All Forum Posts by: Porsche Thompson

Hello BP,

My husband and I recently closed on our new townhouse. During the whole process we were informed that the HOA fees would be 143.00. We let our lender know and it was stated on all the paperwork. As time went on, and we got closer and closer to closing, the seller began to back track on what he would fix and pay even through we had already written up contracts on everything. It was a major hassle because he was dead set on not doing any repairs or shell out any money for the closing cost. The night we were suppose to close he calls my agent and states since he's going thru a divorce that he will only pay half, of what he agreed upon before hand, of the repairs. We threaten to pull out since he was breaching contract and trying to find loopholes on how to sell without having to pay or fix anything.

The whole process was so frustrating.

After a stern talking to by his agent and my agent he agrees to everything he stated before and we finish the closing. Today, a week later, I call the HOA company to get an update on the work order I put in for the roof. It was then that the HOA owner informed me that they will be raising dues next week for a new project they all voted on months prior. I told him I had no idea what he was talking about and he seemed confused since he said the seller should have brought this up at closing. Instead of us paying 143.00 a month it will now be 275.00 a month, for 7 years! I was taken back because all our financial planning was centered around the 143 dues. The HOA owner mentioned that the seller has known well in advance that this was happening, he even voted on it himself. He suggested a call the law firm we went thru for closing for more information on what to do.

I left them a message and I'm waiting to hear back but I'm curious if I have any legal grounds here. I would have not went thru with the closing if I knew the true cost of the HOA fee. I know the seller knew that and that was his main reason for not stating it before.

Do I have any options here? Is there any way I can reverse this deal since the seller purposely withheld information?

Hi Joshua,

Is this property still available?

Hi Justin

Is this property still available? 

 Hey Rick, yeah I am apart of a local group and I've been reading up on how to find private investors. I don't have much of a track record (this is just my second property) so I can't really sell that to them but I'm def going to focus on making lasting relationships and see where it leads. Thanks for your input ;)

Thank you for your input @Thomas S. You're right about the sell taking time, I will def consider.

Hello BP,

I started my real estate investing career last year. My husband and I bought our first property last summer, a triplex, with our VA loan. We got the house for 94,500 and have positive cash flow since ($450.00/month). We currently live in one of the units and decided to wait our occupancy in this property (1 year) by buying a flip.

We ended up buying a 31k SFH thru seller financing (12%) and plan to put 30k into it for rehab and sell for about 125k. We didn't have much cash laying around for HML (20% down payment) at the time so we took out a home improvement loan with our local credit union, thinking we can cover everything with it. Unfortunately, we only got approved for 19k. We took the money and started the rehab, hoping to stumble across a private lender in our travels (mistake).

So now, we're in the thick of repair and pricing everything out with our set team and realize we need about 19k more to finish everything. We don't have much equity in our house since we just got it last year and our credit is in the low 630s. We have about 11k left of the 19k home loan and decided to apply for a HML.

I'm just a little worried because if we don't get this loan, I'm not sure what to do. Some options are selling it to another investor just as it is; bare with updated plumbing and electric, like pre-hab and be happy to get a little profit or break even. Or hold it for a few months until we find a private lender to cover the other 19k.

Since it's such a small loan amount I don't have much hope in finding a lender that will think it's worth their time.

We've reached out to family and friends to see if they want to lend but no bites as of yet. 

What should we do to move forward and not lose our shirts on this property?

I'm doing my first land contract deal and I'm a bit nervous. I found a company that offers seller financing on vacant houses. I found a property that I think would make a great buy and hold and has a lot of potential. We got the house under contract for 31k and I know once it's rehab it can sell for about 90k or rent for 800 or up. It only needs about 25k put into it.

My concern is that the interest rate for the deal is about 12%. There is no pre pay penalties and I can handle the monthly payments easily. I want to refi as soon as possible since I plan to hold onto this one.

I heard about the seasoning period being 12 months, is there any way around that? Whats the best next step forward for this deal? If the land contract record what would I need to refinance this property quickly?

Thanks in advance!

 Excellent idea Will! Education and reading is always a plus and I should explore more ways to make this waiting period productive. I'm going to check out that blog and pick up a few books on the recommended reading list.

 Hi John,

1. Our long term goal is buy and hold. I'm interested in flipping some as well (to put toward holding properties). My goal for now is to generate about 10,000 a month from the properties. I'm not sure when is a realistic time frame for that so I'm just being eager to pounce on what might come along.

2. I guess my debt tolerance is med. His is def low. It does get frustrating, seeing all the money we pay toward CC debt that could be better spent but I also want to make sure we're using our time wisely. For a while, my thinking was "The more properties we get, the faster we can pay off debt." Silly I know but it kept me hungry and motivated. 

3. My current property is cash flowing right now. We're getting 472.00 after the note is paid. Once we move out next year it will bump up to 947.00. We do plan on using our tax return to throw at our CC debt. I just feel really bummed out that I have to sit on the sideline until next June until I can "play ball" again.

Taking care of home base is important, I just don't think our situation has to be "perfect" to start engaging in deals again. I guess I'm having a hard time drawing the line between being too anxious to get another one under my belt and being too conservative that I justify on letting go good deals.

 Thanks for your input Will. You're right about being short for repairs. That is a bind I don't want to be stuck in. Just to clarify, I was talking about credit card debt. I understand the beauty of leverage now and will def try to balance between supplying my safety net and having enough cash to pursue the next deal.