All Forum Posts by: Neal Coppola

Jamal,

Welcome to the forums and to real estate investing.  As with anything, you will find what you seek.  I say that as it applies to RTR as well.  Within the BP community you will find a number of ringing endorsements, success stories, and numerous 5 star reviews.  As with anything that seems too good to be true on the surface, it usually is. Dig deeper and you will find that RTR orchestrated new builds for clients in Cape Coral with a builder who was unable to perform.  RTR severed ties with the builder and never relayed this on to their investors, who ultimately were left holding the bag.  There are hundreds of people who have lost in excess of $100k per property, have builds that are incomplete after 2+ years (yes, years), lost life savings, etc.  Somehow throughout all of this, RTR is unscathed.  They still have a 5 star rating on BP (weird, huh?), they have somehow not had a class action law suit filed against them, and are still deploying the same "look at all of these happy customer" tactics in the forums.  

As I'm sure you can tell, I got burned.  However I consider myself wildly lucky.  I saw the writing on the wall and got out before my building permit was approved (albeit 2 years in) and only lost $20k.  

I'll wrap up by putting it into context for you.  I am a career automotive dealer manager (not the most respected profession) and RTR makes me feel dirty.  

As an investor who had been engaged with Rent to Retirement and Delta Build Services for a new build in Cape Coral, I'll share my experience with the hope to add perspective.

I, like many, found Rent to Retirement through Bigger Pockets and as one that sees Bigger Pockets as a reputable company proceeded with reaching out regarding the opportunities that were being offered.  My due diligence on RTR found nothing but positive feedback, an engaged owner, and satisfied investors, mostly here on BP.  The opportunity that was presented was that of a new build, 4 bedroom/2 bathroom single family home to be completed at the time in a 12-18 month time period and at a cost much below market value and at current rates (at the time) would have significant cash flow.  So, to answer some questions - Why RTR?  They provided investors such as myself with an opportunity to own a property at below market value and if I chose to keep it as a LTR, with significant cash flow.  Why Cape Coral?  Frankly it was the location in which the above was presented as being possible.

Moving on to my experience.  From the beginning, most interactions were positive, however being in sales, I always felt like there was a snake in the grass.  I was introduced to a lender, an agent to find the land, and a builder, in this case Delta Build Services. I paid cash for the lot and signed a build contract.  After over a year, I had yet to have an approved building permit and very long story short, hired an attorney to get me out of the build contract.  I have since sold the land.  I consider myself fortunate as all in I only lost $20k.

I applaud Adam Bartomeo (as well as other local agents) as he has provided invaluable timely local market insights and information, both here on the BP forums as well as responded to questions presented to him privately.  

What I am unable to wrap my head around, and Robert you touched on this, is how do companies such as Rent to Retirement, Delta Build Services, and others come out of these situations with their reputations intact/not be in a class action law suit, etc?  RTR continues to have a 5 star rating on BP and is touted throughout the platform.  Ironically there is a sponsored at for RTR within this thread. 

All in all, I learned many very valuable lessons and hope that other investors that are involved in these unfinished builds are able to get to a point where they can put this experience behind them.  All my best. 

Whether you sign a legal "prenup" document or not, when you get married you agree to either the prenup or the laws in the state where you get divorced...

 What's the good word?

There are a number of threads here that if you read between the lines you'll find the answer that you're looking for.  As for my personal experience, at one point I was under contract for them to build a house for my portfolio as a LTR.  I was one of the fortunate ones that was able to get out of the contract and after all expenses (forfeited deposit, legal fees, holding costs, etc) lost less than $20k.  

 Jason - 

The reason I own a parcel is because my initial intent was to build a single family LTR and unfortunately I signed a build contract with a builder that I relied on a turnkey provider to vet.  After 18 months I still didn't have a building permit and decided to cut ties with the builder and forfeit my deposit.  While this decision cost me some money, based on others experiences expressed here on BP with this and other builders, I have no regrets.   At this point in time while I appreciate your recommendation to build,  I have no interest in continuing to be invested in Cape Coral and was simply inquiring about local retail market conditions. 

Jason - Thank you for the insight. I ask because it has been listed on the MLS for over a year with two different realtors and I'm coming up on the end of my listing agreement with the second realtor and I'm trying to decide how to proceed. It is currently the lowest priced waterfront lot in NW Cape and has been for some time.

Then the question is, if Cape Coral is a very hot market, why am I unable to sell the lot?

Long story short, I have a water front piece of land in NW Cape Coral that I have been trying to sell for nearly a year without success.  Being an out of state owner, I don't know the dynamics of the market.  Have things come to that much of a halt?  Is land still trading?  Any local input would be appreciated.

 Two life lessons that I've taken to heart:

"If not now, when?"

"What is the worst thing that could happen?"

Respectfully, you're asking a real estate community if it's a good idea to invest in real estate.  That answer in this community will always be "yes".  Ask a naysayer and that answer will always be "no".  Ask yourself the two questions above and you will come to the conclusion that is best for YOU.

 Don -

You've got quite the fan base here on Bigger Pockets all wishing that you have a positive outcome.  Having said that, any updates that you can share?  We're all rooting for you!!!