All Forum Posts by: Cara Lonsdale

What a cute house!  I love the kitchen!

Before dropping the price anymore, I would look at the full picture.  Walk the property as a Buyer.

Without having physically walked through it, I can only provide limited feedback, but here were some of my observations.....

The front brick looks tired, and there appears to be some patchwork..??.  The front is your first impression to the Buyer.  This should be your first "WOW".

The only thing I see inside that gave me pause were the wood floors, and how they go in different directions.  Was that for a specific purpose?  I am not a big fan of that.  They look like some type of mistake, and the seams jump out at me in the pictures.  

Outside of those couple of items, I would then ask is it too cold as people walk through?  Too hot?  Is there a musty smell or something unfavorable as you go through?  Too dark?

Then I would ask your Realtor a few questions like... how much are you offering for the co-broke? There is usually a standard co-broke for the area. If your agent is offering less, then you may not be getting the other agents' support for your property. What are you doing to market the property besides MLS and open houses? What other feedback are the other agents providing about why their Buyer isn't writing an offer?

Another good thing to try instead of continuing to lower the price, is offer a selling bonus to the selling agent (not your agent, but the Buyer's agent).  Create urgency by requiring a deadline for the offer to close and/or getting full price.  EXAMPLE:  $2,000 Selling bonus for accepted offer that closes on or before 12/15.

Hope that helps! 

 I am truly sorry to find out that he is a real estate agent.  That is disappointing on many levels.

So as I mentioned before regarding him as a agent, this shouldn't have to go further than the Broker.  The Broker should resolve this for you ASAP in terms of the financial part!  Additionally, you can submit a complaint to the GA state department of Real Estate.  I would also submit the complaint to the real estate board that he belongs to if he is a Realtor (FYI, not all real estate agents are Realtors).  This will ensure that he is properly disciplined, which may include stripping him of his license.  

Keep us posted!

Alot of good advice so far.  There are a few components to sort through, so I thought I would just add a couple of thoughts...

Auction.com is here in AZ as well.  They charge a $10K non-refundable deposit for any winning bids.  I have been to alot of them, and have gone through the bidding process and have completed the sale.  All that just to say I have experience with Auction.com and they seem to be a pretty reputable business...at least here in AZ.

I DO know that on all of their contracts, within the "fine print", there is a reinstatement clause which covers their butt in the event that the owner has somehow reinstated their loan with the lender, or filed bankruptcy to halt the sale, or SOMETHING to legally halt the sale.  It's not exclusive the auction.com.  It's that way with all trustee sales. 

Regarding the agent/helper that assisted you....was he an actual Realtor?  Many of these trustee sale guys aren't licensed, but they go to these things all the time and know the system, so they offer assistance to people who aren't comfortable with the process.  They get paid by the Buyer for their assistance.  Sometimes that is in the way of a flat fee for their time and research beforehand, as well as their expertise in bidding and advising you in how high to bid.  Many of them require payment for that help regardless of whether your purchase comes to fruition or not.  The rationale is that if they spent the few hours at the auction with you and the time beforehand to research properties, that time is valuable and should be paid for, regardless of the outcome that is out of their control (being outbid, etc).

IF this person IS a licensed Realtor...WHOA!  This is super illegal.  My guess is that 1 call to his broker will solve this problem right away.  Between the betrayal the broker will feel in his wallet, and the liability that this agent has brought on to the broker's business, I would be SHOCKED if you had to go any further than the broker as it will be HIS business impacted by an legal action, along with the agent.

Now, on a side note, you mentioned that you signed some type of agreement with this guy beforehand.  I would want to know what those terms were to accurately determine whether or not he is entitled to any funds from you.  The agreement should accurately define how he would be entitled to a fee and/or commission from you.  Make sure you have that in front of you when you call the broker.

Please don't let this experience sour you toward Realtors OR Trustee sales.  It sounds like you found a bad seed, but in general, Realtors are a great tool and resource to guide you through this process.  As a 20+ year Realtor here in AZ, it breaks my heart when I hear about these kinds of experiences.  That is never how it should go.

Best of luck to you!

 Again, I don't see the issue.  Just because you hold (or once held) a Real Estate license, it doesn't require you to provide a fiduciary duty to every person you come into contact with.  It's business.  Look at all of the "We Buy Ugly Houses" people in the Valley.  They don't pay NEAR market value for properties, and many of them are agents or brokers.  What you are doing isn't far from that model.

Disclosure is key, and avoiding ANY type of language that would convey to the Seller any type of agency relationship.

Do you drive without insurance too?  What about Health insurance?

Homeowner's insurance is a necessary expense for protecting you as an investor.  You mentioned a bunch of "what if" scenarios, but it's what you DIDN'T plan for that the insurance will help you with.

Properties....especially when vacant.... can be very vulnerable to anything from theft to arson and everything in between.  Many policies can be customized to reflect the status of your property.  In fact, make sure you tell your agent that the property IS vacant because if you don't, many standard policies exclude coverage after a 30 day vacancy period.

