The Jon Sanchez Show
6/27 Understanding homeowners associations
Hello, it is Ryan, and I was on a flight the other day playing one of my favorite social spin slot games on Chumbakasino.com I looked over the person sitting next to me and you know what they were doing They're also playing Chumbakasino. Everybody's loving having fun with it Chumbakasino is home to hundreds of casino style games You can play for free anytime anywhere. So sign up now at Chumbakasino.com to claim you're free welcome bonus That's Chumbakasino.com and live the Chumba life sponsored by Chumbakasino. No purchase necessary VGW group for where prohibited by law 18 plus terms and conditions apply Good Thursday, Virginia. Welcome to the John Sanchez show on his talk 780 kwh It's a pleasure to be with you one more day in the work week a debate tonight in Feds favorite measure of inflation tomorrow. What more could we ask for? I got it all because I got my two buddies to share this with Corey edge of edge reality. How you doing my friend? I'm doing well. How are you doing? Very well. You looking forward to it tonight. I Am yeah, yeah, it's gonna be a it should be good TV good comedy TV I was gonna ask you, you know Friday night is always the pizza night in the edge household I was just wondering if because of the of the debate. It's such a big night I was wondering if maybe you're bumping the pizza night from Friday to Thursday night Yeah, it's like it's like a different form of entertainment You know watching a movie. Yeah, I think that makes me cringe because you're like oh my Yeah, you know, you want to be able to digest that pizza tomorrow night instead. So I understand that makes perfect sense That's right. Oh Good stuff. Don't wipe my lard of guilt mortgage. How you doing buddy? I'm doing fantastic John you very well. Thank you very well. Thank you and you I assume we'll be glued in front of the TV tonight We're all bowling jungle. I'm ready room. Yeah, that's right ready to watch. I love it And it's yeah, exactly and as a quick reminder that will be broadcast live of course tonight right here on new stock 780k awaits right after tonight's show. So starting at six o'clock the Presidential debates. All righty boys. Well good. We're all we know what was that I Was just gonna say like, you know the commercial or the Super Bowl does like Doritos and beer commercial. Yeah, yeah They think there's gonna be geriatric like depends commercial That's a good one. That's a good one. Exactly. I just wonder how many how many security guards are going to be in the audience? You know in case Trump loses his cool or something. I don't know. I think there's gonna be some barbs that are gonna be thrown tonight Well, what's what's the biggest takeaway? I'll start with you. Do I what's the biggest takeaway? You want to want to heat here slash C tonight from from from this event? I Just want you know, I want them to clearly articulate the difference and some substance behind it, right? I mean, you know, there's we I think we all know it But just it needs to just come out there is it? I don't know and in my lifetime at least that I've seen a more, you know Distinct difference between two candidates. Well, you know one is all about just you know open borders and just a change that we're experiencing ones a little more You know, like I believe, you know, there's accountability. So I just I just want to see it come true I want to see I don't want all the you know the back and forth. I just want to see substance What about you Corey? What do you want to take it? Which takeaway you want from tonight? I think you guys sit back and like one of these two gentlemen is going to win Actually, it can't be completely against one or the other because you know the chances are 50 50 at this point So on Biden, it's just you just really want to see the cognizant. Is he really there? Can I answer questions of the, you know Are these rumors true or is it all made up about what he really understands and doesn't end from Trump? I think everybody most people I talked to is like everybody loves the policies. They love the stance or they love this and that It's just when he opens his mouth. He loses people So if he can just keep us cool and not get up on some tangent and just be residential, then I don't think I think it's his race to lose all the way to the white right 100% agree 100% agree Very similar to both of you obviously because we all think I think very similarly when it comes to politics I want to see like to your point Dwight. I want to see clarity as far as policies I want to I want to hear I want to hear Trump come out and really nail down what Biden has done to this economy What would you know really look at the comparison and the contrast? We know it Biden's gonna talk about I'm gonna raise your taxes. I'm gonna do this I'm gonna do that and keep the borders open and all the things you guys just mentioned so it'll be interesting, but but What I think is gonna be Probably the most important to your point Cory. I think the real test is gonna be for Trump to keep his cool I mean we know the