Real Estate Agent · Boise, ID · Member since 2022 · 46 posts · 16 votes
Hello, My fiancé and I are about to wire down payment to invest for 3/2 SFR in Ocala, FL. It's a new construction building which will be finished building in Sep/Oct 2022. However, B2RDirect hasn't been provide any of pictures of real buildings yet. They only shared a master plan and pro foma with us. We were skeptical at first but then it is backed and recommended by senior counselor at NORADA company ( if anyone knows about Marco Santarelli). After I have read a bad review about this company on BiggerPockets forum, we are hesitant to move forward. We would like to hear from REI experts who have any experience with this company. Help, please~ We'd appreciate it. thanks.
Investor · Ocala, FL · Member since 2016 · 299 posts · 110 votes
4y
Can you send the money to escrow instead of to the builder? Stories abound of people under contract (with numerous companies) to build homes and when they are about to close, the builder hits them with a huge price increase and it's take it or they sell to someone else for a lot more money. I live in Ocala and have never heard of this company, but that doesn't mean anything since I prefer to buy already built properties and rehab them. I like a known amount up front, not a constantly changing price tag.
According to Marion County Clerk of Court's site - they have 4 NOC's all with Elite Building, Inc. dated 6/22 or 6/23/2021 (and with what I assume are the buyers) and Elite is listed as the building contractor on all the NOC's. You may want to contact Elite directly and cut out the middleman.
We reserved a Palm Bay home in the middle of 2019. The initial delivery was Nov of 2019. There was never an update unless I asked. Delay after delay until Dec 2020 one of Wagner's workers asked us to cancel the contract since the builder has not started construction. He said we will have a new builder in Palm Bay and they will build real fast.
I checked the address in April of 2021 and I see the home is completed and pending for 50K over my contract price. The builder didn't want to honor the contract and waited for us to cancel so they can sell at market. Lucky me.
Hi Henry, Thanks for sharing. I am so sorry for the bad experience you had with B2Rdirect. Looks like we are heading toward to the simular situation as you had. We are thinking about asking them to honor the contract and lock in price since they are defaulting the contract by delaying closing date. If they would then, we will have them sign on new addendum on our term. Maybe worth to try?
Milwaukee, WI · Member since 2020 · 38 posts · 13 votes
3y
I received an update from Tai on Bennah Oaks this week when I asked about construction costs, etc.
"As of now the builder is keeping the price of the property as it is. We are not aware of any price increase so far. We will inform you in advance if there are any changes."
@Kay Kim - Any updates on your property? I booked two properties in Ocklawaha (being constructed by Elite Builders) via B2RDirect back in Sept 2021. Neither of the properties is ready yet. I've received new deadlines after deadlines from Wagner and the team. The latest timeline given to me for one of the properties is Mar 2023, but the other property has not even broken ground yet. In 15 months since I booked the property, Wagner has provided me with an exterior photo of just the first property, and I probably wouldn't even have known that there is no progress made on the other property if I had not visited the site myself recently. The work on the house that was under construction was stalled. I was told by Wagner that the builder is trying to refinance the construction loan as the cost of construction has increased. I am evaluating my options at this point. Let me know if you are willing to have a direct conversation and sync up.
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
This sounds like a complete mess. They probably oversold before Covid, and asked people to cancel cause prices rallied on the back end. Now they probably oversold after Covid, and are asking people to pony up more because prices are crashing on them on the back end and materials are stagnating in price.
hey Kay Kim , I live in Ocala if u give me the address I can look at it and take a pic and send it to you,,
Hello Elson,
I am so sorry about the late response. Thanks for the kind offer. We have been getting monthly updates from Norlasco lately. Looks like nothing hasn't been gone up vertically yet. I thank you again for the kind offer. I appreciate. Maybe we can keep in touch for the future positive event? ^^
This sounds like a complete mess. They probably oversold before Covid, and asked people to cancel cause prices rallied on the back end. Now they probably oversold after Covid, and are asking people to pony up more because prices are crashing on them on the back end and materials are stagnating in price.
@V.G Jason, Maybe your speculation is right. who knows really what's going on, yes, it is a complete disaster at this point. I foresee more delays due to the recent hurricane, increased construction prices, etc. I do not know what to do at this point. Just wait and see?
@Kay Kim - Any updates on your property? I booked two properties in Ocklawaha (being constructed by Elite Builders) via B2RDirect back in Sept 2021. Neither of the properties is ready yet. I've received new deadlines after deadlines from Wagner and the team. The latest timeline given to me for one of the properties is Mar 2023, but the other property has not even broken ground yet. In 15 months since I booked the property, Wagner has provided me with an exterior photo of just the first property, and I probably wouldn't even have known that there is no progress made on the other property if I had not visited the site myself recently. The work on the house that was under construction was stalled. I was told by Wagner that the builder is trying to refinance the construction loan as the cost of construction has increased. I am evaluating my options at this point. Let me know if you are willing to have a direct conversation and sync up.
