All Forum Posts by: Cassie Montalvo

Hello all, 

I have successfully purchased several foreclosures at auction, so this isn't my first rodeo, but it is my first time with this particular situation and I was hoping someone had some insight...

Property location: Palm Beach County, Florida

HOA foreclosure (no mortgage) lien was about $10,000

I paid about $100,000 for the home

Roughly a $90,000 surplus now

Tax liens exist and amount to roughly $10,000

Property owner deceased and no heirs were located

Tax liens were not specifically identified as a defendant, just the generic "and all other parties claiming by, through, under..." etc. to previous property owner and/or actual property was listed as defendant 

I budgeted $10k to pay for the tax liens, but ... since there is a $90,000 (approx.) surplus from the HOA foreclosure auction, is there any way to have the surplus pay for the tax liens? This is wishful thinking about would obviously be fantastic.

Thanks!

Yes! Find a broker you might want for to work once you’re able and approach them from a helpful angle - maybe you can help them set up an open house, help staging before photos, composing mailing lists, social media marketing ... pretty much an intern. Look on Zillow and see which agents in your area are doing lots of business - go after those agents. Good luck!

There is no rule for insurance in S FL - there are simply too many variables to account for. If the building is 40+ years old, the ONLY way to do it is see what the current owner pays (by requesting the T12) and use that same amount in your calculations. Buildings over 40 years in S FL require several inspections for insurance and without those inspections, your insurance agent can only give you a range (could be as low as $ if a, b, and c have already been updated; or as high as $$$ if no updates have been done).

I worked insurance before REI - so let me tell you- insurance in FL is EXPENSIVE AF. West of 95 is just expensive; east of 95 is murder; east of US1 is absolute genocide. (For people not local to S FL: don't forget, we have hurricanes that tear roofs off like a teen with munchies opening a can of pringles).

You won’t get a solid quote without the 40 year inspection, there are too many variables. Also, type and age of roof will be a huge factor (flat roofs are a killer in FL for ins premiums).

All that aside, like the others have said - spend lots of time learning to analyze deals before jumping in.

YES - James N Brown in WPB. His title company is awesome - they even have their own app (Title Leap) where you can track all your deals, important deadlines, and see all the communication (to and from the title company). His office is off Olive, a little north of Clematis. 

I use them exclusively and as I cannot say enough great things about them.

Have you done renovations in south Florida before? You have a 6-plex and are only estimating $95,000 total for renovations / or just shy of $16,000 per unit. The renovation costs seem really low for an ARV that is increasing by $500,000. What exactly are you changing to raise the ARV?

As for insurance - that’s highly dependent on the building age, construction, and location - an agent can give you a quote in a day. You will need to know the dates of updates for roof, electrical, and plumbing if the building is over 40 years old. 

Yes, as long as one of the borrowers occupies the property, it should work. Look up "kiddie condo" loans. FHA has a program for it.

I think you need a good HOA lawyer. I've bought HOA foreclosures in FL before and I get spam letters from lawyers about fighting the remaining HOA fees after an auction. I would contact a professional to see what your options are before you tank your credit.

The association will not negotiate - they have no need to. The lien follows the property so it doesn’t matter how many times or to whom you QCD to property to, the lien will survive. 

When the city required I updated all the electrical to include arc-faults. That same city also required full specs on nearly EVERY fixture - including the bathroom exhaust fans! Exhaust fans ... really? PS, stay away from Pompano Beach ... NEVER AGAIN