barbs are gonna be the spirits I should say are gonna be thrown at each other But think about this if you were Trump think about going up standing face-to-face with the man that took your job away but obviously to Trump it's more than a job right this was being a president was his his life, right and and so think about standing you know a few feet from that person that did that to you and then of course all of the Events that have unfolded since Biden has been president and you know whether you believe or not Not maybe on tonight's program of course, but you know all the criminal cases and things against Trump and and so on so forth which many of course what I'm referring to refer or Pointing the finger at the Biden administration for prompting many of those I mean just that hatred that that the two gentlemen have to have against each other is gonna be amazing So I think my biggest takeaway is yeah be cool common collected. We're all adults in the room We don't want to see a bunch of personal jabs thrown But I think they're gonna be and really articulate what your policies are gonna be if you are president Going forward and so I think I Bought them one. I think that's a big big ask of both of them I don't think both of them are mature enough to do that So you know if they don't then yeah It's gonna be really good entertainment as they as they criticize each other and like I said I wonder if there's any security guards there in case they you know start going at it in round one I I don't know, but it's all I know is I've been looking forward to this and you know It's it's gonna be good no matter what but I hope you know for all seriousness I hope we can walk away and and really find out what these two guys are gonna be doing and as far as the policies and so on so forth because there's there's a lot of things going on in this country that people are not happy with and We'll see if either one of them has the fix to it, but but beyond that Like I said it's gonna be great TV tonight pop the popcorn is a lot what I like to say All right, let me tell you what we have lined up for you this evening We'll recap today's stock market activity not a lot of activity today Not a lot of movement either direction luckily was a modest game day I tell you what happened there and then of course what the market is focusing on tomorrow But our topic this evening we're gonna get through that and then we'll go to our topic this evening and we're gonna talk about something I don't think we've ever I was thinking about this guys correct me if I'm wrong But I don't think we've ever really got into a a an entire show Dedicated to the following topic and that is the homeowners association because as we all know it is extremely difficult these days to purchase a property That is not part of a homeowners association You know even a even a used property when that's been around for quite some time Many of course neighborhoods have come back in and have created homeowners associations long after of course That we have seen That the housing track for example already built So your job is the homeowner of course or maybe future homeowner is understanding the rules of the HOA prior to buying your property It is an absolute must that you know everything that's going on the financials the rules etc Because the last thing you want to have happen of course is you spend all this money getting into this new property and then lo and behold Here come the HOA rules here comes the ticket in the mail here comes someone knocking on your door because you didn't pick up your trash can Oh by the way, you can't park the trailer You know your camping trailer in front of your house more than 24 hours whatever the rules may be So tonight what we're gonna do is we're gonna talk about the pros and the cons because there are some pros of living in a In a home that is part of an HOA that you should know and core You know when I was when I was thinking of this topic this morning I was thinking of the the home that my son used to live into that that you were the realtor on and and And I remember first time he called me he had no idea what a HOA was really even though you talked to him about it And I did and he called me at me complaining about dad. I just got a I think it was a warning about It was something related to his garbage counter. I don't know if he didn't bring it in in time or something like that I said, yeah, welcome to the world of HOA son Dwight. I've had you shared numerous stories of As a lender how you have to look at the HOA's financials before you approve a loan there because last thing you want is You know to lend a bunch of money and the place is dilapidated and here comes massive massive HOA dues I share the story last Tuesday in regards to the client of mine that moved to Las Vegas and got Site-swiped with a $100,000 assessment that no one told her about so the list goes on right Corey. Oh Yeah, it's ever expanding and a lot of people. I think you know 2010 11 12 13 kind of when everything was Coming undone a lot of people Finally understood and realized the power of