All Forum Posts by: William Coet

This is an off-market home and I don't think the owner is considering selling. It has been in their family for a few generations, but I am not aware of any heirs. The owner/occupant has a bit of financial trouble.

I would like a solution that allows the current owner/occupant to stay in place, but also secures the property for our future use.

I've considered purchasing it and offering lifetime in exchange for rental payments equivalent to property taxes, insurance, and a maintenance allowance. This would keep the costs the same for current occupant. Perhaps there are better ways to approach this.

This may be a sensitive subject for the current owner/occupant. Any ideas on how to approach this tactfully would be very much appreciated!

Thank you.

0 Votes

@Dominic Cordaro Don't let it slow you down one bit. As others have said, if you know your stuff you'll do fine. In fact, you may be able to become a better communicator/negotiator than most people! Finally, if you are concerned about an interaction, you could establish up front with whomever you are communicating with, and you will probably earn their respect and attention.

1 Vote

Originally posted by @Rob Malda:

@Kent Lyons - nice. I would suggest dropping the 25% population growth filter and adding a rent growth filter instead. You've got many areas in the country growing fast, but if there is a large corresponding supply of land the population growth will not translate to rent growth or home price growth. On the other hand you've got places in the country with no population growth but insane rent or price growth due to high demand and constrained supply (ie bay area, jackson hole, many other resort towns). Drop the population growth filter since it's a poor proxy for rent/price growth and just filter on rent/price growth directly.

Good idea. How does one determine if rent growth will occur? What statistical conditions must exist?

1 Vote

The rent control properties will undoubtedly be worth less than if they were market rate buildings. The state should prepare for a dramatic decrease in property tax revenue. This is the state taking over private property. Similar to what happens in communist dictatorships. It is designed to win votes for corrupt politicians, not to improve the economy.

3 Votes

Originally posted by @Kevin Blanchard:

@William Coet there are a variety of reasons at play and interestingly enough for the past 2 years or so I am getting $700k per SFH partially because they changed some of the regulations specifically for people with developmental disabilities where they now want the SFH to have Fire Suppression systems and sprinklers as well as ADA requirements.

There was a few lawsuits in NJ that have really helped make affordable housing possible. First, there was a lawsuit on behalf of people living with mental illness as wee as those with a developmental disability. Basically these individuals were housed at State hospitals for life. They did studies and found that many of these individuals could be in a less restrictive environment and at less cost. So they closed down a few hospitals with the goal to house these people in the community with support services (think of group homes or supervised living). All the money from the closure of the hospitals was directed towards SFH development for these groups.

Second, there was another lawsuit that provided every NJ resident should be able to live in decent affordable housing and this led to the creation of a fee that was tacked onto every new commercial or residential development.

Finally, the State took out a $200M bond that also assisted in providing affordable and special needs housing. The governor that enacted this law happened to have family that were special needs.

There are also funds from HUD designated towards housing homeless. So there are a lot of resources and will from all levels of government wanting to develop affordable and special needs housing.

I'm still confused, and maybe a bit more so. Why is the government funding 700k single family homes, when the same could be accomplished for much less?

0 Votes

I'm surprised the government will fund a 500k sfh build. Why are they willing to do this?

0 Votes

Originally posted by @Carl Fischer:

@Davido Davido

Or record an “affidavit of interest” so you will be notified if title is pulled.

@William Coet has the right approach. Be honest and it is just a reminder to the owner he owes you rofr.

Thank you,

In thinking about the ways a ROFR could be disregarded, it crossed my mind that property can be sold without a title search being done. I've also seen people draft their own deed and record a transfer at the county clerk.

Maybe I'm missing something. Is there someone in the chain of document recording that is guaranteed to see a ROFR associated with a title?

0 Votes

Originally posted by @Kevin Blanchard:

@William Coet Depends on what county it is in and bedroom distribution, but we could be looking at $2k/mo for a 4-bedroom SFH, and about $10k/mo for a 10-11 unit building. These rents are market rate rents in the area.

Pardon my questions, but I am confused by the math. I know you mentioned using grants for the 20% down.For a 500k home, that leaves 420k to be financed. 420k financed at 30 years is approximately a $2,000 monthly payment (equal to the rent). This leaves nothing for taxes (which are high in NJ, maintenance/management, and insurance).

Please correct me if I am missing something.

Thanks!

0 Votes

Originally posted by @Davido Davido:

Is there a reason you wouldn't just record your Right of First Refusal at the County Recorder's office?

Thanks for the reply. That would make sense to me if it were attached to the title. Maybe that's how it's done. I've never been a part of one.

0 Votes

Hello,

I would like to offer a payment to an owner/occupant of a single family home in exchange for the first right of refusal to buy the land.

My concern is that it could be disregarded in the future and a sale finalized between her and a different buyer. Once deed is recorded, I don't know what recourse I would have, if any.

Is there a way to establish an ironclad first right of refusal?

Can the rofr be attached to the deed/title so that any attempt to transfer property would trigger contact with the holder of the right of refusal?

Thanks

0 Votes

All Forum Posts by: William Coet

William Coet has started 207 posts and replied 570 times.

Post: Making Offer on Home Where Owner Will Stay In Place (Off-Market)

Post: Stuttering Real Estate Investor

Post: Growing Markets with 1% properties

Post: Statewide Rent Control In New York

Post: How I made money and did good at the same time

Post: How I made money and did good at the same time

Post: Right Of First Refusal, Potential Failure

Post: How I made money and did good at the same time

Post: Right Of First Refusal, Potential Failure

Post: Right Of First Refusal, Potential Failure