All Forum Posts by: Brent Thurn

I think it depends what you are looking for honestly.  If you are looking for seasonal rentals, David Walsh & Associates seems to have a number of listings.

There is some bigger shops like AR Choice, Soundview, Elliott Merrill, and Whitehall too. But they typically handle the larger HOA work. What sized property are you looking to have managed? And what is your goal? Annual rentals? Seasonal?

@Joe Fairless: Interesting, however I've always wondered how you go about estimating construction budgets when you are purchasing assets all over the country.  I mean you're not able to have a union guy plunge a toilet for less than $400 in NYC.

I always figured estimating in multiple locations would be a nightmare.

@Joe Fairless, how to you go about making construction projections?  Do you have an inhouse construction manager?  Do you tidy up your projections during the due diligence phase?

Would be really interesting to hear how you attack this, considering you are focusing on value add scenarios.

@John Cohen you mentioned that you found this deal through direct mailers.  Are there specific areas, or qualifications, you are looking for?

Clearly your investors are given a certain set of parameters prior to committing funds.

Also, since you don't have any skin in the game, what kind of structure have you set up?  I'm assuming you are getting a fee for putting the deal together, an asset management fee, and some sort of exit collar above a certain return?

@Wayne Brooks a hail mary I admit.  You'd think there would be some sort of mechanism instead of sitting on dilapidated props.  

Anyways.  Do you still find success in tax deed investing still?  Most of the locations I've looked at have gone online, so I fear the spread is narrowing.

What kind of rules do you typically have for yourself in this type of investing?

@Russ Goodman that is what I figured as well.  But it seems counter intuitive for the local govt to just hold those properties for 7 years, not collect any sort of tax revenue, and then escheat the land.   

I mean these properties are typically the hairiest ones of the auction, so they need considerable work.

I've been researching tax deed auctions recently, and I've noticed that there is a minority of properties that come to auction that do not get claimed by the lien holder, nor any investors at auction.

These properties are then put into a category entitled "Lands Available", where they remain for a finite period of time (I think up to 7 years where I am from) with the city.  After this period of time they are escheated.

Most of these properties have a tax bill way over what they are worth, which is why they were never bid on during auction.

Is there some sort of mechanism in place to try and negotiate more favorable rates with the local govt?

Does anyone have any experience in this?

Rebecca,

I could give you a quick rundown, on how the Vero Beach market works.  Grew up here (and currently live there).  

Too long to go over in a forum post, but if you are ever interested, just let me know.

@Eddie Werner the issue we are facing is that since the property contains asbestos, there are only two insurers that are willing to underwrite policies for us at that location.  The cheapest of the two is $5,000/yr.  An astronomical sum.

If we remove the asbestos, we were quoted $2,400/yr in insurance premiums.  Still high, but since its within 5-10 miles from the beach, because its older, and because its wood frame, that is the cheapest we could find.

Therefore, if you were to buy the property, it just makes a lot more sense in the long run to take care of it immediately. 

@Andrew Davis , just did that exact thing yesterday.  Very much doubt that they will accept or negotiate much.  It's a Fannie Mae asset manager we are dealing with.  

In any event, having that much cash tied up in a property of that age was not something I was excited to entertain. Not to mention it killed the IRR.

Vero Beach, is in the middle of our "Season" right now, so all property prices and rents are skyrocketing right now.  It's prob better to revisit the property search during the summer, unless we can find something that is distressed, at a discount.