All Forum Posts by: Steve R.

Hello,

I'm looking at a property in NJ and the broker is telling me it's a 2 family

but I check the tax records thru the city and they have it listed as a 3 family.

I'm assuming the city and tax records are correct.

I asked if there is a green card (5 year state inspection) and the broker said that is only applicable to 3 family+ properties.

If I buy the property and the state has not been inspecting the property, what is my responsibility?

I need to do the right thing but I also know it can be opening a can of worms.

Any thoughts?

Is there one reliable website that clearly states which liens

get wiped out and which don't at Sheriff sales in NJ?

A source that would covers all type of liens you may come across?

Also, any sources that give good detailed do's and don'ts about buying at Sheriff sale aside from the basics?

Thanks for the input.

Regards.

50 years old

I own a 10 unit Building in the SF Bay Area and I'm looking for a good, financially sound insurance company to get a new policy on the building.

I'm looking for recommendations for some of the better, financially sound insurance companies that specialize in these type of properties.

Any major advantages/disadvantages to using a broker as opposed to getting insurance directly through a large insurance Co?

(I don't need my hand held, just a speedy resolution to any claims)

I've been online looking for ratings on companies etc but I seem to be spinning my wheels.

Any thought or suggestions would be appreciated.

Thanks.

I have done this for 12 years with no problems.

(knock on wood)

My premise is you have "responsible" tenants that slip up from time to time.

I always give the tenant the benefit of the doubt and let the fee slide.

I "clearly" state that next time I will charge a fee and that has solved the problem. Generally speaking if you give your tenants a little respect and cut them some slack, It will come back to you ten fold.

They can make your life miserable but this way they actually go out of their way to be nice and then property ownership is tolerable. (this assumes you have good tenants)

Giving up a late fee from time to time is a small price to pay for having a harmonious relationship with your tenants.

Act human and you often get it back in return.

If they are bad tenants and always late etc, get rid of them and find good people.

Thanks for the replies.
Yes I will give instructions on how I want the atty to bid.

Hello,

I want to bid on a property at a sheriff sale but I will be put of town on that date. The sheriff requires a certified check (20%) from the winning bidder. The check must be made out to my name and if I'm the winning bid, I would normally sign the back and hand it over. Since I cannot use a friend to bid for me due to schedule conflicts, I was going to get a lawyer, give him the the endorsed certified check with instructions on my highest bid and he would go to the auction for me.
If I win, he hands over the check and if not, he holds onto the check for me until my return. I have to endorse the check as it is not valid until I do so and I figure an established lawyer would not try and run off with my money. I was going to get a letter from the atty stating the objective and check received. Any thoughts or suggestions?

PS the check must be certified, made out to me and must be endorsed to be legal.

thanks

Thanks for the replies....even Dale's insight.

Yes I totally agree the cash flow is just not there and I would not invest in a property that did not have positive cash flow.
That is why I stopped buying in 2004.

The purpose of my post was to hear different ideas as to which area would be a better investment based on their strengths and weaknesses.
I was a bonehead and used a 2 family example when realistically only a 3 family in either area would be a consideration.
(I was tired and not thinking)

My question: Is it better to have very good cash flow in a worse area that will take longer to change or slightly positive cash flow in an area that has better transportation that will change sooner.

FYI If I asked this question in 2000 or 2004, the worse area had more cash flow and appreciation.

Thanks

I am looking to buy 2-4 family buildings in 2 areas close to NYC.
I'm looking for an "intelligent" thought process as to which area is a better investment.
I'm usually a long term investor who buys and holds unless there is a crazy market like before but I don't expect that anytime soon.

Area 1

2 Family is 200k.
Taxes 3k
Rent $1900 (950x2)
Travel time to NYC is 35 minutes and you need to take 2 trains. ($4.00 each way)
This area is a rough area that was getting better and now is quiet.
I had a few buildings here and sold all but one in 2008 because prices went up so much so fast so I took the profit.
I can get good tenants but I have to show the unit 10-15x.
(I don't mind since this is my job)

Area 2

2 Family $350k
Taxes 6k
Rent $ 2300 (1150x2)
Travel time to NYC is 12 minutes and its one train or 3 stops to the City. Very good!
People rent here because of the fast comute.
There area is not as rough as area 1 but it has not reached its potential yet.
Its safe to say that this area will get better before area 1.

My "logical" thinking was to buy in area 2 since it is a much better comute to NYC and it will get better quicker than area 1.
But after looking at the numbers, area 2 is more expensive, taxes are a lot higher yet the rents are not significantly more.
A 3 family in area 2 can have taxes as high as 8-9k.

I'm leaning towards area 1 but are there other issues I should consider?
I don't mind owning properties in either area, just want the best investment.

Thanks for your input!

Hello,

I was the high bid on a property on auction.com.
My question is it necessary to get my real estate atty to look over the contract?
I have not seem the contract yet but I would assume it is a standard contract buying a property "as is" with no recourse etc.
All that is fine and understood.

I would like to save a few $$ on atty fees if I can but I certainly do not want to be stupid.

Anyone have any experience with their contracts?

Thanks for your help.