All Forum Posts by: Vonetta Booker

In getting ready to purchase my first buy & hold, I've begun interviewing property managers...well, I've been trying to, anyway.  I researched about 7 local companies so far, called them & left messages a few days ago--and so far, only one has called back. (With that one, we played phone tag a couple of times...and then I didn't hear from him anymore, which was a little disappointing because I really liked their website & what they seemed to be about.)

In any case, I'm not seeing this as a good look for the PMs right off the bat.  I figure if they're not calling back now, how will they perform once I actually sign on with them?  Although I thought getting a PM would help relieve some of the stress of a buy/hold, I hear so many horror stories--so now, I'm not so sure.  If I'm going to be frustrated, I certainly don't want to pay extra for it, lol.

Should I just give up the PM search and consider/learn about managing on my own? (Perhaps have a handyman on call for repairs, but that's it...)

Everyone's advice is much appreciated!  @Derek Faller , I think a price renegotiation is a definite possibility!

An update:  The listing agent came back w/ a counteroffer from the bank: They suggested that I take care of testing, and if anything comes back contaminated, they'll handle remediation. (Not for nothing, I'm wondering in that case why they wouldn't just go ahead and also pay for the testing--which is the easy part!)

Although I'm considering it because it would be a good deal, I'm still a bit wary.  When I called some tank removal companies for rates, I was told that samples taken from alongside the tank would only result in about 75% accuracy.  If that's true, then I wouldn't want to leave anything to chance; I'd want to go the more "accurate" route they suggested & get soil from directly underneath the tank (they'd have to pull it up in this case--along w/ the deck that's positioned over it.)  Since the property would still be in the bank's possession, I'm currently waiting for verification that it would be okay w/ them to rip up the deck.  If they insist on just side soil samples, then I wouldn't feel comfortable w/ just that.

So, that's where we're at right now.  Part of me is like, "Scared money don't make none!" but the other part is like, "Is this really worth it?" LOL.  Does the bank's counteroffer seem a little strange, or is it normal? 

(Thanks for reading through the long-windedness... ;-)

@Ray Martzloff , funny you should post this question, because I just posted a thread about a previously unknown/undisclosed underground oil tank that was found this morning during my formal inspection on an REO I have under contract. (See "Underground Oil Tank!" in the REO forums.)

Although I had an inspection contingency (this would be my first rehab), I almost "cheaped out" and went only with what my contractor & I saw during our earlier walkthrough--trying to save some $$, lol.  My private lender, however, stated he'd feel more comfortable lending w/ a formal inspection, so I went with it.  Lo & behold, there was evidence of a buried oil tank on the side of the house, hidden underneath the deck & porch lattices.  Had I not gone w/ the formal inspection, it would have totally been missed & I would have been screwed! 

Lesson learned--it's a lot easier to go ahead & pay that $3-500 for an inspection now, rather than a potential $10k+ if, God forbid, you unwittingly purchase an overlooked major problem.  Whew!

I have seen some REO listings where they've been upfront about a buried tank...but I guess one has to definitely do their own due diligence & not assume it doesn't exist simply because it wasn't disclosed!

…and so the fun begins. :-/

I just had a formal inspection done today on what's supposed to be my first rehab, a Fannie Mae REO.Lo & behold, the inspector found evidence of a buried oil tank underneath the deck (the only indication was the short pipe sticking out of the ground).Mind you, there was no mention of one in the listing (which stated gas heat and "n/a" next to "oil tank"), nor anything on the disclosure—so I thought everything was cool.

I went back and told the LA that I wouldn’t be closing unless the bank took care of testing, removal & any remediation.(As the owners, aren’t they responsible for this, especially if they didn’t disclose?They claim they were unaware, but don’t they have people checking these things out?)

Any thoughts, guys?I could try renegotiating w/ the bank & getting the price further down to offset any of my UOT expenses (seems the average is $650-700 for soil testing only, $1200-$1500 to remove & test; of course they also have to rip up the deck to get to it, lol)…but then again, as this is my first rehab, I also don’t want to get in over my head & I’m really thinking of just saying, “Next!” (Luckily I always put “oil tank” as one of the inspection contingencies on my offer!)

I came across this thread while researching land trusts.  I still don't know all the ins & outs yet of course, but my interest in them comes from the benefit of anonymity--I like to keep my dealings private, and from what I understand land trusts help give you that option.  

I actually found a decent BP article on it: 

http://www.biggerpockets.com/renewsblog/2009/03/11/land-trusts-asset-protection/

After my parents passed, their house was vacant for a while until we sold it.  In the meantime, I kept up appearances and made sure it didn't LOOK vacant; i.e. blinds on the windows (you can get cheap, basic ones from Walmart for a couple of bucks), I kept a light or two on around the clock, and I let the next-door neighbor park in the driveway so it looked like someone was always home. 

Also, they have those little speakers that are motion-activated to sound like a huge dog barking...I'm going to look into getting one of those!

I'm using hard money for rehabs & flips.  I'm about to close on my first one (currently going through the inspection period), so I'm crossing my fingers--kinda nervous as hell, lol!

@Omari Brown, the way I work w/ my HML is that if I see a property I'm interested in, he has it set up on his site so that those who've already gone through the application/approval process w/ them (like myself) have password-protected access to a users' area where you can input the property address, purchase amount, etc.--and it generates/emails a POF letter to you almost instantly. Pretty cool. Before they had that set up, I would just send a quick email detailing my interest in making an offer, the offer price, ARV, estimated repairs, & general property details. Either way you should be able to do either of these w/ your HML, they send you back a POF letter which you can submit w/ the rest of your offer.

BTW, to "tag" someone you type the @ symbol & the beginning of the person's name; when it appears at the bottom of the reply window, just click on it and the tag will be inserted.  

Hope all this helped, good luck! :-)

 I like this one, lol! 

My tip:  I always stash a clipboard & copies of my repair estimate sheets in my trunk, so I never forget them.