All Forum Posts by: Gil Lieblich

I was searching for appliances for a foreclosure property i bought and i was speaking to another investor who said he goes to the lowes and depot and every week looking for good deals and keeps back up items as he owns many properties and constantly needs to replace things.
So I made some calls and contacted the store manager at a local lowes as they seem to have the largest supplies and asked them to find me scratch and dents/ repaired or discontinued appliances. They found me most at a substantial discount and in the end I got a fridge, stove, microwave, dishwasher, washer dryer for under $2000. (even stainless steel dishwasher and front load washer dryers)
Is there any reason i should not do this for future rentals?

I should have thought to post a few weeks ago but I am now curious about how you find good people in NYC to do work. Its amazing the apartment is 620 sq feet yet costing a fortune to fix up. the jobs are simple yet prices are crazy. My father has the apartment which my sister was living in now she moved and we are redoing the kitchen the floors new paint etc... My father ended up going with the handy man in the building to do some of the projects as it was just easier and quicker but his prices seem crazy to me... Does any one have good people in NYC?
What do they charge to install a small kitchen cabinet set up of 8 by 7
or to install hardwood floors under 600sq feet? Just wondering if others have experienced this.

I agree with the previous posts... the bathroom is clean is more important than if it looks good. You are asking for trouble opening up a wall. Replace the vanity and redo the floor and leaves the walls. Get a nice shower curtain and distract from the wall tiles.

Where in NJ are you focusing. I am kind of a newb to NJ. I bought a property in 2004 and then just closed on my second in recent weeks. Obviously a lot has changed and I feel like i am relearning the market. Having the right people is definitely a helpful aspect to things and I am learning that as we speak. That being said as the previous poster said you need to get your hands on a deal or at least an agent who can help you find those deals.

in my opinion which i know little about it but it sounds to me you answered your own question. If you have heard horror stories then assume you will face the same. Not only that but it may be a positive but the downside seems a lot larger if you find some one who is not interested in it. Just doesn't seem worth it .

I am about to close on a property using the assignment of bid. After going to some foreclosure auctions I tracked down some one who seemed to be involved heavily with these auctions on both sides. Is there anything I should be wary of when doing an assignment of bid? How much premium is considered normal over the original bid if the winning bid was 73000?
Who pays for late taxes and other fees?

You make a very good poi t mike. I guess in a way it is essentially a loan with some sort return that i am trying to justify. He is looking for investors for the business and i preferred to stay on the side of the building because to me it is less risky as it is a hard asset. That being said if he were to give me a buyout clause with an ongoing profit share in the business could be so.ething wkrth while but as discussed it is essentially a loan that he gets all the upside potential.
The issue with trying to compare it is very difficult because there are only a few similar properties in town and they are all owner occupied. So its tough to get a real estimate.
If you were to structure a deal that would be to good to pass up what would you askfor

Again Bill thank you for your time and depth of knowledge which i admit some is over my head... But i will look further into your advice and yes i will speak to a lawyer shortly to get a better grip on how to structure the deal. as your friend mentioned yes jersey politics plays a role as one major reason the owner is finally selling is he has pissed off many important people in the community as he attempted to open a new place and went up against those in power instead of working with them... so we feel he knows there can be some pressure on teh existing bar. that being said the community would probably be happy to see him go and accomodate the new owner.
The liquor license is limited and the business will get the license as it costs around 180000 form my research and speaking to other owners. But that would be under my friends name.
I would only have my name on the building or at least that is the current plan.

I saw Bill post after i had posted my last response so i will touch on a few more things... First thanks for taking the time to explain so much... I dont know everything behind the scenes of the business but I am very familiar with the bar business. The facts are this is not what many would consider a large bar but in the main area it is the second largest with a capacity of 300 approx. The beauty of the business it is a high volume business and has shown itself to be succesful for 30 years. IN own there is 5 major players the only bar that has changed hands was 13 years ago and that was a shady place running drugs and now a very succesful place ad I am close with the owner i know his numbers.
Their are a few distributors you are correct but because of the volume of the bar their is more competition to be the go to beer so it is possible for them to push us around but not likely. I understand the summer months are pretty bad but still the bar grosses 750-1million with a30 percent profit so the business is solid. Now to be clear I am not buying the business and my only concern is if the business failed then i would need a new tenant.
That being said yes i have looked over all the details i know the inventory i know the numbers and feel good about the business I just dont know the right way to structure a deal especially commercial deal as I have only had residential properties.
Yes kids are fickle and maybe kids will stop consuming mass amounts of alcohol but that is a risk i am ok with... This is not the normal bar where trends and competition are so much an issue as the school get s bigger the location is right at the center of housing so i am comfortable with the business even if it slows down there is still money to be made... I just need help with structuring a commercial property deal so i get "rent" that is fair and is a buy out s an option what should i get out giving him that option...

That would definitely be a business killer... and a weird social change for kids... takes all the work out of it. As far as the business goes its just drinks no food... current profits are at around thirty percent and from 200-300 a year. So it is a very profitable business and there are some specific reasons the owner is looking to sell and move. A big part of why i am on here is because i need opinions from a purely business perspective. As you said he is a good friend and i want to help but it has to be the smart and right decision for me... so i need help determining a fair return and how to set it up if he has the option to purchase how do i do that so its still favorable terms for me? Do i guarantee a percentage increase in value... do i exchange it for profit sharing in the business or perhaps just ask for a higher yearly rent to make up for it?
The business does come with a purchased liquor license. The building location is on the main street in the center of town in a major university. So the building has value...