All Forum Posts by: Summer Dechanukul

@Summer Dechanukul,

We've all been there, don't be too hard on yourself. Learn from your mistakes; they are our best teacher.f the realtor said this to you, you should reach out their broker and state this. Inform them that you will be issuing a complaint against the agent and broker if we cannot get this resolved.  Should you know of a good attorney, a letter from them to the broker would help a lot.   

Next, don't give up! Get an inspection and a list of things which need to be done and request multiple bids from multiple licensed contractors.

Next, apply for grants to help aid you with this endevour.  The City of Baltimore and the State of Maryland has a grant program setup to help homeowners.  Here you go -

https://dhcd.maryland.gov/Residents/Pages/SpecialLoans.aspx

https://dhcd.baltimorecity.gov/hho/rehabilitation-and-repair...

Take advantage of these grants. They will help with some of the necessary funds needed for you to complete the rehab. In the future, always get an independent third party opinion. 

Wow, I’m really sorry you’re going through all this. I’ve never heard of such a nightmare. This is insane what you’re going through. Unbelievable! And I’ve bought 27 properties myself “as is” with no inspections. Homes built in the 1920’s-1960’s. I’ve never had big issues like this at all so maybe I got lucky. With that said, I’d ride it out and keep it. This building will probably double in value within 10 years and market rent will most likely come way up in the next 3-5 years. You’ll be fine over time and probably won’t need to put much more into it for the next 15-20 years.

 MAKES ZERO sense, NEVER in 10 years doing biz there have I ever heard of a realtor lying about everything, 

 Ok so IMO there are two sides to this story. I find it VERY difficult to believe the agent told you this property needed nothing. But you are telling us al it needs ALL new drywall, and plumbing why ?> All new electric why? I do not want to list all the items you mentioned but heck IMO there is much more to this story. I have never seen an agent, not send photos along with videos of the property, hmmm, Send me the address along with the lock box. I will have one of my guys check it out.  

Hi, this is very unfortunate that this happened but, as an Ohio Realtor, I am very impressed with the replies of positivity from the BP family. Overall, the BP family, gave you great advice. It was very brave of you to invest in real estate that is a HUGE step one in life. SOME people will just talk about investing in real estate and will never complete the task. I really appreciate that people may run into different negative/positive situations, and they are brave enough to reach out for assistance.

Let me inform you that Ohio is a great place to invest in Real estate. At the end, I know you will come out on top. But, a lot of times, things happen to ALL of us as a lesson to learn from that particular experience. We all go through it is called "life." I cannot speak for ALL Realtors but, I can speak for my clients/myself as an Ohio Realtor. It is always good to do your own HOMEWORK that is what I stress to EVERYONE. I do not care if it is Real estate or whatever you are doing in your life.  Goodluck and always keep your head up!

If you have any questions, please feel free to contact me.

Regina Blake-Ohio Realtor

 In a low rent market such as Cleveland ($1700/month rent for 2 units is low rent) the 50% rule is aggressive.  This puts cash flow at $1700 - $850 - $800 = $50/month cash flow.  As indicated in that market I believe 50% rule is aggressive and she will be lucky to get $50/month cash flow.  It will take 600 months at $50/month cash flow to recover $30k.   Even if my numbers are slightly off, the $30k will take many months to re over via cash flow

I am often the contrarian.  She is ill prepared to efficiently deal with the $30k of additional repairs.   In addition, I am unconvinced that $30k has a chance to get this property into a rentable state.  Finally, I am unconvinced that the remaining repairs will produce a return greater than their costs; I suspect the remaining repairs will cost an OOS investor more than they increase the value of the property.

I suggest she sell capping her losses.  A local contractor would be an ideal buyer and could likely complete the repairs far cheaper than the OOS OP.   

It will be unfortunate to have such a significant loss, but I suspect continuing will be frustrating, take time, and is likely to increase the loss.  

Best wishes to the OP.  They can learn a lot from this and be better prepared for their next Investment.  

Sorry to hear this. If this agent is working for you, he's supposed to be looking out for your best interest. He probably said "no inspection" knowing it would kill his deal. At the very least he should be reported to his agency or proper authority. 

 Who is the violation notice from? I would not toss everything and quit.  Try to get the fixes done as cheaply as possible, delay those not critical, and move ahead.  Over time cash flow will come, it just may take a little longer.

my wife just sold a property for one of our new construction buyers.

this client also got talked into buying the property without a home inspection.

so she had to put a new roof on it new Hvac upgrade electrical panel and a plumbing issue.

the agent that sold it to her is known to us and he is a slime ball no question.

bottom line your the client you dictate what you are going to do or not do never let the agent tell you what to do.. 

@Summer Dechanukul if someone can't say they have been deceived by a contractor or someone else in business then they haven't done much business. You are almost there so finish it up and you will know going forward what is new so years can go by before (hopefully) more big ticket repairs. And stop being hard on yourself. Trusting someone shows you are an honest person. Good luck.

Please, stop referring to yourself or actions with terms like stupidity. You made a costly mistake, and any senior investor here saying they have never made one is lying. This is a tough one. What you are describing to get it to code could be way way way beyond what you are expressing here. Iḿ not a fan of losing anything let alone 100k, but sometimes it cant be avoided. You appear to be very young so just having 100k is impressive in itself. If you can stomach losing it, you sound like you will be ok eventually. Its just too many unknown variables for me to lean in on it. However, if all those costs to code makes the property double or triple the ARV, it kind of speaks for itself. You have to seriously assess the actual numbers you are dealing with, then you can create a viable strategy. Another alternative is creating some incentive to bring on an experienced investor and maybe work this stuff over the years to possibly navigate the pain. Good luck. Be proud you took the first step where many afraid to.

Question? You said it was a 2 unit. Is that $1,700 a month for each unit meaning a total of $3,400?