All Forum Posts by: Chris Masons

Nathan is absolutely right. Be VERY careful about what you expect and what you will get with a section 8 tenant. ALso you should verify section 8 is paying 2,500 for an apt. How big is this aapt? How many bedrooms? Here in NJ a section 8 voucher for 3 bedroom is around 1600.00 I understand NY is probably higher but just verify all this. You should not count on your section 8 tenant to maintain the building.

Have you considered investing in NJ? Very NY commutable and there are some great buys right now. I am not too familar with the NY market but can tell you, you can do much better elsewhere.

Is there a reason you are looking at this perticular property? Do you own others nearby?

regards,
chris

Hi Ed,

I guess this is commercial office space? If it was residential space any improvements that are made become my property IE. new door , new flooring etc... I haev it written in mym leases

I have went half with tenants on new flooring and carpeting in teh past with the agreement that everything stays if and when tenant moves out.

So she is ripping up the laminate flooring to reuse? What is she putting in it's place? And the wood fence she wants to take with her to use elsewhere? Wow, that is highly unusual in my experience. Was there any agreed upon terms when this work was done?

I take it she funded it all, which if there is nothing in writing I guess she has a right to take it but I am not so sure, does she??

The other thing, regardless of what she takes I would think she needs to leave the unit in condition it was when given
her?

But then again I guess we are way beyond a 1.5 months security?

Any damage or cossts youcan try to go after her in a civil lawsuit but as I am sure you know will be tough.....

curious to hear others thoughts??

Chris

Thx for the insight Joel. I agree with what you are sying on CFD from a buyers standpoint.

Of course I am actually the seller in this transaction. I ended up getting almost 15% DP which makes me feel super comfortable should the need to foreclose arise. This is a 2 family in which my one current tennat is staying and will be paying me directly and new owner is just paying the differential. I have a clause in the contract stating should tenant for any reason not make payment said buyer is still responsible for full payment.

With the tenant paying down the Mtg for him he is VERY comfortable and not strapped. HE could make full payment if needed but it would be tight.

I am right around 5% on my loan for this property and gave him 6% fixed so I am making some abritrage here but the other good part of the deal is he is buying the property for same price I paid for it back in 2003. On the retail market I could not get close to that, I would be looking at ~275k with al lthe shorts and foreclosures dragging the market down over here.... Downfall is the loan is still on my credit making it more difficult to qualify for another investment. I guess you take the good with the bad right?

The deal is favorable to him b/c he cannot get conventional financing right now due to being in the middle of a short sale or maybe even a Deed in Lieu if he cannot find a buyer. He is a good responsible person who got caught up in a bad situation.

thx,
Chris

Thx for the answers guys. Next CFD deal I will def. look into using a Trust.

This deal is just about done and I can't change anything now.

thx again,
Chris

Hi guys,

I am about to close on my first CFD deal here in NJ and had a question. Title is staying in my name until the note has been paid in full. I am financing him and continuing to pay my existing.....

MY question is, for now the homeowners insurance is in my name which he will be paying, is there any way I can get the Homeowners insurance out of my name and into his name? I am thinking not b/c legally he has no interest in this property. He has equitable interest via CFD contract and I continue to hold title (legal interest) This contract is not getting recorded at the county etc... So I am thinking insuranace will have to stay in my name for time being?

What do you think? Do you think there is great risk in doing this?

as always thx in advance!

Chris

Hi Ozzie,

I primarily invest in the Union area. I am a buy and hold landlord but would love to get into wholesaling as well. I am not too familiar with that end of it. but I do have some connections for hot REOs that are no t public as of yet and some good realtor contacts.

It would be great for us Jersey folks to try and all get together one weekend for lunch or coffee and see what we can do....

regards,
Chris

Hi Robert,

Here is a link outlining The Fanie Mae 5- 10 property guidelines:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf

This data was from 2009 but I don't think it has changed since.

thx,
Chris

Sonds like a great building to hold long term. Cannot beat all brick exterior!! Love em, love em, love em!!

Congratulations!! Would love to see pics!

chris

Hi Mike,

Are you looking at cost of materials and doing ityourself, or are you looking for a complete price on material and labor from a roofing company?

Prices from roofers vary greatly esp. by area. Find a couple reputable roofers and call them out and get a bunch of estimates for a baseline to go off on.

regards,
chris

Interesting Cheryl. My first thought would be cabinet hardware can be very personal and maybe the rehabbers want to leave it up to the new homeowners to customize to their liking. Kinda like adding their personal touch to it.. Although if it were to be a rental then this would be less important....

OTOH, It can get expensive supplying all new cabinetry hardware to a decent sized kitchen if you are going for a custom look.

I would ask what happened to the cabinet door hardware.

regards,
chris