the HOA's because a bunch of court is different things that happen Um, so I see it sometimes where clients like maybe your son or different, you know, younger people are like, oh, it's 50 bucks, but you know, I haven't made it in six months. So maybe I'll do it on the seventh month You cannot mess around with these HOA's. I got a call from a friend of mine About a month ago and they were already to the point where the HOA had hired an attorney And she was like, I'm gonna fight him and I go you you're you're not gonna win It's like fighting the government or fighting to pay you need to just figure out how much you can pay and get out of it because You're gonna lose. I mean, it's just they have a lot of power And in one thing that I've dealt with with clients over the years that have run into these conflicts Um, and I didn't know this until, you know, years ago. I mean there for those of you that don't know there are, you know, Nevada Resized, uh, Nevada revised statutes or NRS laws Specifically for homeowners association to Corey's point. They are a very very powerful from a legality standpoint very powerful organization that uh, right, Corey, they Uh, rare list is better this way rarely do they lose when you when you go to try to fight them So, you know, keep that in mind Do I experiences from a lending standpoint these days with HOA's real quick No, but but I'm gonna agree with court. You know, I don't know. I don't think 80 of the people actually read it I mean, maybe it's getting better, but They just don't read it so bit big and thick and yeah, and they could be difficult They can be difficult for us, but you know, you got to work with them and you gotta, you know Be friends with them because you need them. So, um, you know, we'll go through it They have their pros and the cons, but yeah from a lending standpoint when you really need their help But, uh, it's tough to get and that usually comes out of feet, right? Right. Yeah. Yeah. Yeah. Yeah, exactly. Exactly. All right. So we'll talk about assessments what they can what they can't do All kinds of things involved with that. So it'll be a great topic. All right. Let me get to the stock market side of things real quick Starting off a little bit on the weak side today able to claw our way back and finish just with modest gains as I said earlier 36 point rise on the Dow finished at 39,164 Now as I gained 54 point 30 percent close there was 17 858 S&P at five and a close of 5,482 Our saving grace today were a couple big tech names Amazon being one of those remember Amazon of course is now a Dow Jones industrial average component The company crossed the two trillion dollar market cap value Remember market cap is where you take the price of the stock times the number of shares outstanding It's the overall value of the company and remember it wasn't that long ago where we were joking on this show that apple apple You'll cross the one trillion dollar mark now. I believe they're flirting with three trillion dollars But now here you have Amazon and and now they've crossed the two trillion dollar mark And so they're in some pretty rich company you've got microsoft up there and a handful of other companies But microsoft was just a big perform or excuse me. Amazon was just a big performer today Four dollar and 24 cent rise 2.2 percent to 197 85 Micron and some of the other semis did not participate today micron last night after the close reported earnings that were amiss Stock suffered throughout the day-to-day $10 and 13 cent decline down 7.1 percent to 132 26 Nividia this kind of flat $2 and 41 cent pullback down 1.9 percent to 123.99 On the economic side of things it's thursday, so we had initial claims checking in Down about 6,000 filings to 233 filings for the state unemployment benefit continuing claims rose 18,000 to 1 million 839 Droble goods up a nice number 1/10th of a percent not too hot not too cold And then we got the final read on third or excuse me on first quarter gdp Again, this is the third read and it showed the economy growing at 1.4 The second read showed the economy growing at 1.3 So just a smidgen hotter and then cori when we come back if we can hit the pending home cells Had a little bit of a pullback there. I want to get your opinion on that Let's start over to christin snow. She is in the right now traffic center. Hey christin You Welcome back to the john sanchez show a new stock 7 80 k oh it's with coriage of idrility to white melard of guild mortgage As i mentioned a 36 point gain on the dow rising 53 on the s or excuse me on the nasdaq s&p higher by five All right, let's get to the commodity side and then we'll move over to mortgage rates a 1 percent gain on oil today finished at 81 73 A barrel gold was strong $23.40 rise 2003 3660 down three basis points on the 10 year at a yield of four 29 mr Allard had we do on the 30-year mortgage nationwide Yeah, we're just watching paint dry till tomorrow. I guess 7.05 we were 7.03 for but uh, you know, I just did some a look back and you know john We've come a long ways from eight months ago. We were at 7.94. So I