All Forum Posts by: Nick Hakim

Hi Anthony - 

Happy to help you value this property, but I would need a few more things to accurately value the property. Here are a few questions that any investor is going to ask when analyzing your property:

1. How many square feet is the property? (price per square foot is arguably the most common metric to value an investment, especially a property that will be delivered mostly vacant)
2. What are the current taxes, and who is responsible for paying utilities?
3. What is the current condition of the property's structural components? (the state of roof, siding, windows, etc can significantly affect the value of your property)
4. What is the current condition of the interior units? (you mentioned that the units have been renovated in the last 10 years, but in a hyper competitive market like Brooklyn or Queens, 10 year old renovations are considered outdated by most investors and renters. Also, 10 year old renovations will most likely not achieve market rents, which means that any buyer will need to invest in renovating the units)
5. Is the basement unit a "legal" basement unit? (does it have two means of egress and windows?)

These are the main questions that most investors will ask when analyzing your property. If you don't feel comfortable sharing detailed information on the public forum feel free to PM me and I would be happy to help you arrive at a fair market value for this property. I also know of a few investors in this sub-market who may be interested in such an opportunity.

Looking forward to hearing from you.

Nick

Stephen -

Happy to connect with you on this. My father was born and raised in the Hudson Valley and is very active in the area with his brokerage and operating company, Pioneer Realty. PM me and we will set up a time to jump on a call to discuss further.

Looking forward to it.

Nick

Please forward details to [email protected]

This portfolio is comprised of six (6) single family homes and three (3) development lots in Columbia and York County SC. Please note that this is an REO portfolio and most of the properties will be conveyed to the new owner via quitclaim deed. Some properties have completed quiet title proceedings, others are still in the process and the new owner will be subbed in as the plaintiff. Also, please note that the sale is AS IS WHERE IS and there will be no adjustments for taxes, utilities, etc.

Three of the homes are fully rehabbed and rented out and three need various levels of rehab. Two of the single family home lots are located in newly built residential subdivisions situated on nice golf courses, the third lot is a bit more rural, but is sizable and has potential to be subdivided.

Overall, with conservative sale assumptions, I am projecting required repairs of $100k and a portfolio wide ARV of approximately $600k (assuming that you do not develop or subdivide the vacant lots, which will offer additional upside).

This opportunity provides an investor with optionality. The properties can be sold off individually, packaged, or the properties could be rehabbed, rented and refinanced to recoup all equity and retain a nice cash flowing rental portfolio.

Please PM me for additional details.

Thanks!

Tags: South Carolina, SC, Columbia, Cayce, Blythewood, Hopkins, Spartanburg, Rock Hill, York, REO, Flip, Portfolio

This portfolio is comprised of six (6) single family homes and three (3) development lots in Columbia and York County SC. Please note that this is an REO portfolio and most of the properties will be conveyed to the new owner via quitclaim deed. Some properties have completed quiet title proceedings, others are still in the process and the new owner will be subbed in as the plaintiff. Also, please note that the sale is AS IS WHERE IS and there will be no adjustments for taxes, utilities, etc. 
Three of the homes are fully rehabbed and rented out and three need various levels of rehab. Two of the single family home lots are located in newly built residential subdivisions situated on nice golf courses, the third lot is a bit more rural, but is sizable and has potential to be subdivided.

Overall, with conservative sale assumptions, I am projecting required repairs of $100k and a portfolio wide ARV of approximately $600k (assuming that you do not develop or subdivide the vacant lots, which will offer additional upside).

This opportunity provides an investor with optionality. The properties can be sold off individually, packaged, or the properties could be rehabbed, rented and refinanced to recoup all equity and retain a nice cash flowing rental portfolio.

Please PM me for additional details.

Thanks!

Tags: South Carolina, SC, Columbia, Cayce, Blythewood, Hopkins, Spartanburg, Rock Hill, York, REO, Flip, Portfolio

Is this property still available? Please forward details to [email protected]

Thanks!

Nick

@Account Closed mentioned in his post, I believe it all depends on how well you know your market, how widely marketed the deal your chasing is, and how confident you are in your negotiating skills. If you feel as though you're being "screened out" by brokers who do not want to split a commission, maybe it would be best to create a consultative type agreement with a buyers broker where they will operate in the background and will earn a pre-determined fee once you close on a transaction. They will guide you through the search, advise you on valuation, offers, negotiations, and arranging the proper documentation to make you stand out as a competitive and serious buyer.

Similar to attorneys, real estate brokers are usually well worth the money - especially if you're seeking your first deal. Best of luck!

@Jesse Fernandez Unfortunately there is no “way around” rent stabilization. If a property has rent stabilized units you are legally required to keep them rent stabilized and to continue to offer renewals upon expiration. The only way to de-stabilize these units and convert them to “Free Market” units is by one of the following scenarios: 1. The rent stabilized tenant willfully moves out of the apartment at which point you would be required to substantially improve the apartment condition through renovations. There is a legal rent threshold of $2,700 that must be met to destabilize the apartments. This is calculated by taking the in place legal rent and applying 1/40th of the total cost of the renovation to the legal rent. For example if the in place legal rent is $2,600, you would have to put, at minimum, $4,000 worth of work into the apartment, of which $100 could be applied to the legal rent bringing you to the $2,700 threshold. At that point you have “de-stabilized” the unit and can charge whatever rent the market will bear. 2. Eviction if the tenant has violated the lease. Once the tenant has been evicted you can then follow the procedure mentioned in option #1. Note that evicting a Rent Stabilized Tenant in NYC is VERY difficult. 3. Buyouts. A lot of times landlords will offer tenants a payout if they move out of the apartment at which point the renovation procedure mentioned in option #1 must be followed once again. It is not uncommon to pay tenants upwards of $100k to move out of their apartment. I am not a lawyer, and this is not legal advice. I would suggest doing a TON of research on the complexities of NYC rent stabilization. It’s a very difficult field to navigate and not for the faint of heart. The courts and legal system have begun taking destabilization very seriously, and many landlords have been put behind bars. Simply approaching a tenant and offering them a $100k check to love out more than once is technically considered harassment and can land you in severe legal trouble. I would recommend Rosenberg & Estis LLP for L&T representation. I will tell you that good advice does not come cheap, but it’s worth paying for if you have a good opportunity on your hands. Best of luck with your investing. Nick

@Sebastian Garcia Awesome ideas! I would recommend looking into some of the following sites available to real estate professionals in the North East:

1. Propertyshark
2. Lavamap
3. Corelogic

Most of these sites aggregate data from state/county websites, so you may find some valuable data sources there.

@Brie Schmidt Thanks for your input. I should have specified in my post that I have been using an attorney from the get-go. My attorney drafted the escrow language and my out clause in the contract. 

To clarify, the deposit is still held in escrow at the moment, however, as the contract reads, the deposit should have been released to me upon seller’s receipt of my election to terminate the contract during the DD period. If at that point the seller believed that I breached the contract he could then sue me for return of the deposit. Therefor, the suit that I recently filed names both the seller and the escrow agent for breach of contract.

I have been unable to find any case law outlining the specific definition of a mortgage financing contingency and whether or not “investors” (myself and partners) reluctance to do a deal constitutes a breach of a mortgage financing contingency. In my opinion it does not, but apparently, this guy has another stance.

I believe that it is my personal discretion and right in a due diligence period to determine whether or not I want to invest my or my investors' cash into the deal - otherwise, why even have a due diligence period? Based on the sellers' argument, during my due diligence period I could have found out that the commercial tenant hasn't paid rent in five years, but I would still have to close on the property because there is "no financing contingency."