All Forum Posts by: Kay Kim

Looks like they just released another update video.  More delays.  Wagner said they are looking at May for completing the Phase I builds.

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.

@Kay Kim / @Wendy Stclair / @Wim V. - Any interest in getting on a conference call and discussing our options, given that we are in the same boat? 

@Kay Kim, why do you think this would make sense to mix real estate investment with a new real estate brokerage?

Do all of your existing partners want to open this new brokerage? Keep in mind that opens the equity in the properties to judgments from the brokerage. With an active business like a brokerage where you will be supervising a bunch of agents there is more chance of being sued at some point. 

You would want two separate LLC's, limits what each entity can be sued for. Easier to keep track of everything by keeping separate also. Every Investor I know and the large multifamily acquisition firm I worked for put each property into a separate LLC. Since I'm not a tax expert, there may be some loophole that makes the Single LLC more viable but that is a question for a CPA. Let us know what you figure out, good luck!

@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.