All Forum Posts by: Tanya Solomon

 OP said: It’s frustrating, especially because our due diligence came back clean, leases were solid, and the property had just been fully renovated. Unfortunately, the previous owner (who was also a licensed agent) didn’t accurately represent the tenant situation.

These statements contradict themselves. Maybe get it straight b4 paying an attorney a retainer to sue and or choose an attorney who can and will go after EVERY possible avenue to make your client legally/$ whole. IMO Most of the time, people lose lawsuits or settle for much less due to laziness and lack of rock-solid knowledge about the illicit/illegal acts the opposing side committed.  

For instance, how did the due diligence "come back as clean" and the "leases were solid" if the rent was not paid up to date and paid REGULARLY?  Im not an attorney or anything close to it but it seems a simple P&L statement that is broken down monthly could reveal the tenants not paying their rent on time enough to warrant eviction. If even 1 tenant was not paying on time, it would report a loss. Then a "surge" when the tenant paid up months later bc usually a tenant has to not only fall behind but MONTHS of rent have to go largely unpaid to warrant eviction.

If the P&Ls were "doctored" by the seller, that seems like pretty big cause. Also, was there a background check on the tenants possibly having criminal backgrounds and or background check to determine if the tenants had ever been evicted in the past? Seems like that would reveal the tenant(s) that have since been arrested (and presumably jailed/prison long enough to "lose" the lease/apt). 

You prob will start off in arbitration and if that does not yield a good result, go to court. I hope you help your client with this bc in a way, you helped them get into this mess. Not only is it the right thing to do to help them get their legal ducks in a row about knowing SPECIFICALLY what the seller did wrong, ie did not disclose and can prove it was done for the sole purpose of deception to make the sale "smoother" but it can help you look good and have you learn how to avoid in the future (as you say "tighten up your due diligence")

It sucks when agents "help" 1st time or largely inexperienced buyers long enough to make the sale and get their commission but then peace out on the client when something like this happens.It It seems like you are attempting to do the right thing which is admirable bc at the end of the day, the court system is the closest thing to a "business police" that ppl can get. 

This is why in addition to apathy that bad players get away with as much as they do as frequently as they do. It is not easy to sue. It takes time and work. In any deal/investment that goes south like this, your/buyer's side is responsible bc "buyer beware" is as old as time. It sucks to admit that there wasn't tight oversite on the deal to ferret this out b4 the sale happened and its subsequent consequences and it sucks for your client that they have made, for at least the time being, an investment that is not going to be in the black in the immediate future. 

I hope you and the buyer are successful in going after the seller. As H. Lazerow said if you act promptly, the seller will have a greater likelihood of having some of the "windfall $" to pay your client when a judgment or decision in your camp's favor is rendered. Usually, acting promptly has little downside. 

The short answer is YES, they would have you cancel any and all rez that's for 13 or more. Like Kevin stated, they don't care about your business even though Im sure you are not only generating income for the area the cabin is in (generating local sales tax) but presumably you are paying taxes not only on your property but on the income you make from STR biz.

"Sizing up"= determining HOW FAR a Fire Chief and/or the local building/planning department of the jurisdiction your cabin is in can/will go is both a science and an art, IMO.* This could be a standard issue type thing and if u do nothing, nothing will happen or it could end up being your worse nightmare. 

Like others have said, Id do WHATEVER you need to to get a COMPLIANT sprinkling system up ASAP. This is the time to call in favors with plumber buddies and or ppl you might know in this field. QUIETLY ask around the community who most ppl use for sprinklers. You might luck out and find a guy that on the DL hates gov and loves to comply just to take back the "power." 

Do a ton of due diligence bc that doesn't cost u anything but time. I find if I do the "heavy lifting" like drawing out a system and or the floor plan of the cabin, you can find a guy to do the "official" work fast and for a cheaper price than if you sit back and do nothing. Also, knowing the tech terms for a project benefits u bc guys will know you know SOMETHING about what is involved. 

Personally, Id hire someone who will either straight up guarantee or all but guarantee you'll pass if they do the work. Ive never done a sprinkling system on a home but I have had electricians promise they will pass bc they know the current guidelines/codes/requirements so well. Shop around if you can to determine what is a good rate to pay. As long as it is not over 25% of the going rate, Id happily pay extra for a knowledgeable person to help me make my problem go away. What you want to steer clear of is the design firms types that will tell you that not only will it be expensive but take a ton of time. Let those guys hold out for Jeff Bezos types that want to throw massive chunks of $ at things like cabins in the woods. 

