HOA Blues

Whoever thinks real estate investing creates passive income, take my most recent experience into consideration!!

Just attended HOA board meeting to resolve a convoluted HOA dues situation, after already having spent many hours trying to resolve it unsuccessfully with management company and collection agency.

Had a property close in May 2008. Settlement statement showed payoff amount to HOA and an advance payment for July 2008. Therefore set up automated payments to go out beginning August 2008.

Next thing I know, a collection agence letter arrives in January 2009 with 4 of these checks enclosed, indicating there was a $2400 balance due and the checks were insufficient to pay off debt!!!

To summarize the events that led to this - HOA had bigger balance on books than payoff demand (approx $600) - cashed the first two bank drafts and then sent account to collection. Had wrong mailing address, so no notice received until January 2009.

Was told by collection agency that they could not do anything other accept the full payment on their books unless otherwise advised by HOA. HOA said same thing in addition to informing me that they would not be accepting any current payments!!

Lots of emails and phone calls back and forth, including an attorney letter with no real resolution largely due to difficulty in dealing with HOA management company.

Anyway, off I go to the meeting with all of my documentation. Finally ending up with unanimous decision to waive all late fees, accept payment and move forward!!

Total time involved between myself and JV partner was over 10 hours!!

Now, onward and upward. Still a shortage of inventory, but sources indicate a flood of more REOs being released Mid May and beyond.

As a reminder of our services, we have hourly mentoring to help with goal setting etc., fee based services for finding properties, supervising rehabs, finding rent to own tenants etc.

Sign up on our website at http://www.reiinformation.com/ to receive advisories.

Happy investing.

More Possible Flips

Went to see some newly listed properties on Monday - great deals with possible flip possibilities with net profits of $20k to $40k

List prices were from $55k to $114K with rehab costs in the neighborhood of $15k to $35K

Inventory is still moving quickly here as the banks are beginning to understand the advantages of pricing inventory attractively to both investors and buyers.

Have been having negotiations with some transactional funding sources to see how it might fit in to my investing strategy and will post some information on the subject in the next few days.

Private money lenders seem to be getting more confident again as I see better terms coming accross my email these days.

For anyone wanting to see how we can work together on some of these flips or rent to own deals, please feel free to contact me at (707) 704 4904

More later.

JACK SHEA SEMINAR

Last weekend I attended a one day workshop given by Jack Shea, author of "Secrets of Lease Option Profits" which was hosted by Geraldine Barry of San Jose Investment Club (check out her website at http://www.sjrei.net/)

Great event with lots of good, honest advice from someone who has been in the business for a long time and been through the trials and errors of getting to know how the business really works.

Geraldine interviewed me after lunch - I naturally gave my "no holds barred" answers of my experience in real estate the good, the bad and the ugly!

The next event I will be attending is the 3 day with more seasoned masters (Jack Miller, Peter Fortunato and John Schaub) being hosted by Mike Morrongiello of the BAWB Mill Valley. Event will be held in San Francisco May 29th, 30th and 31st.

Going to look at some well-priced houses this afternoon and will be posting some pictures and evaluations afterwards.

Don't forget to become a registered user at http://www.reiinformation.com/ to receive information on good deals as they come up.

RECENT REPAIR ITEMS

Have had some recent minor repair issues on properties, and am attaching some pictures on one of the repairs. This is a floor furnace that needed a pilot light mechanism replaced. This entailed going in through the crawl space to access the unit - messy job as it was wet and slimey under there - could be on the tv show featuring dirtiest jobs!!

Cost of replacement and installation was $202.00