All Forum Posts by: Michael Arrieta

Hi Biggerpockets experts! I need some savvy wisdom on either helping me salvage this deal OR if not to help me negotiate terms with the seller

I believe there's many lessons to be learned for myself, now I'm trying to see what options I have.

I'm in escrow on a property off-market from an investor acquaintance. I only had pictures of the property since there's a current tenant and couldn't get video. Went into the deal expecting turn-key and my inspection revealed cracks in the foundation basement walls. My appraisal reviewed the property around the same time. We extended the inspection clause. Seller's team went in and patched the cracks and verified there was no bowing or caving of the wall. I had the inspector go back and reinspect, specifying that yes work was done but there's still patching needing to be done. 

I also reached out to a structural engineer to give a report. He suggested additional patching be done as well, however he didn't take pictures or specify where. Seller's team went back in and said they couldn't find any cracks. 

So now I'm at a stand-still. Seller won't go in and do any more work and I can't get my appraisal to pass until they hear from the engineer that everything is good. 

Seller wants my EMD or that I pay for the fixes myself. I'm going off pictures so i can't verify where these cracks are. Everyone else can see it but the seller. My inspection clause has expired. I'm doing a 20% conventional loan.

@Michael Le That makes perfect sense thanks so much for taking the time to explain

@Brian Adams Hi Brian, you mentioned about $600k in exterior and interior renovation in that 15 month timeframe. Can you help me understand what kind of renovations you did and did you raise the money from your private investors in the beginning with your underwriting or ever go back and raise more money after it was yours?

@Michael Le In response to your thread, if your goal was to create a more passive income stream for yourself, would it be a viable option to refinance out your investors and hold the property yourself with the cashflow after you've stabilized, forced appreciation through value-add? Just different exit strategies or does the cyclical nature require the get-in/get-out at the top in certain markets?

For my own edification and clarity. Thank you

To successful investors out there, I would love to hear about what your life is like now after achieving your financial freedom number. What has financial freedom done for you? How are you spending your time, how many hours a week do you spend on your business, are you still scaling your business, how has it allowed you to delve into other hobbies/businesses? 

Thanks!

@Ellis San Jose @Tim Ryan Much appreciated guys. So the more I stick to a market the better I learn all these facts. I like it that's really helpful and clarifying.

Hi folks, want to get any thoughts out there about any possibilities you might know of.

I'm currently renting a unit that is in preforeclosure. The association holds the quitclaim deed so I believe my monthly rent is going to the owed maintenance fees. I know the lender is Citibank the deed is subject to their foreclosure but according to the tax records it's been in this stage for 6 years already.

I want to purchase the place so I can eventually rent it out. Association rep says I'd have to wait for it to go to Auction, but really would like to avoid the commissioner showing it for 3 weeks prior and having open house in the place where I live...

So any thoughts on how to get in touch with the lender or lawyer maybe to see if they'd entertain an offer?

Tamiel that sounds like what I'd want to do. $3000-$4000 makes sense.  What's the extent of your Value Add that you do? 

Ellis, that sounds more reasonable and expected. Makes you wonder what you pay for in these courses after all...

Timothy that's actually what they say for the rehab amount believe it or not. Can you elaborate on buying performing assets that are turn-key? My approach was to add value and reposition. For the first my aim has been to wholesale it to get the experience that way and then learn the property way to add value and reposition when I am to buy and hold - which is the long term goal. If you say it can be done with less work and you're doing it with 200 units I'm all in!

Very commonly said investors need to know their market. Usually followed by an "etc." and fall off thoughts, but pretty elusive. 

For Apartment Investing what specific things do I need to make sure I know so I can be confident that I know my market?