I'm tired of the investors who don't care...

50 Replies

Hi Everyone! 

I get it. Birmingham is a great place to invest in and you get your ROI. However, recently I started noticing that in the Eastern Birmingham area, most homes, acquired by Out of State Investors (California, vegas, etc) are just left to Rot. I mean, dilapidated homes, burned homes, grass not cut, etc.

When did this become OK? I've given several investors the info to people I know in Birmingham that offers property maintenance and other services. Heck, I even started doing Boots on the Ground for others. 

So basically, the homes near my rental properties I started taking care of the lawns (for no pay), because Birmingham City won't cut them most of the time. Then, I started seeking out to GET the properties. Yes, with limited funding, my goal is to buy up my entire neighborhood. 


It's just annoying. At least take care of our CITY if you're going to invest in it. 


I hope I don't get blocked for this lol. I'm just frustrated. 

Tiffani

A local resident and concerned investor

Are these properties not getting citations? I would imagine if they are owned by investors, they would at least be doing enough to not get citations. If they are dilapidated, aren't those typically abandoned homes where the owner is missing or a foreclosure that just keeps sitting? Same for a  burned home. Why would an owner want to just let their burned home sit there without repair unless they're letting the city/county/bank/whoever take it back (and therefore abandoned it).

I would say conditions such as disrepair to the point these properties sound uninhabitable sounds more like a bigger problem than lazy out of state investors. It kind of sounds like the properties are not in demand or it's generally not the best area to invest.

Nicole W., New Page LLC | [email protected] | 305‑537‑6252

They will care when they lose the majority of their investment dollars

No company avatar mediumJohn Thedford, John Thedford | 239‑200‑5600 | http://www.capehomebuyers.com | FL Agent # BK3098153

@Tiffani Crenshaw Don't you have a code enforcement department out there?  Can't you report the properties?  Doesn't some kind of neighborhood improvement group exist in your local government?  From what you're saying it sounds like your local government abandoned this neighborhood long before the out-of-state property owners did.    

On the practical side, you are in a little bit of a catch-22.  After reading this you've convinced me *not* to invest in eastern Birmingham.  Evidently the city doesn't care that it's populated with burned out homes.  That's the last place I'd put my money.  I am surprised that wholesalers haven't tried to flood the absentee owners with yellow letters.  I can't imagine that someone in San Diego would enjoy owning a pile of ashes in eastern Birmingham they can't rent.

Still, I'd start with your local government and why they abandoned the neighborhood.  

Correct. We just elected a new mayor and he doesn't hold office until late October, so we shall see change soon. However, I know that MANY have complained and let the city know about these properties and lawns, to no avail.

It's weird, there are new businesses coming in on one side of the area and then maybe 2 streets over you have this going on. 

Sigh.

Originally posted by @Andrew Johnson :

@Tiffani Crenshaw Don't you have a code enforcement department out there?  Can't you report the properties?  Doesn't some kind of neighborhood improvement group exist in your local government?  From what you're saying it sounds like your local government abandoned this neighborhood long before the out-of-state property owners did.    

On the practical side, you are in a little bit of a catch-22.  After reading this you've convinced me *not* to invest in eastern Birmingham.  Evidently the city doesn't care that it's populated with burned out homes.  That's the last place I'd put my money.  I am surprised that wholesalers haven't tried to flood the absentee owners with yellow letters.  I can't imagine that someone in San Diego would enjoy owning a pile of ashes in eastern Birmingham they can't rent.

Still, I'd start with your local government and why they abandoned the neighborhood.  

That could be the case, however, I personally contacted one investor and his reply: "I have about 100 homes in birmingham, I mean my yard guy sucks, what can I say?"

Sad. The other investors I think have just forgotten about these and have so many they can't keep up. Most HAVE stopped paying the taxes.

Originally posted by @Nicole W. :

Are these properties not getting citations? I would imagine if they are owned by investors, they would at least be doing enough to not get citations. If they are dilapidated, aren't those typically abandoned homes where the owner is missing or a foreclosure that just keeps sitting? Same for a  burned home. Why would an owner want to just let their burned home sit there without repair unless they're letting the city/county/bank/whoever take it back (and therefore abandoned it).

I would say conditions such as disrepair to the point these properties sound uninhabitable sounds more like a bigger problem than lazy out of state investors. It kind of sounds like the properties are not in demand or it's generally not the best area to invest.

Exactly. 

Originally posted by @John Thedford :

They will care when they lose the majority of their investment dollars

From what I'm noticing, alot of these properties were owned by an company in california (can't find ANY info on them and they've abandoned ALOT) but...

like stated before, I have contacted owners whom have properties on my street and they are definitely letting it sit without caring for the lawn or etc.

