All Forum Posts by: Robert Freeborn

Scott, condos can be a great way to get started in our high value state.  The key issue is what their rental cap is.  Does this condo association have a rental cap?   Where I live we have a 60% rental cap.  (we bought before we became investors.)  We got to number 3 on the list, then the management company sent out a survey to see how many were owners vs renters.  We then got bumped to 17 on the list.  There goes our plan to rent out the condo when we buy a home, right?

So, make sure you can rent it.  As for the WUCIOA, from my understanding, and I'm not a lawyer, it shouldn't drastically affect existing condos.  Where it becomes a huge burdon is on new condos.  So I don't think it will be a big thing.  

It sounds, to me, like the assessment is the biggest issue.  Is this the only assesment? Do they have any other major work planned? Why isn't that coming out of the operating fund?  Does the association have a reserve fund or do they do all things through an assessment?  If they don't have an adequate reserve, I would be very wary.  Part of the dues should be going to the reserve fund.  If they aren't it isn't being managed properly, and thats a big deal.  (IMO). 

Get a local realtor on board who knows the area and can dig into that complex and find those answers out.  

@Scott Schober one of my clients just bought one in that situation. Had some issues and the client needed to clear title himself. Paid off the tax lien 12 minutes before they closed the day of the limit. It’s not too late, but you should talk to a lawyer to make sure you’re doing it right. Message me and I can give you a recommendation.

@Sam Denny hi Sam. I’ll ask the agents in my office if they can recommend anyone.

@Scott Schober it’s tricky. How far out are they? Is it preforclosure still? How long do they have?

Welcome to the site!  I'm a RE agent in Bellingham.  If you're still looking for referrals, give me a ring.  I'd also be happy to help you look at investment properties down here.    I'm currently negotiating for a rental in Mount Vernon for some new investor clients.  There's a lot to find, and I love helping my investor clients find deals of their own.  Send me a message or give me a ring and lets talk.  

While manufactured homes can be great, you gotta be extra careful on your due diligence.  Still, they are a great opportunity, and you're smart to seek out help.  Best of luck!

Bump.  Pat is a tremendous resource, and has a trusted view of the market.  You won't do wrong by getting his thoughts.

@Greg Lovern I don’t have good answers for you. For my first flip earlier this year I didn’t have a GC license. My GC did though, and he did 90% of the work. I came on here and there and did some things (which he usually had to redo!). I haven’t had any questions on it yet. I’d love to hear from someone who has.

@Phillip Garcia Thats even easier then.  If they only get half of it, and your mother doesn't care about paying them off, write up a contract, give them the full 30 and get a Home equity loan for half the value of the property, and pay them off.

Does your mom want to live in it full time?  if so, great, fix it up for her.  If  not, great, fix it up, and AIRBNB it when she isn't there (with her permission of course.)  You'll pay the loan off fast and be back to free and clear with nice cash flow.  

Hi @Phillip Garcia.  I'm no lawyer, but I think you need to keep a lawyer involved. 

However, I'll share what I've heard others do.  

First, keep in mind that, yes, they are going to want some money.  Frankly, that's only natural.  Maybe $10k each will "buy them off", but I don't think so.  Why?  Simple: Beach House.  Washington State.  

I don't know the area that is in, but it is most likely worth a goodly sum, especially if it is free and clear.  

I would recommend figuring out how much the home is worth (I'd be happy to work up an CMA for you) and dividing that and the $30,000 by the 4 heirs. Then, with an agreement in place, your mom can get a home equity loan on the beach house and use it to pay off your cousins.

Maybe you don't do it in even 1/4 size shares, but they are going to expect some sort of value from the home.  

You could also look at giving them rights to come out to the home for one month out of the year - a free vacation home if you will.  They might need to be on title for that, or it could just be an agreement.  But thats why it would be useful having a lawyer involved.  If she no longer wishes to use the probate lawyer, I can recommend someone who specializes in real estate law.  

As I said, those are just ideas, and I am not a lawyer.  Get professional advice before you do anything. 

Send me a message and we can chat more.