All Forum Posts by: Bart Charkow

Hey all!  Looking for some advice as I am indecisive and have a tremendously strong FOMO (fear of missing out).  I've used a number of sites in the past but have gotten pretty comfortable with PropertyShark as it has a ton of useful information.  Having said that, what it lacks is the ability to accurately pull emails, mobile numbers and landlines (not as important).

What I am looking for is a platform in which I can type the property address I am interested in (from PropertyShark) and pull all applicable information so that I can prospect; properties will be distressed sales (foreclosure, short sale, notes, etc).  I have researched Cole Directory, REIPro, PropStream but there are a ton more and I am not exactly sure which to consider.

Has anyone had any good experience with any of the above or any that I have not mentioned?  Thanks in advance!

 Agreed; both articles were also quite old.  It's interesting to consider using the QR code on mailers to direct traffic to website/landing page.

Check the Department of Consumer Affairs for both; they have links and have a detailed page outlining exactly what you need in addition to the fee's you will need to pay.

Nassau makes it extremely difficult; you must be able to validate past experience and they question EVERYTHING.

Suffolk is easier; fill out information, take a test and that's it.

NYC same as above.

I am NOT an attorney and you would certainly have to speak to one who has experience with your local laws regarding IRS tax liens.  However, from what I understand, if the IRS tax lien is the ONLY lien on the property and you settle that lien, they would remove that lien from the deed of the property.  You would own it "free and clear" since you paid the debt that was placed on the property.  

Clearly, if there are other liens besides IRS (mortgage lien, property tax lien, mechanic lien, etc), the purchase would not settle those.  I would also take into consideration that the purchase of a property/lien entails a real estate attorney, title company, etc.  There would likely be additional fees on top of $150,000 that you would need to cover for the purchase.

$150,000 + fees vs. $175,000 value.  To take equity (cash) out of this investment, you would need to sell which also entails additional costs and commissions deducted from your $175,000 value.

I agree with the last statement you made in your post.  My subjective view is that if it takes me a little bit of elbow grease to clean it up, it's not worth aggravating the tenant and your cash flow.  Remember, this is an investment and you'll constantly be making sacrifices in order to keep the tenants content.

Of course if it starts to become a recurring issue, I would keep record of the amount of time you personally invest in the remedying of these instances and charge accordingly based on recorded fact (write it down, take pictures, receipts, etc).

Yes, get a real estate attorney to draw up a contract between you and the equity investor; make sure that terms are clear (whether you offer preferred return or percentage of gross/net profit, ownership percentage of LLC, whether they are a silent vs. active partner, etc).

I am NOT an attorney however I would offer the advice of opening an LLC for each property you decide to purchase, renovate and sell; it will protect both you and the investor's interest.

Construction is an extremely complex and intricate industry.  Generally speaking, it takes years upon years to get the experience and know-how to properly run a construction project from start to finish.

Do you have any prior experience?  Can you read blueprints? Have you managed of team of sub-contractors? Are you literate in any trade (plumbing, electric, etc)? Can you estimate projects? Have you dealt with project scheduling? Do you have any accounting experience? Have you ever dealt with any DOB? Are you prepared to go "hands-on"?

I don't mean to bombard you however I'd like to be as honest as possible with you.  The bigger question is whether or not you have the ability or means to survive during the learning process.  If you do and you're passionate about the process, it's not impossible; but it will take time.

I don't see why it would be a problem but playing devils advocate, maybe the rental manager would rather wait for a finished project to show rather than an undergoing project only because perhaps someone does not like the aesthetics of the bathroom (tiles, vanity, etc) after they've committed to the rental (security deposit, tenant screening, etc).  

The property manager would have to start from scratch simply because someone doesn't like the "color of the tile".  They may feel like they're wasting their time; people are super subjective when choosing places to live.

 This!  It's exactly what I do; for every day a contractor is behind I charge them a penalty based on the contract sub-total (larger jobs will have larger penalties); I explain to them EXACTLY what will happen if they fall behind and have them sign the contract if they agree.  Now the balance of the project becomes a wash because of his 60 day delay; THEIR profit gets eaten up by THEIR delay, not my responsibility nor my problem.  

Hey!  Generally speaking, they are all pretty much garbage.  The reason why I say that is because most of these websites require a "Reserve Price" which means the bank isn't willing to sell it lower than that price.  If you go to the live auctions in court, they are called "Upset Value". 

Now the problem with online bidding is similar to gambling slot machines; there is an algorithm that balances the win/lose ratio (or so we think).  Fact of the matter is, we have NO idea how the algorithm works, we just put our money in, spin the dial and pray we win.

Having said that, when bidding online, there is no ability to verify conflict of interest.  Meaning, anyone can sign up and bid the property up in price (even the seller who owns the property).  Therefore, what seems to be a good deal (starting bid), will likely get blown out of the water because the bank doesn't want to lose (or wants to lose as little).  To add insult to injury, you can win the bid BUT, the seller still retains the ability to deny your winning bid.

Long story short, in my humble opinion, it is a waste of time.