All Forum Posts by: Johnny Lopes

You're probably correct there's a premium for Hoboken at the moment. Most likely not an ideal place for a flip. But for a long term buy and hold its still ideal. The value of Hoboken will continue to correlate to NYC, which isn't going anywhere. Hoboken has the lowest unemployment rate in the entire state. Vacancy rates are as low as 10% within a community where 70% of resident rent. A long term buy and hold with the opportunity to leverage 10+ years from not is still a great investment.  

Agreed. With the refinance cost and the current expenses the cash flow would be minimal. But I have visions of it being a long term hold with an opportunity to refi within the next 10 years to jump start a more aggressive investment strategy. 

 Not much at the moment. Would 100% need to raise capital/investment partners to buy personally. 

Understood. Unfortunately the other partner isn't interested in being buyout until the newest appraisal comes through which would negate that opportunity. 

I can understand some reservations with Hoboken. It seems Jersey City and Union City are claiming more renters these days. Values may be a little inflated but I don't think Hoboken is going to see a dramatic change in pace moving forward. Vacancy rates are nearly zero from our experience. The proximity to NYC is obviously the major draw for most people living within that community and that isn't changing anytime soon. The Hoboken path combined with the ferry system makes is highly desirable. I'm interested to hear your thoughts. 

Not sure I'm totally following, but maybe my original post was somewhat confusing. All three parties intend to sell regardless of my purchasing/buying in ability. My mother has no intention on staying on as a partner for the foreseeable future. So if I we able to accomplish a 75% buyout with her on as a owner, I would still need to buy her portion out relatively quickly. 

Hello! My name is John and I've been poking around for a while and listening to podcasts. I've found myself in a position of buying a family owned building. The building is currently owned by my Mother, Aunt, and a 50% third party.

They are interested in selling. Its a multi-unit, mixed-use building, with two store fronts, last appraised at 2.4 million dollars, however in discussing options with some brokers they feel a new appraisal may be as high as 3.5. 

NOI without a lien is, $203,230. Cap rate without lien at current appraised value is 8.4%, at 3.5 its 6%.

Based on preliminary qualifications it looks like I can get a cash out refinance of 75% which would buy-out 3/4 of the partners, but would need my mother to stay on. I'm not sure that's an option.

I'm wondering if anyone on here has some insight as to other options with keeping my mother on as a temporary partner, refinancing at a later time to buy her portion out. Also quite simply looking for investing partners to help purchase. I do not have the capital to front 25% needed for a commercial approval.  

Hello! My name is John and I've been poking around for a while and listening to podcasts. I've found myself in a position of possibly buying into a family owned building. The building is currently owned by my Mother, Aunt, and a 50% third party.

My Aunt and their 3rd partner are interested in selling while my mother is interested in holding the property. Its a multiunit building, with two store fronts, appraised at roughly 4 million dollars. So I have a few questions regarding buying out and buying in. If anyone can point me in the right direction of who to talk to first it would be much appreciated. I understand the gist of what would need to be accomplished. There is no lien on the property at the moment, which I would presume makes the dealings easier.

Great point Chris. I'm lucky enough where my mother-in-law works for a Real Estate Attorney, so he'd definitely double and triple check for me. 

Thanks Natalie, that's some helpful insight!

Thanks for the feedback! Its a unique property. Its a 6 unit, 3 story home where the owner has seemed to sell the units as opposed to renting them. So I can't find any information regarding the association.