All Forum Posts by: Hong Y.

The restaurant owner of my New Jersey commercial space is looking to terminate his lease early since business isn't doing well and isn't able to find someone to purchase his business. There is currently no exit clause for the tenant and I have 3 months of security deposit.

Also, I'm slightly on the fence on what to do with the restaurant equipment. Not sure if the owner is deciding to sell it or leave it.

Any suggestions on a course of action that would be most suitable in today's time?

Hi BP community, 

would anyone happen to know if a variance on my mixed use commercial building have any effect on my property insurance policy? 

Currently, the store space is zoned for retail and the variance would allow it to host events there such as birthdays, office parties, wakes, etc.

Hi Rob, 

finding the employment rate in the neighborhood will tell you how the future may unfold. Finding population age could indicate whats the vacancy/turnover rate. Finding a map outlining crime density could indicate what is your likelihood of getting an unsavory tenant. 

Most importantly as mentioned previously is relying on a first hand account of someone who lives in the area to give you guidance and help make sense of the data.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $845,000
Cash invested: $375,000

Mixed-Use Commercial building

What made you interested in investing in this type of deal?

Very old building with a solid rent roll that gave me enough cushion to work on the building.

How did you find this deal and how did you negotiate it?

Deal was found through a small network of investors in NYC.

How did you finance this deal?

Took out a commercial loan 5 year ARM.

How did you add value to the deal?

I restored the retail space that was vacant for nearly a decade.

What was the outcome?

Still working to improve the building.

Lessons learned? Challenges?

Budgeting and prioritizing what projects/renovations need to come first.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, there is a bank manager I work with in NYC. Additionally a real estate lawyer that followed up and took care of me every step of the way. We use both for about 90% of the family portfolio.

I recently acquired a property where I encountered the same situation on 2 different units. I opted to keep both because they have been very good tenants and in NJ it is not too difficult to evict people if necessary. Additionally though, what put my mind at ease about making my decision, was know that they are typically good tenants and I was okay with the worst-case-scenario of no rent and a three month eviction process for each. My rent roll excluding the two units rent would have been still sufficient to cover my expenses. 

Ultimately, I would say base your decision on the worst case scenario and are you willing to accept that risk based on your current financial standing.

Thanks alot for the advice Nathan and Basit. 

Nathan, 

I'm so glad to hear you were able to crush it during that the recession, it gives me hope I can make it work as long I put the good old fashion elbow grease into it.

Basit, 

It is a good and very stable profession, but I just feel the ceiling is too low for me and the rate of progression is not as self-driven as some make it out to be. Additionally, my family is in real estate investments already, I'm trying to learn more about the industry from a different perspective to be more competent. 

MECHANICAL ENGINEER and MILLENNIAL 

I'm currently a mechanical engineer looking to move full time as a real estate agent, I am also working on a commercial rental unit. Of the younger group of people at my site, I'd say 6 out of the 10 are either already doing real estate on the side or looking to get in (all engineers). 

I think its something about the crushing fact of knowing how much schooling and time you put in to become an engineer and its only marginally more pay than the average income of some other degrees that require less time. 

Also, as a millennial, the other like minded/aged individuals in my circle want to move away from the 9-5 with mediocre slightly above average pay. Not to put down the industry, just saying that most engineers are smart enough to know when the MATH JUST DOESN'T ADD UP! But only a good chunk will be brave enough to act on it. 

Engineers

1. get paid enough early on to make that switch before it is too late.

2. don't get paid enough to be content( most going in expecting 80k would go alot further)

3. smart enough to recognize a bad deal when they see one

At least i think that is why you wont likely find other industries with degrees, transferring from their jobs.

Hello everyone,

here today to see if anyone can shed some light on how to find a good CPA in New York City. Any personal recommendations would help as well(If so what sets them apart from the rest?).

Ideally, looking for a CPA that is good with real estate agents, real estate investments and LLCs.

Very Respectfully,

Hong Yang

Hello everyone,

My family has a few bldgs in New York City and it's beginning to become a bit much to manage, especially if we are looking to scale. Any recommendations on how to find a good property manager or even personal recommendations you have used in the past? 

Very Respectfully,

Hong Yang

Background:

currently living in Philadelphia and contemplating moving back to NYC after a 9 year hiatus from NY (minus the occasion visits). Currently working as an engineer in a stable job. I'm looking to move back to NYC for the family and to become a real estate agent.

I am wondering if approximately 3 months from now, if it would be a wise decision to become a real estate agent given the COVID-19 circumstance. Any advice would be greatly appreciated.

Very Respectfully,

Hong Yang