All Forum Posts by: John Hickey

@Karen Margrave I might have sounded like I was putting down short sellers, but if so my fault I should have been clearer. 

Tough times breed tough people and also build character.  If it was easy to short sell that would most likely have occurred years ago.  There could be more reasons that is not an option.  

I missed some payments on all kinds of bills at that time, and that's not something I loved to do, but paying late or short selling are not dishonorable that is a strong word.  I know plenty of people who lost houses and some of them a primary.  I did not and will not call them dishonorable. I hate to hear those stories, I'm sure we could trade stories of friends and family who lost nearly all at that time.  

I know people who short sold and now look at that propery above what they bought it for and wish they had held on, many tried everything they could but still had to let go.  

When I realized what a bad position I was in in 09 I had a full time construction job.  I had been a bartender but the doctor tod me either one or the other both, and I would be back in surgery.  Even then he said wait 4 months to go back.  I went back in three weeks and was in pain all the time. I knew I needed to make more money than my one job paid. I negotiated a deal with a commercial landlord to represent them in short term rentals.  I worked nights 48 hours a week in construction and 40-50 hours in the building.  My wife though to leave me at times.  But fortunately we made a ton of money in 09-12. The company is called 82mercer

I used that money to buy a short sale I live in now.  The guy who owned the short sale house lived in the house next door.  Mine was his rental. We are on 50x100 lots so I can touch his house while I'm watering my lawn.  Neither of us is dishonorable, he's a good neighbor and I hope he feels that way about me.  

Today I own two business' outside of real estate one is clothing(I'm a silent partner but I used to be active)the other is construction.  Not every transaction is a winner but both are profitable. My business is not about a single transaction, just because something is losing now doesn't mean it will always lose.  Investing is about more than money.  Its also time, and more. I know many contractors who have lost money completing jobs and I am one of those.  

Everyone gets to make their own decisions not saying who's right or who is wrong.

Answer me this.......the bank isn't selling furniture to pay the difference in a short sale.  So who pays for the loss? 

In many transactions there are people who make and people who lose. I'm not so sure what would happen if it became completely acceptable to walk away from any transaction you were in and pass the liability to whoever. 

 If you have no choice do what you need to do with a clear conscience, you did your best.

Originally posted by @James Floyd:

Ouch! I thought this was a friendly forum. Just kidding. I would like to avoid a short sale and figure out a better way to get rid of this albatross. Call me old fashion but I don't want a short sell on my credit reports.

As Maxwell mentioned a lot of people bought into this community. Some are biting the bullet and building there. My wife hates that option. 

Thanks again for responses. Maybe someone has a trick up their sleeve. 

 I agree with you 100%.  Short sale might be the best way to go for others but you have to make that decision.  

I bought a three family for 714k in June of 2007.  In 2008 I had two empty apartments an abandoned neighboring property housing a 6'8" transsexual hooker with a tendency towards violence, and a drug habit.  She would often stand out front of the house and scream at some other druggie for one reason or the other til the cops came. 

I tore a tendon in my elbow needing surgery and had to quit my second job.  I was drowning in debt and mortgage payments and everyone was talking about short sale-especially my accountant and lawyer. I told them something similar to what you said above.  

Another neighbor who thought I had money offered to sell me his house-just like mine for 400k.  

I held onto my house, my only regret is I didn't buy that house for 400k. Now they are both worth much more. 

Your situation while different seems worse at this piont but there is no trading for self esteem. If your able to hold on I would too.  

George P. Did you cut the cabinets with a circular saw? Had to do that a few times here and there. I use a special 80 tooth blade I bought just for finish stuff. That and put painters tape covering up the finish side of where you plan to cut. If that's what you were talking about should minimize it. Second on IKEA if your working with big bucks budget. They are big bucks but worth it if your going for a modern look I haven't seen anything that comes close in quality or matches the gloss white solid slab for that price.

@Eric DeVito take a look at FHA loans, if your thinking of getting your own place you could look at some Staten Island MFs. Keep in mind just bc the local MLS doesnt show any listings that aren't good deals that doesn't mean they are not out there. Do some research on "staten island wholesaler"

Have you thought of some of the jersey shore towns? last time I was in Bradley beach there were a lot of three families in beat up condition.  

@Darren Sager Thanks for the tip! Still learning my way around the site. Seems like there is always something great to be found.

I appreciate all the attention the post received. I managed to pull the financing together through family and my IRA in the end. Now I just need to close the deal.

@Kevin B. Yes I have passed your building! That is the area I really like although nothing in that exact area yet. I fully expected someone to say you are out of your mind JH that area is a war zone. Good to hear some optimism!

 @Will Melton  Most areas I am looking at are owner not occupant unless your a seasoned local.  I would be open to looking at a more stable area in New Haven, good to know the market.

 I've looked at a house on Starr between Winchester and Newhall two family @100k little pricey it's really beat up fully occupied. I'm waiting on rents and expenses. I'm not sure on that one. I'm in no rush with this one. The area is missing a few of the signs I look for when buying. I walk the area looking for vegan restaurants(I'm half vegan) granola bar type coffee shops, and artsy types walking around freely. Signs of major work being done on multiple houses and dumpsters everywhere in front yards in the area as a whole.

I do get that feeling near Munson and Winchester and also parts of Henry, did not see that on Starr. I also looked at a SF house on Lilac 80k off newhall, which seems a little further out of possibility.

One house that interests me is on Hallock(its on Fannie Mae needs 50k work) But I felt that area could come back also because it has the one thing the other areas don't. It has South Bronx in the seventies or Bed Stuy/Bushwick in the eighties style devastation. I think nothing makes an area come back quicker than it being such a warzone that even the hardened criminals feel the need to move on to have a little security. Then the artists come in followed at some point much later by mobs of yoga types pushing strollers.

I just looked at that house on Hallock it went under contract, during the first look phase.

Hi BP,

Anyone have a reputable hard money lender in NY?

If you have any tips or experiences you would like to share on HML, I would love to hear that too.

I don't know if this info helps but I'm in Westchester, property is multi family in the Bronx. I have more than 50% of the purchase price on hand and can get them out pretty quick with a home equity loan on my primary(60-90 days).

Thanks for your thoughts.

@Jerry Padilla You make that look so easy! Makes me want to go pro...

@Account Closed

I was wondering how your search went? 

@Zachary Mowery & @Kevin B your comments above were very helpful to me, I have been walking and driving New Haven to get more familiar with the market.  I mostly drove around Dixwell and I spent a lot of time in the area between Newhall and Winchester just bordering the science park.  I plan to spend a bit more time in other areas. Then start focusing in on finding a property.  I will most likely look for two family rentals.