All Forum Posts by: Sean Robinson

@Ann Howell Thank you for sharing! I appreciate the encouragement and the anecdote. I'm glad to know there is light at the end of the tunnel :) I think my property will get repaired, but unfortunately it is taking longer than anticipated.

@Jeff GebhartThanks for the advice. Do you do further inspections other than a standard property inspection and your own personal walk through? In my case, these issues have been going on since prior to my purchase, so I am stunned they were not discovered in the inspection.

@Abigail T. Thank you! I hope everything does get resolved with this property, as unfortunately this has not been a good 1st experience. Thanks to the feedback I have received, I'm still optimistic in RE investing. I'll keep y'all in the loop with updates and how everything gets resolved, so hopefully this will be of use to anyone who experiences something similar.

@Gautam VenkatesanI think that is a very good point. In this experience there has been a few different hands involved, and that does create issues with accountability - especially for a new investor. Gautam, do you only purchase properties in the same state as your TK provider? 

@Joe Splitrock- The intent of this post was never to "slam" @Marco Santarellior Norada, and in my last post I stated that Marco is trying to fix this. To be clear, Marco is working extremely hard to make this right for me, and I know he feels bad about the situation. He has gone to bat for me with the rehabber, and has consistently been fighting on my behalf to get this property cash flowing. He even sent me a very heart felt e-mail today expressing his apologies for everything, and I am appreciative of what he's been doing. I just want that to be known.

My intent was to explain the situation and present the facts, so I could get some advice on what my expectations should be moving forward. This is my first investment property purchase, so I'm still trying to understand how all the relationships work, and who is ultiately responsible for fixing the issues (which seems to point to the rehabber); I did not post this to "slam" any individual. My goal is to have this property make me money and that's it. Thank you to everyone for the advice, it has been very helpful! Also, thank you for the encouragement @Greg H.- it's good to know that bad investments do happen, and I will be sure to be optimistic about my future with investment real estate :)

Update: Marco has been all over this today, and we are waiting to inspect the property tomorrow once the tenant has left. Marco has also gotten the PM fee waived for replacing the tenants, and is working on getting me reimbursement for the missed rent since January. (Thank You!)

Again, thanks to everyone for the advice, and I will keep you posted on the progress!

Thanks everyone for all of the feedback!

I'd like to first note that this post is not exaggerated whatsoever; I just gave the facts and all the information I have currently.

That said, @Marco Santarelli is trying to fix this mess that I was put into, but the progress has been slow. I do have faith that Marco is working hard to make it "whole" with me, but I wasn't sure what that should actually look like. This is the first mention I've received about the PM fee being waived for replacing the tenants, so I'm thrilled to hear that. Additionally, per @Jeff Sprunger's post, I think receiving rent backdated from January for the tenant who is moving out due to unlivable conditions would be in line as well. (Please note the tenant has been compaining about the flooding since prior to my purchase; I have their e-mails)

@Jay Hinrichs: Thank you for your input! I purchased this property in Raytown, MO, which is supposedly an affluent area just outside of Kansas City, MO. The reason I chose TK was to help bridge the gap of my inexperience in the market, thus providing me with the best property, best tenants, etc. Unfortunately, that hasn't been the case with this property. To your point about permanent damage, the PM has warned me that repairs may just be band-aids to a larger issue, but only time will tell.

I'm looking for some advice on this nightmare of a property I just purchased. I just purchased my 1st investment property and I decided to go with a Turnkey property from Norada Real Estate Investments, because I really wanted a property that would be all ready to go/hands off with a property manager, had tenants living in the property, and would yield me a really nice cash flow. Unfortunately, I have received none of these from the duplex I just purchased. I signed the PA in August, but the property didn't close until December, which was said due to them needing time to repair the property and get it into perfect condition. Here is a brief synopsis of what's going on since the 1st day I got the property:

-There is major flooding in both of the units, and many broken appliances. This was not discovered in the inspection.

-The tenants have been complaining about this since November (before I owned it)

-One side is completely unlivable, so the tenant hasn't paid rent since December 1 and refuses to pay anymore rent. We are trying to evict them now (they said they will be out on March 5th, but we'll see how that goes.)

-After a ton of arm twisting, Norada and the rehabber (not exactly sure how this works) has agreed to do some of the repairs, but he is moving very slow on them and the property is still not repaired -This has been a bigger issue of lots of finger pointing and nobody has even apologized to me yet for what has happened.

-The repairs are supposed to be done "next month" (another tentative date that I'm sure will get missed) which means I will have missed out on rent for January, February, and March.

-I will also forfeit 1 month's worth of rent to the property management company as a fee for them finding new tenants. This will mean I'm out roughly 4 months of rent assuming we can get it rented by 4/1 with a tenant that is still living there without paying rent.

-The property manager has informed me that there is no way the new tenants will pay the originally promised rent amount by Norada, even with the repairs; thus, reducing the overall cash flow I was expecting.

I'm reaching out for some advice, as this is my first investment property and the only thing I've been told is just to "hang tight" until the repairs are done. But every day that passes is a day I lose money on rent, and then another month that I have to pay for the mortgage out of pocket since one side alone will not cover it. What are my options here? What would you do if you were me?

Thanks for reading and I appreciate the advice!