All Forum Posts by: Patricia Steiner

The first thing to do is to protect yourself. As the personal guarantor of the loan, it's your reputation and credit at risk. (Lesson learned here: all "partners" should be guarantors). Call the lender and work it out - the lender doesn't want the property; they just want to be paid. And, engage an attorney for the sole purpose of dissolving the LLC. One letter to the (let's not call him a partner anymore...) 'guy' from an attorney will more than likely have him resurface fairly quickly. And, let's face it: his non-response is a response.

The thing about partnerships is that going in is easy, getting out isn't.  Having a partnership agreement that details everything - the obligation of each partner to how it can be dissolved outside a legal proceeding - are must haves.  For now, protect yourself. Getting an attorney to rattle the guy's cage is well worth the expense with the goal of obtaining his voluntary withdrawal without the buyout of his shares in lieu of his non-performance.

Don't wait any longer...resolve the loan delinquency and cowboy up with the 'guy.'

A technicality first...the tenant always signs the lease first and then the landlord signs last to accept the lease.  This is important because - if you haven't signed the lease nor have they, there is no implied or actual commitment to lease.

I would thank them for advising of their walk-through request and while it is not objectionable, you have moved forward with other interested applicants since they did not sign the lease when presented. As such, you feel an obligation to those other applicants in allowing them to finish their screenings and be considered as tenants.  

There is no Fair Housing issue here as your decision not to hold a property for their continued inspection is not a criteria under the Act.  By letting them know that you've moved forward with other applicants, you're letting them know that it is 'your ball, your court' - and they are not controlling the process.  They may respond by wanting to sign the lease immediately, by accusing you of hiding something, or they may just go away.  My recommendation would be to each time - regardless of their response - to thank them for following-up with you but as you've shared, you are moving foward with tenant selection and will hold their application for consideration.  

I wouldn't be interested in this tenant; it's a power play on their part and one thing I know for sure:

What starts out crazy, ends crazier.

Bolt...

Take a look at this (scroll down to Verification Status failed):  https://www.furnishedfinder.com/knowledgebase/property-owner...

The questions that you've answered under Verification Status do not match what Transunion has on your credit report.  Item 3.36 and 3.37 tell you what to do if the status fails.  I would start there as it may be as simple as clearing the cache.

Best...

Real Estate Investing is about leverage. And, leverage - when done right - increases your potential ROI. Learn more; this is one of many online resources for understanding leverage and it's value: https://www.investopedia.com/articles/mortgages-real-estate/...

Best...

The first thing I would do is to get a concrete gap filler and secure those cracks.  It's sold at Home Depot/Lowes, more.  What you don't want is for water to seep into the cracks and then cause more damage.  I've seen driveways that have had foundation issues as well as sinking and tree root lifting - and none look like those.  To make any kind of claim with the builder, you'll need an inspector to certify that it was installed improperly ("A Concrete Construction Special Inspector is a person qualified to inspect and record the results of concrete construction inspection based on codes and job specifications. The program covers inspection during preplacement, placement, and post-placement operations." End).  The driveway would have been permitted and inspected so maybe ask if that city/county inspector can take a look at it.  It will be a tough case to make but at least you'll have an expert opinion on the cause.  Best...

Google it...there are several sources - like CBRE, CAP Rate Index, Apartment Store - that all track this information and more. And, maybe more important to you in your decision is this: "MF supply will likely outpace renter demand growth in San Antonio in 2023 and beyond." (End). Reasons cited are "weakening of employment fundamentals and continued apartment deliveries."  All those newly constructed apartment complexes have over-supplied the demand.  

Hope this helps...hope you'll plug into some of these resources to help you in vetting your investment strategy.

You deserve more...the Houston market is still realizing year-over-year rent appreciation and is forecasted to continue to do so into 2024 (Source: AAOA).  CBRE predicts cap rates of 6 to 6.2 in 2024.  MF Supply to Demand Ratio is good in Houston whereas the supply exceeds demand in most other markets nationally.  While you're over dealing with the chaos of tenants and labor (totally get it), the fact remains that you built an empire that has significant value.  To sell at 90% of appraised value in your market while providing financing with 10% down - is not the right play for building and preserving wealth. "Investment Groups" are not created equally and one that is interested in a 30 unit package should be prepared to pay valuation and obtain their own financing.  MF foreclosures in Texas are on the rise and there are plenty of lessons to be learned from the foreclosure of 3200 units in Houston from one investment group.  (https://www.linkedin.com/pulse/lessons-learned-from-houston-...)  

As a former wealth banking executive, real estate investor, and broker, I hope you'll pass on that deal. List the offering at appraised value with no offer of seller financing on a MF/Commercial platform like AAOA, LoopNet, others.  Get every dime your empire is worth and solve an even bigger problem: how to reinvest the proceeds for build and preserve wealth. There are a lot of opportunities for doing that within the real estate segment without having to actually own the dirt and deal with tenants that are worth exploring.  

Congrats on what you've achieved...it's a big deal. Time to get the ROI you deserve. Best...

 is only cheating yourself while taking on a risk that is greater than that of tenants:  the lender.  

@Scott Bridgehouse

Unless the lender stipulates differently in their documents (like VA financing that requires owner occupany for the duration of the mortgage), 'owner occupancy' requires that you move in within 60 days and retain it as your primary residence for 12 months.  After 12 full months, the 'life happens' rule applies and you can rent it. 

@Scott Bridgehouse

It's not limited to first time purchasers so you're good to go!  

Define 'massive.'  Concrete cracks...just does.  But it can also indicate a whole host of problems like foundation, poor base installation, settling, and more.  I would be concerned that the driveway is only a year old and is having these issues.  I recommend having it inspected by a third party and getting the ammunition you need to approach the builder from a position of strength.  Here's an article that walks through all the common causes of driveway cracking:  https://www.angi.com/articles/what-causes-concrete-and-aspha...

Hope this helps...