All Forum Posts by: Mike Seluk

If unemployment is on the rise, couldn't that make it way harder for us to make money? It seems like that could make getting started much harder.

I'm thinking about the trickle-down effect here. If I have a tenant who loses his job and has a hard time getting another, the rent might get bumped down on his priority list. Sure, I can evict, but then I'm losing money.

And I'm coming up empty on exit strategies for a rehab. Banks aren't lending, who's buying?

If I lose my job, my primary source of income stops while I'm holding onto my primary residence as well as a rental. If I had a hard time getting a new job, I wouldn't be able to float both of them for too long.

I *did* lose my job a few months ago, which is where these thoughts come from. Getting another wasn't too hard, but the new job requires travel, so I've been out of town (in Denver!) for 3 months now. I could see this trend continuing, since my job is semi-construction related and anyone in SWFL could tell you that things are slow down there.

Does this really just mean I'm not ready financially to get started? Thanks

I'm a bit of a noob still, but here's my take.

I also find myself doing the same thing, Jason. People have told me it's a terrible idea (not just bad...LOL), but those people aren't any better off than I, so I take their advice with a grain of salt.

I've also been trying to pay off my first place (primary residence), and I think I was within 12 months...but I lost my job today. I haven't been giving all my money to the bank though; I've been saving it where I can access it, just in case something like job loss reared it's ugly head. So at the moment, my progress has been halted, but it could be worse! I could have the place 75% paid off with NO savings for this little rainy day.

Also, the value of this place has since gone down to about the point that I have it paid to. So i could get out from under it and 'only' lose the equity - which for me is about 20k now. If you bought 10 places like you said in your example...man, that could be a bad situation, I would think. Magnified losses. Betting on appreciation in this market...well, I'm not holding my breath. I think it's gonna be a WHILE.

I like the idea of having the place free and clear - a bit of stability when everything else seems to be falling apart. And if it was paid off and I was inclined to get a room mate, they would pretty much cover all my monthly expenses. To get into that situation before 30 would be fine with me. Job loss wouldn't be as much of an issue as it is right now, that's for sure.

Here's an update/plot twist.

"John Carona: Slumlord Senator Gets Caught

August 14, 2008 Dallas - State Senator John Carona's carefully sanitized media image was shattered yesterday when Houston TV station KHOU, Channel 11, identified him as CEO of the property management company responsible for "condos in danger of collapse" in spite of having collected management fees for years. The city says the structure may simply fall apart, taking dozens of homes down.

"'There's a big question. Where have all our maintenance fees gone. Where have they gone?' said Dan Seluk," an owner of one of the units in the crumbling Park Memorial Condominiums. Tuesday, KHOU reported Mr. Seluk explaining that "the residents will have to continue paying maintenance fees even though they can't live in their units. If they don't pay, a lien will be put on their home." He said it will be a struggle for many of them to pay rent on top of what they are already paying.

Carona, a long-time, deeply-entrenched Republican incumbent, is CEO of Associa Principal Management Group, "one of the largest property management companies in the nation," according to KHOU. The station went on to report, ".he also wrote the Texas Residential Property Owners Protection Act."

"Carona is using his powerful public office to benefit his personal interests," concluded Rain Minns, the Democrat challenging him for the State Senate, District 16, in the November 4th general election.

"To think that someone in public office is running these companies and is perhaps making a lot of money. And the service of these companies is so terrible and the homeowner's hands are tied." said Seluk.

These revelations followed closely on the heels of an Associated Press story reported on August 4th by the Austin American Statesman disclosing Carona's fiscal improprieties. "[Carona] has reimbursed from campaign funds nearly $600,000 to two of his companies for various services, including rent, in recent years," despite the fact that, "it has been almost a year since the Texas Legislature made it illegal for lawmakers to use political funds to rent property from themselves or their spouses."

The AP continued, "he does not pay rent anymore but still advertises the address and a phone number at his Dallas management company, Associa, as his campaign contact information, records indicate." They concluded with the observation that Carona failed to report "a donation of office space on [his] recent campaign reports."

"These news stories are only tip of the iceberg in terms of Carona's exploitation of his office for his own personal gain," said Minns. The senator's success in his district has been based on deceiving his supporters, she said. "He's made a lot of promises that his voting record does not bear out."

"Finally, someone has begun to connect the dots," emphasized Rain Minns. "This is independent journalism, not campaign material. At last, the voters can hold Senator Carona accountable." "


And I just got word tonight that my brother has till Sept. 15th to move out. So all those things mentioned, having to pay the mortgage AND the maintenance fees on a place he can't even live in, have come true.

