All Forum Posts by: Tim Jonasson

Michael - My wife and I considering Jeff's group using our self-directed IRA funds. We have already signed up and paid the retainer. We are debating the $100k minimum to get in right now as we are awaiting references from investors from his previous fund. If you want to compare notes I'd be happy to talk off line.

Tim Jonasson

Clay Smith yes I local attorney who is extensive experience in Indian land leases has review the matter. My options are as I outlined above. I have not listed it yet on VRBO or Airbnb because local vacation rental specialists have advised me that I cannot likely rent it for enough to cover all those expenses, especially as we now heading to our off-season when temperatures will be 110° or greater

@Clay Smith: This is Tim's wife, Lori. I bought this condo in 2003 when I was single and when there was enough time left on the land lease. Without the land included it allowed me to purchase a nicer, safer home than I could otherwise afford. I was assured by my Realtor that the Indians would renegotiate the lease and never actually took your property. That is generally true. I messed up when the Indian owner sold the land. I should have bought it but didn't read the fine print and I needed the money for medical purposes. I knew she might charge a premium for it later or raise the rent. It never occurred to me she could or would do this. If I were her I wouldn't want this on my karma....

@Eric Dowling: The condo is in Waverly Park off Gene Autry Tr. near Hwy 111. I have had the condo on the market for 7 mos and have dropped the price twice. The same model with comparable upgrades just sold for $333k. I have mine listed at $275k. Realtors won't show it because of the lease.

Ideal buyer:

1. 15 year mortgage who doesn't care what happens to the property in 26 years

2. Senior with no heirs who doesn't care what happens to the property in 26 years

3. Short sale to an investor who can generate a nice ROI before it's done in 26 years

4. 4-5 other investors who want to share the unit and these expenses for the next 26 years.

Expenses:

• Mortgage: $1600
• HOA: $450 per mo- includes exterior landscaping and lighting, maintenance for 3 pools/spas, tennis courts, security gates, private streets, sidewalks)
• Land Lease: $170 per mo

The HOA (Waverly Park) recently passed a ruling for no vacation rentals under 30 days, however, my attorney suggests that should only apply to new owners and not me as that was not the rule when I purchased.

I have a beautiful, nicely upgraded 3 BR 2 BA condo in Palm Springs. It is in a gated community, has a 2 car garage, very private with only a shared garage wall. There are 3 pools, tennis courts and it is a beautiful park-like community. It has easy access to the airport and major thoroughfares. Sounds great, right?

Here's the bad part:

It on leased land with 26 years remaining on the lease. This was previously Indian land but the land is now held by an investor who assumed the indian lease. She will not sell the land and will not renegotiate the lease. She is in first position (well, after the tax man). The lease is water-tight. She has rights to all improvements on the land at the expiration of the lease and, again, she will not renegotiate the terms. If this were a SFR I could move the house but I can't very well chop off the condo so she or her heirs will have a nice, free condo in 26 years.

I have had the condo rented for the past 10 years but at a loss. I can't rent it for enough to cover the mortgage, HOA, insurance, taxes and her land lease. I have spoken briefly to a leading vacation rental company and with the Candian dollar down, they had lots of vacancy this year. So not likely I could keep it rented often enough to covder the

It doesn't make sense to keep throwing money at a condo where the future value is $0. So I am at risk of foreclosure and looking for creative ideas. I would love to retain occasional use of the condo so wondering if a fractional ownership makes sense. My monthly expenses are about $2500 for the next 26 years or $30k per year.

Ideas?

Eric - Welcome. My wife and I have a condo for sale in the Waverly Park development near Gene Autry and Highway 111. If you are interested please call me at (760)250-6722. Thanks and good luck. 

Thanks.

Hello. My name is Tim and we've been checking out BP for a few months now. I've been a real estate investor for some time but relatively new to strategies other than rehab, buy and hold. We currently have four single family homes in the Palm Springs, CA (Coachella Valley) area with four more in Phoenix/Scottsdale, Arizona which has a much larger market for rental properties. Our goal is to retire in 8-10 years with at least $20,000 per month in passive income. We believe multi family or commercial real estate is where we eventually want to be. My regular job is in civil engineering for a local municipality but I also have an MBA and I probably have the equivalent of a Master's degree in the Subdivision Map Act of California. If anyone has questions in this area or just working with cities to get projects approved in general I would be happy to help. My wife Lori has a Master's degree in Information Management and 20 years of Internet publishing experience. She does private consulting, specializing in digital marketing business planning. Lori's family are real estate investors in the Chattanooga, TN area with ~50 SFR's and she would be happy to make introductions for BP members in that area.

We are both really excited about joining BP since it has rejuvenated our interest in real estate investing.