Collect Back Rent Overview Manual (1)

Includes
50 STATE OVERVIEW
BOOK 1

Gary and Cynthia Schmidt are full time landlords and real estate
investors. They now reside in williams Bay, Wisconsin, on the shores of
beautiful Lake Geneva, and have a second home in Bokeelia, Florida. They are
both originally Illinois natives, sharing similar values of blue collar, small
town america. You have to work hard to achieve your goals.
Cynthia was born in Rockford, IL spending much of her childhood
growing up in nearby Loves Park, IL. She moved to Belvidere, where she
attended Belvidere Junior High and High School, graduating in 1973.
Gary was born in Belvidere, IL and grew up in the little village of
Garden Prairie, IL. He also attended Belvidere Junior High and High School,
meeting Cynthia in 1971. they were married in 1973.
They have one son, Bruno. He is married and lives in Denmark, where he
attended college and met his wife Maria. November 9, 2007 was a most special
day for Gary and Cynthia, as this was the day they became proud
grandparents for the first time. Bruno and Maria gave them a beautiful
grandson, Elliot. On April 6, 2010, they became grandparents for the second
time, with the birth of their precious granddaughter, Mikala.
Cynthia became a letter carrier in Belvidere in 1976. Her 18 years of
carrying mail in all kinds of weather developed her “never Give Up” attitude.
She could not give up or she never would have made it back to the Post
Office. She brought this attitude into her next career; real estate investing,
which has since become a passion for her.
Gary retired as a United Parcel Service Driver out of the Dekalb, IL
center in 2000, with 25 years of service in the Teamster Union. Now they
share the responsibilities and achievements of running the business they
created: Schmidt Rental Property. in addition, they now are totally
committed to bringing their message and knowledge to the landlords of
America with their landlord training course.
Author’s Biography
They have an office in Chicago, IL
where they try to reach out to Cook
Count landlords. Cook County in Illinois
is the Largest court system in the United
States with over 40,000 evictions per year
and 6 court houses.
A SIMPLE PROCESS OF COLLECTING UNPAID RENTAL INCOME

Table of Contents
Testimonials Page 3
Disclaimer Page 5
Investing Experience Narrative Page 6
Introduction Page 8
Reasons for the Course Page 13
The 3 Myths that Plague the Landlord Business Page 17
Inside Look at the Landlord Page 19
Inside Look at the Tenant Page 22
Mistakes Made in the Forcible Detainer Page 25
Players Page 28
Terms Page 30
1

Tips for Finding Former Tenants Page 35
50 State Overview Page 37
50 States Listed in Alphabetical Order (51 Listings Including D.C.) Page 39
Power of Serving the Notices Page 90
Notices - Non-Payment of Rent Page 92
Notices - Breaking of Lease Page 95
Notices - End of Tenancy Page 98
Affidavit of Military Service Page 101
Evictions Forcible Detainer Page 108
Small Claims Page 134
Conclusion Page 145
2

Testimonials
This course teaches you the basic ingredient of being a landlord; how to collect your
rent. There are dozens of real estate investment courses out there that tell you how to buy real
estate, but that is only one small part of the larger equation. Some of the information provided
could be a formula for foreclosure and failure, if you do not know how to collect all your rent.
Collecting rent can be an arcane and complex procedure that this course puts into an
easy to understand, step by step process. It put me on a continuing road to real estate
investment success. The Schmidt’s course really works! I would say that any landlord that is
serious about trying to retrieve lost rent should buy this course.
Wayne C.
Naperville, IL
Full-Time Landlord
3

The Schmidt’s workshop is geared towards landlords to get the rent money they
deserve. I had to evict my tenant for non-payment, and didn’t have a clue how to get my
money. After taking the course I was able to get a Wage-Deduction and get all my back rent. I
learned the process myself and no longer worry about losing rent. This is definitely a workshop
that all landlords should take.
The ―Get My Rent‖ Landlady
Denise S.
Rockford, IL
Registered Nurse
The Schmidt’s workshop came around at a perfect time for me. I was becoming very
frustrated and aggravated because of not collecting rent. I was actually at the point of wanting
to get out of the landlord business altogether. This program turned me completely around.
Now I am collecting all my rent, and am thinking of buying even more property. Cynthia’s
dynamic presentation at the Rockford Landlord Association meeting left me with no doubts
about needing the course. My confidence level is at a new high. Thank God for this course.
Kitty D.
Rockford, IL
Retired small business owner and
Full-time landlord
4

