All Forum Posts by: Anna L.

I can relate on all of the above! Happy to discuss more over DM, if you need someone to compare notes with. I think we're in parallel positions. Their management and practices have gotten shady AF over the last year-ish.

Very interested in an update here! We closed around the same time last year and went on to use OC PM. 

 Looking forward to reading that thread! Update us here when you've posted. :)

I would like to clarify for anyone researching this firm or reading the grievances of current OCPM clients (myself included): 

At the time of my property purchase and contract entry with OCPM (August 2019), they had great reviews and feedback, according to my research and conversations with peers. Due diligence was done to the best of my ability, however I am new to RE, and must attribute some of this pain to the learning curve + inevitable mistakes made based in simple inexperience. However, coincidentally, at the time of my purchase, OCPM seemed to have significant internal disruptions (turn-over, etc), that not only created issues, but also revealed major foundational cracks in their admin and internal systems, for which they no longer had the manpower to slap bandaids on as they arose. A slippery slope that picked up speed and is now spinning 100% out of control with the MO shelter orders, which are crippling their ability to handle anything remotely, including owner payments. That fact is wildly unacceptable to me. 

I suppose all of that is to say- thanks for the advice, feedback, and suggestions. While we may be learning a hard lesson in PM vetting, I do believe that many suffering at OCPM's hands are also victims of timing and deceptive business practices designed to mislead us newbies- starting with the lack of communication. So hopefully offering some solidarity here for those also in this nightmare.

Another point of clarification: these frustrations do not trickle down to Rent To Retirement, where I purchased the property. No issues there. Zach is very helpful.

@Juliano Silva

The nightmare continues. Currently Kansas City Housing Authority is 3 months behind on assisted rent payment. This is not directly Only Choice’s fault, but I do not feel that they have been an advocate for me in this period and they certainly are not providing updates without me having to ask for them.

They’ve now been financially settled with KCHA for several weeks and still have not distributed the funds to owners (even though I was specifically assured on a phone call that they would push them out immediately), meanwhile we have been personally floating mortgage payments.

The most recently cited justification is that they are having to play admin catch-up due to “shelter in place” orders requiring them to work from home. Personally I believe they should have better systems in place to deal with administrative curve balls, and I’ve expressed this to them many times. They seem to be operating in the dark ages.

Now, once I do finally receive the funds, I face the dreaded task of reviewing their very poorly designed owner statements to see if their accounting is correct, as it has been so very wrong (in their favor) more often than right in the past. Maybe I should be getting the management commission? Ha... :/

Nightmare.

@Lee Ripma Understood! I'm self-employed so I definitely appreciate leveraging one's own value. The reason I'm relating owning and investing in real estate so closely is solely for the purpose of primary residence cost breaks, such as FHA loan DPs and lower interest rates. It's all in the interest of making that foot in the door more affordable. Otherwise, I totally understand where you're coming from. Thanks!

@Nabil Suleiman Thanks so much for expanding on that! Very helpful. That’s helps me to wrap my head around what those relationships might entail. This is great. I guess next step is to go to meetings and just start feeling out the local investing community. I’m just starting to scratch the surface of how this works so I really appreciate your patient, thorough answers.

@Joe Timko Makes sense! Things like seller credit are the type of ideas I’m looking to learn about so thanks for mentioning that! I imagine it took upwards of $30k total upfront cost to relocate, rehab, and cover mortgage/rent at her previous place (unless she lived with you)? That’s where I keep getting stuck. But that’s awesome that you were able to make that work!

How did you approach the seller about the credit deal? Were they already motivated to unload it? I know that a low paying tenant in rent control can make it hard to sell. I would be totally happy to pay $1500 after deducting existing rents but it seems like props with existing tenants only get you close to $2000-2500/mo out of pocket at best with how high the mortgage would be on a 3.5 FHA loan... just thinking out loud now. Thanks for your input!

@Nabil Suleiman I appreciate your time to contribute your thoughts! Can you unpack a little more what you mean by providing value to the investor? What does that look like? I’m afraid I don’t have any knowledge of value to contribute. The only benefit I can offer is possibly a better interest rate, being that as the loan applicant, I’m also a resident of the property. Wasn’t sure if those types of partnerships exist, or if that is just not valuable to anyone with cash to invest.

Ultimately my goal is home ownership, by way of owner/investor property (to help offset my own mortgage). Just need start up cash for DP and to float the mortgage until a tenant is placed. I don’t think I can get approved for the full loan amount on my own, and most lenders only factor in 75% of market rates toward buying power for loan approval.

I will look into going to local meetups however and hope for some valuable interactions with people in my market!

The classic "you must have money to make money" dilemma.

LA being a renters market, there's no reason I can't get great return on renting out additional units (long or short term). Since I'm local, I also have the benefit of primary residence financing options on my side. However due to purchase prices being so incredibly inflated, the barrier to entry for multi-unit STARTS at $30-50k even with the lowest FHA loan downpayment.

I'm aware that this may be a novice inquiry, but are there any work-arounds I can consider? Personal loans from family are not an option. Would my situation appeal to any investors/partners since I'd be a primary resident? I've been educating myself on investing for the last year, but you don't know what you don't know! Am I totally out of luck in this market?

I have amazing credit! I am self-employed, but have been for 7 years and annual income is modest but consistent. I work from home, so I have the ability to manage the property to a degree. I also own one inexpensive rental property out of state as of 2019. I want to let that equity build, but maybe there's a creative way to leverage that asset?

TIA for your insight! (And for your patience with this newbie.)