All Forum Posts by: Michael G.

Rey

Thanks for responding.

You appear to be selling what can only be considered 'real estate' or an 'investment' or probably more accurately a combination of the two.

Why not procure the proper registrations for your firm, either as an investment broker/dealer or as real-estate broker, or both?

I think this might go a long way towards making people more comfortable about sending their money out into the ether without any form of safeguards...

@sam Leon and everyone else...

Point taken.... Tks.

Would definitely like to hear from any other Property owners out there who have Daycares as tenants....

ARE YOU OUT THERE? Your comments / input are sought...

Thks

J aka Brooklyn R.

@Steve Babiak

Steve - You're right! Very astute of you to notice that I didn't refer to her as a "great tenant" (yet.... I haven't had the chance to properly 'train' her yet.. If she stays...) but merely as a "not-horrible" tenant.

I won't go into too much detail but I truly am on the fence about this tenant as sometimes, she makes ridiculous demands (Ex: "please swap out my perfectly good bathroom tub for a deeper, more luxurious tub at your expense simply because I want it")

She also seems to be oblivious to the fact that she is the tenant in the building that creates the most risk for us, brings the most visitors to the building (with all the slip&fall risk they bring), creates the most noise in the building, uses the most water & sewer (which WE pay for) while paying the least in rent. She also has no security deposit (this will very soon be corrected), and stores multiple cubic yards of her stuff in the cellar at no additional cost (yet. This will also soon be corrected.)...

On the other hand, her heart is in the right place and she cares about the unit and the building as though it were her home (she regularly paints & spackles, leaves helpful signs for the other tenants, shovels & salts the main walkway after a snowfall, etc...

So you're correct in observing that She's a complicated case to say the least...

Bottom line is if she pays a lot more in rent, submits her due security deposit, signs a separate additional lease for her storage in the cellar, offers to pay for part of our sewer cost, and submits to our tenant 'retraining' philosophy so she gets with the program, she may (stress "may") work out...

Will update the group in a few short weeks...

@Donald Stevens

Thanks Donald. Agreed. Question now clearly is how much extra risk do we really bear even if we both are insured and how much extra shall we try to charge? And by the way, even if we are both insured for up to $2 million (total $4 million) , we still might get sued for $10 million (if, g-d forbid, a child is killed or something calamitous happens...)

Complicated ... That's for sure.

I'll be making a decision next week and will update the group.

Thanks All!

Brooklyn R.

Hi BigPocketers

I wanted to ask about a company I recently came across called "National Realty Investment Advisors LLC - www . NRIA . net"

They appear to be based in Secaucus NJ and have been advertising very heavily lately in the NY area (radio mostly). I have no direct experience with them and want to stress that my questions about them are merely based on personal opinion/curiosity (I am not making any statements about them)

But they strike me as using 'aggressive sales tactics' and they don't appear to be (as far as I can tell based on their website) regulated, licensed or registered in any way, which, if I understand correctly, means no accountability to anyone for anything. (If they were, wouldn't they advertise this on their website?)

They don't appear to be "licensed, registered realtors" or "licensed/registered investment advisors" so what are they exactly?

They apparently raise money for new construction housing developments, almost exclusively in Philadelphia, and then offer "rent guarantees" (Anything with "guarantees" makes me skeptical and always sounds, to me, like it's too good to be true.) They also claim that the opportunities are "VERY RARE" and "VERY LIMITED" [sic - The ALL CAPS are theirs]. Company is run by the "Grabato Family" of Philly according to them.

They could actually be right, and offer an amazing investment opportunity. Like I said, I have no direct experience and have sent them no money but my "spidey sense" is tingling for some weird reason with these guys...

Does anyone know anything about them?

Disclaimer: Nothing in the above constitutes an accusation or wilful disparagement...Just questions based on my observations & personal opinions.

All feedback welcomed. Thanks!

Brooklyn R.

@Roy N.

Thanks. What do u think. Renew or not renew?

Everyone: Thanks so much for your valued input and opinions. I really appreciate it!

Latest update: Yesterday the daycare bought General Business Liability Insurance ($1mio/$2mio) with my LLC as the additional named insured. So now I feel a wee bit better as this is my first line of defense. I am now frantically seeking an insurance policy for the building at a reasonable cost with the daycare fully disclosed. I have 3 different brokers working on this and am hoping for good news this week.

So now the question is: SINCE she now has liability insurance with me as named insured, and, IF we are able to procure decent building insurance at a reasonable cost, THEN: Should we STILL not renew her lease?

I have a feeling I know where most of you all will fall on this question, but nonetheless I am curious to know your thoughts...

Please share your opinions... all input welcomed.

Thanks!

Brooklyn R.

Susan -

I agree - That's what makes this such a hard decision! This is a very difficult position.

Furthermore, she does NOT have insurance, but we have asked her to procure it ASAP - will wait and see if she delivers. But it does make us question her willingness to cut corners... The problem is more nuanced than you realize...

She cuts corners in other areas as well - She is in default on her lease on several of the terms (the only tenant with no deposit, stores numerous items large & small in the shared basement without paying rent and she causes problems with the neighbors (more than any of the other tenants.) She carries an air of entitlement and lack of appreciation for her situation that rubs the wrong way... If she cuts corners on her Lease, god knows what corners she cut in her business.

But, like I said, on the other hand, we don't want to be lumped in with those who would boot a mom, her daughter & her childcare babies...

But, on the other hand, if the building is literally uninsurable due to her daycare, what can we do? Not worth it to risk $1,000,000 in order to earn a couple thousand a month....

Like I said.... Very difficult spot...

Any other solutions? We'll consider any reasonable suggestion ....

We were thinking about giving her a temporary 3-4 month extension on her lease (a new 4 month lease effectively) which would give her time (a total of 6 months from today) to relocate in an orderly manner...

What do you kind folks think?

Thanks all for your valued feedback. Mucho appreciated.

@Jeff Greenberg... Dispense with the formalities... the truths in life are dishes served cold...thanks!

Anyone see any creative options?

Hi New York City Insurance agents/brokers/underwriters! I need you!

We need insurance on a residential NY triplex where one of the tenants operates a small family/group daycare for up to 4 babies aged 3-9 months. She also lives there with her teenage daughter.....

Who out there is able to get me a great policy for a reasonable cost?

Need:

1mill/2mill liability

75k rental loss / gross income loss coverage

2-5k deductible

575k replacement cost

35k property damage

Decent ordinance / other coverages from a good name

Looking to pay approximately $2,000 all in....

Hoping someone out there can help us! Would appreciate any leads or interest......

Please contact me via private message here or via my private email address noted in my profile.

Thanks!

Jay aka Brooklyn R.