All Forum Posts by: Dave Fontana

Try Arcana Insurance.  I use them they cater to investors.

877.744.3660

[email protected]

The first house my wife and I bought together, we bought on a shoe-string. We struggled for 8 months before and 12 months after. It was the year we got married and I started my building business. 

At the end of that year the broker that original sold us the house, came back to visit us. We had done extensive renovations to the house. He told us the house was worth twice what we paid. At that point she didn't need much convincing.

From that point on we refinanced and it just happened. We built some semi the following year. Than we started buying rentals. 

She actually was the one that told me to close the building business and invest full time.. 

No offense taken, but I like a debate just as much as anyone, and I am here to learn just as much as anyone. So please forgive me for if I missed something.

These purchases, are purchases I made in 2012, and were appraised on 2014. They more than double in 24 to 30 months.

I will share the method to my madness.

I live in Staten Island NY. Last year I read in the local Staten Island newspaper that Iron-State Development is going to build apartments and an outlet mall on the north side of the island. Another developer is building the worlds largest Ferris wheel in the same general area. I start driving around the area in November. The project is actual underway. So, I started looking in the area. I stated spending 3-4 hours a day. Just driving around. I finally found a 4 unit building that a wholesaler had and he was ready lose it if he didn't close. I ended up closing in February for $160K plus $25k to the wholesaler. So, the building is 3 retail stores, one 4 bedroom apartment and 2500 sq. ft. of addition build-able area. Last week 3 building on the block went up for sale. 

1. 2 apt, 1 retail large store. $369K (1 bedrooms, 2 story)

2. 2 apt, 1 retail store large for $649K (3 bedrooms, 3 story)

3. 5 apartment, 1 small retail $799K (2 bedroom 3, story)

Number three just sold, all cash $705K. This building sold at $150.03 P.S.F. My building is 2730 sq. ft. at $150.03 P.S.F the building is worth 410K. My costs so far.

$160K Purchase.

$25K Wholesaler.

$50K Reno.

$5K Legal and evictions.

$240k all in.

I think its safe to assume that doubling up he in 2 years is a good bet. Now, i'm still looking leads in the area. I'm flooding the area with letters. Most of the long time residence just want to get the hell out of there. I believe there will be plenty of buys there and plenty of money made.

Bill,

I would call some HML's first, to find out what there lending criteria is. I think you can get some NJ HML's to fund your deals. Deals are becoming more and more scarce. These guy are hunger for new deals.

Good luck!!

If Texas is like NY, your attorney can just do a deed transfer. If the members of the LLC are the same as the current owns. There isn't any taxes to pay. In NY a transfer like that costs $800.00.

Squatters.

I just bought a 4 unit building. I had one squatter in a store. I had 4 squatters in the four bedroom apartment. Two of the residential squatters also had possession of another store. This was a foreclosure, so 7 John Does to evict. This could have been a nightmare. Lucky, the house had one boiler. The gas meter was supposed to be locked, but one of the John Does broke that lock off a year earlier. When i bought the building I called the gas company to get a final meter reading. They came to shut off the gas from the street. So no heat, no hot water. I was able to get them all out with $2200.00. The person in the first store agree to leave on there own. The 4 others just split the $2200.00 and they all left. One of the guy came back 2 days later. He need more money. Since we had a signed receipt from him. We escorted him from the building. He actually called 911. When the police, came he told them that we illegally evicted him. Once the police saw the receipt, they told him to go and not to come back.

Alfonso, we should talk. I am getting ready to possible start a meetup here in Staten Island. I have a few locations. Contact me.

@Jay H.   

Can I have some of that spicy sauce lovin too??

@Steve Wilcox 

The question was, where do you think property will double in value in 2 years. Now, I will reiterate, my responses as being safe bets, and you need to know where to look in those cities. I am not looking to devalue anyone's opinion of the market, of there success or opinion of themselves. But I can tell you that in the last 4 years I bet on Staten Island NY and Charlotte NC. I have more than doubled up. Ghetto areas, yes, definitely. Not all of them though. 

That fact that this is a controversy, stuns me. I have been investing in real estate on and off since 1996. I closed my building business down last years to invest full time. 

When I started learning about real estate the weren't that may "gurus". Johnny Ho, Carlton Sheets and Sonny Bloch. What I learned was "you make money when you buy".

2 Examples of my investments.

2012- 20 units in Charlotte NC. $125k purchase. $175K reno. Total invested $300K

CushmanWakfield appraised for in 11/14 $800K. 

$500k in 2ish years.

2012- 3 units in Staten Island NY. $39k purchase. $125K reno. Total investment $164K

Local Bank appraisal 11/14 $485K  

$321k in 2ish years.

Steve I'm in Staten Island you can come see the paper work if you like.

.....and unfortunately my predictions don't work for lotto. I tried!!

The Weequahic area into Elizabeth. I where im looking.

I don't agree with the speculation idea. I think, the fact the institutional buyers of single family home is on the rise, this will drive the market. And its not going to drive it like some B*&^S pump up IPO. Wall Street has figured out what, we, house buyer have know forever. Two, tree years ago Blackstone started to buy SFH. Now there are at least 5 more like Blackstone. I don't think they what 20k-30k-40k houses on the market. Especially in the highly populated areas. Next, I predict, home ownership is going to be a thing of the past. In Europe they control the home ownership market with mortgages that are impossible to get. I see condos everywhere. I buy in Charlotte NC and in Greenville SC. They're building condo like you cant imaging there. Blackstone is not buying condos. I don't believe owning a condo is the same as owning a house.

That just my gut feeling.