All Forum Posts by: Ahmed Saad

Hi Cherise, 

Great job on your first investment and goal-setting. It's important to keep the big picture in mind. As another Brooklynite I sympathize with all your feelings about the borough.

What kinds of commercial properties are you interested in? Based on your interest there are very different lease structures which means different economics, which means different financing. 

As far as financing; it's good to talk the talk before you walk the walk. Learn the terms. Learn the numbers and how different parts of the deal affect one another. I would be glad to discuss this further with you.

First place to start is here: https://www.biggerpockets.com/guides

I also read the forums. There are a lot of people spouting opinions without facts so beware. But there are also some really smart people here. Once you see some comments that resonate with you, follow them so you can see what else they're talking about.

Good luck!

I receive a large number of property offers through many of the major brokerages in the NYC Metro area but at this point I'm having trouble weeding through this many potential deals. Many properties are just beyond over-priced, or the ones that seem 'fair' have major issues with the deal (e.g. cashflows now, but tax abatement expires in 3-5 years).

As one of my major goals for 2019 and beyond is to stop "going it alone," I've decided to reach out on BP and see if I can find a savvy real estate broker/agent with whom I can work. 

Ideally this is a person who will take some time to discuss my goals, help me create a sustainable plan to further develop my portfolio, and is connected with others to help expand my team (e.g. financing, management, contractor etc).

Alright Biggerpockets... let's see whatcha got!

No worries @Amira Willis! I wish you the best of luck. Message me anytime.

I think you have a clear consensus of what you need to do. 

1) Hire a landlord-oriented attorney. 

2) I'd look in to getting a property manager for this situation. Even if the cost is a bit more than you want, it's better to make sure that you PERSONALLY don't get dragged into this vis a vis social media, visits to your home etc. Let some one else be the bad guy.

3) As @Marcia Maynard said; document everything.

4 The only thing I would add that hasn't already been said is that make sure you are actually dealing with the legal tenant. I had tenant that would have her pushy boyfriend call me at all hours to 'demand' X Y and Z. Obviously he had no standing to ask for anything since he wasn't on the lease. I nipped that sh*t in the bud real quick.

5) Also make sure you don't accept rent from someone not named on the lease.

@Justin S. You learned a ton during your reno. I actually just had a similar situation (purchase and reno on my SFH in Brooklyn and new child). There are so many things I wish I did differently, but thankfully everything is fine.

While you clearly have a few options (in this case it's a good thing) you have a few personal decisions to make. Where do you want to be with your family? Does your career allow for you (and your partner) to move? Do you actually want to move? All these things will influence your decision regarding your property. That said, I'm a big fan of constructive criticism because it helps me 'see the forest for the trees.' The one thing I would highlight about your options is the issue with the 1031 exchange. 

First is timing. You must identify the new investment property within a certain time frame from your sale. @Dave Foster is far more qualified to discuss the timing and process. 

Second is the 500K. If you use that as your DP for another Bed Stuy home then what do you realistically think you can purchase in the neighborhood? How much will it cashflow? Unless you have more cash on reserve for the DP you're looking at a PP of $1.5 with the 500K as a 33% DP. Bed Stuy comps are (for the most part) above that. I also just realized you might be partnering with someone on a purchase then, in that case forget what I said because you've already figured that out lol. Also you're a lender so I'm sure you doubly already have the numbers worked out.

I look forward to hearing your thought process and what you ultimately decide to do.

-Ahmed

Good afternoon Amira,

I am in Brooklyn and I like to research what's going on in and around the boroughs. Here's what I do and do not do. 

-I use loopnet for commercial/investment property searches.

-I signed up for weekly emails from cushman & wakefield and some other brokerages that specialize in investment properties (rather than condos and single family properties).

-I drive in the local markets I'm interested and see which agents/brokers are active. I call them and then ask for information about said property and to keep me in mind if a similar property comes up. The GREAT thing about NYC is that it's the land of the hustle. The motivated agents/brokers call and email me. The good ones call me about existing properties they have. The better ones call me about upcoming properties yet to be listed. The others weed themselves out of my contact list.

-Don't pay for the coaching. There is seriously so much to learn from this site between the forums (there are a lot of smart people here but also learn to separate the wheat from the chaff), the free manuals and downloads. 

-Always remember it's a marathon not a sprint! 

-Ahmed

I think @Llewelyn A. hit all the nails on the head. The Brooklyn market is killer and there is no substitute for that. Think of it this way.... you managed to purchase a piece of the greatest city in the world. Not a lot of people can say that and even less can manage to do what you did. DON'T give it up! You also have a phenomenal interest rate! 

My dad gave me a great piece of advice about real estate: If you sold your property now, could you buy it back tomorrow for the same price? The answer in most cases in NYC is no. Your concern is holding it. It sounds like the answer to this is improving your cashflow. That would alleviate your concern of holding the property. I would try the following (or some combination thereof):

1. Rent out your apartment for top dollar and move into a cheaper living situation. Your concerns regarding the finishes are warranted. However, if you were to list the apartment with a reputable broker/agency and obtain an exceptional security deposit, you should in essence be "okay."

2. If you have extra $ to invest, invest in a high-cap deal OOS that way your current situation may improve. 

Either way the key to improving your situation is increasing cashflow. Don't sell your brownstone unless you face a dire situation.

Hi Aaron,

Congratulations on the purchase! If your property is cashflowing from Day 1 then you did well. If anyone naysays you about buying the turnkey property, DON'T LISTEN TO THEM! Buying a distressed investment property requires time and money (both in amounts more than you'd expect). Based on your time constraints I think  you made the right choice. The only caveat of course is if the property was not built/rehabbed well (i.e. shortcuts in plumbing, building materials like insulation etc.) Those can be very costly mistakes but very educational ones as well.

The beautiful aspect of real estate investment is that there are multiple strategies that can work for each investor's situation; there is no "one right way."