@Tiffani Crenshaw Well, in fairness, lawns are different that burned houses.  If I flew out, checked in on my investments, and saw that there were a few burned out houses on the street, well, I might tell my PM to send the landscaping guy once a month instead of once every 2 weeks.  I hate to say it but there are just practical implications when it comes to this kind of thing.  What doesn't make sense is how you'd have a city not collect property taxes (I think that's what you're saying) and allow massive urban blight.  There's a good chance that it might not be a mayoral issue, but rather a City Council and City Manager issue.  Depending on the municipality, there office of the mayor can often me a semi-ceremonial position.  But that's probably another discussion altogether.  

Anyway, I'd say your beef is with:

Sorry for your experience with this..I've been researching neighborhoods and looking especially close at ones with dilapidated streets, abandoned, burned, vacant houses where I invest OOS and I try to avoid them. I know it's easier for someone who's not living in that state to say this but, those type of streets are really hard to bring back up. I've heard of certain cities where neighbors filed complaints for years, an inspector would issue a violation to the owner who would then request a building permit, seemingly to make repairs to address the issue. However, the issuance of a building permit officially resolves a violation and hardly anything was done. A lot of these owners owe back taxes and while foreclosures are an option on the table, the legal proceedings drag on forever. Investors come in with an overoptimistic mindset and they ruin their investment with no exit strategy. Not saying Birmingham will end up like our 'Motor City' (not talking smack about Detroit either) but, I've seen this in a lot more cities than I thought would have these problems. We can only buy so much..

I have a friend who is a long term renter whose house got bought by Californians, all cash.  The buyers had a property manager who, after the initial year lease was up with the new owners, never returned my friends texts or calls about renewing the lease, and has not said anything about staying in the property.  They continue to pay rent every month and maintain the property themselves, but apparently there is no lease anymore, and whenever they try to get a hold of the property manager, she doesn't reply, so they just take care of the issue themselves.  Like I said, long term renter, been in the house over 20 years and maintains the property just fine, but it's weird to them and to me that the property manager hasn't even bothered to renew the lease or answer their calls.  Lucky that the renters really view the place as theirs and maintain it well, or else that place would go bad without proper management

Right and in all honesty he’s (new mayor) made it clear that he will be making change Which includes cleaning up staff. 

Im definitely not saying it’s a bad area to invest in, but with all of the new things coming to the area and revitalization, these particular investors will miss out. 

Originally posted by @Andrew Johnson :

@Tiffani Crenshaw Well, in fairness, lawns are different that burned houses.  If I flew out, checked in on my investments, and saw that there were a few burned out houses on the street, well, I might tell my PM to send the landscaping guy once a month instead of once every 2 weeks.  I hate to say it but there are just practical implications when it comes to this kind of thing.  What doesn't make sense is how you'd have a city not collect property taxes (I think that's what you're saying) and allow massive urban blight.  There's a good chance that it might not be a mayoral issue, but rather a City Council and City Manager issue.  Depending on the municipality, there office of the mayor can often me a semi-ceremonial position.  But that's probably another discussion altogether.  

Anyway, I'd say your beef is with:

@Tiffani Crenshaw   It pains me to hear about what you are seeing of the care given by some OOS investors.  Have you considered starting your own PM company then contacting these owners and offering them your services?  While I totally get why you'd do what you can to help in these neighborhoods where you also invest, it doesn't seem right that you'd not be paid for your time and energy.  With your own PM Co, you could be fixing a problem both for yourself and others who invest in the same area.  

Definitely from my understanding I have to be a licensed Broker to have a PM company. I’m currently working on my RE license. 

Although I’ve heard that with a CAM(don’t really know what it is) certification I could managed residential properties, but I’m unsure. 

Originally posted by @Karen O. :

@Tiffani Crenshaw  It pains me to hear about what you are seeing of the care given by some OOS investors.  Have you considered starting your own PM company then contacting these owners and offering them your services?  While I totally get why you'd do what you can to help in these neighborhoods where you also invest, it doesn't seem right that you'd not be paid for your time and energy.  With your own PM Co, you could be fixing a problem both for yourself and others who invest in the same area.  

Ahh.  Well best of luck getting that RE License.  And could you mean a CPM (Certified property manager) license?  I think the rules on who must have one may be different in every state.     

Originally posted by @Tiffani Crenshaw :
Definitely from my understanding I have to be a licensed Broker to have a PM company. I’m currently working on my RE license. 

Although I’ve heard that with a CAM(don’t really know what it is) certification I could managed residential properties, but I’m unsure. 