mean, you know, that's So, yeah, we're just Just ever so close that eight percent So That was october of 23 7.94 Wow amazing absolutely amazing Yeah, so we're a long ways in a year, but but it's uh, I guess you tomorrow's uh tomorrow's a mover day I think so hopefully yeah, absolutely is Yeah, let's get to that real quick Tomorrow of course is the release of the fed's favorite measure of inflation that of course is the personal consumption expenditure What we like to call the pce prices basically not looking Matter of fact, uh, I'm seeing some projections that it's going to be a goose egg an unchanged number for the month of may If we go back to april, we had a three tenths of a percent increase Um, so we will see also simultaneously released as personal income and personal spending They are expecting both of those numbers to rise slightly four tenths of a percent increase on personal income versus um april's increase of three tenths of a percent personal spending also a rise of four tenths of a percent Compared to the month of april's two tenths of a percent So watch those numbers again very closely wall street likes to watch along with the fed. How's the consumer doing? Um, again, um, you want to see uh, the spending side moving up and so we'll see how accurate those numbers are But again, that'll come at five thirty tomorrow. Of course be covering that on my stock updates with Ross Mitchell tomorrow morning So yeah, very important number there. All right, Corey we uh, the funnel bit of uh data today depending home sales These are uh contracts signed of course Uh, pending home sales for the month of may down 2.1 percent year over year down 7.7 per or excuse me down I mean it's back up down 2.1 percent for the month so april to may but if I go back to april's number We're down 7.7. So nice increase from april. However, um, it's still down 2.1 percent month over month So what's your takeaway of the pinion home sales data? I think well, I think they had some revisions, right? So what the revisions from the previous You know kind of equaled itself out, but you know, we've talked about at least here locally and probably nationally you Your market typically peaks out right around the fourth of july and guess what next week is and I'm seeing it in this local market right now everywhere you go And so it's not surprising to me at all. I don't know that's anything to be Alarmed about um, it's just normal seasonality, but you're starting to see More inventory on the market and then one of the the autonomous I was listening to today, which made complete sense to me Said the same thing you're seeing more inventory, but you're seeing a much longer days on markets. So it's Not all new inventory getting the market. It's the old inventory not selling with new inventory hitting the market Which is increasing the overall inventory So again, hopefully just seasonality. That's what it appears to be right now How are the price reductions looking locally as you do your research each and every morning There's a lot of them Okay I mean, I'm not gonna lie to you there. There's a lot of my ransom comps for a mutual client of ours They're not comps, but uh available listings On monday in a certain area certain criteria certain bedrooms best I saw Uh, and that was quite a long list of price reductions or even surprised me to see that many um That you're seeing you've seen a lot of them Okay, okay. Yeah, john what john. Yeah, do I yes? I was just gonna add a realtor.com reports uh 36.1 percent Increase in inventory year over year. So to corry's point. I mean now you're battling that right now. You're battling this You know, it's a little tighter in northern, Nevada, but I mean, you know, it all kind of flows the same. So yeah Right So corry back to you. So what does this tell you with all your years of experience as far as what kind of is the next cycle, right? We've been we were talking about cycles on in real estate on uh on tuesday What does this tell you as far as cycles? What's next when you start seeing, um, uh, you know Numerous price reductions. Uh, I'm not going to even bring up inventory because we're still very tight But you know reading into the into the crystal ball the tea leaves as they say. What are you seeing? You know next here? What do we need to be thinking about? Again, it may just be seasonality. That's why I don't get too nervous about it right now because I've been saying for months. This is usually the peak of our year, which it appears that it will be again The other thing is these sellers were super super aggressive on their asking classes coming out of the gate um And the market is only going to give you what the market will give you these buyers are very smart. I'm not going to overpay Um, and so I think sometimes it takes a solar 30 60 90 days to realize that Their realtors not lying to them. The market actually will not pay you Over what the house is worth and you're gonna have to bring the price down and already get some action on it Okay Well, you know along those lines guys. I was looking at my notes from yesterday. Uh, I'd