Someone is watching.  If you are rehabbing a property, it means that you have valuable materials going in like appliances, cabinets, fixtures and more.  It would be a huge loss to you to lose those items and have to start over.  That would eat into your profits far more than a hazard insurance policy will.

Plus....it's tax deductible!!  :)

Best of luck to you!

You haven't entered into any type of agency relationship with the Seller, right? If not, how is it any different than dealing with a FSBO (who often times give away properties for less than market value)?

You MUST disclose your agent status to the Seller (and make sure your contract reflects agency as being "Represents the Buyer Only" on the signatory pages), but other than that, I don't see an issue with being a wholesaler.  What are you doing about your broker?  Hopefully, you are running these contracts through your broker.

Callfire is another one that is good.  They have text, voicemail, and all kinds of other services to choose from.  

@Tina Acevedo I can appreciate your situation.  On the one hand, you are building equity in a property that is valuable.  On the other hand, it isn't completely covering itself, and is costing you money.

I think to come to a wise decision, you need to vet each option accurately in order to compare them and determine where your money is best invested.

First, to discuss the loan and/or the option to refi... Did you purchase this property as an owner occupied Borrower 2.5 years ago? If so, any refinance MAY end up raising your interest rate as interest rates are higher for investors than owner occupied Borrowers. NOT to say that you couldn't still find a favorable loan that would at least take you out of the ARM in favor of a fixed rate, but it may not lower your payment. It may raise it instead. I would check with a lender to get your options there.

Secondly, selling the property just because you don't cash flow on it right now isn't always the best option.  So, while I can appreciate and respect the other investors' thoughts on the matter, I don't agree that it should be an automatic decision to sell.  Sometimes making more in equity means making less in cash flow.  You trade pennies for dollars.  You have to determine if your $356 investment (That's what it is) is better served in helping to pay on this investment while the value continues to rise, or investing it in another property.  Only you can determine that once you have the options in front of you.  

My suggestion would be to look at other purchasing options.  Run numbers for what the mortgage payment would be...and the rental rate.  Compare that property to the one you already have and see which one would be more fruitful.  Ultimately, YOU need to determine which investment is better for the investment strategy you have chosen for yourself.

As a side note, you DEFINITELY need reserves for anything you do.  So, please at the very least build some reserves.  As you add to your portfolio, the lender will require anywhere from 3-6 mos of reserves for each property's expenses.  Some lenders require 6% of the assets' loan balances, which may be even more than the 6 mos figure.  So, be aware of what the lender will require to make sure you are prepared for your next purchase.

Best of luck to you!

It really depends on what you are trying to do.  Is it a light update or a full gut?  It also depends on how long your days are and how many days you are working.  Almost anything can be done in whatever time frame with the right money offered.  That being said, we just completed an 824 Sq Ft 2 bed/1 bath FULL GUT, and it took us just under 2 months (demo, plumbing, electric, roof, scraping popcorn and re-texturing, drywall, full new bath, full new kitchen, flooring, paint inside and out, landscaping, etc).  We could've finished it sooner, but took days off throughout.

We have done lighter versions of a full gut that took us under 30 days. 

 Actually, if you actually WENT to the link I provided, you would've seen that it DID refer to housing as referenced below (again STRAIGHT from the site)

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c) Housing

The Fair Housing Act (FHA) protects a person with a disability from discrimination in obtaining housing. Under this law, a landlord or homeowner's association must provide reasonable accommodation to people with disabilities so that they have an equal opportunity to enjoy and use a dwelling.8 Emotional support animals that do not qualify as service animals under the ADA may nevertheless qualify as reasonable accommodations under the FHA.9 In cases when a person with a disability uses a service animal or an emotional support animal, a reasonable accommodation may include waiving a no-pet rule or a pet deposit.10 This animal is not considered a pet.

A landlord or homeowner’s association may not ask a housing applicant about the existence, nature, and extent of his or her disability. However, an individual with a disability who requests a reasonable accommodation may be asked to provide documentation so that the landlord or homeowner’s association can properly review the accommodation request.11 They can ask a person to certify, in writing, (1) that the tenant or a member of his or her family is a person with a disability; (2) the need for the animal to assist the person with that specific disability; and (3) that the animal actually assists the person with a disability. It is important to keep in mind that the ADA may apply in the housing context as well, for example with student housing. Where the ADA applies, requiring documentation or certification would not be permitted with regard to an animal that qualifies as a “service animal.”

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This gives some validity, to what everyone has said.  It is apparent from all of the posts that the law about this isn't exactly crystal clear and leaves room for interpretation.  However, we can all agree that there is much fraud going on within this category.  Landlords are tired of being taken advantage of just so that someone can avoid a pet deposit, or have their pitbull allowed to live in the property.  

Although it pains me, I found another link that references the law and providing "reasonable accommodation".    https://www.nsarco.com/emotional-housing.html

One thing that stuck out at me, that may be why your friend is getting some push back is that the doctor letter has to be from a mental care provider, not just any doctor.

Hope that helps.