All Forum Posts by: Jessica Zolotorofe

They do it illegally... it's a gamble, especially because the heights has some very nosy neighbors and the city has apps that make it exceptionally easy to report these things with a few clicks. Also, if you end up having to evict a tenant from that apartment, it's an extra pain if the apartment wasn't legal to begin with. Plus, may be hard to get a CO if you have an extra apartment. The zoning is a totally separate from the State green card issue, and also important. You can probably convert to a 3 family (check and see if there are any other 3 families permitted on the street- the tax records will tell you) but it will likely require a lawyer and a decent amount of time and money. They don't make it easy!

A multi for $400,000 will either be in not great condition or in an area it sounds like you aren't looking for. You need closer to $450,000 or $500,000 to get anything in those areas. @Vaughn Smith is an agent that specializes in that area. He can probably assist you better if you want to message him. 

Try Marcos at Apex Capital Lending. I'll dm you his email now. 

I'll DM you some people to call.

Deeding to yourself for the sole purpose of circumventing the law is fraud.

Sure. So a pre-foreclosure typically means the bank has filed a foreclosure action but has not yet foreclosed. Especially if it is a big national bank, they take forever. This affords the opportunity for a homeowner to sell the property if it is not under water for market value and pay off the loan before they are foreclosed upon, or more commonly, short sale the property with the bank's approval.  Takes a long time usually and it's a pain, but you can often get the property before it hits the market if you can find owners with distressed loans. Even on market, a short sale can be lucrative if you have the patience for it. 

A foreclosure purchase is typically done at an auction. The bank sells the property usually to investors and you have to attend the auction to get the property. Usually you can get a deep discount at a foreclosure auction. 

REO is a bank owned property. It means the bank has already foreclosed and they didn't sell it at the auction, either because no one bid or no one bid high enough for the bank to accept and they thought they would be better off selling direct to a buyer on the market. You can also get discounts on these because they are sold strictly "as is" and the banks want them off their books.

Hope this helps!

@Joel Owens

That's so annoying, I'm sorry to hear! You hit the nail on the head... some lenders won't allow it, but if you can get an escrow free loan, go for it. As long as you are very diligent in paying timely. The good news about escrowing is if something slips through the cracks it's their fault and your loan is not in default. Other reasons people wouldn't want to escrow would be if the tenant pays the taxes, more so a commercial concept. A portfolio lender could be a good option if you want to eliminate that transferring and servicing of loans confusion, a portfolio lender won't do that. 

I would send it in a formal LOI, but if I was the landlord, honestly, I wouldn't accept those terms. You may have to present it with a letter that says it is mutually beneficial as the market is increasing. They may still not buy it, especially if they gave you any TI money or contributed to a build out. Good luck!

They will likely use the last year's taxes and then when you get an added assessment or a new assessment they will up your escrow requirements. Depending on the state the property is in, as soon as you close permits on the house they may re-assess and send your lender the new amount. Initially the banks will not account for the higher price.