forgot already We had new home sales yesterday 619,000 Um New home sales were down 16 and a half percent nationwide core year over year So this is this number obviously is another obviously data point, but both are saying the same thing They're both saying the same thing it may just be a generalized slow down come in the season out But I will tell you we had For the first time that I can't remember how many years we had a distressed residential Uh, development deal come across our desk yesterday that we looked at that included finished lots and finished Houses that was uh Was interesting my partner and both commenting like us first time we've seen what these come What is this again? Yeah, so it's okay. There's there's some there's definitely some stuff brewing underneath the surface It could all be taken care of and not not be anything or it could be the very beginnings of something. You just don't know yet Dwight yesterday also be it Wednesdays. We do each and every Wednesday. We get the mortgage makers association mortgage Data applications for the previous week. You're up 8/10 of a percent and in volume compared to the previous week up 9/10 of a percent Still somewhat of a flat number. It seems like the the consumer is still somewhat hesitant at this You know 7 percent slightly plus 7 percent What are you seeing this in you know in your world as far as uh the consumer demand right now? Yeah, I think they're you know, they're they're being very Selective picky. They're not rushing to anything but john what's interesting about that is Imagine all the people that actually have an application going right? So, um, you know I'm even surprised that numbers just not flat, you know, because people do an application It gets counted in that and it sits and sits and sits and sits, you know You don't have to redo a new application typically you have to update it. So, you know, it's kind of it's an interesting number Um, I think people got the applications going out of the way probably six or eight months ago And they're just sitting in the hopper. So yeah, but you know, we talked about it on Tuesday when when the the media and the and outlets come out Oh, feds are lowering rates or the rates are down even if they're really not It's amazing how they start to camp up just at least getting out there Most people actually walking out there in subdivisions and and going out with Corey have already done their application, right? So, you know, I'm just really surprised. There's not you know, I don't think you can have a negative on that number But you know, I'm just surprised there's anything because these applications have been sitting for so long Yeah, that's a great point I think bottom line, you know, as we've said over and over again, the consumers is tired right now and and back to our you know The debate tonight. I think people are looking for a fresh start. They're tired They're frustrated in so many aspects of their lives, you know, those stock markets at record levels and unemployment slow and things like that There's a seems to be people people seem to be so concerned about so many other things and and That's why again this presidential election is so very very critical. All right before we Go to break with the christen snow giving us news traffic and weather quick reminder my friends over to s&w tractor stam in the crew Hey, they're a wheeling and dealing speaking of deals They want to sell some coyote tractors and they want you to calm down and talk to them They can put all these packages together for you small ones and big ones and everything in between All you do is make the phone call or better yet stop by their great in-person people just down to earth family Located at 4880 east nylane in karston city phone numbers 882 1225 online s&w tractor.com and don't forget 0% financing for 84 months on select models christen snow take us away my dear take it away Welcome back to john sanch his show in his talk 780 kawh with dewy mollard of gill mortgage courage of agility 36 point gain on the dow rose 54 on the nasdaq 5 point increase on the s&p 500 All right guys, let's get to our topic tonight the homeowners association now if you're new to real estate Maybe you're young you're looking at your new home new condo, whatever. Maybe you're going. I've heard of hoas Well, what are they cori give us a layman's definition of what an hoa is homeowners association common interest community is an Ordinary it's a non-profit corporation. So they have Rules if they have put in force on the lots prior to any sales to any third parties And those rules are essentially a contract if you will between the person that buys that property and the association and so If you buy in one of these communities, which to your point most Home to buy these days. They'll have them. We're going to get a large packet of Stuff that like Dwight said almost nobody reads But you are subject to those rules whether you like them whether you don't like them Whether you read them or not whether you claim to not know about them You're still subject to them and they can find in any