You prob just need "existing and proposed" plans that show the floor plan of the home=existing (an architect can do this for prob 2-3k) and then the system IN the cabin=proposed. I find with ANY project on a property, PLANS are worth their weight in gold bc they will show the exact inches, ft, etc that the project entails. Permit expeditors (they usually know how hard it is to do in that area too) are great if everything is not already completely online with the jurisdiction. Not only are they knowledgeable but they can potentially get your plans through quicker. 

Another consideration is insurance. G*d forbid something happens and there is a fire or other loss. If you were not in compliance with the sprinklers AND notified, the insurance co could deny your or anyone else's claim. This could leave you exposed if you do not own your cabin under an LLC or corp (im not a lawyer so plz don't take me on this 100%) The upside might be that your insurance could go down with the sprinklers installed.

Im sure the cost is a hard pill to swallow but try and keep your eye on the long term prize of making $ on a thriving STR biz. If your calendar is packed, this indicates you are in a strong market and will quickly make ROI AND you wont have to worry about this issue again.

Maybe if you can prove that you are actively trying to gain compliance, that will get you the much needed time to gather $, time to pull the permit and ppl to perform the work bc they will have a bit of mercy on you bc you are trying to do the right thing. 

I WOULD NOT recommend doing something like bringing to their (Fire dept, building/ planning or any other governing agency) attention your STR rezs. In my experience, they could make u an "example" bc STRs can have a bad rep. Especially in places where ppl can own more than their primary res. PLAY YOUR CARDS CLOSE TO YOUR CHEST. Ppl get testy about $ and things like their home(s) thus enjoy seeing others "squirm." Best not upset that hornets nest.

*I USED to own properties in San Mateo Co CA (Silicon Valley)and found that the Building/planning dept was so malfeasant and next to impossible to work with that I sold my properties AFTER I spent YEARS trying to 1st get plans approved,** then completing the work. I DID make ROI and then some. The day after I set precedence, I gave my info to others who had "illegal" ADUs and a basic "road map" to get themselves legal.

**I had a tiny home I wanted to use ADU laws to make legal. State not only allows but makes policies to force counties to comply but counties DO resist and purposely make the process very difficult.

I'm hoping someone will have a good idea(s) on how to damage control a worst-case scenario. This is like the Kenny Rodgers song "You gotta to know when hold them, know when to fold them, know when to walk away and know when to run." 

Does anyone know a GREAT financial advisor (who has a strong background in RE) who can be hired to help figure out major $ life decisions/strategies? Especially someone who is well-versed in dealing with ppl who are in decline but are not entirely ready or willing to be open-minded about new strategies or ways of living. Strong, brilliant, dynamic, hard-working/dedicated types great mid-life (where would our world be without them?) but CHALLENGING to raise as children and then difficult in the "twilight years" bc they can't do what they used to and have a hard time accepting this.  

TLDR: This is a "pick your poison" situation. The 1st "macro" question is -In general and this market/time of year, is it better to fix a home's essential/habitability issues before selling or just cut the losses?*

Is it better to fix problems that are essential/determine habitability and hold/wait to sell the property when the market is most favorable to sellers to sell

or

To cut the losses, get out while you can, bc it is not financially wise to spend months/yrs of your time and hard-earned $ if you end up turning around and selling it right after the repairs are made. There is a fairly good chance that coming out even would be the best-case scenario. 

I FULLY UNDERSTAND THAT NO ONE HAS A CRYSTAL BALL AND CAN KNOW WHAT CAN OR WILL HAPPEN IN THE FUTURE. This is an IN GENERAL question

*The rough math/facts:

-Home is in North East CO (just outside Denver)

-Home has been used primarily as a STR and has years of earnings around 50k per yr. It is now occupied by my friend.

-latest comps support about 450K if the home had no major issues. This is WITHOUT taking the issues into the equation what the home could sell for "on a good day"

-Cold calling to get est. They are coming back at around 100k total to fix the foundation and replace/repair the roof. The work itself will take months due to seasonal issues and how far out local foundation repair companies are booking out now. We have been unable to find an "emergency foundation repair" or a way to stop the slow ruin of the home due to the significant foundation issue(s). 

