Wednesday, September 22, 2010

Foreclosure Success for Property Manager Spanky Macher

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Sounds a little strange huh? Success from a foreclosure.... Well that is exactly what happened. Spanky's building and parking lot in the heart of downtown Roanoke went to foreclosure sale this past Tuesday.

Here's a little background information:

Last October Spanky's mother passed. The properties Spanky managed were owned by his mother. All of the property was given to Spanky's kids and Spanky remained as the property manager. Recently Spanky made July's payment to Zions Bank one month late in August. The bank called and wanted payment immediately and Spanky paid August, September and part of October on August 29th.

Insurance was currant, taxes were being paid, everything was good. During August the bank proceeded with foreclosure even after being paid in full. Their reason was that his mother was the only signer on the note and there was no one to guarantee the note. The bank was using the "due on sale clause" that you find in all mortgage agreements due to the death of his mother. Highly unethical thing to do.

Spanky tried very hard to work with the bank, injunctions to stop them, etc but the bank and Marryellen Goodlatte (Bob Goodlatte's wife) were not willing to budge or even give him the time to have his kids secure a loan on this property that has boatloads of equity and ongoing cash flow from Nawab restaurant and 4 high end apartments upstairs. Given just a few weeks they easily would have had enough time to secure a loan on a property that has that much equity.

Spanky's kids only owed $423K on this 1.1 million dollar property (tax value). The 1.1 million dollar building is in one of the best locations in Roanoke City. Dead center in the heart of downtown. When the market is up that building is going to be worth it's weight in gold.

Remarkably luck was on the side of Spanky's kids. The property sold at foreclosure to Nawab Restaurant who was the highest bidder. They paid $780,000 for this property. Yes, the tax assessed value is 1.1 million but Roanoke City has not dropped the value of their assessments in an attempt to collect money that is not owed to them from all Roanoke citizens. Property values went down by 18-20% since the bubble popped as reported by the president of the Realtors Association in Roanoke.

You see, commercial property is valued based on it's capitalization rate (Cap Rate). Most commercial property is sold at or better than a 10% cap rate. A 10% cap rate for that property is $750,000. That's it's true value as a commercial property based on rents, expenses, and many other factors. Therefore this was untypically a very successful foreclosure considering the equity in the property and amount it sold for.

It also turned out good for Nawab because they now own the building they are in, have 4 apartments upstairs that will cover a great deal of their mortgage and have a large income producing parking lot behind the building right across from the art museum.

REI Approved Contractors List

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These are contractors and vendors that various members of our group have recommended. The only way to get on this list is from a recommendation from one of our members.

The criteria of being on this list require that pricing is lower than other equally qualified people in their field. If you have been using someone that you like but have not had comparative estimates please don’t recommend them.

If someone on the list does work for a member and does them wrong in some way or another they will be removed from the list. Email me if you would like to add someone. Email me if someones contact information no longer works.

 



Architectural Engineers 
- Day and Kinder Consulting Engineers PLLC 540-774-5706

Asphalt Driveways
- D.L. Barker Paving 293-1453 We called around, got many quotes, they had the best prices. Job looked good, a little grass grew through the asphalt and we sprayed some round up on it. Cheap, good for a flip.*

Cabinets
- Our member Taz, Custom built, fair prices. Can beat Lowes! tazbeckydb@aol.com or 540-892-0454 *

Carpet, Floor, Furniture Cleaning
?

Carpet and Vinyl Installation

- Billy - 540-570-2905 works in Roanoke, Lexington and Buena Vista, will travel.

Drywall / Plaster

- Shane Boone, 397-3287 beautiful plaster work (textures), drywall.

Electricians
- David Woodie “Name Your Price” 540-580-4060 good work and price*
- Tim Dooley, 540-563-8519 or cell 540-354-1279
- Keenan Electric, John Keenan; 540-334-4168, Licensed; quality work and reliable for reasonable price. Use for renovations and service rentals. Accept credit cards
- Robbie Reedy 540-537-7357

General Handyman

-C. David Woodie, master electrician, state license, planning and design consultations, footer to trim construction, full electrical services, "Name Your Price" Service, emergency service available, Call 540-580-4060. Leave a message, calls returned within 1 hr.
 -Macon Claybrook - Painting, general repairs and landscaping - 540-494-7752

Hardwood Flooring

-Lee-Tech Hardwood Floors, these guys are great at refinishing hardwood floors and the price is right. Can also install new hardwood. Call 540-588-6217 *

HVAC
- Tim Dooley, 540-563-8519 or cell 540-354-1279, good prices and I called him on Friday at 2pm, he had a new heating system in for my tenants the same day. Tim is also an electrician and was a builder so he has extensive knowledge of many trades*

Insulation
-Everything from cheap fiberglass options to open and close cell spray foam. They have very affordable solutions. New River Insulation 540-320-7508. Ask for Dennis.