Link to a local news station with video...

http://www.khou.com/news/local/stories/khou080812_mp_bad_condos.3e3ad4f8.html

My brother has been a part of organizing this deal for a little while now. His neighborhood is in Houston and the upkeep is really starting to get costly, so all the residents got together and decided to try and sell the whole place. This is where he lives now with his family. It's been their primary residence for a few years, so it's not an REI deal in the traditional sense. Up to this point, the whole deal was going pretty well. I don't know if someone is trying to pull a fast one, but I can't see how something like this can occur in such a manner. Here's the e-mail I got from him. What do you think?

EDIT - I think my brother's wife actually wrote it - this sounds too needy for his writing.

"This e-mail is regarding a group of middle class citizens who live in a community we could no longer upkeep the maintenance on, so we decided to gather the required percentage and sell. Our community is currently on the market but the city wants us out on the streets, possibility forcing us into foreclosure. We 108 middle class, hard working, law abiding citizens need help.

The city had a meeting for the homeowners of Park Memorial this past Monday night. The city is forcing us out of our homes. They say it is not up to code; it is not safe. WE the residents of Park Memorial will be asked to move from our homes (which we have mortgages on). As soon as they look over the final report, in a week, he will let us know how long we have to get out of our homes.

When asked, "Where will we go?" - no answer.
"Will we have to continue to pay our mortgage and our maintenance fees? We can't pay rent on top of that. What will be do?" - no answer.
"So because we are middle class citizens with our community for sale due to realizing we have a problem, you are forcing us out of our homes, possibly to foreclosure, when we will be out in a few months anyway?" - no answer.
"The city can’t do this." - Yes, we can.
"The city can’t just kick me out of my home. I have a mortgage. I pay taxes" - Yes, we can.
"Do we have to continue paying our taxes, when we will not be living there?" - Yes
"You can’t do this." - Yes we can, we will shut off the power

Something is seriously wrong with this situation. I have never felt unsafe in my home, but someone can walk in from the city and force me out. Is there nothing I can do?

July 30th, Park Memorial was included in a front page article of the Houston Chronicle. Now that the city is involved, Park Memorial is at the hands of the Mayor's office and his inititiatives, including the quotas: http://www.houstontx.gov/mayor/press/20070519.html.

Now, a great percentage of the Park Memorial homeowners have "Extreme Hazard" stickers on their door, their parking garages are "unsafe".

In the end, our broker gets a sale, the City of Houston adds another property to its "Demolition Day" quota, and a developer gets away with a steal of a deal. What happens to the homeowners?

What did we do wrong? In the three short years we have owned our condo, like good homeowners, we have paid all of our monthly maintenance fees and every one of our mortgage payments along with our taxes, and we are being forced out of our homes.

Respectfully,
Andrea & Dan Seluk
5292 Memorial F-15
Houston, Texas 77007"

That being the case, why aren't people going nuts over the news of the bailout?! I thought this would rub a lot of people the wrong way.

Up until now, I've always though Bush was a bit of a dope, but have been pretty apolitical. But THIS really gets my attention.

I've read the arguments for and against owning a place outright/paying down the mortgage/carrying for the long term. The points are valid for some, but I don't think I fit into those situations.

I'm pretty small time still. When the numbers aren't that big, I don't think it always makes sense to carry it for the long term. But the mortgage is still my largest payment each month, so it's actually more of a nuisance since I know I can get it out of the way. When I do that, I'm not paying interest on the principal that I'm no longer paying, and saving much quicker for the next place.

So to get back on topic, that's my plan right now: pay this place off, start saving for the next venture. When things began to unravel, I felt kind of rushed, like I had to get into the game before I missed it! The, I realized that this one isn't going away anytime soon.

I'm with ya. ^^^ The hype around here lately is all about how sales are starting to pick up.

I mean, I know things took a dump, but stuff is still pretty expensive. The median price for a SFH here is still 200k. Getting something to cashflow...no way. A lot of people are losing jobs, we're out of season, gas and food are getting more expensive everyday...I don't know if your average household around here can swing something like that right now.

Bottom? Maybe. Recovery? I have a hard time believing that, though it IS a good time to buy if you're stable.

Another thing I wonder about is who is buying the houses here. We're still a vacation/retirement destination, so there are eyes from all over the US and globe on this market. I suspect that SOMEWHERE, someone has money to spend, and while it still might be pricey for locals, others see a big sign that says, "30% OFF!!"

Absolutely! The meetings are by far the best way to get a handle on the local climate. I'm really in excellent shape to make a move, but I have to make sure it's the right move.

Is the REIA board still up? I was reading on there a bit, and then...I don't know...something happened to it.

That's what I've been hearing. :pissed: