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FL retirement communities

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  • Avatar artemis 
    Participant
    Status: Physician
    Posts: 613
    Joined: 12/02/2016

    Weird that someone in the family with knowledge about investing and real estate wouldn’t feel comfortable pointing them to research tools or offering a gentle opinion on what is likely to be a terrible idea especially because they sound like they are already in bad financial shape. Maybe its cultural but while we feel no obligation to do anything others may suggest opinions are passed around like the bread basket in my family. If you mention something expect everyone’s unsolicited two cents.

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    It’s great that your family is like that, but in many families speaking up about an upcoming bit of financial insanity merely gets the speaker’s head bitten off.  I don’t blame Lordosis for hesitating to point out the flaws in this “great investment opportunity!11!!!”  The couple in question probably won’t enjoy hearing the news that the real estate agent’s wonderful plan has some significant flaws associated with it.  To them, it’s all upside (just ask the nice real estate agents, and they will confirm it).

    #245411 Reply
    Liked by Lordosis
    Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 158
    Joined: 01/01/2019
     The couple in question probably won’t enjoy hearing the news that the real estate agent’s wonderful plan has some significant flaws associated with it.
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    Yeah I’m sure you are correct however this could be life altering so I believe offering a few suggestions for them to research if they decide to wouldn’t be too outrageous. I have a high threshold for risk of pissing off my family and friends if I think they are making a bonehead decision. 😉

    #245426 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 2222
    Joined: 02/11/2019

    Before this it was investing in pot stocks. I thought they were joking so I made some comments about the ridiculousness of doing so. So I already burned my one time unsolicited advice card.
    They are probably better off with Florida real estate then pot stocks right?

    “Never let your sense of morals prevent you from doing what is right.”

    #245452 Reply
    Liked by StateOfMyHead
    Avatar mapplebum 
    Participant
    Status: Spouse
    Posts: 330
    Joined: 04/17/2018

    Before this it was investing in pot stocks. I thought they were joking so I made some comments about the ridiculousness of doing so. So I already burned my one time unsolicited advice card.
    They are probably better off with Florida real estate then pot stocks right?

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    Um, no, I wouldn’t say that at all.

     

    Where in FL is this? And also, were they suggesting VRBO type rentals or FT?

    #245456 Reply
    Hank Hank 
    Moderator
    Status: Attorney
    Posts: 1477
    Joined: 03/27/2017

    You almost certainly cannot do VRBO in an age 55+ retirement community.

    #245458 Reply
    Avatar Wiscoblue 
    Participant
    Status: Physician
    Posts: 155
    Joined: 05/17/2017

    My wife and I checked out the villages with another couple from our city. I quite liked the villages. Lots of golf, plenty of stuff to do, decent weather when we want to get out away from Wisconsin winters etc etc. I think I will buy a place there when I retire in a couple of years. It’ll just be for the winters.

    #245461 Reply
    Avatar Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 639
    Joined: 08/30/2018

    There have been housing bubbles in a Florida for literally a hundred years driven by these sorts of sales tactics. Sadly, there is nothing new here. See https://www.library.hbs.edu/hc/crises/forgotten.html

    #245483 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 2222
    Joined: 02/11/2019

    So they ended up getting a place. Knowing this couple I highly doubt they had 20% down but giving the benefit of the doubt PIRI come to 1300 a month. The past few years it has rented out the winter half of the year making 10k a year in rent. Leaving a shortfall of 6k not to mention other homeowner expenses. Also they plan to live out of state for up to a decade more and gave a property management company. They are charging 18% which seems awfully high to me.

    I think they are being swindled but I expressed my concerns and will move on. Not really my problem or business.
    Can anyone see any silver lining here to make me feel better about this couples situation?

    “Never let your sense of morals prevent you from doing what is right.”

    #256073 Reply
    Avatar Doc Spouse 
    Moderator
    Status: Small Business Owner, Spouse
    Posts: 248
    Joined: 10/20/2017

    Can anyone see any silver lining here to make me feel better about this couples situation?

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    A few years from now they may learn a valuable lesson?

    #256077 Reply
    Liked by Lordosis
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 2222
    Joined: 02/11/2019
    Earnest refinancing bonus

    That’s what I was afraid of…

    “Never let your sense of morals prevent you from doing what is right.”

    #256078 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3380
    Joined: 09/18/2018
    Can anyone see any silver lining here to make me feel better about this couples situation?

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    Prices could have a great run for 10-15 years, they might find a long range tenant and be able to get more rent and cut the property manager out completely.

    Then think Lottery! Sometimes “good luck” is much more profitable than skill. One silver lining..

    Now they have a goal and might actually change their habits and attack the financial situation. Second silver lining.

    I would bet on the Lottery.

    #256087 Reply
    Liked by Lordosis
    Avatar Tangler 
    Participant
    Status: Physician
    Posts: 405
    Joined: 08/23/2018

    Hey boss,

    I did not read every reply, but unfortunately you are right. very bad idea!

    I had a place in south east that I purchased as a primary home prior to deciding to move to north east.

    I rented the home out after moving to North East. Long distance land lord = badness. Even with a good management company. Terrible. Show this post to them.

    1. Initial Renters almost never payed the rent and the management company was not good at forcing them to pay.

    2. since management company sucked, I fired them, got new renters and hired another management company

    3. New management company seemed great (very good family friend, cancer survivor and wonderful person, outstanding reviews, very experienced etc.) but they did not inspect the house very often. (not their house)(hard for me to do from several states away) and the new renters destroyed the home.

     

    I had several major repair issues and ultimately ended up selling the home 10 years after buying it and sold it for a LOSS of 200k.

    so, not only did I have hundreds of thousands of Dollars out of the market (and in a crappy rental) but after 10 years I sold for a loss. This is not counting the headaches, lost time, and stress.

    Seriously bad idea to be a long distance land lord unless you are very careful and very good at realestate and know the market extremely well and (and this is important) get lucky with several variables.

    People underestimate the amount of luck needed to invest successfully in rentals if you don’t know what the heck you are doing. Like buying single stocks, full of unknowns.

    Long distance compounds headaches. You need to be able to drive over to the place and walk through and make sure repairs and problems have been fixed.

    Renters and management companies don’t care the same as owners.

    So my advice tell them: NO do NOT do it. BAD IDEA on steroids!

     

     

    #256088 Reply
    Liked by Lordosis
    Avatar Tangler 
    Participant
    Status: Physician
    Posts: 405
    Joined: 08/23/2018

    So they ended up getting a place. Knowing this couple I highly doubt they had 20% down but giving the benefit of the doubt PIRI come to 1300 a month. The past few years it has rented out the winter half of the year making 10k a year in rent. Leaving a shortfall of 6k not to mention other homeowner expenses. Also they plan to live out of state for up to a decade more and gave a property management company. They are charging 18% which seems awfully high to me.

    I think they are being swindled but I expressed my concerns and will move on. Not really my problem or business.
    Can anyone see any silver lining here to make me feel better about this couples situation?

    Click to expand…

    Oh goodness man, sorry. I did not see this prior to my post. Sorry. Dude, 18% is criminal. The whole thing stinks badly. I think they got screwed. sorry. Not sure how involved you want to get, but this is very bad. I wonder if the “management company” is the seller or somehow related to the seller or the person who talked them into buying?

    This is “whole life insurance” bad. Sorry.

    Sad.

    Silver lining: People can learn from this.

    #256091 Reply
    Liked by Lordosis
    childay childay 
    Participant
    Status: Physician
    Posts: 1097
    Joined: 01/09/2016
    I just want to know if anyone else has seen these kind of high pressure timeshare like practices.

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    Sounds even worse than a timeshare!

    #256106 Reply
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1905
    Joined: 01/08/2016

    Silver lining:

    I expressed my concerns and will move on. Not really my problem or business.
    Click to expand…

     

    #256111 Reply

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