All Forum Posts by: Account Closed

Hi thank you for the prompt response back! I did a search and found the county tax records. I confined that they were up to date and saw last years assessment and payments.

This is a mello Roos on top of the city tax. I am unsure on how one finds out about mello Roos or eve how to search. They are usually to cover things for newly built communities - although this house was built in 2006. It was not disclosed on any documents and just surprise showed up on our title papers. Didn’t even come up in the original loan estimated payments with taxes and ins.

The sellers know they pay 2 diff tax bills and didn't disclose. My agent said it's usually a separate disclosure agreement like the HOA form during a Sales.

If we go short term it should hit great returns assuming rabbu and airdna data. if we hit STR numbers the added $300 should not break the bank. But I'm hearing and following so many fb groups that indicate Apr is slow as snails.

If I have to go long term, I just did a quick check with the updated numbers cash flow maybe $500/mo if we are lucky. That’s an awfuL return for a $86K investment (down payment and closing). 

Hi BP forum wanted to get seasoned investors inputs on this. Should we dump it because of the undisclosed melloroos? Are airbnbs too risky right now anyway? 

We are under contract for a property in Coachella. we are at the end of our contingency period and we found on the title report that we have mello Roos on this property. Approx $300 per mo extra on top of the mortgage and ins/prop taxes. The listing agent did not list it on the MLS. Did not have any disclosures for it. I feel like the agent should disclose Something this important? We usually have a no melloroos and no hoa rule when investing. Did the agent break any rules?

As a side bar- we are locked into a good rate (got a good deal from a friend who is in wholesale lending). It does cut into the profits but the property is worth $530K+, we got it under contract for $515K. It's a 5 bedroom, 2300 sq ft house, 3 blocks from polo club. We plan to build a pool and if we STR rent it we can make a decent return. We could go long term and make an ok return as well.

Like everywhere else I’m reading that Airbnbs bookings are going to their prior to Covid cycles. We are entering into Low season in the desert and revenue and bookings are dropping in the area. 

So long winded but:

1) did the listing agent break any rules? 
2) with the melloroos included - is this still a good deal? Any local Coachella investors that can give me some inputs on this? 

Thank you! 
Lena

@Joe Splitrock  IMO seller is shady b/c she didn't tag the property as under contract after she signed it - well over a week after and only after I/our realtor pushed for it.   In fact, she still has a for sale sign in front of the lawn -  we're 32 days into the clock.  I mentioned it to my realtor yesterday since all contingencies are removed she needs to at min show it's pending/sold.      

I was curious too around what is the 'right' way to approach it for next time.  Was looking for how a 'normal' transaction is contracted and what other investors do on their contracts on the loan contingency vs closing date space in between to ensure that next round we don't put ourselves at risk.     Thanks much.

@John Clark - you're right.  As I said in the last post, ultimately seller is acting within the terms of the contract and it's up to her if she wants to extend or not.  She said no.   Seller is w/in the terms of the contract. 

It's really a closed discussion b/c we already signed and waived all contingencies.  

No whining in commerce. We all just want to make the cheese. :)   

Hi Everyone wow - thanks for all of the feedback! 

@Michael Plante and @Josh C. you are right.  We had it written into the contract.  If we did not sign contingency removal, we would be in breach of contract and that would mean seller could cancel the contract and keep our EM anyway. @Jon Schwartz - So we ended up signing it and lifting off of the contingency.  We didn't wait for the notice to perform although it would have bought us 48 hours.  

More than anything we wanted to get a gauge for what's happening out in the market.  Filing extension requests are pretty normal but ultimately it's up to the seller.  It's def a sellers marketing right now.  Coming off of buying at auctions and doing cash out refinances and buying with all cash, we haven't done a proper conventional loan in over a decade.  Even if I think back, I don't recall ever being pushed to remove the loan contingency.   With all of the seller's all cash offers, she's trying to back out and figure out how to keep the EM.  Our lender has been calling her and emailing her so she knows we have been approved by lender and we're scheduling to close w/ Title this week.  This post (@Mary M.) has def helped me see it from a seller's lens.  We're buy and hold and we don't do much of selling at all. 

Seller wants out so that she can collect the EM and on top get another $50K over asking with these all cash offers.  If she was success at this, she would be making another $90K+ with this strategy.  It's a sharks game.  We have to keep pushing to close to ensure that we finalize everything this week.   Thanks for everyone's inputs on this one!

@Sam Shueh

Wow! $41K over asking! That’s what we are seeing in So cal too. It’s an amazingly hot and sellers market right now.

No contingencies too. This bubble will burst soon!

@Michael Noto

Thanks for the feedback. Here's the clause on the contract, standard for CA RE.

(3) LOAN CONTINGENCY REMOVAL:
Within 21 (or 30) Days After Acceptance, Buyer shall, as specified in paragraph 14, in writing, remove the loan contingency 
or cancel this Agreement. If there is an appraisal contingency, removal of the loan contingency shall not be deemed removal of
the appraisal contingency.

@Charlie MacPherson  I like the way you put it. I was trying to figure out where to put the pressure but from all of the feedback, I need to apply it towards the lender to fund and close quicker.  We'll ride the lender every single day multiple times a day.  They had asked for 40 days from the beginning and we're pretty much approved by underwriter and just finalizing last steps with escrow/title on closing disclosures so overall we're in a good place for the close of the loan by mid week next week which is about 3-4 days prior to contract cut off of 4/19.  

Thank you for all of your inputs! 

@Allan C.

What I appreciate most about the BP community is the support and honesty. We are posting and putting issues out there so that we can learn from one another.

Not all investors are working at the same levels and that’s why we reach out to get guidance, feedback, and share in each other’s experiences so that we can all grow.

@Shaun Weekes

Ughh yes so true. We are trying to hustle but realistically we are looking at 4/15-16. Improvement from 4/19 which is contractual cut off but they are working with title and escrow to go as fast as possible. Either way I’m going beyond today. Thanks for the feedback!

@Mike McCarthy thanks for your feedback Mike.  We provided the commitment letter from our lender and she is continuing to push to say that we have to remove all contingencies or cancel the contract.  In the CA RE contract, that's the standard language it states.  

As mentioned, we think she's trying to get out of the sale since she received all cash offers AFTER we locked into contract.  She's not playing fair game b/c she doesn't want to be here.