All Forum Posts by: Cheryl C.

@Account Closed 

Would you trip the other runner to beat the record?

Thanks @Bill Exeter .  This is good to know.  Does it matter if the acquired property has a lot of land and a smaller house?  In other words; the value is mainly land?  As an example:

Trade sfd where depreciated house is 75% of total sales price and replace with a property where the value is 25% house and 75% land?

Assume all the other 1031 criteria has been met.

Thanks for your help.

I called the most recent one back because his letter stated that Land Records indicated that I was in default (???????).  It turns out that he tracks Notices of Substitute Trustee, a normal precursor to a foreclosure (good method as these can be filed weeks before an actual Notice of Sale appears in the paper).  He answered his phone on a Friday night (+).  I told him that I had just completed some Note Modifications and the Lender must have switched Trustee.  I asked if he was a wholesaler as I was a cash buyer.  He is buy and hold.  He wasn't too friendly.  I hope his phone manner is better with his real prospects!

I do call some back just to get on their buyer list. 

I get quite a few of them.  As an investor, I get a little chuckle out of some of them.  One poor guy drove all the way to my house to put one in my door.  So...how many do you get?

@Bill Exeter 

 Could you explain the recapture issue when going from a depreciated property to land?  I had not heard of this issue before.  It doesn't seem to make sense.  Perhaps the rules have changed or I was simply unaware that anything (except boot, if any) was realized on a 1031.

@Damien C. 

In Virginia, buyers have to be given the condo/hoa docs post contract. Buyers then have a 3(?) day kick-out period if their review of the docs is unacceptable for any reason whatsoever. The clock starts running when the docs are received by the buyer. The document package contains financials as well as covenants and restrictions, rules, minutes of Board meetings, etc. Finding whether a particular development is FHA approved is easy to do online through HUD.com

I go a little further in contacting management with additional questions; ex. upcoming potential assessments that have not been formally proposed, etc.

Some condos have a restriction as to the number of non-owner occupied units. This is to protect financing options and maintain HUD approval - a plus in my mind.

I learned this stuff years ago the hard way - maybe some here can avoid my mistakes.  There are some developments where I have as many as 4 units.  I make an effort to have a good relationship with management. 

I send e-mail blasts about 4 times a year.  I always mention filters.  My e-mails are usually "seasonal".  Ex. summer is coming.  Check your cac.  Or winter is coming, get the gutters cleaned and shut-off outside hose bibs, etc.  I also ask them to alert me of any repair issues/concerns.  I try to do actual inspection 2x per year - more, if I suspect a tenant situation needs my attention.

I wouldn't buy from a relative.  I would help them sell something or buy something (have done this soooo many times), but I would never be their buyer.  Relatives and money should never mix. 

Awesome!  Great job!

I've got a bunch of condo's.  You really need to study the reserves before you buy and actually talk to the management company and/or a Board member about any upcoming assessments.  Also, find out the investor ratio.  Too many investors limits financing options and will result in problems selling.  I also ask how many units are behind in paying their fee's.  Walk around.  Is it nicely maintained?  What type of cars are parked there?  Are people "hanging around" during work hours? I like not having to worry about any exterior issues.   Many here don't like condo's and they probably have good reason.  I like them b/c they are easy to manage.  If you buy "right" and do your homework, condo's are fine - may not have the same return as SFD or Multi, but don't have some of the headaches either.