Disclaimer
This publication is intended to provide accurate and authoritative information with
regard to the subject matter covered. It is offered with the understanding that neither the
publisher nor the author is engaged in rendering legal, accounting or other professional services.
If legal advice or other expert assistance is required, the services of a competent professional
person should be retained.
… From the Declaration of Principle jointly adopted by committee of the American Bar
Association and a committee of Publishers and Associations…
Every effort has been made to reflect current tax law and interpretations as of the date of
publication of this book. However, this is a dynamic field of endeavor in which new laws are
enacted, tax laws are constantly changing, and old laws precede case laws, Revenue Rulings,
and Treasury Policy. Readers are advised to proceed with caution before implementing the
strategies contained herein and to consult with appropriate professional advisors prior to
committing time and financial resources as a result of the material contained in this book or in
the seminar from which it was obtained. It is for instructional purposes only.
ALL RIGHTS RESERVED
Copyright 2008 Cynthia & Gary Schmidt, Rockford, IL
All rights reserved. No part of this book may be reproduced or copied, stored in any informational retrieval system or transmitted in any form
or by any means without the specific written permission of:
Cynthia & Gary Schmidt Rockford, IL
5

Investing Experience Narrative
Gary & Cynthia both know what hard work is all about, from their days of working at
UPS and the Post Office. This is the attitude they brought to their new venture; the building of
―Schmidt Rental Property‖. In 1994 they bought their first 2 homes. By the end of that first
year they had 18 units. In 1995 they added 20 more. They learned the secrets of finding and
buying property under value. They shopped the market for foreclosures and for motivated
sellers. They discovered one very important point; you have to make your money when you
buy investment property.
By this time, Cynthia had left the Post Office and was a full time landlord. She had
definitely caught the fever; the real estate fever! They maintained and expanded the business,
one house at a time, one building at a time. They have accumulated 75 units and are collecting
over $500,000.00 a year in rent. By the year 2000, Gary retired from the UPS. Now they both
shared in their dream of self-employment.
Their 75 units consisted of mostly single family homes, but they have also owned
apartment houses and duplexes. Other real estate holdings of the Schmidt’s included a luxury
condominium in Kauai, Hawaii, a 208 acre hunting lodge estate, with its own private lake, two
motels in Wisconsin, commercial city lots in Rockford, IL, and are now looking into investing
6

in Southern Florida in a rapidly growing resort area. They owe all their success to real estate.
Real Estate has truly become their whole life.
While working at their jobs (UPS and the Post Office) they were making a lot of money,
but they always seemed to spend as much. They never were able to save any money.
After discovering real estate, they realized they can create wealth. Through their
knowledge of the market and with the help of a good credit rating, they are able to leverage
their assets, enabling continuous growth.
They have learned that each property is like a savings account; a money making
machine; to rent out, to refinance and pull out equity to buy more property, or to use in
whatever means you wish, or to sell for profit to other investors looking for well-managed,
occupied units.
Now is your chance to use their knowledge and experience to develop your very own
real estate empire. Take the step now!
7

Introduction
Congratulations! You have just done yourself a huge favor. You can now open the
door to information that will help you take control of your business and your property. You
will gain great confidence in your business which will help assure its success. This valuable
course may be the survival kit for you as landlords, for now you will be able to get all your rent,
back rent, and present rent.
Let’s face it; getting your rent has got to be one of the most or the most important part of
your rental business. The top of any business ledger is ―total sales‖. This is the fuel to run the
machine. We have to get all of the rent entitled us in order to be successful. We, as landlords,
can’t afford to simply turn our backs and walk away from rent that is entitled to us. We need
that money to put back into the property, to maintain the property, so we can keep the property
rented out, and in order to increase the value of our property thus protecting our investment.
It is a matter of re-educating our tenants. We must show them that we will no longer put
up with losing our rent. We have to show the tenants that they are responsible for rent every
single day they occupy the unit. We also have got to show them that we know exactly how to
get every last dime of rent that they owe us, and that we will do whatever it takes to get it done.
Then, maybe, the next time that tenant is evicted, they may think twice about racking up a large
8

