All Forum Posts by: Matthew Raby

 I wasn't asking legal advice per se. More of if anyone has ran into a similar situation. I have tried contacting AirBnB to get the listing removed. Because I am not the "Host" they will not remove the listing even though I am legally and on county records as the owner. Yes I setup a GoFundMe page because maybe others have ran into similar situations and I haven't done much (this was my first project) and I am getting very tight on money. So yes I am looking for a little help. You don't have to donate but there is nothing wrong with me asking. 

I do have an attorney and was referred to him by a few different people. Things are going but it is going very slowly and with the Original CFD party is a pastor of a church he is having random members of the church squatting. Basically different people each night. This is also causing safety issues with the new tenant.

I directly spoke to my attorney before signing a new lease with the Tenants that have been living there since the beginning of the year.

 The property is in Arkansas. I do have an attorney involved but with all of the past due payments and attorney fees it is putting a strain on me as we haven't been doing real estate for a long time. 

1. When we sold it we sold it for $6000 under appraised value.
2. Only got $5000 down because the property was on the market for 120 days and the Hard Money costs were eating me alive and I tried selling it normally and they were the only ones really interested in the property (it was a good rehab but everyone had an issue with the steep driveway).
3. I have a DSCR loan with the property. I have some equity in the property. But I am still in the prepayment penalty if I were to be able to sell the property.

I am also trying to get family and friends to donate. I am working with an attorney to try and get them removed from the property as they (the original CFD party) are currently squatting in the basement. The eviction has been filed but have to find them to serve them. Because the last few nights the original CFD party has been having church members squat and no one seem to know where they are to get served the eviction paperwork. The main part is under a new lease with the ones that have been living in the property since January through the AirBnB rental. Luckily this lease agreement was in place because the others tried to get the police to evict remove them from the property. But there are a few thousands of dollars worth of damage that the Original CFD party has done to the property.

Hey BP community,

I’m currently in the middle of a serious situation with a seller-financed deal gone completely sideways. The buyers stopped paying, secretly turned the property into an Airbnb without my knowledge, and eventually defaulted — leaving me with a huge unpaid balance, property damage, and a legal mess trying to remove them.

Even worse, the family renting the home through Airbnb was completely unaware and now caught in the middle. I’ve signed a legal lease with them to protect their housing, but I’m still stuck pursuing the original buyers for breach of contract, trespassing, and damages.

At this point:

• I’ve paid a $5,000 legal retainer

• The buyers owe over $18,000 in missed payments

• Damages include a kicked-in door, scratched interior doors from pets, damaged siding, and HVAC tampering

• And now they’ve taken up “residency” in the basement when the original buyers tried to call the cops on the ones living in the property due to not receiving payments from AirBnB anymore (because they are paying me directly). So they are squatting in the basement even though they have never lived there.

I’m moving forward with legal action, but I’m sharing here to ask:

• Has anyone dealt with something similar under a Contract for Deed?

• Any advice on how to frame damages and enforce against unauthorized occupancy?

• How did your legal process play out if you couldn’t recover funds from the other party?

Appreciate any insight or support from those who’ve been through a similar nightmare.

Thanks,

Matthew

 Did you ever find out about them? I have come across them multiple of times but I am weary of any company. Get taken advantage of once and every company no matter how legit they seem I don't work with them unless I can do my own research to vet them out. With people I actually know.

 Yes I am trying to build a large enough rental portfolio for the residual income. But I know sometimes I may need to sell to get a larger lump sum up front to help with lack of any other income currently. 

I am using HML now but it is hard to do a Full BRRRR because at least with the last one I still left $14,000 into the property plus since I tried selling first I had $10,000 in holding costs over the 6 months it took in rehab and 3 months of it sitting unsold on the market until I decided to rent it. I was looking to flip a few properties first in order to build up a little stack of reserves before starting to purchase for rentals. The one I close on this week the numbers don't make sense to keep as a rental. But hopefully it sells quick this time around.

As far as Owner Finance, I have tried a few times but not sure if I am structuring it correctly. I have talked to my HML for the property owner to do a 24-36 month Owner Finance for the 20% down to allow me to qualify for a DSCR on a turnkey small multi-family. But the owners want the money now and not have to wait or they would rather keep the rental property because they would bring in more than what my payments to them would bring.

I am looking for suggestions, if any available. I am trying to find ways to raise capital to scale my real estate business. First and foremost I have tried the typical solution of friends and family. I come from a poor upbringing and don't really have family members that have any money. And being introverted I don't have a lot of friends. Part of the reason I threw myself into work and used to work 60-80 hours per week until I was let go last year when a new Upper Management came on board and started replacing managers with personnel from his previous employer. I had enough in savings to start my journey in Real Estate. I have done decent this year but waiting to sell takes a lot of time. 

So my other options were to use my good credit but of course all of the loans want to use my personal credit and impact my debt-to-income. I have used a HELOC from one of my rental properties and I just refinaced a house that didn't sell after I got it rented out. I pulled some money to go towards my next deal. I am under contract for purchase of my next project but then I am stuck on that deal and not able to take down another deal without more capital. The deal I just refinanced at a 75% LTV (DSCR Loan).

So again the reason why I am here is looking for suggestions or help on how to raise capital to scale. I am very weary of online places because it is very hard to vet out a company. For far too long it was too easy for these places to pay for reviews, have employees rave about a company, etc. 

TIA for any help!

I haven't used them yet. I came here looking for answers as well. @Marc Shin have you tried using them yet? Any hurdles or was it fairly straight forward?

 Are you talking about https://www.cfri.net/? (I haven't joined yet) I have went to 1 of the bigger ones in Orlando but the primary was a guest speaker about his seminar. I am not at that stage yet to spend $1000 + travel expenses for a seminar/workshop. 

I did go to one of the meetings in Melbourne as well. I am technically a little East of Orlando in Titusville area, Brevard County. I do come to Orlando a couple times a month with a BiggerPockets meetup and another social meetup. 

The property in Arkansas is a 2 story 2195sqft on 0.92 acres 3bd 2.5ba. In a little higher end neighborhood. Has a great view off the back deck over looking the city.