• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. The forum software will be upgraded on Sunday May 26th and may not look normal during the transition. Some functionality may be offline. This is TEMPORARY and is expected to last up to 8 hours.
  2. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

Real Estate I think I'm getting extorted (community fees)

Discussion in 'Real Estate Investing' started by RogueInnovation, Jan 25, 2019.

  1. RogueInnovation
    Offline

    RogueInnovation Gold Contributor Speedway Pass

    Messages:
    1,278
    Likes Received:
    2,108
    Joined:
    Jul 28, 2013
    Rep Bank:
    $13,125
    Ok, so I bought a place (within an apartment building), and everything is all good with it, except one thing
    Its community fees are in the range of 5-10 times higher if not more than literally any other place I've checked, I pay in two months what others pay in a year. I've done numbers on it, and between taxes, repairs etc, there is no way to get the property in the green while renting it out... Then I investigated these fees a bit more and it is absurd and surely where all the profit margin is being syphoned out...
    Should I call a lawyer, or how should I go about this lunacy?
    Is there any law limiting the president of the building to a certain range? And if so, how can I cut this bs off at its source.
     
  2. CareCPA
    Offline

    CareCPA Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    613
    Likes Received:
    2,085
    Joined:
    May 2, 2017
    Gender:
    Male
    Location:
    Pennsylvania
    Rep Bank:
    $13,729
    Are community fees similar to an HOA? I believe with an HOA you can request access to the financials, can you do this with the community fees? Then you could see where it's all being spent.
     
  3. Vigilante
    Offline

    Vigilante Legendary Contributor Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    9,809
    Likes Received:
    56,798
    Joined:
    Oct 31, 2011
    Gender:
    Male
    Location:
    Gulf Coast
    Rep Bank:
    $197,830
    Did the fees change by a radical amount since you bought the place, or did you just not identify what the fees would be before you purchased?

    There's exactly zero you can do about it, other than sell it.
     
    B. Cole and RazorCut like this.
  4. RazorCut
    Offline

    RazorCut Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    1,405
    Likes Received:
    4,360
    Joined:
    May 3, 2014
    Gender:
    Male
    Location:
    England UK
    Rep Bank:
    $27,118
    You didn't know the Common Area Maintenance fee's before purchase? :jawdrop:
     
  5. B. Cole
    Offline

    B. Cole In thine hand is power and might. Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    543
    Likes Received:
    1,590
    Joined:
    Mar 5, 2017
    Gender:
    Male
    Location:
    East Coast
    Rep Bank:
    $4,123
    Eek - sounds like a nice lesson on Control.
     
  6. Sauce
    Offline

    Sauce Contributor

    Messages:
    62
    Likes Received:
    67
    Joined:
    Jan 16, 2013
    Location:
    Albuquerque, NM
    Rep Bank:
    $428
    Could be a special asessment? (Maybe they had a bunch of roofs go bad, maybe the pool area needed to be resurfaced, maybe the Mansard siding need to be replaced?

    I own a condo with a $175 per month fee. It is a decent performer. Good thing about it is I am only responsible from the sheet rock in. Bad news, my COA Fee can get jacked at any time.

    Only option is to take it up with the board or join the board. Read the disclosure and dig deep to see what the problem is. Hopefully you haven't bought this place yet or if you dead you read the disclosure?
     
  7. biophase
    Offline

    biophase Legendary Contributor I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    6,324
    Likes Received:
    27,999
    Joined:
    Jul 25, 2007
    Location:
    Scottsdale, AZ
    Rep Bank:
    $189,685
    Your real estate agent should have informed you of these fees (I'm assuming they are HOA fees) before you purchased.

    You can't compare HOAs with other buildings. It doesn't work that way.

    There's nothing you can do about the fees. It's pretty much impossible to lower them. Everyone in the building pays a portion according to their unit's square footage.

    Why didn't you know about these before you purchased?

    Just as an example. I have a 700 sf place with $500/mo fees. There's a place nearby that is 1000sf with $5000/mo fees. It's an older building, sucks to be them!

    The fees are what is required to run the building. I'm guessing you purchased in an older building, or a building that has alot of amenities.
     
    Sauce likes this.

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page