Posted by TRandle on March 15, 2001 at 09:11:27:
Earl,
Yes, that’s how we do it. The security deposit can be applied if they purchase, but we needed the deposit for two reasons. First, it helps the appearance of a true lease situation in case of an eviction. Second, we discovered we needed to hold something over their heads so the TB’ers would leave the place clean if they left.
American Home Shield - Posted by GregNorman
Posted by GregNorman on March 14, 2001 at 13:43:24:
I’ve got an old house w/ old systems and appliances I bought subject to and currently leasing optioning. I’m a little worried about the place ‘caving in on itself’ b/c it’s so old… and although the tenants are paying me good money and are obligated to pick up maintenance, I’m not confident they will if a large system breaks down.
I got the name of American Home Shield from a Realtor friend who has some rentals. If something breaks, they come out and fix it (kind of like an insurance policy for maintenance). I looked over the material and I’m pretty impressed (very few loopholes for them to get out of).
Just wondering if anyone can share their experience with the company (or of another similar company).
Thanks… and I’ll see you in Atlanta.
GregNorman
Re: American Home Shield - Posted by TRandle
Posted by TRandle on March 14, 2001 at 16:57:43:
Greg,
I’d re-read the paperwork - there’s plenty of loopholes! However, I do think AHS is the best one out there. We typically buy policies for our T/Ber’s for two reasons; it protects our interest and gets them used to handling repairs.
Kel and I bought our first policy in 1994 and became the “poster child” for their seminars. My mother, who’s a RE broker, called us up one night to let us know that AHS was using our names as folks who had received more than our share of benefits. That pendulum shifted more to their favor over the next few years and we discontinued it.
So, as you would expect, it’s a mixed bag. We had numerous items they did cover as long as we paid our deductible, but we also had items like an A/C compressor they refused to cover, due to “neglect”. It didn’t seem to matter the compressor was in the “neglected” condition the first few years they accepted our premiums. Hope that helps…
Re: American Home Shield - Posted by Lazaro
Posted by Lazaro on March 15, 2001 at 18:12:57:
TRandle,
Do you think you can tell me where I can call for this service? Thank you.
Re: American Home Shield - Posted by Earl
Posted by Earl on March 14, 2001 at 20:51:07:
Tim, I used AHS for a l/o deal that I sold to a buyer. Do you also provide these on all the homes you sell and l/o out? I paid for it, well I just used the option money to pay for it for my tenant/buyers. I scanned through the policy, and there are a lot of loopholes. I would not buy one personally for myself, but I think it would enhance the sell of property, just add the cost of policy in the price, when you sell and it will appear like a freebie to the tenant/buyer.
-Earl-
Re: American Home Shield - Posted by TRandle
Posted by TRandle on March 16, 2001 at 07:14:58:
Lazaro,
The numbers I have for AHS are 800-581-1515 for purchases and 800-776-4663 for service. Hope that helps…
Re: American Home Shield - Posted by TRandle
Posted by TRandle on March 14, 2001 at 23:04:27:
Earl,
Yes, we offer them on all L/O “sales” as it seems to calm the TB’ers anxiety when they hear they’re responsible for repairs. Out of the option consideration, we pull $300 for a security deposit and $350 or so for home warranty. I don’t increase the consideration amount required, but I do explain the cost of the warranty is NOT going toward the purchase of the home.
We typically end up offering warranties on conventional sales as well, but only because the buyers request it. My intent is to not purchase a warranty for our personal residence, mainly because I don’t plan to live in an older home again.
Re: American Home Shield - Posted by Earl
Posted by Earl on March 15, 2001 at 08:49:05:
Tim, so if you received $5,000 as option consdiration and took out $350 for home warranty and $300 for sec. deposit. Then the total option consideration applied to home purchase would be $4650.00. You would still credit them $300 for the sec. deposit right.