All Forum Posts by: Kimberly Land

@Curt Davis YES! Helps a ton. I wasn't thinking of overpaying I just wasn't sure how to structure the deal or what number to offer.  $4k is less than I originally figured but you just gave me a new way to structure the deal.  The 3-flat didn't work out--waaaaaay more work than the pics indicated but I've found a SF that's just as interesting. THanks!

A childhood friend (she's also my realtor) and I are considering going in together on a fix and hold.  Details:

--I definitely trust her; I've known her and her family my entire life.  She's my realtor and helps me find and secure deals.  She needs cash to purchase more real estate. 

--She has time and more real estate contacts.  I have more money and much better credit.  We both have good contractor contacts.  I want to purchase a lovely 3 unit. It will need about $50k in work. She has more time to drive by during the day, talk to the contractors and make sure things run smoothly while I'm at work. I have more money and credit. 

--I want to purchase, rehab, cash her out and hold the 3-unit but I need assistance with the process because I don't have much time to monitor progress. Yes, I'm willing to refinance and use the cash to pay her for her time because the cash flow will more than make up for this in less than a year.

--We both have fix and flip experience but it's been awhile.  The last time we both did a major gut rehab was when things were booming, maybe 2007 or 2008.  I recently completed a rehab but it was under $10k, all my own cash, and very simple. A tenant is now in that property. 

--I will still be VERY involved in the process.  I just need someone to fill in when I am unavailable.

So, the question is: how do we structure the pay out and delineate roles and responsibilities?  Can this deal be structured properly as a win-win for both of us? Am I doing a fairly smart thing-- Is it a good idea to have her help me on this?

@Account Closed Exactly!  You're preaching to the choir and I think about this. This is why this is such a problem and why I'm really looking at all angles. Someone suggested I just 'let it go.' I'm very concerned about my credit rating dropping, obviously, which is why this isn't an option.  And 25%, yes, I have no problem putting money in the deal.  

@Account Closed Hey John, thanks for joining in!  Really?  Not the first?  That makes me feel pretty good, and I'm not being sarcastic.  Every time I tell this story, people are always like WHAT?  You're never going to get out of this situation." Attorneys are more hopeful but expensive for advice and assistance.  My atty is assisting me at a discounted price because he's done other work for me. This property is in Bronzeville.  

@Account Closed I really appreciate your responding and trying to help!  My attorney says I only need a small amount of assessment (hence the $25) to foreclose on the 'rented' units and use that rental money to fund the deferred maintenance around the building.  He says the amount is irrelevant, the banks and other units won't pay it which makes them in technical default.  And you're right, I definitely won't get a mortgage, which is why I'm trying to find private funds.  I read the bylaws again and I think I have another, slower idea. I'm going to try it over the next 6 months and see what happens. Pray for a sista! haha.  Thanks again.

@Mike York You have no idea how excited I am!! EArlier this year I traveled cross country in Guatemala (I speak Spanish well enough to travel independently and in remote areas, so I felt pretty comfortable) and Belize, such an awesome trip!

@Timothy Riley Yeah, sucks doesn't it??? I'm determined to figure this out over the next year....

@Gualter Amarelo Yes, I have considered multi-families. My very first property was a multi-family. I lived on the first floor and rented the second. I HATED IT.  But I was 23 at the time so that contributed to it, haha.  Now that I'm older and wiser I would certainly consider it again.  At this time, i REALLY like what I do so I'm definitely not going to quit anytime but I would love to eventually decrease my hours to 4-5/day, especially since hubby-to-be wants children sooner than I do.  I don't want to be a stay at home Mom.  I want to work part-time and real estate will help me maintain a high income with fewer work hours in healthcare. Also, I used to be a Managing Broker and an Appraiser (didn't like being an appraiser), did that for a few years.  It wasn't for me, I didn't like it.  That's when I found what I'm doing now AND I LOVE IT.  Im much happier in healthcare full-time than  I was in real estate full-time. But, I still want to supplement my current income for short term and long term goals. Thank you so much for giving me something to think about!

Thank you @James Wise  for being the first to welcome me here!

Thank you @Hattie Dizmond   --I posted the question.  It's a looooong one.  You should read when you have time to kill, lol.  I believe you can click on my profile to see it?  You know better than I do, I'm new!

Thank you @Brandon Turner for the helpful advise.  I will be sure to look up the posts.

Hola BP.  First, I'm new on this forum.  If I'm posting in the wrong section of the site please let me know and I'll make the appropriate move.  Brace yourself, this is crazy, crazy, loooong story.

