All Forum Posts by: Jared Forman

We are working on an opportunity to take equity in a 100 unit portfolio in Manhattan, in exchange for management. The numbers they reported for 2019 are healthy and the owners have not been reported numbers 2020. Based on the Douglass Elliman Reports Manahattan has been getting hit hard by COVID. For my experienced professionals, do you believe manhattan will bounce back quicker than San Fransico? What will happen to the commercial market? So much in the air, I need someone elses perspective on this!

@Tom Dittrich I personally like the Fund of Funds approach because you can diversify the allocations across vetted sponsors and get a mix of returns. This will also allow you to focus on the management of money, and not the management of real estate. You keep the idea very simple so that anyone can understand what it is you are doing.

As for the SEC compliance portion, I do not know if you would be in compliance or out of compliance. That is something that you should ask sponsors and your council. 

Would like to know more about how this goes, please keep me posted

Hi Jackie, welcome to the real estate party. Who do you hang your license with?

What part of PA are you from?

I am based in philadelphia, do business between Philly and manhattan. 

I am very interested in getting into the carolinas market. Would like to join your group

right now we are in the process of buying 3 properties sight unscene. It makes you take all emotions out of the equation and makes it just a business. We have made some assumptions about the properties and the condition to mitigate the risks.

Why bother getting a tax abatement is his assessment doesn't go up. The city will increase the assessment when you have permits, but won't if you don't. The only amount abated is the improvements made

Just food for thought from a friend who owns a larger development company... "The contractors you use on new construction are different that the contractors you would use on a gut rehab. I asked our contractors for a bid to rehab a larger muliunit and they didn't even want to bid the job. This is because new construction is quicker and easier for my guys, so that is why I stick to it."

I am going to take a  different perspective on this topic. 

Philadelphia is general is a blue collar city, is it good, is it bad, is it neither. Why???

If you look at the corporate tax structure, it is very unfavorable for businesses to be located in the city of Philadelphia. It is better for them to be located in Delaware or Montgomery county.  Currently Philadelphia is the poorest major city in the country. If the working class goes from blue collar to white collar than this will shift the balance and the entire market goes up.

On the other hand let's assess the geographic placement of Philadelphia. It is located 1.5 hours from NYC by car, 1.5 hours to Baltimore by car, and 5 hours to DC. It is a gateway city that must be passed for trade purposes but can be missed for passenger purposes.

So to sum it up...

Philly is a poor blue collar city that is located in between other  major east coast cities. Politicians don't necessarily want more business in the city, and the local people don't want more money. If more business or better jobs where in the city it could easily get price inflated and gentrify locals, as scene in some neighborhoods. 

If you don't believe me look into government subsidizes rates. 

Hi Michael,

lets talk in prerona numbers, since no one knows what it will do to everything.

1. Cosmetic, no HVAC electric or plumbing with new kitchen and bath - $15-$30/ sqft

2. Cosmetic, some HVAC maybe new service line and box  also alterations to plumbing with new kitchen and bath - $ 40-$60 / sqft

3. Gut rehab, nothing structural no digout - $70-$90/ sqft

4. Full gut with even joists being replaced - $100- $125 /sqft

5. New construction - $125- $225 / sqft

these prices depend on your workers, the scope of work, and the material you use. Hopefully that helps.