All Forum Posts by: Jeff Copeland

1. You need an extension from your HML. Even if you apply for the refi today, it will take 6 weeks or so to close. Communication is key. Keep your HML in the loop. In many cases, they are happy to keep earning interest, or may charge you a point or two to extend the term. But it has to be done. I'd suggest asking for more time than you think you need. For example, if you get a six month extension, that might give you time to complete both the refinance and the sale of the other property, and you're all set.

2. You are highly unlikely to find a lender willing to go higher than 75 or 80%. Pick the best option, apply for the refinance, and get the appraisal ordered ASAP. Until you do that, you are just guessing at the value. As you already know, appraisals can surprise you. Sometimes for the better. It could appraise higher than you expect, and maybe you are only $10k short, or maybe not. But you can't really define the problem until you have the appraisal in hand. To be clear: Your refi lender will order the appraisal. Do not go out and hire an appraiser yourselves, it would be a waste of money. 

3. Only after 1 and 2 are done can you really determine a solution. Some great ideas have been kicked around already: For example: Asking your HML to take a second position on the remaining balance while you close on the other sale could be a great solution.

I live about two hours north of there, and I think the causeway is the major issue in the short term. Sanibel and Captiva are a big draw for tourists, and they will not be accessible by car for a long time (I'd have to guess at least a year to rebuild that infrastructure). 

My thoughts are that I would not buy now at pre-Hurricane Ian prices, but I would not abandon plans to invest in the market altogether.

This will likely create a short term (1-3 year) dip in property values that will bounce back over time, so it could create some opportunities. 

I actually don't see it having a huge impact on the insurance market, for two reasons: 1) major losses like this are reinsured, which caps the carriers' liability, and 2) the insurance market is statewide. The carriers generally budget for some areas to have hurricane losses, them just don't know where. 

This is not uncommon, and these things do take time. We have these processes in place to discover issues such as these and protect you as the buyer.

I've had to hire a private investigator in the past to have previous owners sign a new deed to correct a conveyance. 

The underlying question here is do you want out of the deal, even if these issues are corrected and you get a new title insurance policy protecting your interests? (I would think not, if the deal was a good deal then, isn't it still a good deal now?). 

The contract will dictate whether, when, and how you can walk away should you decide to do so. 

Your best bet is to simply ask the HOA for a payoff amount. They may charge an estoppel fee for this. But they are the only ones who know for sure.

Even the utility lien should be confirmed. They may have recorded a lien for $1000 or whatever, but with a stipulation for interest to accrue. Sometimes it can be a ridiculous amount like $250 per day. These often can be negotiated down by a new owner, but it's best to know what you are stepping into up front. 

There is going to be a wide range of answers and costs. The key is to make sure you are comparing apples to apples. 

On the one hand, I recently had a cheap 1600 BTU system installed in a garage I use as a gym for something like $800 by a handyman selling them on Facebook. The electric was already there, I was just replacing the last cheap one I bought. I know this one may only last 1-3 years, but it's a garage and no once is calling me on a Friday night if it stops working. 

On the other hand, I just had a 1.5 Ton, 2-head system installed in a 600 sq ft apartment where my son will be living. This sounds almost identical to what you are pricing.  I went with a top of the line Carrier brand system with 10-year parts and labor warranty, and it was $10k even. I went with a national chain (ARS Rooter) who I know will be around in 8 or 9 years to honor the warranty. 

Where?

Time heals all wounds. So don't wait to buy real estate; Buy real estate and wait. 

Buildium, Property Ware, and Appfolio are the "Big Three" players in this space, and they are very sticky - Meaning once you invest the time and energy into setting up a system, you are very unlikely to change over to another one. 

So most people can only really advise you on the one they use, and I would venture to guess that very few people have used all three. 

We use Buildium, and find it to be very robust and scalable. We literally do everything inside of Buildium, from marketing vacant units, to applications and background checks, to rent collections and accounting, to tracking maintenance requests. They also have tiered pricing, which makes it more palatable for a smaller number of doors. 

Just do your research and choose wisely, not only based on what you're doing today, but based on what you might be doing several years from now in terms of growth. 

Consider paying an attorney to draft it. Your business is worth paying an attorney a few hundred bucks to protect your interests in a situation like this, and it can be cheaper in the long run.

Pro Tip: In addition to possession of the rental unit and disposition of the deposits, have your attorney include a release and hold harmless. I had a tenant sign an early termination agreement for possession only once (I was genuinely trying to help her avoid eviction), and she turned around and sued me (with a pro bono lawyer) for violations of the consumer protection act! You just never know what people have in mind.

(It was a completely frivolous lawsuit and she ended up with a judgement against her in a counter-suit, but it still cost me $10k in legal fees and an E&O claim).

If the employment  verification takes 20 days, then they wait 20 days, and in all likelihood someone comes along and beats them to the rental unit.

If they understand this, and are legit, they can and will apply pressure to get a quicker response from their employer.