Make Sure You Always Keep ALL Avenues of Communications Open If You Want to Keep Your Name Good In the Real Estate Business.
What an interesting thing to say. Making sure you always stay in communication with everyone you have any type of financial obligations with. This is a subject that has caused much unneeded anxiety and stress that is totally not necessary if both people involved in every financial situation continually have open communications regardless of the status of the transaction they are involved in.
Over the years having been both a private Lender and a Landlord it has been my experience when life and unforeseen situations arise and the tenant or the borrower find themselves with a shortage of money to pay the obligations they originally agreed to pay, communications often stop. Somehow the tenant or borrower finds the money to pay for personal items such as their cell phone bill, their cable television bill, their car payment and eating out periodically or going out on the town.
When this happens the tenant or the borrower usually has no foreseeable solution to their problem and they don’t have enough money to fulfill their obligation. Many times they disappear and totally sever any communications with the private Lender or the Landlord. These are the people who trusted them and quickly become concerned and start to think they might find it necessary to take legal action to get the money they are owed.
When rent doesn’t come in each month the tenant must realize that the Landlord in most cases has a mortgage payment to make every month and the mortgage company doesn’t care if the tenant has a money problem. The Landlord must make their mortgage payment or severe consequences will affect their ability to ever borrow money in the future. When the tenant doesn’t pay tension starts to build between the Landlord and the tenant.
When any Lender doesn’t receive the monthly payment from a loan they made tension starts to build quickly. When the borrower doesn’t, or won’t communicate with the Lender to keep the Lender informed of what is being done to solve the borrower’s situation not only does tension start to build but the Lender starts to get angry. When this happens the rapport that existed in the beginning of their relationship starts to erode and without periodic communication with the Lender things quickly start to go directly into the toilet. Once this happens where either the tenant or the borrower doesn’t try to make any effort or plans to rectify their situation, it never turns out good for either party.
Take it from someone who has been a Landlord as well as a private Lender and someone who from time to time couldn’t pay my own obligations as I had agreed to do. My secret to keep my name and reputation good is I always stayed in contact with those I owed. I always tried to make arrangements to overcome my situation by either making smaller payments until my situation was resolved, or in many cases we would add the shortage I couldn’t pay to the amount I owed to that Lender.
I have to say that by staying in contact with my private Lenders and when I needed to make arrangements to keep my name good was the reason today my name is good in my marketplace.
In closing, may I suggest if you find yourself in a situation where you are finding it impossible to fulfill your financial obligations, stay in contact with those you owe on a continual basis until you can find a solution to your current situation. Stay in contact with those you owe money to and keep your relationship in good standing and live to borrow again. You won’t be sorry!
Until next month,
Happy Investing and Good Luck!