All Forum Posts by: Stephen Loguidice

I currently have a deal under contract for a buy and hold 2-fam in Island Park NY (for those of you unfamiliar it's in Nassau county Long Island)   House prices are high here so hitting something like Brandon's 2% rule is impossible - but rental prices are high and the demand is high if you have a decent apt. 

So I've only been doing the deal numbers looking at the CoCROI.  It's a $550k purchase and I can easily get $5k per month in gross rent (it's a 3/1.5 over a 4/2). Which with pretty conservative numbers nets me a 7.7% Cash on Cash (with 25% down) - it goes to 11.8%  for the first year when compounded with equity pay down.   And it's ultra turnkey, I only need to put a wash/dry upstairs and it's perfect.  It was hit bad by Superstorm Sandy so everything is new on the first level and the roof is only 2 years old. Plus the owners were the one who lived in the lower unit it so it's done up to the 9's - granite, hard wood, stainless steel, cable wired in the walls, high hats, etc.... I'll be able to get a renter in that unit the day I close on it.

But I I think I'm over paying for it by a good 5%-7% - there was a bit of a bidding war and I wound up going about $15k above list for it because the ROI kept working.

So I'd love opinions on if I'm being an idiot for only looking at the Cash on Cash and not caring about the purchase price.  In my mind it's a buy a hold and I'm not going to plan on selling it any time soon so I won't get hit with that loss - and I never buy for appreciate, only for cash flow.    Let me know your thoughts and if you think I'm not looking at something crucial in the equation.

-S

Hi Jeremy,

To be honest I didn't even know principal only payments were an option.  We have been using the seller financing as a negotiation tactic to get the price down - pitching the seller he will save on taxes from the sale and he'll wind up getting the price he wanted in the end with the interest.  We still need to see the leases in place and a few other contingencies but he's already agreed to go about 5% below his "rock bottom floor price" already. I guess my question would be when do you pay the interest on the note?  Or I'm completely misunderstanding what you are saying.

Cash on cash is a little under 8% (keep in mind this deal is in NYC area) when I do some gorilla math of interest only payment from 50% financed amortized over 20 yrs at 5% rate.  I've only ever done traditional financing so please don't judge me if I'm looking at this completely bass ackwards....

Thanks Jeremy.

-S

Hi,

Working on a commercial deal (2 store fronts) where the the seller willing to hold the note with 40-50% down.  Working with a partner and neither of us have ever done seller financing before so looking for any recommendations on what terms I should be asking for.  We'd like to do interest only to maximize cash flow as we'd plan to pay it off at some point in the next few years.  

Thanks for the help.

-S

I found a property that has been vacant for a while in Queens NY. It's in a very wanted area, surrounded by nice apt buildings and across from an elementary school. Trying to find a creative way to finance the purchase and someone mentioned to me to look into a grant by the city. Can anyone help point me in the right direction on where to look to see if this is available?

It's a mixed use multi-fam property that I would make my primary residence. It's completely boarded up, had been vacant for quit some time and is definitely uninhabitable.

Thanks for th help.

Starting a Commercial Mortgage Brokerage company. To start it's going to be just myself and my partner and we will be doing busines over the phone and on the internet - there will be no physical office. We live and will be dealing with the NY area but our LLC we have is registered in Nevada however we want to use a NY address (MY residence) for paperwork. My question is can we use the NY address on the W-9 form that we submit to the bank or does it need to be the registered NV address?

On thing I've heard in the past is to have your rentals close by where you live but no one has broughten up distance as a mistake.

I ask because my partner and I have decided to buy our first buy and hold property in the Albany area but we both live in NYC (about 2.5 hour drive). Our reasoning is because even getting a property at a significant discount in NYC it's still almost impossible to have positive cash flow from the start plus for the price of a two family that needs renovations in one of the boroughs we can buy an 8-10 unit up there fully occupied. Also we chose Albany because we are both familiar with the area (He grew up there and I went to school and lived there for 7yrs).

Advice? Are we making a huge mistake?

Looking for good websites that list local real estate auctions. Does anyone have any recommendations or other good resources to use?

I want to attend to observe the process and network with other investors rather than going to purchase a property so any kind of auctions work.
I'm in the NYC area if that helps as well.

What if you are dealing with a Realtor?

What is the average down payment you need to put down with a seller to get a house under contract in order to wholesale it? Not sure if it matters what area you are in but I'm focusing on NYC particularly Queens and the Bronx.

I'm a complete newbie and want to start getting involved with my local REIA's so I'm looking for a little help. I live in NYC and I want to target Queens and the Bronx. I have found a few local clubs on the Biggerpockets REI Clubs listings but I'm not getting too far.

Big Apple Real Estate Investors Association and New York City REIA both meet in the City but neither of their websites work and when I call the numbers they just ring forever. There is meeting info listed but I'm a little apprehensive about just going since I can't find anything to support that it's even an active club anymore.

I have called the number for Ultimate Investors Real Estate Inc. (UIREI) and they have a recorded message about upcoming meetings so I will be attending theirs, however I don't want to limit myself to only one if there are other good REI Clubs in the area. I want to check out all I can to get a feel for which one will fit me best for what I’m looking to do and the areas I'm focusing on.

Has anyone been to Big Apple or NYC REIA or know of any other NYC Clubs for the 5 Boroughs and Northern NJ? Particularly clubs that focus more on the outer boroughs rather than Manhattan? Any suggestions or information will be greatly appreciated.

Thanks
-Steve