Bought a multifamily brownstone in NYC

[Tera Petersen]

Investment Info:

Large multi-family (5+ units) other investment in New York.

Purchase price: $1,700,000
Cash invested: $500,000
Sale price: $4,000,000

I bought a 5 story brownstone multi family building

What made you interested in investing in this type of deal?

I had bought a Condo in the East village (250k) of New York sold it less than 2yrs. later for 3 times what I had paid for it giving me the downpayment for the building.

How did you find this deal and how did you negotiate it?

I went and looked at buildings, I loved the building I bought because of the original details: 100yr old original front doors, original marble fireplace with carved figure of woman with owl on her shoulder, etc. The family who owned it had since 1946 they had a set price and I had to work with it. I tried to negotiate but they were not negotiating.

How did you finance this deal?

I had sold my condo and was making a lot of money as a Flame Artist (graphic computer system) not many people knew the system and the pay was high. I had the money.
-Then at the last minute the bank said it was giving me 100k less! I had to borrow the money from my parents, 1 of my sisters, and my boss! He was extremely nice. I set it up to pay everyone back after 3 months, but was able to pay back after 1 month because I did a lot of freelance work.

How did you add value to the deal?

I was happy with the deal it's a beautiful brownstone in the Flatiron District of Manhattan,NY. It had 3 tenants that had a preferential rent stabilized apartments. I learned all about how to get them out, because I bought the building in my name I could at a certain date before their lease ran out serve them with the Galobe Order stating I was going to use their apartment. All said they would fight me in court, but all of them took a bye out which totaled $75 thousand. I rented apart $mp.

What was the outcome?

The outcome was I got the building and lived there for 6 years. When I sold it I was a multi-millionaire!

Lessons learned? Challenges?

My plan was to buy another building this time in Brooklyn, NY. I looked at several & tried to put a bid in on 1 but the owner was up to be a judge & took it off the market. The apartment we were renting the building owner told me he was selling it. I gave him an offer for it 1.5mil he said no he thought he could get 2mil. It stayed on the market for 2 years and he ended up getting, guess? He got 1.5mil. 2 years later. Anyway we bought another Condo and did a gut renovation of the place.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with lawyer on all 3 deals and real estate brokers. I became extremely good at being a landlady and running a building in one of the biggest cities in USA. I know the tenant & landlord rights, and different laws for owning and running a building.