All Forum Posts by: Nick Dodds Sinclair

Thanks again @Peter Vekselman,

Unfortunately it's actually quite common. There's currently 9 condo units on the market and 7 of them are on the market due to special assessments. (There's only about 500 units in my city, so that's alot to be on the market at once.) And I know, based on trying to convince condo boards to avoid this scenario, that most prefer to special assess than increase fees appropriately. So I think it's going to keep happening.

I'm not sure if you mean by opening it up to the whole market. The seller does open it up to the whole market, but most buyers aren't offering them to stay.

You did make me think of myself opening up to the "whole market" by writing letters to all the condo owners and making them the same offer. I have seen this happen where a neighbor knows a unit owner simply can't keep up with the unit maintenance and so is looking to rent. Then they buy through a private sale. That could open up the number of units available.

Thanks for all the feedback! You definitely got me thinking.

Thanks Don @Don Konipol,

In my city it is very rare for condos to set up financing. I'm in the process of doing it for one of my buildings, and I think that's the first ever.

Definitely, buildings where buyers can't get mortgages would be ideal. I have heard of that happening in our city yet, but it's bound to. These condo boards are so irresponsible and just keep paying issues along, it's going to happen sooner or later.

Thanks for the encouragement.

@Bob Stevens

I'm an experiential learner, haha

Thanks Peter @Peter Vekselman,

So the distress is acute. They don't have the savings for the social assessment, but they have the income to support market rent, which is why they're moving out of the condo into a market rent apartment.

I'm offering that the apartment they move into be the same one they live in.

I would do all the due diligence to make sure they can afford the rent (credit checks, proof of income.)

What do think? So risky?

Thanks @Chris Seveney,

Appreciate that perspective. So the distress if be targeting is acute: there's a one time special assessment and the owner can't get that much money together fast enough.

So it's not that they can't afford the mortgage. But I guess the question is, why don't they just refinance?

I've seen a lot of unit owners, that are just tired of the volatility of ownership, so when they have to refinance they think what's the point, I'll just rent and not have to deal with this. So they are already looking at market rents. (And getting the equity out of their units, is an added bonus.)

What I'm offering is exactly what they're looking for (renting) but without the hassle of having to find a place and move. So the hypothesis is they'll pay market rent, because that's already what they're looking for, and they'll give me a discount on the unit because they get to keep living in the same place. (I'm basically trying to BRRR without the rehab by forcing equity another way).

What do think? still see the same issue?

So I've got a strategy idea and I'd like to see what holes can be poked in it.

I want to buy condo units for less than market value by buying them from distressed owners and then renting it back to those same owners so they can continue living in their home and can avoid the challenge of finding something else to buy, or finding a comfortable place to rent.

I'm in Ontario (Canada) and in my province Condo boards (HOAs) can unilaterally decide charge additional fees to fulfill the Condos obligations. Usually this happens when the building urgently needs a major repair and I've seen single charges as high as $30,000. This happens repeatedly. Many owners are retired and on a fixed income and can't afford the charges, so they're forced to sell.

I want to help them stay in their home, while forcing equity for myself.

Of course there will be due diligence on the building to make sure the rent can cover what the actual costs will be, including future assessments (being a manager, I do this for my clients) and make sure the owner / tenant can actually afford that rent.

What am I missing? How is this not the brilliant idea I think it is?

Wow, those are great trips! Thanks @Greg Dickerson

@Greg Dickerson thanks. I have been checking out BP. I'm just looking for something more focused on design and adding value to a property.

@Nkosi Groover thanks!

I'm looking for YouTube channels, Instagram accounts, and Facebook pages or groups to get inspiration and tips for rehabbing.