All Forum Posts by: Tim Czarkowski

He told me that he wanted to earn 10% on his money not that he wanted a 10% cap rate. I have been trying to talk to him to find out what might be best for him. The problem is I typed a nice detailed e-mail trying to do a basic needs analysis but all he responded with was 10%. So I setup an appointment with him figuring maybe he just doesn't like e-mail. The appointment lasted all of about 10 minutes, he told me he didn't like one property I sent him and talked about one on a list I brought. Still no details. Since then I've tried over the phone but get the same thing, he wants to get off right away. My wife told me he is like that at work, so I don't think it's me personally. It makes it hard to find the best property for anyone when they are not willing to open up a little bit. I'm not focused on the money or trying to push ANYTHING on him. I just want some FEEDBACK on what I send him at a minimum.

When he told me land, I specifically asked him why, and he said he actually didn't care, he actually just wanted 10%. I figured since he sounds fairly inexperienced and busy maybe a raw land development deal wouldn't be the best route to the 10%. He has told me he can get financing but wouldn't give me specifics. So since cap rates here vary between 7-9%, depending on the financing he should be able to hit 10%.

I would love to break into commercial particularly as an investor, but it takes big money or at least connections to big money.

Thanks for the response that is essentially what I ended up doing. Unfortunately he doesn't seem to be too eager to purchase something, or at least to talk about it in any case. He did tell me he drove one of the properties but that he didn't like it. I had a list of properties that match his criteria and he said he would drive them last weekend. Unfortunately he said something came up and would do it this weekend. I haven't heard from him, so I'll give him a call tomorrow to see how it went. I get the feeling that anytime I speak with him is that he wants to be off the phone asap. But my wife says that's just kind off his personality. In any case I'll keep working it without getting my hopes up.

I haven't heard of using a retainer. Has that worked for you? Do you generally just try it when you think you've got a time waster?

Steve Cantano That can't be true... The law is all knowing and perfectly fair and balanced. Plus all laws mean exactly what they say and are applied fairly and just as they are written. Our justice system is perfect and uncomplicated. lol

Steve Cantano I just wanted to say that I have actually bought two free and clear properties this way also. I bought them for just over the amount of the dues owed. One was a private owner who thought there was nothing the HOA could do to him for not paying his dues, he was upset when I had the sheriff there evicting him, lol. He had the means to pay but didn't because he thought he could get away with it and he did for about 5 years until I bought it at auction. The other was a bank that for some mistaken reason must have thought the same thing or maybe they didn't know they owned it or some such. Never underestimate a large bank. If you don't pay your bills you ought to lose your property. I think most of the auction bidders automatically ignore the HOA lien because they assume there is a first. Otherwise the competition would surely bid them up as any other property. It is sweet when it happens though it is RARE.

Stephen Masek I think it is immoral to rent a property to someone and make a profit. Landlords are greedy.

Everyone has their opinions on what is moral and what is not. Yours appears to be different then mine. However it is perfectly legal. And yes I have come across many people who believe the renting property is immoral. Some people think evicting someone, even if their not paying rent, is immoral. Some people think charging interest is immoral. To each his own. I think anything that is legal and allows a profit is an honest living, but then I have a much more open mind then some. I personally work within the law and treat others as I want them to treat me and I leave it at that.

By the way purchasing an HOA lien is not exactly the same as purchasing a property "subject to." It has a similar structure but the buyer never insinuates that they are taking responsibility for someone else's debt or that they are going to pay it. Should the owner of a second mortgage who forecloses his lien then have to pay the first mortgage? That makes no sense legally or morally. The only difference between this situation and that is someone else buys the lien instead of the mortgage owner. Also many HOA's are foreclosing their liens because the banks won't foreclose theirs. Is that illegal or immoral? Some get paid off by investors willing to take the risk to rent the place, should they just get stiffed instead. That has bankrupted HOA's in the past, do the other owner's who have paid their dues deserve that. When some one doesn't bid on the lien and the HOA rents the condo to recoup the thousands in dues they are owed, is that immoral or illegal. Open you mind a little bit.