back rent balance.
Just think of it! We could start a whole new movement, one tenant at a time. If all the
landlords out there get together and decided to follow our policies, we could change the way the
tenants think, change how we think of ourselves, as well as the way others think of the landlord
profession as a whole.
But, like we said, it is up to us. Sure, we have to educate the tenants, but we must make
sure that we ourselves are educated first. Why do you think that tenants routinely walk away
from the eviction without making arrangements to pay back the rent they owe? ―Landlord
inefficiency‖; that’s why! It’s our own fault. The tenant never paid the back rent to his other
landlords, so why should he think he has to pay you back? We put up with it. We allow
ourselves to be taken advantage of, to be ―played‖ by the tenants.
What business can just lose revenue so easily? Why must we put up with it, especially
when there is a way to retrieve this lost revenue? Why do we have to put up with people
stealing from us? Yes! Stealing! When a judge orders someone to pay me money in the court
room and that person just walks away with no intention of paying me, in my book that is
stealing.
You steal a pack of chewing gum at Walmart, and get caught; they don’t just take back
the gum and let you go. It may be easier for them to do that, but they don’t because it just is not
right. They make you responsible for your actions. Why should our profession be any
different? Why should ours be thought of as a second-rate profession? I’m tired of people
saying, ―I would never be a landlord.‖ Why wouldn’t they want to be? It’s because of people’s
perception of a landlord, a perception that has been molded and fueled by years and years of
landlord’s inefficiency.
9

I’m also tired of hearing landlords say ―I just want by place back.‖ That is the kind of
thinking that got us in this position in the first place. I’m tired of the negativity. Let’s stop it
right here and now. But we all have to work together. This is one of those situations where if
you are not for us, you truly work against us. You do this by reaffirming to the tenant that his
landlord just wants his place back, and the money they are owed is not important to him.
Forget that! I hate losing money. I don’t care if it is $100.00 and I’m worth 5 million. I still
hate it. Sure, I want my place back, but I also want every last dime of money owed me.
Now is the time. Why wait any longer? Dive right in. The program you have in front
of you is the key. It has been designed through hours upon hours of diligence, and hard work,
through trial and error, through constant listening and learning. The program was designed by
doing not just watching or reading. The Schmidt’s just get tired of evicting tenants and seeing
them walk away. They got tired of that same old pattern. They did something about it. Now
you can do something about it too. The Schmidt’s truly have a passion for their mission; a
passion fueled by their knowledge that they can make a difference not only in their own
business, but in the whole landlord profession. Now, anyone who wants to can learn all that the
Schmidt’s have learned.
Gary and Cynthia share in the responsibilities of the business. They don’t overlap in
their duties. Gary is in charge of preparing the unit to rent, interviewing tenants, signing leases
and collecting the rent. Cynthia takes over when the last responsibility is not met. Sometimes
the tenants don’t even meet Cynthia until they are in court. This system works quite well, good
cop, bad cop; a two-headed dragon to face the challenges that arise.
Gary, jokingly, takes credit for the development of Cynthia’s courtroom knowledge and
10

experience, because as he puts it ―she got so tired of me whining about how much money we
kept losing in the evictions that something just had to be done.‖ Well, something was done
about it. This program was developed; a program that will lead you step by step through the
process of back rent collection. There is not a scenario out there concerning evictions, and back
rent collection, that the Schmidt’s will not be familiar with. Your anxiety and nervousness in
the court room will be replaced with confidence and satisfaction. You will know everything the
judge may say, and you will know just how to reply. You will know where to stand, how to
conduct yourself, and what is expected of you. Our goal is to make you just as easy and
comfortable in the court room as you are signing leases and interviewing tenants.
The first time you go to court after taking this course, you will experience a whole new
feeling of confidence. You will start to see the light. There is a way to get that back rent. Gary
Schmidt has seen the light first hand. Some months when tenants are late with their rent, or
some units are empty, and his budget is in need of some help, he will receive payments from
judgments handed down to ex-tenants, tenants that are not even in his units anymore. They are
out of his life, and he is collecting present rents on the unit as well as the back rent from the
ex-tenant in the same unit. What could be better?
Gary says, ―I’ve also seen our clients achieve court room success after taking the course.
I’ve seen them emerge from the doors of the court room with big smiles, and just glowing with
a new confidence. ―I want to be a lawyer!‖ ―I want to be a lawyer!‖ one of our clients shouted.
They took the class, learned the right way, got the rewards, and will never go back to that old
way of thinking again.‖
The Schmidt’s have also gained confidence through the knowledge that their course is
not only teachable and easy to learn and grasp onto, but also keeps giving and giving, back to
11

