All Forum Posts by: Brandon Arce

 I believe City of Bayonne is also rent control free. I own a property there, raise rents recently, and never heard of any similar ordinances there

@Ben I. I simply would talk to their lawyer directly and expose your point of view, and the facts as to how you acted as per contract terms. Hopefully he will realize he has no case, and advise his clients. I would not hire a defense attorney (unless is free consultation) until you get an actual summons by the court, because until then it can all be threats and just talk.

@Indro Dhar I have experience in Hudson county, currently holding two 4-family buildings in hudson county. Some cities have some advantages over others, but I feel they are all great, and although the prices are high, there are gems to be found all the time. I recently saw a 3 family being sold auction at $250K, ARV being $600K !!!

II feel Union City is the one with most advantages for its NY proximity, 3 Bedroom can easily be rented for $2K per month, however bnie mindful of rent control recently put into effect. For any property, make sure you go to the rent control office in town and ask them if there is registered rent for the property in question. If there is you will have to start charging the same rent to future tenants, and you don't want to be surprised this being a low number.

Downtown Jersey city is overpriced, just like Hoboken. Bayonne has a lot of potential, large buildings being built all arround, and the East section from route 440 under development will bring even more value to this area, also ferry to NY being under review for this area. Send me a request so we can connect and discuss further.

My first contractor took many months doing minimal work, and took half my draws from my private lender, after electric inspection did not pass, I terminated his contract. The second contractor that took over quoted the job too low because he didn't realize he had to change the whole electric cabling in the house. He stared complaining how everything was costing him so much, and let me know straight up that he wasn't making any money. However he did passed all inspections, but now  after a $10K payment he demanded he refuses to answer calls, and has  not delivered the materials to compete the project.

I have seek attorney advise, and of course they advised they are ready to sue them if the contractor fails to complete with the work as per contract,  however I have read that even if lawsuit is won, is extremely difficult to collect the money.

I wonder if it is better strategy to sue them in small court myself for completition of the project or for $20K , which is the maximum allowed in NJ for small court, and that is really all I would need to complete  the project.

A few points to mention, they quoted me $48K, I have paid them $45 so far.

I still have $20K available to draw from my lender, but that is hard to happen since final work is not being done.

At the beginning I stood up to make $80K to $100K in this deal. Now I will luckly come out just even but that is due to the good initial deal I got on this rehab.

I would like to hear if anyone has actually recovered money from contractor in a lawsuit? I am out of funds, totally, even to pay for the lawyer I would have to borrow money.

I also have to worry about my project not complete, and the contract with the lender coming due in one month.

@Luis Prieto , i don't know how you can build a house without a licensed contractor? You will need permits from your town, and in order to get those, the builder has to show them the corresponding licenses (electrical, plumbing etc) I started my project without the proper demolition permit, that cost me $2400 right off the back.!

@Juan Delacruz hello Juan. I own two multi families in Union City and Bayonne. It will be really hard to find a multyfam in Union city at that price unless it needs a rehab, which from your comments it does not sound like something you are looking for.

Newark and Irvington... I personally would think it twice. May I suggest Elizabeth. Some areas are nice, a few months ago I ran into a triplex on a main ave. With about $6K monthly income potential completely renovated.

Juan, also take a look at greenville área in Jersey city. This used to be bad neighborhood, but the area is seeing improvement due to the growth in Downtown JC has made the prices spilled to the Hights area, Union City, and now Greenville is seeing a lot of new projects. Being close to NY this area are better than Newark or Irvington.

I have jumped in the water, bid on a property, and contract is in progress.  The biggest obstacle so far has been obtaining repair estimates.  I have had a few contractors over, and they have told me that they won't be able to give me an estimate until they see the drawings from an architect.  I feel this comes about when I mention I want to bring down some walls to open up the space. Is that absolutely necessary? what if I don't change the layout of the property? 

@Drew Slew I once read somewhere, you can buy a  run down house in a million dollar neighborhood, but never buy a million dollar house in a rundown neighborhood.  With that said, I heard some of the positive things happening in Greenville section, so I guess all depends on your strategy.  Will you be able to hold 5 or 10 years for future value, then I feel is good, but if you are looking to flip it next year, you may wan to reconsider.

I would definitely invest in JC heights. Prices will continue to rise as people from downtown and Hoboken move over due to high rents. Also proximity to the city.

Also note what is happening to Journal square, have you notice all the new buildings? 

I know prices are high already, so it has to be a long term strategy.

Good luck.