All Forum Posts by: Marco Y.

@Jesse T. Yes I'm waiting for the bill they said would be coming thru the mail. 

Thanks! 

Hello Everyone,

I just recently closed on a two family house in North Jersey that I bought from Fannie Mae. I sent in all the permits last week for the complete gut rehab I will be doing in this house. 

Today I received a call from the Passaic Valley Sewerage Commission (which is the agency in charge of the sewer system of several towns in North Jersey) telling me that in order for the City to complete all of the permits I had to pay a one time fee of $1,500.00.

According to the employee of the PVSC, this charge is incurred for anyone purchasing a home from a bank if you decide to renovate that home. Since the home was vacant and since the bank purchased it from the County Sheriff, the new owner who decides to renovate it is responsible for this bill.

I've never heard of this fee in my life and neither did my plumber or my attorney who I called right after speaking to the agency. What struck me as odd was that:

1) They called me instead of sending a letter or a bill first. Although after the phone call the employee did say they were sending a bill.

2) I am not doing any sewer work on this property whatsoever. And the sewer was working fine before the home became vacant.

3) Also the amount seems ridiculous especially since I dont even know what Im paying for. The employee didnt even give me a name to the fee he just described it??

As soon as I knew that It was this particular commission who was calling me it immediately raised a red flag. Some of their top level employees had been in trouble in the past for taking bribes and using employees to work on their homes in the past. And they all make a killing from tax dollars but that's another discussion

Has anyone heard of this fee before? Has anyone renovated a home that they bought from the bank and incurred a similar sewer fee?

Appreciate any feedback thanks!

Hello,

@Keith Wheeler welcome to BP!

I'm from the north jersey area and have been managing properties in passaic county for the last decade or so. 

Feel free to contact me regarding any questions you have about investing in our state.

Hey @Azeez K. best of luck on the deal. I was just wondering how did you go about and locate a bank to finance for 80/20? Is that common in your area? Are you using a regional bank or local?

Here in Jersey I can only find lenders that finance with 30% down for commercial or mixed use.

I will be there thanks @Darren Sager 

Thanks @Ibrahim Hughes  for the info I will def check it out! 

Hi @Ibrahim Hughes would you happen to know where you could find a list of Estates for SFH or MFH's in the north jersey area? I agree with you 100% that its very tough to find a deal off of the NJMLS or GSMLS.

Welcome Chris! 

I am also from the north jersey area and have been investing for a few years now. I have found it a bit more difficult in investing win my niche (multi-family) lately, but im sure if you focus all your energy on a specific target you will be able to accomplish it. Best of luck shoot me a message if you have any questions.

-Marco

Joel thanks for your reply. Regarding the management  i will definitely  be taking  care of it for a while and have the tools and capacity to do it since i own a small management  company. I figured the bank will not take that into consideration  and might appraise the property  Lot lower than asking  price.

The building is about 90 years old its a really nice brick historic building with new electric and heating. Regarding capital expenses I did a quick brief see through the apartments and haven't found any major issues with them. Although i will be doing another inspection  than hire a professional  to do his inspection. Most work i will be doing with a couple  of family.members so since we have all the tools and equipment we would only pay materials  out of pocket. I think the capex can be very low but i will definitely inspect a couple more times. 

The loan im gonna get will probably  be a 7 year term 30 year mort at 4.6% which  is pretty fair for my area i think. I would love to get a fixed with slightly  higher rate but cant seem to find one. I dont think i would have a problem getting  a loan from the bank. I recently  refinanced a 2 family  i own in order to have the down payment to pay for this property. What im afraid  of is that the bank will appraise this property  for alot lower then the asking price and them i will have to pay the difference which i dont think ill have. 

Im not sure i know what TI is regarding  the retail? If you could clear that  up for me would be great. Also what would you recommend  to check what are fair retail rents for the area in case it does empty up. I was thinking of just calling  a few agents and looking  on craigslist. 

Thanks again

Hello Everyone! I've been on BP now for almost a year and have posted some suggestions but this would be my first question on the site. 

I was wondering if you guys could give me your opinions/analysis on a comm prop i found in NJ recently. For the past 2 years I have been trying to enter the commercial real estate market but either i find something good and someone quickly out bids me or the listing price is insane. Sadly this seems to be the norm here in Jersey.

But luckily i recently found a property that might work. PLease let me know if you guys think these numbers are a little off or if Im missing something. This info was provided by the Seller.

Sale Price 1,199,000.00

Income Monthly                                              Annual

8 units (8,000.00) and 2 retail (3,500.00)

Monthly rental Income 11,500.00                  138,000.00

Expenses

Taxes 34,000.00

Insurance 5,000.00

Utilities 3,000.00

Repairs 6,000.00

Vacancy: 8%(rounded to 11k) 11,000.00

Total 59,000.00

Net Operating Income 79,000.00

Cap Rate 6.5%

Cash-on-cash

Down Payment 30% 360,000.00

Amount Financed 70% 840,000.00

Monthly payments / 25 year amort @ 4.6% (4,716.80) x 12= 56,601.60

NOI 79,000.00

Less Debt Service (56,601.60)

Cash Flow per Annum $22,358.40

My questions are: Is this even worth pursusing or do you think the asking price is too high? IM hoping to be able to purchase it for $1.1 if im lucky.

Also the apartments in the area would not be a problem to rent but the two retails are what I am a little worried about. Thats why I put the 8% vacancy.

Let me know what you guys think Thanks