Re: OWWW as I said, please base the merits on the last post alone. ok? when I get a response, I'll explain.
OK, I'll 'Splain now OK. here goes. this new condo I am talking about, which I would like to do as a "tryout" before I try the bigger one, is as follows: The owner is tired of losing money every month, and is looking to sell the condo for $150,000. The value vacant is $350-400k. So, I want to buy and cash out... I can afford the montly outlay.
Re: OK, I'll 'Splain now ................................ bump I need to hear from you guys/gals a final answer!!!
Re: bump it again Do you know if the lease is recorded? I would suggest you look at a prelim. title report before you get too excited.
Re: bump it again Just asked a lawyer who owns a title company... he said USUALLY they are NOT recorded. now what do you think??
Re: bump it again I live in NYC and while I am nowhere as knowledgeable as humblemarc (who you should really be speaking to) I know a few certain facts. Due the rent control issue which is very controversial now, the true value of the condo depends completely on the lease. My guess that the lease stays even when the condo changes ownership, which is not true with the leases currently being signed. I personally know a few ppl that had their lease legally broken because the owner sold so the lease no longer holds any weight. Most of the time, the new owner renews the lease. The whole "appraisal" number is nothing but bullshit. I dont care if you get it appraised for 3 mil, if you cant find any buyers. You dont know the true conditions of the building, you dont know the lease conditions either. For all you know, she can transfer that lease to a family member (very common) or a spouse. Your only true guess at vacant value is a nearby condo. What the real opportunity here is how can you void the lease or force the tenant to move out. Thats it.
Re: bump it again Hehe, Nestea, Funny how the people you tell to "shut up" are the ones who can help you the most?
Re: bump it again Hey humblemarc, think you can help me out with getting a studio in NYC for a good price? Im sure you still have landlord friends in NYC BTW, whats the credit score required by NYC standards?
Re: bump it again i don't know about the studio in Manhattan, I always recommended a Brooklyn brownstone or a New Jersey apt. The Path was always easy to take. For most people a score of 660-680 or better, or they better have a whole bunch of good references i.e. good paying job, past rental history, etc.
Re: bump it again OMG, got a spare year. . .? 1) I moved out west, and keeping an eye on the properties long distance was too big of a hassle. 2) I found out there are other ways to make the same type of low-risk, high yield investment, without the hassle. 3)actually, do you have a few spare years. . .?
Re: bump it again Wow I thought you were gonna say "morals" NYC landlords are all classified into degrees of scumbags. Not trying to call you that of course.
Re: bump it again I never tried to screw my tenants. I wasn't a slum lord either. I've never done business that way and avoid doing business with people who do business that way.
Re: bump it again yeah I figured you weren't the scumbag landlord, it's just most of them are. What do you think about the rent control issue? I hear they want it abolished and honestly I agree because it's not fair that some old people that barely work pay ridiculously low rent while the younger ppl, like myself, have to struggle to pay huge amounts to cover their end.
Re: bump it again it shouldn't be abolished just revised. I'm sure you know why they started it. Because when NYC was the place to live (it still is) all the scum bag landlords, would raise rents double and triple when the lease was up. Why? because they could. Many richer people were willing to pay those prices for a 40x20 apt. but most people couldn't afford a 200% raise in their rent. so they set up the laws to protect those people who had lived in the lower east village, chelsea, whereever for 20 years and couldn't afford to move away. Plus, a lot of people WERE moving away due to the absurd rents. There were a lot of other reasons as well, and this all happened a long time ago, but it still makes some sense now. To be honest, even when i was a "starving" college student or a "struggling" businessman, i never minded paying the exorbitant rates in order to live in the ever pounding heart of the known universe. But then again, i still can't stay in one home too long. I guess i picked that up from switching from apt. to apt. looking for cheaper and better located deals.
Re: bump it again I think it's crappy deal if you want to make money. Where are you going to make your profit? I see how you are planning on getting yourself into debt and a terrible negative cash flow situation (IF you find a lender stupid enough to do the deal). IF you can get the money what will you do then? You won't be able to sell it to a sophisticated investor and make anything. Deed in lieu of foreclosure? I don't think so. This is a situation where I believe theory will look much better than reality. There are far better ways to make much more money. IMO, you will have to be deceptive to get to third base with this deal. Of course, it's your conscience and integrity. Just remember what ultimately happens when you build a house of cards. Good luck.
Re: bump it again Yeah I understand. Right now the situation isnt as bad being that the demand is not that much higher than supply. Rents are more negotiable and there are still great finds if you know Chinese. I'm just planning to save up for a broker and just go that route. Seems like any place that is actually worth the money is listed exclusively with brokers.
Re: bump it again LOL that's funny. i actually do know Chinese. Yea, the broker's get all the prime apts. It's well worth it tho' when your bathroom and kitchen aren't in the same room ;-)
