All Forum Posts by: Giovanni Soto

@Tom Higgins

Yes i am moving the toilet to where  the bath and sink are (in a separate room-weird). THis Allows a bigger closet in the master br,    I'll contact you soon when I have more specific repair/contract related questions.

Thank you again

@David Da Silva

@David Da Silva

Ty for the response David and Tom.  1)PP=$79k, 2)Short sale, not oil but gas,  Pipes all there. 1 of the htg units is working,   Electrical seems good but I may change some wiring around to update kitchens and baths.  I will move one of the baths around and this involves putting in some new plmbg. and moving the electrical.  3)I am the investor but the investor/lender who doesn't like or lend in NJ doesn't have exper in NJ and tried it but it didn't go well.

    I am trying to find out what experiences you guys have had (with the city of Nwk and contractors)in Newark on your rehabs.

@Tom Higgins

thanks for the input.   I have had trouble finding a contractor.  Need to make some more calls,

If you can recommend any contractors or lenders for this area- I thank you.

   If its ok, can I contact you for any advise and questions??

Thank you

Hi.

I put an offer on my FIRST 2 fam house in Newark. Needs $50k in work, but I haven't accounted for licenses/permits.

My estimate is accurate for nice bronx job,

PROBLEM- An investor /lender from NYC would not lend to me in Nwk bc he says that he was there previously and he found that he needed a permit and inspection for anything/everything, Also that contractors are more strict and costlier bc of this.

What do you think? Can my estimate be WAY OFF? Yes, I will eventually get a Lic contractor estimate BUT I want to keep my expenses to a minimum?

How have you handled this OR How would you suggest I handle this. Job includes new kit/baths (plumbing necessary)/ sheetrocking/paint/ some floors etc.'

THANK YOU

@David Da Silva, @Shefali R.@Jack K..

Hi.  I will post this question in the genl questions anyway but see if you guys can please answer.

I put an offer on my FIRST 2 fam house in Newark.  Needs $50k in work, but I haven't accounted for licenses/permits. 

My estimate is accurate for nice bronx job, 

PROBLEM- An investor /lender from NYC would not lend to me in Nwk bc he says that he was there previously and he found that he needed a permit and inspection  for anything/everything, Also that contractors are more strict and costlier bc of this.

What do you think?  Can my estimate be WAY OFF?  Yes, I will eventually get a Lic contractor estimate BUT I want to keep my expenses to a minimum?

How have you handled this OR How would you suggest I handle this.  Job includes new kit/baths (plumbing necessary)/ sheetrocking/paint/ some floors etc.'

THANK YOU

Hi @Mathew Randolph,

I forgot to mention that although the asking price does seem high, I think FMV would be around $4.0M, I have seen NYC buyers offer crazy prices just because they need to spend the money to avoid some type of financial tax burden, and that can make the buyer value thus bldg. after repair at about $5M.

hi @Mathew Randolph, why is this bldg cool?  Is it the location?,  The layout ?, The architecture ? The history? etc...   Some things don't make sense to me.  1)assessed at $50k?  this sound very off   2)VALUED AT $600K ?  is this a fmv ? for a vacant 7 fam needing $1.1 M in repairs.     IMHO- something is not clear or wrong.   

Anyhow these figures are not so important.   I don't know the nyc mkt but I do  know other parts of the boroughs and the asking price can be correct but its  mainly dependent on the conservative rental income  for each apt?   I would like to have a more precise rental value per apt than $2500-$3000/mo.  otherwise I will just use $2500.  The taxes and all expenses are also necessary to know its value after repair.  The wise thing to do will be  to put in separate heating units per apt. and minimize the expenses.

Is this prop still avail ?  I would be interested in knowing more bc I may have someone intd and maybe we can do sthg here..   Does the bldg. have the non-harassment cert?  How many sf is the interior?  Please stay n touch.

TY and Good LUCK

Gio

Hi Tom,

you said that the DOB has it as a 2 fam converted from a 1 fam.  The DOB is the one who gives permits to convert from a 1 to a 2 fam.   If the DOB has it as 2 fam than it is probably already a legal 2 fam.   IF only THE DOF ( dept of finance) has it as a b3 than that is a different story. The DOF taxes the prop (typically based on its use) and this DOES NOT mean that the prop is a 2 fam; because the DOF IS NOT THE DOB.  THe DOF  commonly makes mistakes about prop use and taxes.  I remember a case where a foundation only property was being taxed as a completed 1 fam NEW house.  This went on for sevl yrs and the owner lost his attempt to have overpaid taxes ret'd. to him.  Of course the DOF blamed the owner for not notifying the agency,  Despite an apparent city inspection that was conducted.  GO figure

1) If the market were going down in $ and you as buyer had not yet signed but verbally agreed to buy at x price  then should you be obligated to buy at that X price, regardless of the mkt??

2)if you verbally agreed to buy,  but in the meantime a broker or other seller presented a great deal ( $25k less than your offer for an equivalent house)- would you still buy the more expensive house??

3)Is the house still what you want ?? Is the price still in the mkt range?  You decide. If so better go grab it. Bronx is hot right now and what happened to you is not PARTICULAR to the Bronx

I have been in both sides as buyer and seller eg. where a)YES I have had to go up in my offer bc it was still worth it for me, and  b)where a great buyer came with a better offer and I took that one.

Another option for NEXT TIME- instead of Docusign you may also consider doing a sit down contract- here ; buyer , seller and both attys sit together and hash everything out with the preagreed price and the DP is made on the spot. 

GOOD LUCK

I remember a guru saying Live where you want to live but invest where it makes sense.  I would not live in most parts of the city anymore but  If ALLLL the numbers make sense and your strategy is to hold and you KNOWWW how to manage then the Bx makes sense.  Prices there are already high.  Even if prices drop slightly (10%-not that slight) the rents will not drop substantially.  IMHO. I've been investing there for some years now.

The DOB also has homeowners night 1x per week and for Bx I think its Thurs-please ask to be sure.  On homeowner night , an inspector will actually sit down with you even for 1 hour and evaluate your situation.  

The DOB is usually helpful  even if you don't go on homeowner nt . Plus, I think if the DOB has it as a B3 than they are probably right and instead of a CO you may ask for a LNO-Letter of No Objection.  But, You don't need the CO, even to sell the house as long as you don't have any DOB violations.  Maybe, Its also possible that the change occurred prior to co's being issued.  Finally, I prefer to go to an architect who has exper with that county.   Good Luck