All Forum Posts by: Ankit Duggal

Biggest tax sale towns: Newark, Elizabeth, Paterson and Atlantic City 

Ana 

If you know the lender. Reach out to their loss mitigation or mortgage credit department to see if they will see you the note. 

Ankit 

My recommendation in Paterson in terms of areas to live in would be the Hillcrest section and potentially South Paterson section of Paterson, NJ.

I would echo the comments of other BP members that you need to get a good, local GC who has experience with fire damaged and historic properties in Downtown Jersey City (I am assuming that is where this Brownstone is located).

To help answer your second question of persuading the owners to sell:

Given that it is a fire, you can assume that the owners got paid from insurance proceeds so they own this asset free and clear and may have made some money. The only pain point they should have is that they will be getting pressure from the city to secure and fix the asset to protect it from being a hazard to local residents. So you need to stress on that pain point and the cost of carrying the asset I.e. property taxes and property security & maintenance fees

@Kevin Hill If the property is well beyond (typically more than 60 days) the first look initiative then you will have a better chance to getting a reduced offer price accepted given that it is all cash.

@Darren Sager is correct.

@Aleksey Vinogradov You are looking for a hardship increase which has a formula of its own. Typically I believe their return requirement is 6% but check the rent regulation statute of Bloomfield.

@Darren Sager covered all the major points.

The only exception to the rule is if you will be doing substantial renovation to the unit and then and only then can you take the increase higher than the unconscionable increase. You will still get challenged but you can back up your claim with renovation contract/receipts.

Newark is a diverse market with a lot of growth opportunity pockets depending on where you are looking to invest. Cap rates have compressed across most of the good neighborhoods in the past 12 months so just balance your risk-reward needs as you look for investments in Newark.

@Tammy B. Welcome to BP. Newark is a good investment market for buy and hold given the right risk-reward dynamics depending on the neighborhood you are looking within.

@Scott Costello is correct. Any standard contract is assignable as long as there is no clause preventing its assignment.