the person who is willing to try and to learn. The Schmidt’s have opened the doors to the
courtroom and armed you with the tools you need. Now step in and regain control of your
business. You’re ready, let’s get started. It’s the right way, the only way!
Quote:
“Trust is earned!
Love is given!
Confidence is built!
There is no better confidence builder than being able to navigate
successfully through a difficult court system, as “Collect Back Rent” students
have discovered.”
Gary Schmidt
12

Reasons for the Course
The Collect Back Rent Program could never be more pertinent to success as a landlord
than it is in the day and age in which we live and work today.
There are more and more people all the time, investing in real estate, and realizing that
real estate can be a profitable enterprise. The trend in the teachings that many of these young,
new investors are learning from, lean towards buying property with little or even none of your
own money. Buy right, buy cheap, try to use OPM (other people’s money) when buying. Sure!
This is great stuff. You could build an empire if you can keep buying and growing with none of
your own money. But usually this means you may pay a little more for the property. Your
payments also will be a little higher. This just means that getting your rent (back rent and
present rent) is more important then ever. There is not as much room for error; empty units and
non-paying tenants occupying units that could be making money, could make a big dent in your
budget plan. Someone that listened to Carlton Sheets and bought 10 homes with no money
down may be in big trouble if 5 of the properties don’t bring in any rent Then you throw an
adjustment rate mortgage in the mix, and your monthly payment goes up, and you could be in
more trouble. In other words, there’d better be some working room between your payments and
your rents. And when this isn’t the case, you had better make sure you know how to collect
13

every last dime of rent owed to you.
There is this matter of evolution of the landlord that makes our program more valuable
than ever. We think of landlords in the past of owning 3 or 4 houses in full, that he has owned
for 20 years, and that he originally paid some ridiculously low price for. But he avoids the
court room. He’ll go to court to get the eviction when he has to, when he can’t get the tenant to
leave, but he really doesn't like to. He didn’t become a landlord to go to court. He wants to
spend as little time as possible, in the court room all dressed up, and having to act like a lawyer.
All he wants is his place back, and disregards the rent the judge has ordered to be paid.
Remember, he has his houses paid in full. The rent isn’t as important to him. He wants to get
out of the court house and start working on his houses. After all, that is why he is a landlord.
This kind of pre-historic thinking just doesn’t work today.
Today there are people that own 100, 200, or 1000 units. Landlords have their
properties financed. Landlords have payrolls to make to maintenance and clerical workers.
The rent landlords collect every month is their income. This is the fuel for the machine. You
must be in control. Your tenants must know you are in control. You can’t afford to let some
bad tenants drive your machine. Your money, time, sweat, and commitment to your property
can’t be jeopardized every single month, because you don’t know how much rent you are able
to collect. You can’t let other people destroy the great thing that you have created; your rental
business. Just like the old landlord says, ―I want my place back‖, but I also want every last
dime of rent to which I am entitled. Remember, there is a dollar amount on every single day the
tenant occupies a unit. You as a driver of the machine, have to collect all the money.
Remember, it is your pay check. You worked your job all week, and you go to the boss on
Friday and get your paycheck. If your check isn’t there you are going to be very upset. You
14

