All Forum Posts by: Daniel Lin

Jeff Ronningen $4k tax on a $56k house would make it pretty tough to do business in that market, even with sec8 paying close to $1k/month. Not defending this investor but heavy property tax in many ways is perhaps a self-limiting factor in many of these mid-west towns. It stunts grow and appreciation. It then becomes a downward spiral of low property values attracting low quality buyer / tenants and owners which leads to lower quality tax payers. Through the lens of a #Califoria investor, It is often alluring seeing these price/unit vs rent/invome. But this one case study sheds some light. There have been many times I had to remind myself of the #grassisgreener syndrome.

Here is a case study on investing out of state for us California investors and being a landlord of section 8 housing in lower end markets. Anyone attending the tax sales in August? Million dollar tax bill owed in St. Louis Co. by California investor impacts hundreds of properties NORTH ST. LOUIS COUNTY (KMOV.com) - A California investor has spent years purchasing homes in St. Louis County. According to St. Louis County property records, Raineth Housing owns at least 614 properties in north St. Louis County, although the company’s CEO concedes the number is higher. Tax records indicate Raineth Housing is delinquent on at least 558 houses, with nearly 350 homes owing back taxes for three years. News 4 Investigates traveled to Los Angeles to ask Raineth’s CEO why his unpaid tax bill totals more than $1.1 million in St. Louis County. Ed Renwick says “We’re behind on our taxes because we are behind in our profitability.” The delinquent tax bill has a direct impact on local school districts. Jennings Superintendent Art McCoy says, “The amount of funds you discussed would make a tremendous impact because it would be equivalent to two or three teachers, maybe more in funding.” Raineth Housing owes more than $268,000 in unpaid taxes on houses in the Jennings district. According to St. Louis County’s Director of Revenue Greg Quinn, more than 50 percent of real estate taxes go to local school districts. Quinn said, “When people don’t pay their taxes those districts have less revenue for which to supply services.” Unpaid Raineth Housing tax debts are piling up in several North County school districts. Ferguson/Florissant $249,904 Riverview Gardens $267,051 Normandy $257,925 Ed Renwick says he’s raising capital and intends to pay his tax bill. He adds, “We were surprised at the challenges of operating the business.” Some Raineth Housing tenants receive federal tax dollars to pay their rent on Raineth owned homes. In St. Louis, the city's housing authority director provided these totals paid to Raineth Housing over the last two years: In St. Louis County the vouchers, known commonly as Section 8, totaled approximately $555,000 in 2017. Susan Rollins, the Executive Director of the St. Louis County Housing Authority, expressed concerns over the delinquent tax bill, and said, “That adds insult to injury I believe. You should take more interest in paying your taxes if you receive a subsidy from the federal government for your business.” Renwick tells News 4 he has not made any money as the CEO of Raineth Housing, and says rehabbing, repairs and maintenance account for much of his budget. In his Brentwood, California living room Renwick said, “We had a choice, stop investing in our tenants or fall behind in taxes, and we chose to fall behind in taxes.” According to some online real estate sites, Renwick’s home is valued at more than $3 million. Unlike the tax bills on many of his St. Louis County properties, the tax bill on Renwick’s California home is paid in full according to Los Angeles County records. News 4 pressed Renwick about when his St. Louis County tax bill will get paid. Renwick expects the bill to be paid prior to August, that’s when St. Louis County will auction nearly 350 of his homes for tax debt dating back three years. He is adamant about holding on to his properties and does not intend for any of them to be sold this summer. Renwick also says he will pay the debt back with interest and penalties, and that means local school districts will receive more money than the original tax debt owed. In Jennings, the district operates on a tight margin. Dr. Art McCoy says the average home sells for between $35,000 and $40,000, which means real estate taxes collected are lower than many other St. Louis County school districts. McCoy says, “We would rather have the money on time then money two or three years delayed because two or three years delayed delays the services.” Renwick tells News 4 he would like to purchase more homes in the St. Louis area and says he’s invested millions of dollars in North County. Raineth Housing also owns hundreds of homes in Kansas City and Cincinnati. Copyright 2018 KMOV (Meredith Corporation). All rights reserved. http://www.kmov.com/story/37406975/million-dollar-tax-bill-owed-in-st-louis-co-by-california-investor-impacts-hundreds-of-properties

Just a few years back, in my market of Los Angeles, many of these big player or hedge funds made a pretty big splash seemingly. For the short term at least, they drove prices up. Long term effects is much to be ponder. Here’s a breakdown of what how much they have brought, when and where. Have they impacted your market? From Newswire. https://www.housingwire.com/articles/41612-amherst-the-state-of-the-single-family-rental-market?utm_source=dlvr.it&utm_medium=facebook&utm_campaign=housingwire

Just chilling on a Sat.. and watched this video. It got me thinking.. would I? https://youtu.be/hgOyRwg8LfU Supposedly he sold McMansion and spent every penny brought 11,000 rental units. And it got me thinking... In my career as an investor (over 10 years) there were many sacrifices and lost in time of mounting uncertainties, but it all gotten me to where I am today. However, I came from a place where I had very little to lose...it was go big or go home time... bet it all every time. I was in my 20s of course, where losing it all doesn't mean as much as it does now... just being honest. I don't live in a mansion, but i am pondering if I would sacrifice or put it at risk, at this stage in my career, to put it all at risk... but with the potential to get me to the NEXT level or wealth t success. Am I just getting soft? Anyone else feel complacent? What's the cure? Would you? It may not be yours personal house , but how about uprooting your whole family and moving to another place or county for that matter? Change professional and social identities etc...

HUD foreclosure moratorium & 203k $ See latest form HUD HUDNo_17-072 WASHINGTON – U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the Commonwealth of Puerto Rico and provide support to homeowners and low-income renters forced from their homes due to Hurricane Irma. Yesterday, President Trump issued a major disaster declaration for Culebra and Vieques municipalities. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county. HUD is: Granting immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages; Making mortgage insurance available – HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs; Making insurance available for both mortgages and home rehabilitation – HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; Information on housing providers and HUD programs – The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers. Assisting the Commonwealth of Puerto Rico and local governments in re-allocating existing federal resources toward disaster relief – HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars in annual formula funding to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing; and, Offering Section 108 loan guarantee assistance – HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure. Read about these and other HUD programs designed to assist disaster victims. https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2017/HUDNo_17-072

HUDNo_17-072 WASHINGTON – U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the Commonwealth of Puerto Rico and provide support to homeowners and low-income renters forced from their homes due to Hurricane Irma. Yesterday, President Trump issued a major disaster declaration for Culebra and Vieques municipalities. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county. HUD is: Granting immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages; Making mortgage insurance available – HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs; Making insurance available for both mortgages and home rehabilitation – HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; Information on housing providers and HUD programs – The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers. Assisting the Commonwealth of Puerto Rico and local governments in re-allocating existing federal resources toward disaster relief – HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars in annual formula funding to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing; and, Offering Section 108 loan guarantee assistance – HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure. Read about these and other HUD programs designed to assist disaster victims. https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2017/HUDNo_17-072

FEMA only has $1.5 billion is cash with borrowing power upto on $5 billion SANDY in NJ had 144k claims to FEMA, costing over $8 billion HARVEY is estimated to have over 444k homes damaged, with only 25% or less having insurances. FEMA won't go far ... especially now that we have IRMA damages coming in as well.