I have a rather 'unique' situation, as my attorney describes it.  In 2004 I purchased a 2bed, 1bath 950 sqft condo in a 6 unit building in Chicago.  I lived there for 9 years and moved out last year.  When the market crashed, so did the value of my condo and I could not refi or sell (I tried HAARP, my current lender wanted me to pay $1200 in cash upfront in fees, WITHOUT an approval,  I refused and gave up after that). I put a tenant in, a young couple who is ALWAYS late on the rent but keeps the place immaculately clean and doesn't cause any trouble or noise.  

Problems--there are a few: 1. the building is in disrepair and there is no HOA in place. None of us have paid HOA dues in years. 2. The gentleman that was 'managing' the building, paying common bills and overseeing simple repairs, has disappeared. He is not answering phone calls, voice messages, text messages, email or social media. I have no reason to believe he is hurt or dead. I will identify him as John. I don't know how any water, electric or gas bill is getting paid. The building is in disrepair and I'm concerned that very soon a 'final notice before disconnection' will pop up and it won't get paid. 3. Of the 6 units, 2 are in good standing with their lenders (i'm one of the two), 2 have been foreclosed and are in the bank's possession and 2 have lis pendens and will soon be in the bank's possession. I know this information because I completed the research on the county assessor site (and my attorney confirmed that I am correct). 4. I'm trying to foreclose on the bank owned units so that, per my attorney, I can put tenants in them and collect rents to get the building up to par. The problem is that there is no HOA and starting one has proven to be quite difficult--i can't reach the other owners or they claim they can't afford $25/month in dues. Yes, that's right, $25!

Why we haven't paid HOA dues: When I purchased in 2004, John volunteered to handle all the money and repairs. He did a great job until about 2007 when he decided to refuse any requests for itemizations of the funds.  One unit decided to stop paying until John gave transparency of funds.  He still didn't.  Then another unit stopped paying and so on...however, all the bills were paid nothing serious went wrong..until now.  I suppose it was easier for us all to ignore the situation. :(

Background:  There is no insurance on the building.  I can't even insure my unit because the building does not have insurance.  Only one of the original owners is still living in the building; he has been in foreclosure for four years.  I'm expecting the bank to take possession any minute.  Four of the units have tenants--John illegally put tenants in one of the bank owned units, my unit has a tenant, John's unit has a tenant,   the other unit in good standing has their family living in it.  The final unit is bank owned and vacant.  

Investing Opportunity: I want to purchase the 2 bank owned units (and eventually the two that are delinquent). By purchasing with hubby-to-be my attorney says I will have majority ownership in the HOA, can make necessary decisions, I can finally get the building up and running again\ by foreclosing on the other units for lack of assessment payment and use that money to make necessary repairs and pay common bills. BUT, I don't have the cash to purchase the two bank owned units. I don't know the reserve but I know they are not accepting anything less than $25k. I'm estimating $70-80k for the two units would appease the banks. The units don't need to be rehabbed, maybe just minor repairs. I know this building like the back of my hand because I lived there for 9 years and have owned it for 10 years. I know the neighborhood. I'm familiar with the layout of all the units as I've been in them all multiple times. Renting the units would be easy as I've never had a problem getting tenants.

Question:  How do I protect this 'investment' before things get out of hand even more??  For obvious reasons I can't get a bank loan, it will need to be private or hard money.  From where can I get the money to purchase the two foreclosed units?  There has to be a way to do this, what angle am I not seeing?  Is there a creative way around all these crazy deficits? is there someone I can call/write/meet for assistance or advice?

 Is this not the strangest true story you've ever heard??? 

Hello BP!  

You know how you enter a search term in Google and that leads you to something interesting which takes you to something else interesting which then takes you to yet another page of something interesting?? Well, that's how I found Bigger Pockets.  How I got here, I have no idea but I'm glad I'm here!

I have investing experience as I was a landlord and flipper 2004-2007.  I walked away for awhile and now I'm working toward creating additional cashflow from real estate.  I currently own two properties--a condo with a negative cashflow (my first residence, lived there for 9 years, property value PLUMMETED with the market crash.  Looking to raise rent in November to cover expenses) and a SF home with a positive cash flow (just purchased in July, tenants to move in next week).

I'm in the healthcare field, however, I believe in diversifying income. I work long hours to fund my exotic vacations (in Sept we go to Dubai and South Africa) and pay my bills. I'd like to start making more money, work fewer hours and still take several vacations a year, pay all my bills and live comfortably.  

I'm engaged to be married next year and I want to supplement my job income with real estate income so that I can spend more time with my soon-to-be family.  I'm looking for advice from more seasoned investors on private money and/or hard money, fixing and flipping and buying more property to hold and rent.  I have a particularly difficult case to solve (or as my attorney says, 'a very unique situation') with my condo and I will start a new discussion with the particulars.  I'm really struggling with what to do about it...

I'm so excited to be a member!  Looking forward to learning more!