should be just as upset when you don’t get all your rent.
Another very important reason why our course is so desperately needed is to re-educate
the tenants. We have to show them that we no longer will put up with living in the past. We
have to show them that they are responsible for all the rent they tally up. We have to erase all
of the thoughts in their heads; the thoughts that were fueled by our own inefficiency as
landlords. We have to show them that this is a new age, and we are different landlords. We
have to change the status-quo!
In time, just think of what will happen to the value of rental property if people start to
think differently about tenant habits, and how they can be controlled. They will look at the
whole landlord profession in a different light. They will start to think that landlording can be a
pretty good deal. Your well-managed property will be sought after. You will have more selling
power when you want to get out of the business. We want our profession to be thought of as a
good business venture. We want our profession to be thought of as a very lucrative, desirable
one to get into, not one laced with worry, anxiety, and uncertainty. We can turn things around,
but like any change, it will take time. At least now there is a blueprint for change; a step by
step process from eviction to judgment satisfied.
Cynthia Schmidt, who represents Schmidt Rental Property in all court proceedings, has
been collecting back rent for over 15 years. During that time she observed that she was the only
landlord in post-judgment proceedings. She surmised that either the landlords were unaware of
the tools available to them to retrieve their back rent, or they didn’t care.
In the 20 years the Schmidt’s have been in the rental business in Winnebago County,
they have seen how much rent is not being collected. With about 80 or so cases every Thursday
for a year, we came up with about 4000 evictions a year. Let’s estimate about $1,500.00 per
15

judgment. That’s $6,000,000.00 a year in judgments, tenant to landlord! That doesn’t include
court costs and 9% interest on the judgment amount. These staggering figures should be reason
enough to say ―Enough is enough. I need the Schmidt’s Collect Back Rent System now.‖ And
remember, only a tiny fraction of that $6,000,000.00 is collected, the rest is lost revenue; lost
money that could go back into the property to increase its value, thus protecting our
investments.
And now, the number one reason why you should use this program we have outlined;
because you deserve it! The power you will feel, as well as the relief you will get, will seem
great! Finally, the aggravation you’ve felt when you lose rent is gone. The power comes from
knowing you are in control of your business, and you know how to face the issue of getting all
your rent. You’ll gain a new confidence that can only help. It spreads to other parts of your life
as well. You will want to buy more rental property because you are now fully prepared for
anything. But all this cannot get started until you make the decision to take action. Remember,
―nothing changes, if nothing changes!‖ We have the key right here. We are convinced that
following our policies we have set forth in our ―Collect Back Rent‖ course is the only way to
end the frustration and aggravation you experience when dealing with the non-paying,
uncooperative tenant.
The many who have taken the course are committed. They will never go back to the old
way again. We have seen the change. They are back in control, and beaming with confidence.
Now become one of us. Use the Collect Back Rent system.
16

The 3 Myths that Plague the Landlord Business
We feel that these 3 myths have greatly tarnished even the idea of becoming landlords.
Well, we are here to set the facts straight. If you can eliminate these myths in your mind, you
can realize your true potential as a landlord.
Myth #1—Tenants have all the rights:
Fact: No! They do not have all the rights, but we must know and abide by the
rights they do have. This goes hand in hand with knowing our own rights and how to use them.
Here are 3 tenant rights we should know:
1) The tenants have the right to pay the quit or pay notice stated within the time
frame.
2) The tenants have the right to have court documents served to them notifying
them of court time and place, and what the plaintiff is seeking concerning rent
and/or possession.
3) The tenants have the right to plead their case at a trial, if they do not agree
with plaintiff’s allegations.
Myth # 2—It takes months to evict a tenant:
Fact: In Winnebago County, it is usually around 3 weeks from the filing of the
17

Forcible Detainer, to the day of possession awarded by Judge. We train our students to act as
quickly as the law allows, when it comes to the serving of your notices, to reduce the time the
non-paying tenant remains in the unit.
Myth #3—You can’t get your rent back:
Fact: If we believed this myth, we would never have developed our course. Our experi-
ence proves this is the biggest myth. At the time of this writing, we have received over
$200,000 in post-judgment proceedings. Over 40 times, our various former tenants have been
arrested, thus enabling us to get the bench warrant money and continue the lawsuit. We have
frozen bank accounts, have had excellent success with wage deductions and have collected on a
couple of bankruptcies.
Quote:
“If I hear one more, „I ONLY WANT MY PLACE BACK‟ , I‟ll tear my
hair out!”
-Cynthia Schmidt
18

