Would you BUY your clients Property!?!?

[Atwan Kwan]

Bout to buy my clients investment property!! 

It's been years....

watching, working for others ......and looking longingly .......at the market and others flourishing....

Why now?......

My client, calls me the other day...

He says I'm done with this condo...

I'm ready to retire....I need to sell!!!

As a realtor, I was a pleasantly surprised....

When I started planning out marketing strategy.... 

I realized this was peanuts to my DREAM......

I spend all my time making pennys for others to LIVE their dream......

I LEASED this client's property for him, which he has been earning passive income with his eyes closed for years now......

my pleasant surprise now seemed cheap.... and I thought WHY NOT LET THAT BE ME!!!!!!.....

Anyway, had to share that story....obviously I'm a realtor and want to be newbie buy n' hold investor....

The issue is ....the condo was all cash buyers at 90+ days on market..... because delinquency rate and investor ratio was too high no bank will finance buyers!!!!

How would you structure the terms for the Deal below, I don't want to put down more than $15k.....

Seller-financed:

=$70k - condo (no repairs needed, close to a school)

=$1k - property taxes

=$800/mo condo fees

=Just renewed NO hassle tenants renting for $1600/mo for at least 1 more yr....

I'm the property manager so I know there's no pitfalls in this rental agreement or the property itself....

[Sergey Tkachev]

@Atwan Kwan, make sure you have a good understanding of the financial health of the HOA/Association. When are the roofs to be replaced? Balconies? Roads paved? Etc. Are there enough reserves for those repairs? If not, you'll be looking at special assessments. I am involved in a situation in FL where the HOA fee was $150 when purchased, over 10 years it crawled to $450 and there are almost 0 reserves. Maintenance is deferred and most owners turned their units into rentals, hired property managers who did not care for tenant quality, which resulted in 10 people living in a unit, police coming over, drugs, etc and all the good people leaving. Constant repairs that the HOA is having to pay for, all causing fees to continue to increase, along with special assessments in the past and some coming in the future.

There are really a lot of unknowns that can happen that you will have almost no control over. I've had to join the board to help steer things the proper way and then you feel like you are in a socialist club. I might be exaggerating and politically incorrect but I can say it as it is, my family moved to the US from a socialist system and this HOA things brings back some memories. It is a good experience on the other hand if you have time on your hands. With proper management and a good board, HOAs can be great and very profitable. But make sure you examine the financials and over financial health of the HOA and structural health of the building because this can directly eat at your profit in the future.