All Forum Posts by: Ahmed Saad

@Luke Carl I think being so close to the closing can work for you to get a reduction in price. Seller would likely hate to have been so close to a sale and it fizzle at the last moment. They've probably already made the "after I close plans." If there's a seller's agent involved they can try to salvage the deal too if they're any good. Does the contract state anything about the tenant being current with rent (arrears)? 

I think you'll still have to handle the tenant. That said you have the ancient tools of the carrot and the stick (cash for keys VS eviction). The former would likely be the preferable route. However, start the eviction proceedings ASAP so you don't waste precious time.

Hi @Kase Knochenhauer,

Thank you for all the helpful tips and encouragement! I’ll give it a try with the 2 sources you recommended. Do you mind if I pm you some more detailed questions later? Thank you!

-Ahmed

I've come to a point in my journey where I absolutely need administrative help. I have piles of paper, tons of emails, insurance documents here, leases there, and more projects on the way. I know that in order to grow, I need to bring on someone who can be my right-hand. Ideally, the person I am looking to hire can

• -set up an organized paper filing system and set up a digital office with cloud-based document storage
• -keep a calendar, help me move forward and not get bogged down with minutiae
• -multitask between the different businesses and properties
• -has previous administrative experience in real estate
• -and most importantly: Get. It. Done.

I would really like to hear from other investors that have passed the point I'm currently at. Currently I have 5 properties in my portfolio with more than 20 units, along with several other businesses that require moderate but organized paperwork.

How did you find someone? I'm considering looking on upwork. What other sources would you recommend? (No craigslist please) How did you manage compensation? What about office space? I'm sure there's a lot I'm missing. If you have a story, I want to hear it!

It's not going to be cheap. If you want to manage the project yourself, you'll have to reach out to an iron-worker/welding company. They'll need DOB permits and inspections, possibly the fire department too. That's not the sort of thing you want to do without a permit/licensed installer. 

Also an extra tip: when they remove the old one you will have holes that will need to be mortared (if brick building). If you leave them exposed they will serve as entries for water. 

You'll likely want to have the expertise of an exterior contractor who can handle the whole job. There are a lot of them but you want to make sure you have a 5 year warranty because exterior defects tend to take some time to manifest themselves.

Also, it will be more costly if it's a rear fire-escape instead of the front facade of the building.

Hi Selena,

It is very difficult to house hack in Brooklyn, but it’s possible. It all depends on how much you’re willing to sacrifice. Are you willing to have X number of roommates? Are you willing to live in a basement? Are you willing to do short term rentals of a room for extra cash? Are you willing to buy/live in an unsafe area? I recently saw a property that had a several illegal units in a basement. If ever there were an accident or a fire for instance, the owner would be criminally liable. I say these things not to exaggerate or to frustrate you, but to help you think about what you’re willing to compromise in order to pursue your goals. Speaking of... are yours well S.M.A.R.T.? 

@Greg H. You check out the roof when you're looking at the property and the top floor apartments/hallways. Look for soft spots, cracks, holes. Stains or sagging paint in the hallway. Ultimately you get it during the inspection but you should ascertain the condition early on.

Good morning! I can virtually assure you there will always be someone with money who wants to lend it out. Take the time to stabilize your base. Pay off personal debt, rebuild credit, establish relationships with those that can assist you/partner with you when your credit is repaired. I finished grad school with $25K in credit card debt and it was very tough to pay off. Fortunately, someone very wise helped me with a smart plan and it worked.

Ideally, once you have some more experience you'll have the knowledge of how to leverage a 50K loan into a solid investment.

Good luck!

Hi @Greg Hills,

It depends how many families? 2-5 vs 6+ are very different beasts. Any rent stabilization/control will significantly increase you due diligence requirements especially since the new laws have been passed.

Assuming it’s less than 6, you should at the minimum:

Get a rent roll per apartment and a P&L (income and expense statement).

Verify taxes. I met an agent passing off properties that had tax abatements expiring in a  year or 2. 

Assuming you’re going to see the property you should check the physical condition of the property. Basement basement basement. I can’t stress that enough.

Also check the roof.

Oh, and check DOB BIS for violations! That’s a major one!

That’s all before an offer.

I can recommend my attorney if you need one. He’s very experienced and he’s friendly.

@Justin S. Congratulations! Frankly I'm in awe! I've been hitting the pavement hard looking at properties. I'm in contract on a 3 family now and am looking to expand my portfolio now. Family is doing well too!

Did you buy in Bedstuy or in Newburgh? I took some time to read your thread from the beginning and it's very enjoyable to see your success. Although we've never met; I'm proud of you. Good work!

If there's no C of O look for an I card. A lot of properties in NYC do not have a C of O but the I card should be sufficient. Google "NYC DOB BIS" and search. Also, if it has been sold in the past 20-30 years, or has a loan there will be history validating it IS or IS NOT a 4 family.