new all kinds of stuff And they can go as far as wiping out your lender and taking your property So they're very uh, they're very serious So explain to the audience cori into white. Why do developers let's go back to the initial stages That's a big plot of dirt out there XYZ developer comes in smaller large. It doesn't matter They decide to build you know a couple hundred homes there and they decide to start a hoa How does that process work to make a housing track abide by an hoa and have an hoa? They just establish the establish by a lot of they establish a homeowners association with all the rules and regulations They establish a board that oversees all this and prior to People buying the homes usually it's the developer and some of his or her You know employees or other people that sit on that board to make the decisions Um in the old days. They used to be able to sit for a long time now with new rules. I believe It might be 25. Maybe it's 50. I'm not sure now but once that developer sells the x amount of lots They have to start giving seats on that board to actual homeowners Um, but what these developers do John and why they do this goes all the way back to the 30s and 40s They the theory was like I got this vast piece of land I'm going to be here as a developer for five years or more But if I sell my first house in year one I don't want that guy trashing this place and making the rest of my development look like junk So i'm going to put these rules in place that You know in their mind protected the development protected their investment And then they just kind of growing from there. I mean, I I can show you the theater restrictions on my house that are about four pages And now when you buy a house, it's probably four thousand pages. So i've got a little Got a little over here. Yeah Okay, so that's the history of them All right, so what we're going to do tonight is we're going to go through some of the pros and the cons and guys I want to kind of go through the pros somewhat fast because I think there's a lot of cons that the audience really needs to understand Because again our goal tonight is to make sure that you understand what these hos hos are how powerful they are And really give it thought and read the documents before you sign on the dotted line So do i let's start with the first one the the pros of of an h o a what what's one of the pros that you can think of? Yeah, so the property maintenance and aesthetics of you know just a look around the property You know and and it will cover it will cover a lot of landscaping if there's a park You know the cover that The county and the city are starting to kind of enforce this a little bit to have some open land You know with this but it covers pools landscaping what's kind of amazing at times and cori knows this too I mean there's hos ways out there where they don't have a lot of this stuff, right? It's more of just yes, um, you know covering a strip of grass going down the entrance to the housing track, right? Yeah, yeah, that's the way you know a security gate, you know something like that But you know it is a pro for those people that looking for some safety and security and just the cleanliness around the property So that is a pro is to have that that maintenance Okay, cori what's another pro Well you get some amenities, hopefully, I mean depending on how much you want to pay you might get some nice tennis courts and swimming pools Pickleball courts and all kinds of fun stuff dog parks. Um, obviously you got to pay for all those things and you're entrusting You know some of your neighbors to set those budgets and hopefully not overspend your money Um, but it is a good. Um, it is a good park if it's things that you're going to use Okay, you brought up a real interesting point, cori that I want you to describe you mentioned about the money, right? So let's just hypothetically say my hoa do is $200 a month How do I know how that money in the accountability? I guess is a question How do I know that that I can hold the board which again? I've seen this with clients many times They as homeowners they sit on the board Um along with I noticed a lot of times too. They'll put property managers on there and uh things like that Um, how do I know my money is being appropriately spent and not swine a swindle the way To pay for you Look at the budget. You got to have a A little faith in your fellow human beings, but you have to be diligent and looking at all these things At the end of the day All of these hoys are supposed to be non-profit their budgets Should zero out at the end of the year. They're not set up to make and retain You know profits or funds It has to be earmarks for something. So there are There are good people that sit on these boards and there are some good people That sit through these boring meetings and listen to it and read the reports All of them accountable no different than your local governments or the federal government where You know, everybody thinks it's hunky doe, but there's that one guy who's watching everything and brings everybody's attention that You