Originally posted by @Karen O.:

@Tiffani Crenshaw  It pains me to hear about what you are seeing of the care given by some OOS investors.  Have you considered starting your own PM company then contacting these owners and offering them your services?  While I totally get why you'd do what you can to help in these neighborhoods where you also invest, it doesn't seem right that you'd not be paid for your time and energy.  With your own PM Co, you could be fixing a problem both for yourself and others who invest in the same area.  

Yes. I may need to open a thread and ask is it possible for me to do the managing without it 

Originally posted by @Karen O. :
Ahh.  Well best of luck getting that RE License.  And could you mean a CPM (Certified property manager) license?  I think the rules on who much have one may be different in every state.     

Originally posted by @Tiffani Crenshaw:
Definitely from my understanding I have to be a licensed Broker to have a PM company. I’m currently working on my RE license. 

Although I’ve heard that with a CAM(don’t really know what it is) certification I could managed residential properties, but I’m unsure. 

Originally posted by @Karen O.:

@Tiffani Crenshaw  It pains me to hear about what you are seeing of the care given by some OOS investors.  Have you considered starting your own PM company then contacting these owners and offering them your services?  While I totally get why you'd do what you can to help in these neighborhoods where you also invest, it doesn't seem right that you'd not be paid for your time and energy.  With your own PM Co, you could be fixing a problem both for yourself and others who invest in the same area.  

@Tiffani Crenshaw ,

I feel your pain, we have 1 owner in our preferred neighborhood, that owns about 15 houses-- all the POS crappy ones that look like no one gives a crap, boarded up windows, trees growing inside/along side of them.. those are his..   people are too prideful to get rid of them, and too lazy to fix them, so it's a draw.  Seriously though ... 1 person, we actually drove by his daughters house, emailed them, called them, etc.. when people are arrogant, nothing gets by them.  It sucks, but it's a waiting game, meanwhile your investments suffer :-(

I agree with @Andrew Johnson , your best option is to get the local government involved.   Find out what violations they have, and let the government be charging the owners to fix it.     Figure out all the local ordinances about grass, have them on speed dial, and report it ASAP.   The more of an annoyance you can be, the more likely they'll get annoyed and sell.  I will say.. dealing with government employees is like dealing with rock.     I tried blasting the entire board for the city, and 1 person responded, which is why the city government is known for being a POS, because the elected are horrible.. different story... nonetheless.   Be the thorn!    If you you don't get a response, add as many people to the emails, and make stuff happen.   You're paying their salary!!

Some cities really get burned by this oos owner neglect and many articles on this exact problem. A bunch of OOS owned properties are almost always a sure sign the wheels are starting to fall off those hoods on average unfortunately. Hopefully they get these close to yours on track beforehand. Many cities are loaded with those oos pockets and create problems like you mentioned and beyond (blight). 

Good luck!

@Tiffani Crenshaw And to add to what @Linda D. is saying, how many people do you think actually show up to a city council meeting?  Ask about the committee meetings?  Ask to make a presentation the city council or the committee?  Did you submit a citizen comment around the the CDBG Action Plan?  Do you organize 10 other property owners in the neighborhood to submit written comments?

https://www.birminghamal.gov/wp-content/uploads/20...

Here's the advantage that you have:  None of the Vegas and California property owners are going to fly out to attend a council meeting to rebut anything you say about the blighted conditions.  Now let's hope your new mayor can keep from (literally) brawling with the city council ;-)

@Tiffani Crenshaw - have you reached out to the investors? Seems like if they are dilapidated they might just sell it to you for super cheap, like a capitulation situation or something.

There is monthly meeting this Monday Homewood  Senior Center with State Senator Jabo Wagnor speaking with about 50 to 100 local real estate investors attending. Its worth joining.

Good Luck JP
 

Alabama Real Estate Investors Association
Monthly Meeting

Next Regular Meeting
Monday October 23 2017–5PM

I will try to make that one!

Originally posted by @John Patton :

There is monthly meeting this Monday Homewood  Senior Center with State Senator Jabo Wagnor speaking with about 50 to 100 local real estate investors attending. Its worth joining.

Good Luck JP
 

Alabama Real Estate Investors Association
Monthly Meeting

Next Regular Meeting
Monday October 23 2017–5PM

Only the ones near me and one didn’t care. The other seems as though the company went out of business. 

Originally posted by @Angelo Wong :

@Tiffani Crenshaw - have you reached out to the investors? Seems like if they are dilapidated they might just sell it to you for super cheap, like a capitulation situation or something.

This post has been removed.

@Tiffani Crenshaw - Sorry to hear about your pain. This is not new, we heard about killing the golden goose. The problem is dream merchants left with their pockets full of money to other markets or business. I have limited sympathy to OOS investors but I certainly feel for the neighborhood.

Many counties are working on stabilizing the neighborhood , work with folks that @Andrew Johnson mentioned.

Good Luck

Vivek