All Forum Posts by: Mark Gallagher

@Jonathan Mueller did you replace the existing PTACs that you had, or simply have them serviced? We've recently installed a bunch of new PTACs in an apartment building, without any issues. 

You're going to have a tough time, but not impossible time, getting a loan once the property is fixed up. There are some lenders out there who will do it. Depending on what the current numbers look like, it might make more sense to sell this one off, build some cash reserves. Or find a partner who is able to get loans a little easier and come up with a partnership to get the financing when completed.

@Eric Stanley

Put together the numbers, and then present it to the investors. Ask them to place debt against the property if you are confident that you will refinance out all of the capital. But I would be prepared if you can not refinance out every dollar. 

@Patrick Giblin simply put - don't do a $100K renovation to break even. Just don't do it.

That being said, where is the $100K renovation number coming from? 

What types of properties are they? Multi-family? Single Family? Where are they, all in the same city, different cities, different states?

@Devang Patel it can't hurt to list it and see what kind of results you get. But you're essentially selling it mostly sight unseen because it doesn't sound like you will have cooperative tenants who want to show your property. If there is that much new construction going on, perhaps you would get a speculative buyer. We have people squatting in some of our houses for over a year that started before Covid19, so I feel your pain. Our attorney is telling us it could be another year or more while these people squat for free, and we have no recourse. 

Hey Victoria, 

Sorry you're in a sticky situation. My gut tells me that in a few months your business will be booming with people who can't wait to get back to normal. I would connect with the lender and see if you can halt payments for 6 months. These things were certainly beyond your control and you should be back on your feet soon enough. If you want to sell, the market is hot depending on where you're at, but like you've said the commercial aspect is not going to be friendly to selling. I would approach the lender first and foremost about working something out.

All we're doing is kicking the can down the road, which is typically the problem with government intervention. 

The largest group of currently unemployed people are not typically homeowners, they are renters. Months ago, they were making more money sitting home than working. 

I would bet the majority of the people in forbearance were people who were struggling pre-covid, and covid gave them a chance to breathe, and stop paying. I would say it's likely some, not all, of those people will be good when forbearance ends. They will have saved ~$1500/month not paying their mortgage for 12+ months, while also getting ~$3200 (plus more to come) from the government in a stimulus, and still making the same paycheck for a large period of that, or more. That's a HUGE swing in monthly net income, hopefully enough to pay down debt, start a savings, etc. BUT, those same people are likely to fall back into their previous not-so-financially-savvy ways. Over spending, under saving, living beyond their means, etc. So, they will be foreclosed on down the road, not in the near term. 

We're currently seeing homes sold at sheriff sale with money left over going to the person being foreclosed on. What does that tell me - no matter how much equity someone has, they are still susceptible to being foreclosed on due to poor financial sense, poor real estate knowledge, etc.

My guess is we will essentially see increased foreclosure activity, but it's going to be spread out over a very large time period so we won't see some "wave" of foreclosures in one fell swoop. 

@Philip Koller

Tettermer Services (Robert)

(484) 274-5796

@Bryan B. the reason I kept asking for photos is because what you have described does not seem that far off from completion. I do agree that your biggest issue is with no permits. But like @Arlen Chou mentioned, he explained to the city that the contractor was supposed to pull the permit, and that he's trying to clean up the contractor's mess, they might go a little easier on you. 

If you're not that far from 100% completion, your best bet is going to figure out how you get to 100% completion quicky, cheaply, and without the city busting your chops.