All Forum Posts by: Kimberly Jones

Does that include flood insurance?

Does the property need rehab?

If it is the one on Copernicus then I can tell you why it has likely been on the market so long. It looks to me like the current owner is in trouble because they are selling for less than they paid not quite 4 years ago. I am guessing they are just trying to get the lender paid so they can walk. In other words, there just isn't any room to be able to entertain low offers.

I don't buy on the Westbank either but I have sold a good number of REOs down there. I don't know values like I do on this side of the river BUT I do know properties are hard to move in certain areas of the WB. I can fully understand this one being on the market 6 months. I have seen some kick *** deals sit so long I almost took them on myself, but I just don't have any desire to cross that bridge, no matter how good the deal is.

@David Dey Keep in mind there is a little distance between negotiating an agreement and the official release of lien. Often you can work a deal with the city and you will be given a certain amount of time to bring the property into compliance but the liens will not be released until the work is done and the city is satisfied.

I am about 99% sure Polk County will negotiate because I do happen to know an investor that has done it. I say 99% because I have seen it done, but I have to leave that 1% open because I am not sure everyone can pull it off. Sometimes it's about who you know ;)

I also know for a fact that there are some places that there is no negotiating as much as a dime off, namely Jersey. I have seen some highly connected individuals get slapped down in Townships up there. 

I am pretty sure your chances of being able to negotiate are directly related to the amount of vacant/abandoned/blighted properties within that City/County/Parish/Township. If the coffers are full and values are strong your chances may be slim, if there are high numbers of properties not bringing any money in they will most often take what they can get just to bring the property back into paying status because the vast majority of properties that rack up large Code Enforcement liens also have past due taxes.

Birdsong is an awesome Attorney, but he is also a very busy one. If you can't get in with him in a desired amount of time the next best thing is Stella at Winters Title in Metairie. 

Stella Charles

OFFICE – 504.454.2102
FAX – 504.885.3574
I would do email but I think email links are not allowed in posts.

Two caveat's before I speak. I have not played this game in Polk County FL so the things that work for me here in New Orleans may not work everywhere. Also, the verbiage of the Note could have a strong affect on the method. 

The reason that Cities place code enforcement liens on properties is not to try and rack up huge amounts of money to collect, it is to try to get the owners of properties to do something about the blight. Normally, if you are willing to correct the problems, the City  will work with you on the liens. Since the demo order is the end result of the owner not curing the blight, it would be postponed when the liens are negotiated. I have seen with my own eyes a demo being halted while the backhoe was sitting out front. The City really would rather see properties fixed before they knock them down because they could ultimately become the owner of the property and even they know a bare lot isn't likely to cover their bill.

I have done deals like this in New Orleans so I happen to know for a fact that the City will work with me on the liens and I also know what they will knock off and what they won't. If I were not experienced, I would confer with someone who is before I moved forward.

From there I would buy the Note. I would not be concerned with the foreclosure process because Note holders are within their rights to remediate any conditions that cause these types of liens and the cost of remediation is added to the amount owed on the mortgage. If the borrower happens to come back to reclaim the property during the foreclosure process, they would also have to pay any costs I have incurred. I would then go to the City as the Note holder and present them with whatever documents they require (usually a clear plan for remediation).

Once I have the deal worked out with the City I would do the work and then I would rent the property out. In the meantime I would either keep the foreclosure moving forward or I would get a deed in lieu, either way I know my position is good. If the DOT comes knocking then I am sure their offer will be much better for a property that is in good condition AND bringing in income than it would be for a piece of crap that is scheduled for demo OR a bare lot. Even if I have not obtained actual ownership of the property if/when the DOT comes into the picture, I am still good because I have my position as the primary lien holder with my rehab cost and any amount I did have to pay towards the City liens covered within my lien. I have paid pennies on the dollar for the lien that I hold and I have also utilized the property for income.

Transitional neighborhoods.....the best way I can answer that is to say that the entire city is going through change at this point. Gentrification is the #1 hot topic these days, up there with AirB&B. 

I have been focusing on properties in the upper 9th ward, St Claude being my favorite. Two years ago I swore I would not buy in St Roch but today I do. New Marigny as well. There is a lot of activity going on down in Holy Cross but I am still afraid to venture into the lower 9th ward because I am not confident in the flood protection there. Mid City is going through swift change with the new Medical Center and parts of Uptown (which includes Broadmoor) are seeing a lot of activity. 

It is actually easier to tell you the parts to stay out of. Don't go to Hollygrove or Gert Town. Central City scares the crap out of me but I hear that the bad is slowly but surely being squeezed out. New Orleans East is kind of tricky.

The question is, are you going to be looking for something that your Son can move into or are you going to try to pick up a rehab? What price range are you thinking?

I would definitely go for at least 2 units. The good thing about New Orleans is that doubles are in abundance. 

New Orleans is seeing good times these days. Values are going up steadily and there are rehabs going on everywhere you look. 

@Mark Bensadon I expect hemp is lagging only because marijuana has more supporters pushing for legalization. 

Marijuana does compromise quite a few other big money industries. Alcohol comes to mind first, the Prison Industry will loose  tons of money, Pharmaceuticals will take a big hit as well (but they will at least have a place in the game). 

The simple fact is people are starting to figure out that "Refer Madness" has always been a lie. By now I am pretty sure everybody knows somebody that smokes marijuana and it is obvious that those who do smoke are not quite the crazed junkie maniacs that we were led to believe they were. Slowly but surely, "hippies and pot heads" were able to come out of the closet. These days, I understand marijuana is quickly becoming as accepted as having a glass of wine. 

On a medicinal level, if you follow the movement close enough, you will see that marijuana has blossomed into a miracle plant that literally cures just about anything that ails humans. People of all ages have been cured of cancer, epilepsy, and a host of other diseases. As one person within a family/social structure is cured, many within that group become supporters. 

So, we have social and medical users pushing for marijuana in huge numbers. Not nearly as many are currently concerning themselves with the environmental impacts, but one cannot go without the other. In the end both marijuana and hemp will have their day again. The genie really has been let out of the bottle and it cannot be put back in, no matter how hard they try. 

Some folks are going to hit the jackpot in this industry, guaranteed. 

I am also following this industry rather closely. I know for a fact, some people are going to make a whole bunch of money but it is going to take big balls to be the ones who make it big. 

Since the topic of growing on Native American lands has come up a few times I thought I would share this. Read it myself just this morning. 

http://www.usnews.com/news/articles/2015/10/26/dea...