Company Description
This property is an occupied, recently renovated 4 bedroom 1 bathroom single family home located in an A.I. recommended neighborhood of Chicago. It is in close proximity to local parks, shops, and restaurants. This property has new hardwood floors, a new kitchen, a new bathroom, interior/exterior paint, and new windows.
The seller has fixed all of the issues in the CapEx report, which can be viewed in the 'Documents' tab above.
The tenant is paying $1,550/month and is on a long-term lease until 8/31/2023.
Updates:
Update 4/26/2022: The Property Manager has recommended to re-glaze the bathtub at 25 Circle Dr. The tub is peeling, has rust pits, and needs to be re-glazed every few years in order to prevent holes forming in the bathtub's base. The shower head is also leaking which will be repaired as well. Based on the original governance survey all token holders completed after their first token purchase, 63% of token holders voted to follow the Property Manager's recommendation for any immediate repairs. The cost of re-glazing the bathtub and fixing the shower leak is $747.50 and will be taken from the maintenance reserve and repaired immediately. There will be a 3 month warranty to ensure the curing process was successful.
Update 6/18/2022: The tenant living at 25 Circle Dr previously raised concerns regarding cracks in the kitchen floor and had requested that the floor be prepared. The Property Manager did not recommend this repair at the time, so it was put to a governance vote and the repair request was denied by token holders on April 29th, 2022. The PM has informed us that the tenant's toddler recently got her foot stuck in the floors and the tenant is now withholding rental payments until is resolved. Because of this, the PM is now recommending the repairs due to a fall/trip hazard liability as well as to collect rent. The total cost of this repair is $1,265. Based on the original governance survey all token holders completed after their first token purchase, 63% of token holders voted to follow the Property Manager's recommendation for any immediate repairs. These funds totaling $1,265 will be taken from the maintenance reserve of $6,500 and the maintenance reserve will be replenished with 10% of the cash flow until it is full again.
Update 7/14/2022: The tenant at 25 Circle Dr paid partial rent in June because they were withholding rent until the cracks in the kitchen floor were fixed. Token holders originally voted to deny the tenant's request for this repair, but after the tenant's toddler got her foot stuck in the floor, the Property Manager recommended the repair which was subsequently completed. The tenant paid $1,000 towards July rent on 7/8 but still owes $2,175 for partial June rent and full months July rent. They have been avoiding PM calls this week regarding rent collections. Once the tenant pays off their balance, you will begin to receive daily rental income again.
Update 7/18/2022: Per the last update, the tenant owes rent for the current month as well as an overdue balance that is less than 1 months rent. The PM has continued reaching out to the tenant and the tenant has made an additional payment of $300, bringing the balance down to $1,875 ($75 is the late fee for July). Based on the recent governance survey for tenant delinquencies, the winning vote for this property is to offer the tenant a payment plan subject to PM discretion.
Update 7/26/2022: Governance vote for 25 Circle Dr. The tenant has submitted a request to replace the countertop, cabinet, and stove vent fan. The total cost of repairs is $2,242.50. The Property Manager has not made a recommendation to move forward with the work, and has informed us that the vendor does not think these repairs need to be made, and that the tenant just wants them replaced. Additionally, the tenant is still behind on rent. They made 2 partial payments this month and still owe for partial June's rent and a full month of July's rent. The tenant previously withheld rental payments until a prior repair was made. Once that repair was made, they did not pay their rent in full as promised. The tenant has told the Property Manager that they have been unhappy since moving in & want to get out of the lease early. The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors in Lofty Holding 25 Circle Drive LLC on Thursday, July 28th once the voting period ends.
Update 7/28/2022: The governance voting results are back for the vote on whether to accept the tenant's repair request or deny it. The winning vote is: Deny the tenant's repair request of $2,242.50. This decision was voted on by 1,599 tokens out of 1,654 tokens which is equal to 96.6% of the total votes. This tenant has told the Property Manager that they will pay their full rent balance of $1,875 by end of day tomorrow (7/29). Because of this, the PM will wait to let the tenant know that owners are denying their repair request until after tomorrow ends.
Update 8/10/2022: The tenant did not make July's full payment on 7/29 as promised. However, they made a partial payment of $700. The current balance owed is $2,712.50, which is slightly less than 2 months rent. The tenant is out on Workman's Comp at the moment and is waiting on those funds to pay their rent. They would not tell the Property Manager when the next payment would be made and how much the next payment would be. The PM already tried a payment plan last month and the tenant did not pay the amount promised. Because of this, the PM will issuing the tenant a 5-day notice to get the eviction process started, in case the tenant does not accept cash for keys. The PM in Chicago, HomeRiver Group, is working with a new eviction law firm. This firm offers cash for keys services for $300. The lawyers will present a tiered cash for keys offer to the tenant which consists of a higher cash offer for an immediate move out date and a lower cash offer for a 30 day move-out date. If the tenant does not accept the cash for keys, the $300 will be transferred as a retainer for evictions. The PM mentioned that when a lawyer makes contact with a tenant, they tend to take it more seriously. We are currently waiting on the PM to report back on the recommended cash for keys tier amounts after speaking with the lawyer.
Update 8/16/2022: The tenant was offered cash for keys, but declined it. They currently have a balance of $2,712.50. They are on Worker's Comp and receive $550/week. The tenant promised to make a payment of $500 on 8/19 and $750 on 8/26. If the tenant does not pay either of the payments on time, the Property Manager will be moving forward with an eviction.
Update 8/18/2022: The Property Management fees have been reduced to 5.7% due to a new National Partnership Agreement between Lofty and the Property Manager, HomeRiver Group.
Update 8/25/2022: The tenant made a payment of $750 on 8/19 per the payment agreement. The tenant will make another payment of $750 on 8/26. The Property Manager advised the tenant that they will need to make a larger payment moving forward in order to get caught up with their outstanding balance of $1,962.50
Update 8/30/2022: The tenant did not make a partial payment on 8/26 as promised. However, the tenant found an agency that can offer rental assistance, which would help clear their current balance. The Property Manager will update us as soon as possible once they find out more about the program.
Update 9/7/2022: The tenant is working with Catholic Charities for rental assistance. The Property Manager has advised that this program is generally good at covering arrears for rent and utilities. The tenant has also promised to make a payment of $1,000 by the end of this week towards their balance of $3,550.50. We will follow up next week on next steps if the tenant does not pay, as they have already declined cash for keys.
Update 9/19/2022: The tenant is working with Catholic Charities for rental assistance. The tenant made a payment of $1,500 on 9/15 and brought the balance down from $3,550 to $2,050. $1,900 of the balance owed is rental income and the remainder are miscellaneous fees.
Update 9/21/2022: The tenant promised to pay $1,000 on 9/23. They are also meeting with a case worker this week to review the rental assistance application. The Property Manager advised that the case manager has requested a copy of the ledger and that this is a good sign of approval chances with this program, Catholic Charities.
Update 9/28/2022: The tenant submitted a payment of $500 on 9/26 and has brought their balance down to $1,550. We will be receiving an update on the tenant's rental assistance status next week, at which point you will receive another update email.
Update 10/6/2022: The tenant currently owes rent for the current month and $1,050 from the previous month. The tenant recently returned to work and will be able to make regular payments. In addition, the tenant is seeking rental assistance and the case manager should be contacting the Property Manager soon. If approved, the program will award up to 3 months of rent for the tenant.
