Investors in an HOA

If you have proof of stolen money, you turn him into law enforcement for embezzlement.

Realistically, it's likely you won't be getting rid of any investor that has that many properties within your development.
If this is an issue, you may just want to sell.

You can’t have a buyer without a seller, so unless your documents state the board must approve a buyer (unlikely and usually illegal because you run into discrimination issues), there may not be anything you can do about homeowners who sell to investors. I suspect what’s happened is that those homes went into foreclosure and the bank sold them to whoever had the money to pay off the loan or most of it. Or the investor got them from a tax sale. That’s usually how you wind up with a lot of investors (it’s happened in my own community). The banks or whoever holds the note doesn’t give a damn about the documents or what they say, they just want the money.

As for this investor with 30 properties, the homeowners should have rallied together to get him off the board (assuming there are enough homes to outnumber the 30 he owns, so you could all start a recall). For that matter, I’d also take a look at the other board members – are all of them investor-owners and let this guy do whatever? If you have the numbers, you may be able to vote all of them out, but it will take cooperation from ALL of the remaining homeowners, which may include any investor-owners who are more reputable.

The stolen money is more serious – if you have proof, you and the other homeowners (including the other investor-owners who are more reputable) may need to pursue criminal charges against him or at least sue him for repayment. But as Tim said, with that many units, this guy holds a lot of power, so getting rid of him won’t be easy.

My question is: Are they not paying their dues? What does it matter after that? They are just like every other owner.

Now there are those rare cases of questionable business practices of certain investing companies. When I say rare, the situation has to fit a certain criteria. At which that then becomes an illegal situation with the STATE. Florida does have some laws in regards to this type of "home flipping" I believe. The situation usually involves condos and shoddy work/short term ownership. Meaning that an "investor" company will come in and remodel large groups of condos or entire buildings. They sell them off relatively quickly like less than a year. It is about that time that the shoddy work will then appear. We are talking bad plumbing, electrical, or structural issues. The owners have limited actions they can take against the seller/investor. A history of the investor doing this and being reported to the correct resource can result in prison time. I don't all the ins/outs of this but be aware in certain extreme cases there can be laws protecting buyers.

The missing cash the investor collected on a property the HOA needs more details. What exactly happen in this situation? Are they an LLC? Are they paying their dues anyways?

I wouldn't get rid of investors as much as I would hold them to the rules just like everyone else. Plus make a rule that ALL lease agreements must have the clause that the tenant has to follow the HOA rules. This will protect ALL involved.

Geno is dead-right with this. Amending the Articles of Incorporation is not usually going to satisfy the requirement for filing an annual report. Your association definitely needs to find a new CAM and a new attorney.

BTW, I am always suspicious of attorneys who practice HOA law. Unlike business corporations, HOA's are run by people whose sole qualification is that they purchased a home within the association. Few HOA board members have any significant business or management experience and are just sitting ducks for unprincipled attorneys.

yes I shouldn't do that. sorry. I was just hoping someone had information on them that I could use when I take them to civil action.