All Forum Posts by: William Joseph

I guess the question I would want know is if you can operate your business in a different location at a reduced rent? Or find a location you could purchase. 

The answer is going to be very state specific but I would want to know what the statute of limitations on the collection of the HOA lien is first. If it is still within the statute then it is likely the HOA attorney would prefer to collect in rem against the property (and new unit owner) rather than in personam against you. If the collect against the property the title company will likely have to pay the back due amount unless there was some sort of coverage exception. I am not saying the debt isn't ultimately owed by you but from a collection strategy you are the least likely they will collect against.

My personal opinion is that sometimes property managers are the whipping boy of the real estate industry. We are a necessary evil. However, when matched up properly with an investor there is a great synergy. The problem is when the investor is an amateur and didn't underwrite their deal properly or don't have the cash reserves to survive a tough quarter they blame the property manager.

I am not aware of any lawyer in CT who will participate in a double close that is dry. i.e. only funded one time. I think you need to focus on the assignment route. 

Are you renting out the garage bays separately? Could probably get $150-200 for that garage a month if in decent neighborhood.

We generally do not provide tenant references good or bad for the reasons stated above. We also do not rely on tenant references. If I knew the prior landlord or the landlord calling our office is an acquaintance I may look at our system and tell him or her anything I see from the notes but never for someone we do not know. 

I think you need to put it in context with your business model. Are you a flipper and is 100 percent of your capital tied up in this deal? If so, you need to sell it so you can move on to the next deal. If its not going to substantially prevent you from operating in the future then - sure keep it as a rental.

Whatever you do, make sure ego doesn't play a part of it. The mentality of wont take a loss is great in theory but a small loss on one deal to take the money and buy another deal where you will make money is the smarter play.

I have used Lima One for two deals and have done other HML deals in the past. I am not saying all but a lot of these negative critiques are not unique to Lima but germane to all HML deals. With that said, the most disappointing aspect of their company is their underwriting department and customer service. My closing attorney (who is my cousin) will not close a loan with their office because of how difficult they were to deal with and the aggravation on staff. Thus, I stay away from them now. They almost forced me to completely abandon a deal because of their stubborn underwriting department who couldn't see the forest through the trees. If I wanted to jump through all those hoops I would have just applied for traditional financing!

Their points and rates can be very competitive if you have experience. However, if you are going to use their funding you should understand they are not a hard money lender they operate like a traditional lender when it comes to appraisal, inspections, etc. 

If I were firing a property manager as an out of state investor I would read my contract and see what it says with with respect to notice and manner of sending notice. I would then start interviewing an alternative manager. I think the worst think you could do is sever the relationship without a new PM to start immediately. I don't know anything about your area but what if he or she is the only game in town and it will take months to get another PM.

It seems like your PM is not really a PM but a real estate agent who offers PM as an ancillary service. I also think this is a cautionary tale about letting an agent co-broke both sides of a deal. 

@Michael Noto - Michael is the real deal. My company refers deals to him in this area. I highly recommend him.