know, this isn't right and there's been cases. There's a huge case after two thousand eight and i guess uh Some massive, you know insider trading if you want to call it just some Some very shady stuff and those all those people went to jail for doing it. So it's uh, it happens Yep, exactly Dwight a lot of times neighbors will get in uh, you know, what kind of contest right they start to the p Um, they'll argue with one another over all kinds of different things whether it's, you know, you maintain the venture I named maintain the I mean you name it. We've all had conflicts with neighbors Uh, could this be something h awake at help with Absolutely. I mean it's for those people that didn't read the you know didn't read the CCNR's and you know, or want to ride the gray line But I mean it's supposed to step in and and provide that assistance, you know, and a lot of times now, john They've gotten more thorough about cars on the dry, you know, the right way working on your car Yeah, yeah, they've they they do they have tackled More frequent type of nuances that that go on so but um, you know, yeah, they're there for fence issues All sorts of issues, right? So, um, you know, you'd like to think that's what they're different They're just hard to get ahold of sometimes, right? Yeah, you need them on a saturday night. They're not there Yeah, but that's their design to help out sure choreo final pro and i know as many others but just on our list Um, basically the rules the regulations right there there to enforce those describe that They're there to enforce them. So let's say you have an air that's breaking the rules You don't need to go confront that neighbor if you don't want to you can Have the board do it or have the fine committee do it or or do it on your own if you feel like you know again Back to relax examples. You remember my scenario a few years ago when we have one called deed restrictions a little bit different but same theory And somebody wanted to come into our community and build some monstrosity and Luckily, those 80 year old deed restrictions were still enforceable and we were able to stop it. So They do They do give you some authority to stop things that would be negative for the community But if you're one of those people that likes the negative things that it's not going to work for you because I'm able to stop there. Yeah, right exactly Okay, now we're and we're not doing this the bag on h oas But let's get to the cons because uh, I think that we've got much more information to talk about there Dwight let's start for the first thing you use a lender of course you're looking at Obviously you've checked out the financials the hOH checks out. You know if we're talking about condo whatever the case is Um, but guess what here's the bottom line That new homeowner that you just get the low to besides their mortgage payment and property taxes, etc They're going to be paying a big fat fee every month to an hOH. Talk about that Yeah, and and john sometimes they don't even know what it is and we find out it's 300 dollars I mean it can be quite, you know, husky at times So, I mean it's very important. We have to calculate the debt income ratios Okay, you can you cannot get and then typically there's a transfer over to that So it's more in closing costs and then it's a more monthly payment So that is a big that is a big deterrent for a lot of people there's because they they're saying hey I can spend an extra 20 30. You know, I'm using an example 30 or 40 thousand dollars on a home But i'm going to pay, you know on that hOA. So there's some there's some value to that But uh, the fees are definitely a problem Cory While we're talking about fees. Thank you. Do i Cory while we're talking about fees Let's go back to my my situation on my client. I shared the other day Um, again move from Reno moved to las vegas. Uh all of a sudden she gets a knock on the door and or it says, you know Let me rephrase that She didn't get a knock on the door. She went to a homeowner's association meeting and and just about fell flat when it was brought up She had it was first time she'd been to the meeting that the association was going to assess a $100,000 assessment to Uh to her and along with many of her fellow homeowners Um to basically redo, you know acres upon acres and acres of landscaping and so on so forth These special assessments when we come back Let's talk about that because Cory, you know what i'm curious about and i know you're not an attorney But you know what stops a homeowner's association from saying i guess what you just got to assess $200,000 for this or that I mean, where's the limit? I've had it with clients before Um where they get into a condo or a townhouse or maybe let's go spicy focus on condos And it's time for a roof repair. They didn't know that they just bought the place and here comes a big fat assessment for the For the roof everybody's got to pay their fair share. So let's talk about the special assessments since we're under the fees and the cons of homeowners Uh associations christen aruppis up in the right now traffic