-The home is owned outright (no mortgage) and my friend is single, middle-aged, and has no children. Elderly mother can help with $ but is not rich herself and obvi taking retirement $ from one's parents is a worst-case scenario.

-Friend has been in an accident and has been experiencing significant health issues with no end in sight and has NO INCOME. The health issues have been so significant that my friend has taken the 3 properties owned off the STR market. Chipping away every month from a little $ nest egg. This is not a sustainable model and $ will run out by the end of 2024.

We have asked ourselves "Can it get any worse?" Only to find out that YES it can indeed get worse. Unfortunately, I live 2000 miles away and have a family/spouse + school-aged kids. I do not have the time to fly there and stay for weeks to get things taken care of. 

It is so hard to watch my good friend not only have to deal with significant health problems alone but see how they have gone from a dynamic, resilient, wicked smart person managing 5 properties AND holding down a 30-40 hour a week full-time job to sustaining an accident and having their life fall apart like a slow-motion train wreck. 2 of the properties in their portfolio had to be sold just to get $ to live off of. 

My advice has been to sell all the properties, get back as much of their health as possible and then look at how to invest what's left. What I don't want to see is the throwing of good $ after bad AND the upside of selling at a loss now is that we will know what the loss is and can start the "rebuilding" immediately or whenever they feel up to it. My friend feels like they are losing so much and have invested so much time and $ into the home and properties left, that it is too hard to think about selling. It feels scary and they are worried that the $ will just quickly run out and they will have nothing left. My friend is essentially holding out for a miracle to happen and for these problems to go away and or address/acknowledge head-on that they will probably never be like their former self. I can def see how that is a difficult pill to swallow.

I came here to find ppl with experience in not only real estate but also with the careful balance that one must achieve and then keep wealth. Maybe someone recently helped/advised an aging family member on the best way to  set up their lives to be on "auto-pilot" 

Do you have ANY recommendations? 

 I WISH East Palo Alto required ppl to check the sewer before selling. I bought a home that had 

sewer lines that were made of wood fibers and hot tar, known as “Orangeburg”. It over time became soggy and collapsed. Especially, bc the sewer line went across the driveway and the previous owner parked 6 vehicles on the huge driveway. After I was done pulling a permit for a garage conversion to give me a proper master bdrm, walk in closet, mud room and last but not least 2nd badly needed bathroom (it should be against the law to only have one bath in a home) I got quotes for a "rough in" for the toilet in the bathroom that were anywhere from 7k to 22k. When we found that the sewer main was mostly collapsed in the middle, I had to pay another 9k to jack hammer and dig 6 ft down to get at and replace the sewer main. Grand total was 16k. the guys did it in two days. One older guy smoked as the younger dug the hole. I would imagine the plumber made at least 10k pure profit (Kids u dont have to go to college to make big $!!) and he didnt lift a finger. The two guys were paid $23 an hour each. 

This is a really old post but thought Id respond if someone is reading it yrs later like me. 

Get multiple estimates. Especially if there is unknown factors 

Thanks, everyone. Its hard bc this landlord is they type that gives all us here working hard to not be slumlords a bad name. This woman/landlord is REALLY pushing the limits whether they be legal (or not) and making it a very unpleasant place for my friends to live. 

My friends are immigrants and it is so much harder for ppl that can not really understand the docs they sign. The lease violates their rights on several points but I do know that Florida Residential Tenant Act will provide protection for my friends bc it trumps anything garbage she puts in her lease bc she hopes that she can just make up FL law and assume that it will not be challenged. She is obviously blinded by greed and she is so used to taking advantage of immigrants bc they have limited access to resources to know their rights

These ppl, my friends just want to live in peace but this woman keeps harassing them. I got a better look at the rest of the house today and there is a TON of illegal building on this home/property. It is MESSY. She is a slumlord. 

I will focus on negating any harassment by the landlord (she is using the ring camera to monitor their coming and going and letting them know she is "watching them.") and helping them find another place in the next couple of months. They have never been late on rent and can prove it. 

She has even just entered their residence unannounced to "inspect" their housekeeping skills which is just dressed-up harassment. But we will need to build a case over time by having evidence in pics, text, and emails. I have asked them to not communicate with her unless it is in writing. 

