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Old 02-13-2018, 02:06 PM
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Since most on here love giving their opinions, I have a good one for you. My LLC bought a condo a few weeks ago through the county foreclosure auction that was foreclosed on by the condo association for unpaid association dues. There was no mortgage on the property, just the outstanding association fees and property tax. Anyways, now the association has decided they didn't like the sale (even though I have the Certificate of Title) since they normally have to approve the sale prior to the sale to vette residents. Seems that they wanted the past dues and were willing to foreclose on it and take their chances that they got an owner they would have approved of that was going to occupy the unit. OOPs, didn't work out that way for them. Now they have contacted me to reverse the sale, refund my money and take ownership of the condo themselves. My guess is they figure they can find someone that they can put through their approval process and sell it to them.

The association foreclosed for $13,xxx in past dues and legal fees, I won the auction with a bid of $24,xxx and paid the required clerks fee's. The court disbursed the $13,xxx to the association, issued the Certificate of Title to my LLC and closed the case. Condos in the complex with the same floor plan that have either just sold or are currently on the market for $120,000-129,000. In the condition the condo is currently in (good condition, but dated), I could easily sell it for $100,000, but no way do I want to take the tax hit as a short term investment. They have already indicated they will not approve a renter, what would you do?
Old 02-13-2018, 02:12 PM
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Since it's just an opinion, I'd move the hell in and party like it's 1999 just to piss them off. Then sell the place in a year or so.
Old 02-13-2018, 02:20 PM
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Get a copy of the condo docs, and review them (or have an RE attorney do it) to see if there are any problems with renting or any other use of the property.
Old 02-13-2018, 02:22 PM
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Old 02-13-2018, 02:24 PM
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Originally Posted by Dulcecita Lures View Post
Since it's just an opinion, I'd move the hell in and party like it's 1999 just to piss them off. Then sell the place in a year or so.
Thought about putting a stereo in there, putting it on a timer and blasting it from the morning until 9 or 10 at night everyday, but need to check the legalities of doing that and see if it's addressed in the condo docs.
Old 02-13-2018, 02:24 PM
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Originally Posted by Elusive View Post
Get a copy of the condo docs, and review them (or have an RE attorney do it) to see if there are any problems with renting or any other use of the property.
This is the correct direction. A lot of "condo commandos" will try to do what they want, especially with an uninformed owner.
Old 02-13-2018, 02:25 PM
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If you do decide to go ahead and sell, you should be able to 1031 the proceeds into a like-kind investment to avoid taxes.
Old 02-13-2018, 02:27 PM
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Originally Posted by Elusive View Post
Get a copy of the condo docs, and review them (or have an RE attorney do it) to see if there are any problems with renting or any other use of the property.
They have to approve all renters and have already indicated they would not approve one. Attorney is going over the docs to see if there are any time frames on how long they can sit on an application before approving or denying and if there is anything that addresses requirements for renters.
Old 02-13-2018, 02:28 PM
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Tell them to "pound sand" or buy from you at YOUR asking price.
Old 02-13-2018, 02:29 PM
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Originally Posted by RedWrangler View Post
If you do decide to go ahead and sell, you should be able to 1031 the proceeds into a like-kind investment to avoid taxes.
Can't due that yet, property doesn't meet the requirements of a 1031. Right now it would be considered a flip and that is not allowable in a 1031. But that is/was my long term goal, put a renter in there for 6 months to a year and then do a 1031.
Old 02-13-2018, 02:32 PM
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Could you move in there with your "brother", then just not be around much?
Old 02-13-2018, 02:37 PM
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Originally Posted by Diverboy View Post
They have to approve all renters and have already indicated they would not approve one. Attorney is going over the docs to see if there are any time frames on how long they can sit on an application before approving or denying and if there is anything that addresses requirements for renters.
well then "lease to own" or at least thats all the association needs to know
Old 02-13-2018, 02:38 PM
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Originally Posted by Elusive View Post
Get a copy of the condo docs, and review them (or have an RE attorney do it) to see if there are any problems with renting or any other use of the property.
You should have done this before you bid at the foreclosure. You need to immediately make notes of the time and date of the conversation when they told you they would not approve a renter. Also everyone else who was on the call. Or better yet, is it in writing?

The whole thing seems weird!
Old 02-13-2018, 02:49 PM
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Totally move in with your "brother" and not be available, much less around....

Let that go on for a year...then sell...
Old 02-13-2018, 02:57 PM
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I would sell it back but only for a reasonable inconvenience fee..
Old 02-13-2018, 02:57 PM
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Personally I would buy it, and sell it as is. The taxes will be paid by your profit so you would still be ahead from a money standpoint. The only way I would put money into it is if you get a minimum 2X return what you pay to remodel it.

Did you ever check with a CPA to find out if there is a way to spread out the taxes over a longer period of time instead of getting stuck paying it all right away?
Old 02-13-2018, 03:05 PM
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I am pretty sure they can't just decide not to approve someone "just because" without a valid reason. They are just not happy and trying to push you around. I would not be a dick about it, but just be nice and make them suck it up and deal with it.
Old 02-13-2018, 03:20 PM
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Originally Posted by Diverboy View Post
They have to approve all renters and have already indicated they would not approve one. Attorney is going over the docs to see if there are any time frames on how long they can sit on an application before approving or denying and if there is anything that addresses requirements for renters.
They likely have the right to approve all renters, but they also do not have the right to discriminate based on race, etc. Depending on what area and what specifically the state law says hey could have a discrimination suit against them.

It sounds like the worst case scenario is you keep it vacant for a year and then sell it for long term gain. Cost of carry on your $25k purchase has to be nothing, practically.
Old 02-13-2018, 03:25 PM
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Originally Posted by Diverboy View Post
Since most on here love giving their opinions, I have a good one for you. My LLC bought a condo a few weeks ago through the county foreclosure auction that was foreclosed on by the condo association for unpaid association dues. There was no mortgage on the property, just the outstanding association fees and property tax. Anyways, now the association has decided they didn't like the sale (even though I have the Certificate of Title) since they normally have to approve the sale prior to the sale to vette residents. Seems that they wanted the past dues and were willing to foreclose on it and take their chances that they got an owner they would have approved of that was going to occupy the unit. OOPs, didn't work out that way for them. Now they have contacted me to reverse the sale, refund my money and take ownership of the condo themselves. My guess is they figure they can find someone that they can put through their approval process and sell it to them.

The association foreclosed for $13,xxx in past dues and legal fees, I won the auction with a bid of $24,xxx and paid the required clerks fee's. The court disbursed the $13,xxx to the association, issued the Certificate of Title to my LLC and closed the case. Condos in the complex with the same floor plan that have either just sold or are currently on the market for $120,000-129,000. In the condition the condo is currently in (good condition, but dated), I could easily sell it for $100,000, but no way do I want to take the tax hit as a short term investment. They have already indicated they will not approve a renter, what would you do?
I am almost positive your renter is a partner in your LLC correct?

Lawyers and a good one...

John
Old 02-13-2018, 03:33 PM
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Get a minority person or handicap person to rent it , when they disapprove get the government on there ass

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