All Forum Posts by: Andre Rosemberg

Hi Daniel so I did not buy in Rochester. I found a great income property closer to home in Inglewood CA. I’ve cash flowed since day 1 and am up around $100,000 in equity.

Let them stay. They used up two strikes by lying about the number of occupants and having a loud party. Let them know you're giving them one last chance. It will harm both you and them to avoid this discussion and go straight to an eviction.

Sorry for the long story below.  I need to know if I have any options here other than to risk losing my 3% earnest money deposit and the most amazing house for my family.

My wife and I made an offer on a bigger house and we were very fortunate that the buyer picked us.  The market is very competitive and we feel fortunate to be in escrow.  It is very much a seller's market right now in the area we are looking for.  Plus,  we love the house and it is perfect for our growing family.  My wife is pregnant with our third child.

I have never had a problem with any of my 5 previous loans for purchase, refinance, and a HELOC. With this company, Sebonic Financial / Cardinal Financial they are asking for way more documentation than I have ever had to provide. This is unusual for us but we've still been able to provide everything within 24-48 hours. We provided everything about 5 weeks ago and have followed up despite not getting much communication. We've periodically checked in to see if we were good and each time we were told, "yes".

There is nothing unusual about us or our loan.  We're putting 20% down and the purchase price is $603,000.  We have good credit in the 780s, low debt, good income and decent savings.  We even managed to rent out our existing house before we move out, and that was hard to accomplish!  

We had a 45 day escrow which should be a comfortable pace for everyone involved. Our escrow is scheduled to close on June 2nd.   It appears that just now, they are starting to look at our documents.  

This morning I receive an email that underwriting looked at our 2014 tax returns and that the IRS shows they are not filed.  This is wrong!  We absolutely did file and pay on time. They have our tax returns, they have our checking account statement that shows the money coming out to pay the IRS but "their computer" shows it isn't filed.  I quickly search my inbox but it looks like I deleted the "e-file" receipt from TurboTax.  So instead I take a screen shot to show it was accepted.   Their solution is to call an 800 number (not a solution since their number wasn't working), go online (not a solution since their online site is down for maintenance), or go to a local office.  It's 9am and I have to catch a plane to Las Vegas at 12 but instead I'm battling surface streets to get to downtown LA this morning to the IRS office.  I'm then lucky enough to arrive in a room full of over three hundred people waiting in line and I'm the 2nd to last person before they stopped giving numbers and told people to try again Monday.  While I get my number they are able to confirm they received my 2014 returns but that all I can get is a transcript copy and for that I have to wait in line.  I'm told I am going to wait in line and they likely won't call me today (I only counted 4 people working behind the counter) but that if I wait all day I could get a priority number for Monday so that I could wait more on Monday and likely be seen then.  This is all to get a transcript of a tax return which was filed and paid on time and there is absolutely no logical reason for me to have to go looking for this on a Friday the weekend before I'm supposed to close.  Oh, and I missed my plane to Vegas and had to book another one for tonight.  Finally after 4 hours at the IRS office and my wife and I exchanging emails and calls with them, they say underwriting  will accept my screenshot and that they didn't realize the screenshot of TurboTax said "accepted".  I admit I cried on the way out of that miserable, hot IRS room.

We are promised that there will be nothing more that they will need from us.. oh but about 20 minutes after I return home my wife calls me and tells me now they want a settlement statement on a parcel of land I own free and clear.  And fortunately since I'm not in Las Vegas and I'm sitting at home stuffing my face since I skipped breakfast to run downtown this morning, well I've got nothing better to do than to dig through my file cabinets.  Again another ridiculous, odd request that I quickly am able to fulfill and send back to them.  It's past 5pm on the east coast and these guys aren't even going to look at this stuff until Monday.

I looked online and these guys have good reviews on the sites where they advertise, but honestly my experience is a lot more like the reviews on this pissedconsumer website below

http://sebonic-financial.pissedconsumer.com/

If I had to scramble and get a hard money loan instead to close this deal, how do I start and how long does it take?  What are my options now if on Monday they surprise me again with something else their "underwriting" needs to see.