Thanks for your help every one that answered this posting. I will upvote everyone. 

I have a friend that is renting a home in North Miami Beach in FL. On April 15th of this year, her landlord ripped up the backyard under the premise that she was fixing the septic tank for the small 1350 sq ft home. The home also has an illegal ADU attached that is about 350 sq ft.

The landlord brought workers on the weekend (we are fairly sure she did the work without a permit-Unfortunately this info is not available online) and dug up the majority of the backyard (home is on a 7,305 sq ft lot- homes in the neighborhood have a 50ft set back and the lot os about 45 feet) to put a very large septic tank. She (landlord) said the next day that she was going to be bringing in a mobile home to put in their backyard. 

They will call the authorities if she does bring in another illegal unit but they have been living with the backyard torn up for over a month. They have pictures of what the home looked like when they rented it showing the grass and plants that are in the backyard. Now, the backyard is uneven, totally rocking and has a sewer clean-out pipe sticking up as a tripping hazard right by the walkway of the side gate to the back door. 

I want to help them write a letter to the landlord to put her on legal notice that she is not to bring another unit in but also RETURN the condition of the backyard to the condition it was in when they signed their lease and rented the house. they have 3 children and have not had use of the backyard. Not to mention it is ugly and unsafe (due to random bricks landlord oddly put in bigger holes-uneven chunky rocky dirt).

How much can they reasonably expect to take out of their rent if she doesn't fix it soon? We will write the letter to give formal notice of their expectations. I wanted to include a "clause" that if she doesn't fix it, they will deduct x amount from the rent bc they are not getting "full enjoyment" of the property 

They are paying 3k a month in rent and the backyard is about half of the property. So, 7,305 sq ft total minus 1350+350=1700 for the home =5,605 /2= roughly 2800 sq ft 

How much can one attribute to the house and how much to the yard?  

Hello, all my BP peps. 

My husband and I recently (closing tomorrow. Paperwork signed and $ being wired. Officially taking possession) purchased an REO home in an expensive gold course community. We mainly wanted a home in this community because we are Jewish and walk to synagogue. I got a decent price on the house but far from a steal. Bc there are 3 big synagogues in the area, homes within walking distance get snatched up quickly and ppl overpay, STILL.

Ridiculously expensive gated golf community in Boca Raton. The community is ridiculously expensive due to not only a large "buy-in" but also around 45k a yr HOA dues (golf courses do not come cheap, as many of you know). Again, the main reason we are biting this $ bullet is bc of our religious confinements, and we have 2 middle school-aged kids that we want ot provide a safe and fun community to live in. For anyone in the South FL area, I am talking about Boca Grove

I have a pretty decent amount of experience remodeling/repairing/modifying or remodifying homes in CA but this is my first in FL. Prior to our moving to FL, we lived in NorCal. Out of necessity, I bought "fixers" in CA. I have done projects on our properties (primary and investment) that range from "refreshing" by doing simple things like painting, putting in new light fixtures, and small remodel projects to full "gut" remodels where I replace/remodel every square inch of the home. I have also been "creative" by converting garage space to legal living sq ftage (master bdrm with en suite bathroom, WIC and mud room/laundry room), legalizing an illegal inlaw unit in SF (no small feat), and even setting precedence in San Mateo Co by getting a "tiny house" legalized as an ADU. While I know a lot, I know that I do not know everything, so I always do as much due diligence as possible to come from an educated viewpoint.

The house is a bit of a mess and a project. Far from move-in ready. But EVERYONE that has looked at it has said it is a nice home with "good bones.'' The home has been unoccupied for 2 yrs, and has a significant habitability issue before I can get to the "fun" stuff like remodeling bathrooms. The roof has leaked in two areas and the a/c units were installed incorrectly yrs ago, resulting in the drain getting clogged (no auto turn off switch-a/c was established without permit=smh) and the water intrusion caused mold to grow. Fortunately, most of the damage is in an area of the home I wanted to remodel extensively.  I have had a mold specialist come out to inspect the areas that need to be addressed and develop a plan to remediate the mold issues. He recommended that I have the areas demo'd and then have a remediation Co come out to clean and rid the home of mold and then have a carpenter back to seal up the walls. Once this is done, I can have the remodeling start. 