centered if you would please Welcome back to the john sanchez show on new stock 780 k. O h with core edge of edge rility de white melard of gill mortgage He has a quick reminder if there's uh any of our shows that you have missed don't forget Go to your favorite podcasting distributor spotify itunes, etc and download our podcasts are all there mr edge your phone number 673 6700 mr. Marlord 2402022 Beautiful. All right. We are uh, we have been discussing of course h oas homeowners association We went through some of the pros and we're getting into the cons Cory, I left off by uh telling you to uh educate us when we came back from this break about special assessments What's kind of the ruling the laws, etc on that? Is there a cap what they can assess? How do these work? Uh again, i'm not an attorney so but no, I do not believe there's a cap and you get to remember what special assessments are are assessments to cover the cost of some large capital improvement so when you buy something Uh, that is an in h oa I mean to read the financials you need to read all the meeting minutes and you need to read all that stuff They're looking at the budget the budget for that year should equalize with the h oa payments they should zero each other out But the main part of that budget or one of the big parts is you're looking at the reserve portion of that Budget and what the reserves are as every five years is h oa's have to do what's called a reserve study And that looks at big capital improvements roofs roads um vegetation things that last longer than one year five years ten years whatever it may be And what the the law says is you have to collect from everybody on a yearly basis So let's say you're roof for your compass is going to cost a hundred thousand it's going to be done in 10 years Well, we have to collect $10,000 per year from everybody for 10 years. So when the roof is done The assessments have been collected and everybody pays, but it's money that's already been collected What a lot of these old associations do is they their reserve Fund is short when the capital improvement comes do and they have to do a special assessment to make up for it and To answer your question like what's the capwell? I mean it depends. Do you you want your roof to leak or not? You know, there's no like they're charging you something That they're profiting on it's either. We put a new roof on or we don't it's completely a view But if we're gonna do it you gotta pay for it Court do they have to vote on that do they have to vote on that that the homeowners and if so, I mean is it majority rules? Do you know? They do have to vote although. I don't know if it's all homeowners or a lot of times. It's just the board That's why if there's those people and people whatever it is They're very powerful because they're gonna make decisions for thousands of people And and you need to attend those meetings and find out And granted you can look over the books you do all that but really John a lot of these things come down to I'm sure in the Vegas case If they get hit with a hundred thousand dollar special assessment that has been in discussions for probably two three four five years That's right. That's right. So somebody Missed it by not reading the documentation that was given to them Um, the other thing is most associations are going to spend that money unless something Forces them too. So I'm sure there was something a lot of change a rule change No, they went from having lavish trees and a nice shade trees kind of a park-like setting, you know, if you can imagine hundreds of homes around You know all these ponds and like I said lush settings and ducks swimming in the ponds and everything else to the board saying Guess what? We're getting rid of it and obviously because water is an issue in vegas and we're going to zero-skate That's what it was at least according to my to my client Yeah, but that board wouldn't do that with the reports so you can't build a new community down there with hra and Right. All our official now. Yep. Yep. Exactly. The other cons of course guys, uh, we've got restrictions You know, as cori mentioned, you know, what kind of plants can you grow the color of your house? Oh, that's a miserable one Again, we talked about enforcements they can they can enforce the rules and results and fines legal action Even foreclosure and of course the management so uh, there's a lot to an h08 read the documents get a good attorney great real estate agent Like cori and great linder like to white. Thank you fellas great job. We'll do tomorrow night. See you then It is ryan c crest here everybody needs some variety in life. That's what I love about chumba casino They know how to keep things fresh and exciting all their games are free to play Expense lots bingo and solitaire you can claim free daily login bonuses too and they release new games every week So spice things up with chumba casino.com now for your chance to redeem some serious prizes Sponsor by chumba casino. No purchase necessary vgw group void where prohibited by law 18 plus terms and conditions apply