If someone goes to a homeowner and buys the house "subject to" and then purposely does not make the payments, that is immoral and illegal. This is not that situation. To a casual observer it may appear to be the same situation but it is not. As best I can tell with the screwed up way foreclosures are handled, there is a three year backlog here in Florida, it appears to be the best outcome for all parties involved. What about if someone takes a property subject-to with every intention of paying, even if that means the balance of the loan if the bank exercises their due on sale clause, and the bank refuses do eve talk with them. Who is behaving immorally in that situation.

Alan Rudy I'd like you to quote some case law related to this and while your at it have your lawyer draw up a legal brief about it to be posted here. You ask for proof from K. Marie Poe. but I haven't seen any from you. On the contrary all you have done is post one line of a law and inserted your opinion of it's application. You should hold yourself to the same standards that you hold others. This is not legal website and when someone tells me their attorney has researched it and given them an opinion I leave it at that. If it is something I am going to act on I talk to my attorney about it. Both of them sometimes. What you are asking for is a little ridiculous and you are behaving like a hypocrite.

By the way I live and work in Florida so this law really has no bearing on me other than I have heard others claim the same of a law here in Florida.

Wow what a post. That's got to be a personal record for length in any forum.

Steve Cantano I completely agree with you the banks should be looking to work with the HOA investors. They have a ready, willing, and able buyer staring them in the face and they are ignoring it.

Alan Rudy Take a chill pill man. You seem to think because you read the first line of a law you understand it full implications in extenuating circumstances. The fact is that even simple sounding laws can be interpreted multiple ways and applied in multiple ways in multiple circumstances. Have you spoken with an attorney about this specific application of this law? Have you researched the related case law? There are a lot of people doing this type of investing. I'm sure that at least a couple of them have competent attorneys that have advised them. Almost by definition you are wrong either technically or practically. Did you expect K. Marie Poe to get her attorney on here quoting case law? She said her attorney cleared it and I'd take her on her word. If you feel she's wrong go to a lawyer where you should be going for legal advice anyways. For fun go to a couple of different ones and ask the same question, I bet you get a variety of answers. Then post the answers here, with legal quotations please

Stephen Masek Did you read this entire thread? Or just jump in and post at the end? Did you fully understand the situation? Personally I think these investors are doing the banks a favor. Have you seen how quickly a vacant house falls apart? I would prefer a decent rental any day to these 36" grass, broken windows, stolen A/C, squatter filled crack dens the banks call REOs or soon to be REOs. I have seen a small roof leak turn into a condemned house over the course of two or three years. I wish I could flush other peoples money down the toilet like these large banks do on a regular basis.

Maybe I should take a chill pill also. lol

I had something similar but less complicated happen to me. The owner of the first mortgage foreclosed an HOA lien because of some procedural error so it appeared that the first was being auctioned but it was actually the HOA lien. Thankful it was not for a whole lot of money and I have already nearly recouped my cost by renting the place. It should have been caught by me but I was a little too eager and green It certainly should have been caught by my title agent but he had no experience with foreclosure auctions even though he told me he had. Needless to say I have switched title agents to someone who I know for a fact works with a lot of the other bidders.

I wish you the best of luck, I'm sure it will turn out alright. It sounds like you did all you could. Please keep us updated.

Buying at auction is certainly not for the faint of heart or the inexperienced. Sometimes you just have to jump in and learn the hard way. I'm still glad I started buying at auction and I learn something on every deal I do.

I have got to say I am glad that here in Jacksonville utilities do not attach to the property. I think it's ridiculous to be held liable for someone else's bills.

I give the tenant 3 days from move in to have the utilities in their name. I call the power company on move-in day and schedule termination. I don't call the tenant's, they are adults, even if they don't always act like it. I've only had one tenant who didn't switch in time. Mind you this was summer time here, so needless to say they paid the extra fee for same day service to get the AC running. I think three days is pretty generous and am considering switching to move in day. The only problem is I seem to get a lot of people who want to move quickly and I also tend to turn the apartments pretty quickly.

It sounds to me like the difference in pricing came from the notes being different types. Instituional vs Private Loan.

Dion DePaoli Yes that was exactly what I was asking. They seemed to think the prices you were offering were above market and that if they could trade at those prices they gladly would. It seems to me there must be some misunderstanding between what your offering and what they expected. If they believe your prices were really that outlandish surely they would trade with you. Honestly your conversation is out of my area of expertise and bit above my head, but that is my understanding of the conversation. I was just hoping for some clarification.