Wednesday, 15 June 2016 10:15

What Dave says about medical bills and investing

Written by  Dave Ramsey
Rate this item
(0 votes)

Q. I know when it comes to investing you like mutual funds and paid-for real estate.  What do you think about using condominiums as investment properties instead of single-family homes?

 

A. I don’t really have a problem with condos as paid-for investments. I own a couple of them myself. When it comes to making this kind of investment for the first time, however, I would advise that you keep a few things in mind.

 

Based on equal price and equal neighborhood, the average single-family home will probably increase more in value over the years. Now, a nice, well-placed condo will obviously go up in value faster than a traditional house in a lesser neighborhood. So speaking in an overall sense, they’re not bad investments if you do your homework.

 

You have to think about what you’re getting into and also take into consideration a number of variables. What are the HOA dues or condo fees going to be? Is the condo association being managed well? That and the neighborhood are the two biggest concerns I have when buying a condo. A lot of condo associations are very poorly managed. And if they don’t provide proper maintenance or keep a certain percentage of the complex owner-occupied versus rental, the condo association or complex can lose the ability to get normal permanent financing. If they can’t get FHA, VA or conventional financing, the values are going to drop like a rock — because you’ve only got cash buyers and investment buyers at that point.

 

Research on these kinds of things doesn’t take an awful lot of work. Just call the management company, and the realtor who’s involved if it’s listed, and ask for the documentation. Most of the time this sort of stuff is public information, so it’s not hard to access. Some other questions you might ask are: What are the reserves for the roof? What are the reserves for paint and the parking lot? Are they collecting enough to pay their bills, and are they actually paying their bills?

 

 

 

Q. I’ve had a judgment filed against me for an old, unpaid medical bill. The original amount was $2,500, but now it has increased to $3,200. Can I negotiate this with the lawyer? I’ve asked him for a detailed statement of the account several times, but all I’ve gotten is a payment booklet.

 

A. When it comes to paying off bills or debt, you should always pay what’s owed if you have the money. There’s a moral, as well as legal, responsibility involved. That being said, if you don’t have $3,200, offer him whatever you’ve got — $2,000 or the original $2,500 as a settlement. Make sure he understands that you’re not offering to pay the amount you have on the debt, but that it’s being offered as settlement in full if the debt is cleared.

 

The reason you haven’t gotten what you’ve asked for so far is you may have been talking to some low-level staffer or paralegal. If you have been talking directly to the lawyer, then he’s probably running a small debt collections or debt lawsuit machine. That means you’re just one of dozens of widgets coming down the line. To you, this is very personal. But to him, you’re just another account. You might have to do something to get his attention and wake him up.

 

If this is the case, he probably gets a piece of whatever he collects. So, if he gets a third of $2,000 or $2,500 it might make his house payment this month. You could also talk to the hospital administrator, too, and let them know you’ll bring a couple thousand down there today if they’ll accept it as payment in full. At this point, you’ve just got to do something to get off the conveyor belt!

Go to Top