Inside Look at the Landlord
A landlord’s biggest fear is not collecting the rent from the tenant. The property owner
purchased real estate to make money, not lose money! The landlord feels lost when the tenant
stops paying rent. We bought rental property to be self-employed; to paint, clean carpet, not to
be a groomed lawyer. But being a groomed, pro-se/lawyer is essential for success. Our course
will groom you for success in the courts. It’s the missing link in the rental business. Buy the
property, get it ready to rent, rent it out, if they don’t pay the rent, evict them and collect the
rent in post-judgment.
(These are some categories the tenant tries to put the landlord in, so if the money gets tight they
can utilize the relationship to their advantage.)
Charity—Real estate is a business concerning money, it’s not a non-profit organization. We, as
landlords, should be able to donate to the charity of our choice. Landlords that consider
themselves a charity are not landlords very long.
Friendship—If making a connection as a friend is the reason you bought rental property, I
would suggest joining a health club or bike club. Rental property is not the breeding ground to
19

find friends. When the tenant falls behind financially, they naturally will call their landlord
(their friend) to ask to wait for payment!
Loan Company—The rent is due every month on time. We are not loan companies. There are
institutions for borrowing money such as the Cash Store or Cash to Go. If loaning money is
your ambition—I’d suggest buying one of these franchises.
Congenial/Nice—In school, Mr. & Mrs. Congeniality would become homecoming king or
queen, or president of the student council, which was fine for school, but it does not pertain to
landlording. If you want to glow with your congeniality, go ring a bell at your local grocery
store at holidays for the Salvation Army, or deliver hot meals to shut-ins in their golden years to
fill that empty slot in your life. If you are worried how the world views you, then you can’t
make sensible financial decisions. Donald Trump doesn't worry what the world thinks of him
when he makes decisions in his business.
Family Counselor—If counseling individuals to better their life was your goal, I would suggest
entering into a university to start your education. You are not a family counselor or therapist.
When you purchase rental property, you are the landlord that wants ALL HIS RENT!
Period.
The age old title ―Landlord‖ has tried to be redesigned by every new landlord. They try
to be nice to the tenants so they pay the rent, counsel them to pay the rent, or become friends to
assure they will pay the rent. In turn, the tenant uses the same thinking to not pay the rent.
20

The landlord needs a blueprint to follow, a cloak to wear when dealing with tenants.
When the judge takes his/her place at the podium, they have spent years in college, not to say
years as an attorney, to have the training for the cloak. Just as the police officer has training for
their profession; the moment that he/she puts on their badge, they wear the cloak of law and
order.
The judge and law officer have had background training, but the landlord hasn't had any
training wearing his/her cloak. This workshop will equip you with the necessary tools to obtain
the back, present and forward rent. It will prepare you for upcoming issues and direct you to be
in the driver’s seat of your business, not the tenant. This inspirational program will give you the
blueprint to success. It will eliminate the fear of not getting your rent.
Quote:
“We can‟t change your opinion of us, but we can change your address”
-Cynthia and Gary Schmidt
21

Inside Look at the Tenant
Theses are the thoughts of the bad tenants not the good tenants. Tenants are our bread
and butter. The bad tenants can take the butter away. This program is designed to put the butter
back into the system.
The tenants view the landlords as greedy individuals whose favorite subject is MONEY.
Yes, our favorite subject is money, but we are not greedy. We just want what the tenants have
agreed on for the product they are using. The tenant agrees on a binding contract then calls the
landlord greedy because they want every cent that was agreed on.
The tenants have no intention to pay the judgment that was granted by the judge. In their
minds, rent is something you never have to pay back. All the landlords they have
encountered have never made them pay the outstanding judgments. So why wouldn't they steal
the rent? They get away with it and that continues the circle of inefficiency.
The tenants have this mindset that the security deposit can be used for the last month’s
rent. The security deposit is never used for rent. The tenants will try to talk the landlord into
using it for the last month’s rent, thus leaving no money for damages after move-out. The ten-
ants have had landlord’s bend to their thinking, so why wouldn't they think this?
Tenants at the Forcible Detainer will ask the judge for more time to move out than the 7
22

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