Insurance
-Tripp Godsey 540-777-1566 or egodsey@farmersagent.com  Landlords, remodelers, homeowners, business, auto, life, health, etc.

Landscaping
-Macon Claybrook - Landscaping, painting and general repair - 540-494-7752

Lawyers Real Estate
-Ross Hart - Landlord tenant expert 540-375-3281 or rch@hhatty.com
-Darren Delefield - Agreement with group on pricing 540-366-8665 or delafieldlaw1@verizon.net
-Laura Wright - Closing Attorney 540-293-1510 or lwright@preferredsettlement.com

Licensed Contractors
- Millers Home Improvements - REI Member - Dennis Miller: 540-312-8085, Remodeling, Roofing, Siding, Drywall, Decks, Foundation Repair, fair prices, high end work.

Masons
- Bill Hayes - All kinds of brickwork, cinder blocks, stucco, concrete, etc. Fair prices. Call 540-204-8257

Mowing
?

Painters

-Dooley Brothers Painting (Tommy Dooley) 597-4080 Highly recommended. Fast, dependable, high quality work. Good pricing.

Pest Control
- REI Member Twoie Knox @ B and C Exterminating - 540.342.5828. Quality, Economical and Dependable. www.bandcexterminating.com
- Jerry Compton 389-0356 (price is right)*

Plumbing

- Tim Dooley, 540-563-8519 or cell 540-354-1279
- Plumbing Specialists, Ricky May; 540-387-2153, Licensed; quality work and reliable for reasonable price. Use for renovations and service rentals. Accept credit cards.
- CJ's  Plumbing, Heating and AC, 389-5909, dependable, reliable, easy to work with, knowledgeable, guarantee their work.
- Alan Wood, small jobs and repairs, good and reasonable, 540-890-6040

Roofers
?

Scrappers (work for free in trade for the metal)
-Bob’s Appliance and Metal Removal 540-342-2811, Bob is also good at drywall work and can pull together people to get the job done

Siding  
-Siding, gutters, windows and roofing. Robbie Pierce of Pierce Siding and Window Co. 389-1168. Excellent work.
-  Daniel Wright.  Gave lowest bid on siding on a two-story house.  Was reliable in completing the job in a timely way.  If you write a detailed punch list, he tries to follow the list.  He said that he can also install roofing shingles and hang drywall (but doesn't do the finish work on drywall).  540-352-7336.

Saturday, September 18, 2010

Just A Few Of The Hidden Taxes Slipped In To The Health Care Bill

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3.8% sales tax on your home. Beyond closing costs and real estate fees you will as of 2013 be forced to pay tax on the sale of your home of 3.8% if you sold it for more than 250K being single or 500K being married. A qualifying factor is you have to make over 200K a year if you are single or 250K a year if you are married to be punished with this tax.

If you don't buy a government approved health care plan you will be required to pay 2.5% of your annual income as a fine to the government.

You will pay a fine of $347 per kid if you don't buy your kids a government approved health care plan.

If you have 50 or more employees you will pay a fine of at least $2,000 per employee if you don't get a government approved plan.

If you are an investor who makes over $200,000 a year you will pay 3.8% of your annual investment income to the government.

If you get a better health care program than the regular government approved program you will pay a 40% annual tax on the plan.

If you earn $200,000 or more you will pay a special Medicare tax of 3.9%

ETC.

Thursday, September 9, 2010

Lowes Defective Drywall Lawsuit

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One of our members tipped me off on a lawsuit against Lowes for defective drywall that was sold prior to 7/27/10. This is similar to the drywall that we have been hearing about that causes health problems, corrosion of metal pipes in your walls, damage to HVAC systems, etc. It has a slight rotten egg smell from the off gassing or VOC's of sulfur.

The court only required Lowe's to publish this information in only a few relatively obscure publications so many don't know about it. You may have seen it on the bottom of your Lowe's receipts lately.

The choices I see on the suit are to either get a
* $50 gift certificate if you bought it but can't prove it with a receipt
* $250 gift certificate if you bought it and can prove it
* $2,000 gift certificate if you bought it, can prove it and can prove damages, health issues or some issue directly related to the drywall.
* If you can prove you spent over $2,000 in drywall you can also get an additional cash reward of $2,500 along with the 2K gift certificate.

If you take the money you hold Lowes not responsible for all future claims and can not sue them if you find problems down the road.

As you know, $4,500 wouldn't even come close to covering the damages that could be caused by defective drywall over the years.

If you wish to not take any money from the settlement but want to have the right to sue Lowes in the future if you have damages you can prove you are required to officially "exclude" yourself from the settlement.

And if you do nothing at all (if you don't exclude yourself or don't take payment), you get no part of the above settlement and you forever give up your right to sue Lowes for any future claims related to the off gassing of sulfur from defective drywall.

For more information and claim forms click this link.
www.DrywallSettlement.info
 

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