@Shriraj Shah, sad to hear that there's another victim like me. I don't know what to do at this point. If I back out of the contract, I will lose my deposit. Should I just wait another 6 months or so? I foresee that there will be more delays due to the recent hurricane, increased construction prices, etc.
Investor · Long Beach, CA · Member since 2019 · 42 posts · 63 votes
3y
So my patience is wearing THIN on the Bennah Oaks Ocala project. It sounds like there are several of us here with homes with Wagner Nolasco and Build 2 Rent direct. They have had our 20% down money in escrow for over 1 year and the project has NOT YET GONE VERTICAL. The December update stated they are now shooting for April 2023 delivery and I have ZERO confidence in this. I just did a quick peek online and saw the Palm Bay Nathi Townhomes project of his may not even be done yet and yet these were slated for July 2022 and were 80% complete when i visited in June 2022. Something is seriously wrong here the supply chain issues I thought were cleared up here. Anyone have any insight or thoughts? I belive it is indeed too late to back out of these contracts.
In the same boat here. Signed up for Bennah Oaks thru Norada in Oct 2021. Delay after delay as everyone mentions here. His recent monthly updates are not much of an added value in my opinion. It feels like a 'band aid' to keep their customers from revolting. Nolasco told me that he was told by the builder that the 'final' price can only be determined when 'verticalization' starts. I recently talked to another builder here in the Houston area, and they told me that they have locked in their materials long time ago when their project started, and that they didn't need to add the 'increased cost' clause in their purchase contracts. I do understand that construction - especially in these difficult supply times - can be delayed but my gut feeling tells me something else is going on here. Solvability of the builder? I don't know. If they would increase final price, and taking into account higher interest rates, the rents need to be much higher than initially thought to cashflow. Add to this that there are 400+ houses coming on the rental market in Bennah Oaks in a short period, and we will all be competing against each other to get a tenant in. So better be prepared for another year at least with negative cashflow. Now that I am losing confidence in B2R, I am also concerned about the property management service that they are offering. Anxious to see how this all will play out.
In the same boat here. Signed up for Bennah Oaks thru Norada in Oct 2021. Delay after delay as everyone mentions here. His recent monthly updates are not much of an added value in my opinion. It feels like a 'band aid' to keep their customers from revolting. Nolasco told me that he was told by the builder that the 'final' price can only be determined when 'verticalization' starts. I recently talked to another builder here in the Houston area, and they told me that they have locked in their materials long time ago when their project started, and that they didn't need to add the 'increased cost' clause in their purchase contracts. I do understand that construction - especially in these difficult supply times - can be delayed but my gut feeling tells me something else is going on here. Solvability of the builder? I don't know. If they would increase final price, and taking into account higher interest rates, the rents need to be much higher than initially thought to cashflow. Add to this that there are 400+ houses coming on the rental market in Bennah Oaks in a short period, and we will all be competing against each other to get a tenant in. So better be prepared for another year at least with negative cashflow. Now that I am losing confidence in B2R, I am also concerned about the property management service that they are offering. Anxious to see how this all will play out.
@Wim V., It looks like there will be other delays, and the final cost will be much higher. Try to be positive and understanding since there were lots of factors that led to delays. However, my patience is running low. We purchased another new build SFH in Cape Coral, FL, which also looks unpromising. I feel like we are stuck. Me too; I am concerned about their property management team as well.
Real Estate Agent · San Mateo, CA · Member since 2017 · 20 posts · 3 votes
3y
Just curious if anybody created What's Up chat for this topic?
Just got another update from Wagner on Nathi townhomes and its just a lot of talk, but I don't see any progress. I also looked through the monthly letters that he's sending with the updates and they are basically the same (March & Feb are identical). I heard that this builder is in trouble on another project as well...This worries me.
Just curious if anybody created What's Up chat for this topic?
Just got another update from Wagner on Nathi townhomes and its just a lot of talk, but I don't see any progress. I also looked through the monthly letters that he's sending with the updates and they are basically the same (March & Feb are identical). I heard that this builder is in trouble on another project as well...This worries me.
What other project have you heard the builder is struggling with? This is my first and last experience with Wagner Nolasco and his group. Not impressed at all. Other builders in FL seem to be navigating and completing projects.
Investor · San Francisco CA, USA (SFO) · Member since 2023 · 4 posts · 4 votes
3y
I invested in the Nathi Townhomes in Palm Bay. We (Nathi Townhome buyers) are in the same boat. Our money has been tied up in this deal for almost 2 years. Several of us are now contemplating hiring an attorney.