anyone would want to be a landlord here. Read more carefully before presenting your thesis on capital appreciation.

What, pray tell, would you say is the difference between a landlord and a real estate investor?

[Mike930]

Originally Posted by amokk

What, pray tell, would you say is the difference between a landlord and a real estate investor?

You don’t know the difference? Do you think everyone that’s a real estate investor is a landlord?

That’s like saying everyone that invests in the financial markets is a day trader.

[amokk]

Originally Posted by Mike930

You don’t know the difference? Do you think everyone that’s a real estate investor is a landlord?

That’s like saying everyone that invests in the financial markets is a day trader.

No. That's like saying everyone that buys stocks is an investor.

The only type of real estate investor that isn't a landlord is someone buying physical land purely for speculation without any tenant.

[2sleepy]

Originally Posted by k374

what do you expect in a socialist state? either accept this kind of thing or move... I don't understand the constant whining by these landlords, the state is socialist and geared towards giving freebies to the poor... if you don't like that climate then don't become a landlord in CA.

Socialist state? Trump is stopping all evictions nationwide until the end of the year, it will supercede any state law that doesn't include the same provisions, and this one will kill small landlords, so do you want to admit that Trump is the biggest socialist of all?

https://www.forbes.com/sites/advisor.../#1bb51ef61f62

[HB2HSV]

From The link above

In order to be protected from eviction, you must prove that you’re likely to become homeless if kicked out of your dwelling. However, you’ll still be required to pay as much rent as you can afford. You’re also required to provide a declaration form to your landlord stating you tried to obtain available government assistance for rent or housing, that you make under the required income thresholds, can’t currently afford In order to be protected from eviction, you must prove that you’re likely to become homeless if kicked out of your dwelling, can’t currently afford your rent, and are at risk of homelessness if evicted.

A lot of conditions associated with Trump's exec order which is a lot more reasonable.

A few comments

1) My rental is at a highr rent scale. If the tenant is unable to pay, they can move into a lower rent apartment. So they can not prove they will become homeless.

2) They will need to prove they went through the ringers applying for government loans

3) My rental is currently under month-to-month, so it's not an eviction, it's a simple decision by me not to renew the lease.

[mgforshort]

The Socialist way - a commissar visits a landlord and tells him to get out. If the landlord refuses, he gets a bullet. - by Vincenze

This happened to my two grandmothers in 1950's Budapest. They were not landlords, only owners living in their fully-paid homes. Be careful what you wish for. They didn't get shot, only lost everything they owned with the exception of some clothes and old pictures.