All Forum Posts by: Jared Forman

This sounds like a screaming oppertunity, but you may have some issues with the financing piece.

it sounds the the current tenants are in until June 2021 based upon info provided. In order for you to FHA you will have to live in a unit. If the unit is not delivered vacant, the lender may raise a question. Depending on state laws you may be able to terminate lease for owners occupancy.

if the property is paid off you may also be able to get owner financing. 

try to give them 3 offers. ( 1 FHA, 1 owner financing, 1 cash offer) priced from highest to lowest. See which they take and it will give more info

Personal experience, I am bullish on Manhattan. If you follow the elliman reports, the rental prices keep going down. Month over month apartment units rented is up.

I am only focussed on the Manahattan market and know little to none about the other boroughs.

since raising capital is regulated by the SEC you may want to find someone who is currently doing it to make sure you structure the funds correctly

What kind of list did you pull and how did you narrow it down, also what kind of mailer did you use?

Look into the structure of real estate investment trusts

Prior to covid I was using $100/ sqft as a decent number for full gut rehabs. Right now the cost of materials is at least 40% higher with low inventory. If you are living in the property you may also elect for higher grade finishes ( waterfall center island, ect). 

knowing all of that I would assume $150-$175/sq.ft.

as for zoning, if you have 3 story home and want a roof deck it will be more about setbacks and parapit. You will need to apply for a permit to erect the roof deck. Another thing to note...

if you are doing a basement dugout expect a city inspector to be on sight everyday meaning $$$. Due to houses falling in last 2 years it will cost an extra $8000-$12000 to dig out if done with permits.

i hope this helped. Reach out if I can be of more help.

These are my projections for Manhattan compared to what has happened. These are based on linear interpolation model, 3 peaks of Covid, a vaccine coming June 2021 and a 3 month delay in market reaction. Would like to know your thought. 

Let's say commercial loans have a large default on payments and than no one is willing to lend at such low caps. Next thing loans come do and no one can refinance. 

Maybe it is a good time to get into class B rated credit default swaps with 3 year terms. Than get into buying default non preforming debt with hopes of foreclosuring. If I had deep pockets the sheriff sale would also be a good place for the next few years. 

If we are talking projected job growth as a metric that. Let's also talk about jobs retention regarding the economy basis for San Francisco and Manhattan. What are the largest employers in each city? Are there jobs done as proficient remote as they are in person? This will tell us if the jobs need to come back. But yes there will be new companies like we work in 2010 that see opportunity.

what is your outlook on what trends might be? What happened last time?