I have gotten a few quotes but have not hired anyone. The few quotes I have gotten are RIDICULOUSLY high priced!! One female GC (I am female but find it somewhat rare) wanted to charge me 50k labor only for demo-ing about 800 sq ft and then after the remediator comes in to clean, and seal back up the walls AND I have to pay for the materials and dumpster! Another company gave me a wordy 11 paged quote that is, in fact, vague for 35k for the mold remediation. I had a painter quote 14k to fix the stucco on a 110 ft wall.  I need to replace the windows and I understand that hurricane windows do not come cheap but one lady told me I should plan on spending over 100k on windows. I have an est from Home Depot for basic aluminum impact-resistant/hurricane windows for about 60k. I will probably go with that. Cost-co's A/C guy came in at 35k for 3 a/c units 3.5, 2.5, and 2 tons. Just cleaning and reusing existing ducts. I will probably go with that unless y'all think that is too high. 

How do I find vendors that will not jack up the price bc the house is in fancy schmancy golf course community? Any tips on how to find good vendors in South Florida? Do I come out the gate with I am not going to pay things like 50% upfront before they even start the work and or ask them to price something out that I already have a good idea of what it should cost (like I generally have paid around 7k for a bathroom remodel) to see if we are on the same planet? Or just meet with them and see what they come to me with? 

I am working with some time restraints and must be in the house by mid July. Do I tell the vendors this or just tell them I want it all done promptly because time =$ Always has, always will. As a general rule, I come to the house I am working on daily. I live less than a mile away in a rental in another community. I am currently a "stay-at-home mom" and will consider this house to be my full-time job until it is done, and we are moved in.  

Any tricks or tips would be appreciated. 

2 months. Not a huge amount of time but the HOA requires at least 3 applications. 1 is for "internal purposes' and has a $2500 deposit. The 2nd is for a background check and costs $250. The 3rd is for the micro HOA that is farmed out to a 3rd party property management co and involved 2 checks for $100 a piece. The HOA approval process takes 30 days and I have certified approval.

The "bank" is dragging this out. They were "surprised" by the 150k buy-in that my husband and I have to pay but for some strange reason they thought they would either not have to or be able to get out of having to pay. All of the "worker bees" in the deal want it to go through but the "queen bee" decision maker is sitting on this and not signing off the expense even though they have agreed they have to pay it. There was "talk" that they were going to go to HUD/FHA to get reimbursed bc it was an FHA backed mortgage they foreclosed on but FHA/HUD would NEVER pay an expense like this. They should have done their due diligence and were prepared for it but I guess a company can tout that they handle 13 billion $ in assets a yr but struggle to cough up 150k bc they got caught off guard.

My attorney (another expense I'm out of) told me today that they will have to pay the 150k at some point. If I buy the home or if someone else does. In this market, I do not think they will be able to raise the price to accommodate the 150k by just raising the price if and when I totally bail out. It wasn't a super great deal or even a good deal. I am/was interested in the home bc I wanted a home within a mile of my synagogue that was 3000 sq ft or more that was/is a good investment. 

This home is on a good street, is a two story (only a few on the street) and I just liked the energy and layout of the home. What I didn't like is due to neglect, there is about 1000 sq ft of mold remediation needed before the home would be HABITABLE. There is multiple points around the home where there are significant water intrusion areas. It will cost at least 100k to fix these problems. That is not dollar one towards remodeling the home. The last guy (young clueless guy) demo'd parts of the home and I estimate that it will take at least another 250k to make the home a nice one and bring it up to the standards of other homes in the area. All the work would take at least 2-3 months to do. That is assuming the HOA would not step in my way. I was going to site "health and safety" to push them to approve any plans the require HOA approval.

Its prob a blessing that this is falling through. Live and learn. I HAVE learned a lot.   

 Thanks for the "shout out" and validation.

Ppl that think that real estate is "easy $" either have little to no experience in RE and or are quoting something their sister's MIL's best friend's hairdresser's stepson's father's dog walker. My point is that their "info" is far from the person that actually did the work, details are hazing, and they only pay attention to what is easy to remember and seems too good to be true bc ppl will NEVER stop WANTING to believe that there are magic bullets out there or ppl that ger rich overnight if in the right place at the right time. What they are ignoring is that EVEN IF their story is based in SOME kind of reality the success of the person they barely know was when the successful person had the opportunity meet their massive preparation.