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NEHT the answer here?

This topic contains 14 replies, has 0 voices, and was last updated by Avatar of ahutton ahutton 7 years, 11 months ago.

Viewing 15 posts - 1 through 15 (of 16 total)
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  • #6776
    Avatar of ahutton
    ahutton
    Member

    There is a rather large condo development near me which started out as apartments. Then they started allowing people to BUY the units. Lots of creepy flipper guys came in and screwed up the development. Illegal crap, etc. So with a large percentage of foreclosed or foreclosing units and hardly anyone ever paying their HOA dues, the management company and services falling. the really nice 2004 complex is going down hill. Many units for sale, but large back due HOA dues.

    Because of the vacancies and the main office being closed and the pool locked up (note on door says drive 20 miles to the management company’s office and pick up a key!) My entrepreneurial senses are smelling a potential solution with the NEHT.

    Any ideas? Scott? Bill?

    #33770

    Let me start my reply by asking you just one question. Your answer will determine if you assumption is correct. Please read the following line and tell me what it means to you. Here it is, are you ready?

    Opportunity is Nowhere!

    #33772
    Avatar of ahutton
    ahutton
    Member

    obviously now here. I realize that. I’m just asking how you would proceed or if you even would.

    Amy

    #33773

    @ahutton wrote:

    obviously now here. I realize that. I’m just asking how you would proceed or if you even would.

    So now I don’t understand how you can come up with that answer and then ask “IF” you would even proceed. Is Opportunity Here or not? How are going to know if you don’t even try to make an offer?

    OK, I’ll let you off easy. All I want to know is when do you what to talk to the Property Management Company and show them how we can turn this complex around?

    #33778
    Avatar of ahutton
    ahutton
    Member

    ARRGH, Scott. I’m not talking about making ONE offer. I’m talking about going to the HOA management company and offering to solve their problem of homes that aren’t paying their association dues. I don’t know anything about how HOAs work, though.

    The idea was to offer the HOA a way to improve the community. I was trying to brainstorm ideas. Oh, well, never mind.

    Amy

    #33779
    Avatar of corkhorner
    corkhorner
    Participant

    AMY


    STAY THE COURSE. You owe it to yourself. Nobody else.
    Even if your idea doesn’t ‘pan out’ , SO WHAT.

    Throw lots of stuff against the wall, see what sticks.

    There are many many challenges everywhere that need elegant, brilliant solutions.

    As to your not knowing about HOA’S, That is not a hindrance to being a condo expert.

    ‘Tis the Season to be Jolly,
    doncha know.

    c h

    #33771

    @ahutton wrote:

    ARRGH, Scott. I’m not talking about making ONE offer. I’m talking about going to the HOA management company and offering to solve their problem of homes that aren’t paying their association dues. I don’t know anything about how HOAs work, though. The idea was to offer the HOA a way to improve the community. I was trying to brainstorm ideas. Oh, well, never mind. Amy

    Amy, we ARE talking the same thing. To “improve” the property, it first takes occupants who are all paying “their fair share”. This is going to require a multifaceted offer. It may require an offer on each currently vacant or non-paying unit. It starts with a conversation with the Property Management or HOA.

    Perhaps the proposal could be that the titles for each unit be vested with one trust, or even individual trusts with the HOA as a beneficiary. Then WE can market for RBs for each one. As the properties get occupied and more funds are available, the HOA/Management Co. can start improving the property. As it improves, the value of each unit should rise and the HOA may also share in Equitable Growth and Appreciation.

    Does that get the brainstorm brewing?

    #33774
    Avatar of ahutton
    ahutton
    Member

    yeah, it does. Thanks

    Amy

    #33775

    Have you talked with them yet and when would you like to set up a conference call with them and get this ball rolling?

    #33776
    Avatar of ahutton
    ahutton
    Member

    OK, no I’m coming up with a list of reasons why the HOA would want to do that.

    1. If someone didn’t pay their HOA dues, we could kick them out immediately without foreclosing and substitute someone new and part of that new person’s cash contribution could go toward bringing the HOA fees up to date.

    2. Ease of filling up vacant units with paying customers. We don’t require bank financing, so more people “qualify.”

    More?

    -A

    #33777
    Avatar of ahutton
    ahutton
    Member

    OK, here’s another I just thought of. The HOA could offer the homeowner a choice: bring the HOA fees up to date, go into a NEHT with me (with the HOA as one of the beneficiaries,) , or get foreclosed upon.

    And for the units that are in foreclosure or already bank owned? Any ideas? I realize we can get an RB who can bring the back pmts up to date, but these are not high income units. Are there funding sources that would purchase the REOs here and then let me do a NEHT with them? Prob not?

    -A

    #33780
    Avatar of ahutton
    ahutton
    Member

    I want to go in there with a complete plan of action written out on letterhead for my LLC.

    -A

    #33781
    Avatar of dave salcido
    dave salcido
    Member

    Since there are so many problems occurring simultaneously, suggest to the HOA to consider turning all vacant and distressed units into a Community Land Trust. The HOA presidency obviously doesn’t know how to control the depth of the crisis and some “partnership” management may save the day.

    This solution may encourage other condo owners to join the trust so they too will have an easy out if they decide to move on.

    #33782
    Avatar of ahutton
    ahutton
    Member

    OK, does one use an NEHT as a community land trust, or what? How would it be structured? I thought you really shouldn’t have more than 4 properties in one land trust?

    -A

    #33783
    Avatar of dave salcido
    dave salcido
    Member

    Again, because there are so many units in distress, A more comprehensive solution may be needed. Even though each unit will have to have a separate NEHT, creating an umbrella like a CLT will create uniformity that will require each NEHT to follow specific CTL guidelines. So you may, in essence have to create an encompassing trust with each NEHT housed within the CLT. It is certainly more complex, but in all probability you will have more trouble if you try to onezie twozie your way through the mess; not to mention the fact that it will take forever to do.

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