All Forum Posts by: Emilio Ramirez

The mortgage mod program is a joke. The homebuyer credit seemed to be working a little better, but the amount of homeowners underwater is so overwhelming that I don't see this getting better any time soon. As long as people continue to lose jobs foreclosures will continue. At first it was easy to say that the foreclosures were not typically valued properties and they could not be looked at to establish FMV, but they seem to be the norm now and anyone buying or selling retail is buying or selling at a premium. I think there is also a group out there that many have referred to as the shawdow inventory or homes that would be on the market if the owners could get out at a break even price. I think as this economy continues to deteriorate these people are going to become more and more disillusioned and find it easier to just walk away.

I would get an education or you may find yourself with no money or credit. Defining exactly what your goals are will help you to define that education. Read everything you can on here about the subject once you figure it out. Get involved at your local reia and ask lots of questions. Do not look at real estate investment as.merely a purchase transaction. While that is a very exciting part of real estate, it is a very small part of it. Until you can define what the other parts of a real estate investment include, I would do nothing with your cash and credit.

Fellow BP'ers looking for advice on how to move forward with the following deal I found while in Panama.

Hotel/Casino Opportunity in Panama
Just got back from Panama and came across a great opportunity for the savy investor.

Offered for sale is the land and approvals for a Hotel / Casino that consists of a 70-story tower building with offices on the left wing and a hotel on the right wing to be built on 3850 m2, about one acre, of land located in the prestigious neighborhood of Costa del Este. This opportunity to buy a Hotel Project in Costa del Este has many exciting characteristics including its location in Panama City, high economic level of the area and its proximity to the International airport. This would be the first casino to be built in this neighborhood, which is huge!!!

The following approvals are in place and have only happened because of the land owners connections with the government.

1 - Pre-building project approved by the office of Municipal Engineering.
2 - Environmental Impact Assessment permits approved.
3 - Approved by the 12-19-08 IPAT investment law that provides for a property tax exemption for 20 years for up to $ 66 million investment projects, in addition to other tax benefits and incentives, which are derived from this approval.
4 - Plans were approved by IPAT for a full casino hotel casino hotel.

Asking price is $20 million (USD).

I have been able to generate some interest from potential investors, but the seller does not want to release any information through email. The next steps they are asking is for the investor to fly down to Panama for a round table discussion during which, NCND will be signed, compensation negotiated, etc. Basically I'll show you mine if you show me yours. I have never put together a deal like this so looking for any kind of advice you can put forward. Is this typical of a large international transaction? I know that as a REI, I would want to see lots of documentation first that the project is real, prior to flying all the way to Panama. On the other hand, it would seem to be in my best interest to be present in Panama during any negotiations so that I do not lose my interest. What would you recommend for me to protect my interest in this deal? How much should I push the seller to release documentation for investors? I've partnered with a Real Estate Agent in Panama who is my only contact with the project. What kind of contract do we need between each other? I see a million ways this deal could not happen and a million more where I lose my interest in the deal. How can I make it happen and keep my interest?

Thanks,

Emilio

Thanks for all your input. We got a service guy out there right away and found out the refer was shot. Had the refer replaced that same day. We talked it over with the tenant and gave her the $150 credit. We also thanked her for being understanding of our situation. We new exactly how to handle it had we been available. We just weren't properly prepared to leave our properties to someone else's management. Chalk it up to experience. Thanks again.

My wife and I manage our own properties and were out of the country when a tenants refrigerator went out. We had our Dad go check it out and he seemed to think it was running fine. The tenant claims that it was running, but not cooling. We just got back and March 1 rent is due. The tenant is claiming that she talked to her brother (a big landlord in town and her mom) and has stated that they think a fair rent deduction will be $150. She is claiming that she had spent $100 in groceries and had to eat out extra because the refer wasn't working.

We got a spare refer to her this past saturday2-27 and her original request from what I can gather at this point came in around 2-22 through 2-24. My plan is to fully investigate what happened to the extent of my ability and then negotiate something out of next months rent or some other payment. However, if she doesn't pay march 1 rent in full without allowing me to do my investigating I am going to serve her with a 5 day pay or quit which would be her first breach of lease. WI allows two before you can evict. I am ok to work with this person, but what is the right thing to do here. I don't think I am being unreasonable and feel she is trying to take advantage of the situation. At the end of the day $150 doesn't seem like a lot of cash, but it's the principle of it. Any thoughts or comments.

Low income

Studio 450
1 bed 550
2 bed 750

Use a grossing factor of 1.2 for circulation.

Parking is about 375 sf per stall for surface and 440 for underground.

I appreciate the idea of high inflation, but I do not buy for a second that the US has no manufacturing base. Manufacturing in the US represents a 4.5 trillion dollar industry. If you put that up against the GDPs of all the countries in the world it is fourth behind the US, Japan and China. Manufacturing jobs have gone away, but the US has become as productive as ever.

Concerning real estate, buy with cash and hold on.

Thanks for your input gents. I have a couple of friends who are putting in offer after offer in the LA area and not succeeding on purchasing anything. Ultimately I am hoping to develop and am considering approaching them about building a house that I could develop for them. But I don't want to lead them astray. Might be better if I help them find a resale for the best value.

Ralph, when you say,

Used to be you could build for less than buy. Don't think that rule works very well today.

when was Used to be

During the boom 2000-2006 or prior?

We are all aware of the large inventory of already built homes available on the market out there.

But let's say that none of those leftover McMansions or Foreclosed homes suit your needs. Isn't right now the perfect time to build a home. I would imagine that everything involving the process can be had for a discount from design to construction maybe with the exception of permitting.

Pros

Custom home to your design.
Brand new instead of used.
Discounted prices.

Cons

AEC team may not be financially sound.
Ignorant owner could get raked over the coals by low bid contractor.
Subpar quality.
Inability to get a loan.
Maintain separate residence while under construction.

I haven't thought about this alot, but initially it would appear that the only difference between building now and building four years ago would be the discounted prices and potentially the ability to get a loan. But if you have buyers who are qualified to purchase an existing home, they should be qualified as well for a construction loan.

Maybe the discounts to build are not equal to the discounts available through foreclosure? Any comments or insight?

With the qualification that he cannot give me any legal advice until I sign some paperwork and pay a retainer, the lawyer I had contacted confirmed my thinking that the new condo declaration would indeed superceed the existing lease. Sweet! He did mention that there may be clauses in my lease that could effect this outcome, but would need to review my lease to advise. Who knew it was so easy?