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Updated over 3 years ago, 08/24/2021
Potential New PA Vacant Registration Law
Just wanted to share I received this today. Pennsylvania is looking to pass a bill to have vacant property registration and annual assessments and collect fees on vacant properties. (note some counties already have registration). This has an impact on note investors as if you have defaulted loans where a borrower vacates the property in PA the foreclosure process can still take a year and this potentially will of course increase your costs.
- Chris Seveney
Originally posted by @Chris Seveney:
Just wanted to share I received this today. Pennsylvania is looking to pass a bill to have vacant property registration and annual assessments and collect fees on vacant properties. (note some counties already have registration). This has an impact on note investors as if you have defaulted loans where a borrower vacates the property in PA the foreclosure process can still take a year and this potentially will of course increase your costs.
Great, my favorite state just keeps getting better....
I will trade you all my Ohio assets for your Pennsylvania assets
- Chris Seveney
I did one note in PA. Learned a lesson and never went back.
@Bob E.
I stay away from eastern PA most of my stuff has been around Pittsburgh which has gotten awful since covid.
They keep kicking can down road on evictions because they have so many. The problem is most tenants don’t give a you know what and you need them to apply for assistance which they won’t as they don’t care and get nothing out of it as they are getting their free checks why do they care if landlord gets paid.
- Chris Seveney
@Chris Seveney not sure if it would be legal but could you pay your tenants a $100 refund after the housing subsidy is received each month? Something tells me that would be illegal but, if not, it would incentivize the tenant to file for the aid.
I wonder if you called it a COVID subsidy it that would help with legal issues....
Other options might be non cash incentives, upgrade kitchen appliances etc. Not that these are necessarily tenants you want for the long term but if you can't evict them and are stuck with them it helps a lot to have them paying.
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@Chris Seveney
The Socialists use COVID and the like to pass legislation to weaken property rights and further their agenda of destroying private property and instituting state property ownership.
In 1947 NYC, using the post war housing shortage as an excuse, instituted the “temporary” measure of rent control. 70+ years later the temporary measure, as well as a companion measure instituted in1971 is still in effect, with the effect of having provided a transfer of wealth from property owners to tenants.
Since most property rights, or limits to occur on a state or local level, it's more important than ever for real estate investors and note investors to consider the location of the property investing in or collateralizing the note. For example, some states we lend up to 65% LTV, some as low as 40%, and a few we won't lend in or purchase a note in at all.
- Don Konipol
Originally posted by @Chris Seveney:
I will trade you all my Ohio assets for your Pennsylvania assets
Are you souring on OH? Anything new or different going on causing you to feel that way? We've only had two assets in OH and my observations are that the courts are slower than IL, which is saying something
Originally posted by @Don Konipol:
@Chris Seveney
The Socialists use COVID and the like to pass legislation to weaken property rights and further their agenda of destroying private property and instituting state property ownership.
In 1947 NYC, using the post war housing shortage as an excuse, instituted the “temporary” measure of rent control. 70+ years later the temporary measure, as well as a companion measure instituted in1971 is still in effect, with the effect of having provided a transfer of wealth from property owners to tenants.
Since most property rights, or limits to occur on a state or local level, it's more important than ever for real estate investors and note investors to consider the location of the property investing in or collateralizing the note. For example, some states we lend up to 65% LTV, some as low as 40%, and a few we won't lend in or purchase a note in at all.
Don
This is playing a major role in where I continue to invest. It is mind blowing what some of these counties and states are doing and getting away with. But to your point, I have priced things accordingly now based on states and counties and know I am not going to win the bid but I also know that the people who are paying 70% on an asset in a certain county will have to wait 3 years when it was previously 6 months to get it back, and they bid it as if it will only take 6 months.
- Chris Seveney