 - really scared

I'm new here and just read your post. Coincidentally for my real job I process data. I do this for direct mail. If you know what data you want to keep I can help you format it or filter it.

Hi, I'm brand new to BP but I've already logged several hours reading through threads and getting some education.

I'm from Los Angeles and have always wanted to get started in REI. I recently bought my second home (still in escrow) and am in the process of fixing up my existing house to rent. And then something unexpected happened... I was offerred a ridicuous sum of money for a building I own for my business. I couldn't refuse that deal and now I'm in escrow to sell that building.

I'm looking to do a 1031 exchange and I'm going to profit $215,000 from the sale of the building.  Talking to my attorney it, sounds like I need to purchase $550,000 to do a 1031 exchange (the building sold for $1.1 million but I own it 50% with my brother).

My goal is to purchase a property or properties to return $80,000 NOI from the purchase of $550,000 in investment properties. In Los Angeles that is a bad joke, but it seems like this may be possible in Rochester.

Rochester has always been on my radar.  I've been there once, to Pittsford and it looks like a nice town.  But I've since learned Pittsford is a nice town and that isn't where I will likely be investing to get the kind of income I want.  Plus I'm in the printing business and I've paid out over $2 million to Xerox in the last decde.  As a result I hate Xerox and it would make the universe cosmically in balance if I get income back from the Rochester area. 

Seriously though, I need some help here.  For instance, I've talked to one guy in particular from loopnet who advertises 25% cap rate and then on the phone he's sort of like "well.. you know... it's more like 18%"  Don't get me wrong, 18% cap rate is amazing, but why lie about something so fundamental on loopnet then tell me something else on the phone? What else is not accurate?

So to lay it out. What I want is to buy and hold and I want to spend a minimum of $550,000 and I want a NOI of $80,000 a year. I don't care if a property I buy for $30,000 today is worth $30,000 ten years from now. It doesn't matter to me. I'm not looking for equity appreciation, I want income.

So for instance here are a couple of deals I've seen which is a portfolio of several properties and supposedly turn-key.

http://www.loopnet.com/lid/19248464

Or here is another example of a deal, and I would build up my own bundle of properties to spend at least $550,000

http://www.loopnet.com/lid/18485055

So here's where I need help. Is this real? Are people really selling properties that are returning ridiculous amounts of money? Why would anyone want to sell a property that is NOI 20%+ a year? It seems stupid to ever sell this. If this exists, why do I have a chance to buy it? Why wouldn't all these properties already be bought and I have a bidding war with the next idiot for a chance at one? Instead, if you look at realtor.com for example I've created a spreadsheet of over 20+ properties that I could buy to total $550,000 so I could buy a whole city block for $550,000. These aren't even moving, there are constant price reductions. They all have "tenants in place" and "management in place". What's the story?

So from browsing here the last couple of days, I get that the story is "war zone".  These are high crime neighborhoods where someone will rip out $15,000 in damages just to steal $100 worth of copper pipe.  What are real experiences in these neighborhoods?

Can I really buy a portfolio of 15-20 houses in a war zone and collect my goal of $80,000 a year remotely?  It sounds like some people have said "I wouldn't go there" or "yes but you need a good property management company".   Is the "War zone" my only option to get the kind of income I want?

I need advice, and I need referrals for a good area realtor and a good property management service.  I also need to know is it possible to make a deal to fund multiple properties where I put in $200,000 to finance $550,000 .   Going into escrow on one property is a lot of work.  Who would finance 20 properties?  What a headache.  Are there 20 home inspections involved, 20 apraisals, 20 reams of escrow papers? I only have $200,000 cash but I have to spend $550,00 or I get hit with a big tax bill. How do I do this?

 Thanks and congratulations on this really awesome website.  I feel fortunate to be here.

 -Andre