All Forum Posts by: Mitch Bernstein

@Jonathan Ortiz   @Cheryl Schuck  @Patrick Liska

Thanks all for the local recommendations, really appreciate it. 

@Account Closed - Fantastic post, great info.  I'll use your recommendations when I research the home inspectors.   I like the idea of using specialists...otherwise you get a jack of all trades, master of none. 

@Heidi B.

It's a demographic shift that's causing the frenzy in buying, coupled with low inventory. (our market in NJ is similar to yours).

Young, first time home buyers were scared off by the crash in 08.  They've been sitting on the sidelines building cash reserves (if they remained employed).  Now, their starting families and have the money and confidence jump in after waiting so long. 

I agree, leading indicators are predicting a slowing of the global economy, but I don't think we'll see an all out RE crash, just a flattening of prices for a while.  I'm referring to residential RE, not sure about commercial.  Commercial might be more volatile. 

The declining stock market could certainly cool off the residential RE market in the coming year, but there's too much cash laying around - both corporate and private, for an 08 style RE implosion. 

As others have said, buy it right, buy what you can comfortably afford, and you'll be headed in the right direction.

And remember, free advice is worth what you paid for it, including mine;)

Hey Everyone, 

Does anyone have a recommendation for a good, thorough home inspector for the Morris County Area?   

I'm buying my first home and want to make sure the inspection is done right. 

Mitch

@Dawn Anastasi

Congratulations again on paying off your latest house!  I do have a question about it -

You purchased it for $23K and it commands a rent of $875/month from one tenant - how is that possible to have a rent so divergent from the home value?

It would seem that if the house was worth $23K, it was most likely in a neighborhood that had similar values, and thus rents in that area would be much lower. I've seen homes worth $100K have rents around $900; would seem that a $23K home would have a rent much lower. 

@Keith Frank

I agree about bringing on a partner and started down that road initially.  He had building experience but doesn't seem interested now (busy with his day job).

I also joined a REI group but found that most of the people there just wanted to flip houses, no building or development experience. Wondering if there's another place to find potential partners?

Another question I have is what is it that someone with experience would be looking for in a partner?

As I begin my endeavor into residential development and home building I am trying to figure out how to connect with the right people that have had successful experience doing the same.

What are some recommendations as to how to go about this search?

I feel that someone currently in the business would not be a good candidate because they might see me as competition one day.  Rather, I'd like to find a retired developer or builder where I could pick their brain and get the occasional reality check. 

I've started assembling a team (GC, attorney, etc.)  and have even made bids on lots for building, yet the financial metrics keep coming in flat or negative, so either my strategy is wrong or my estimates are wrong.  

@Steve Vaughan 

@Clifton Jones 

Thanks, looks like the way to go on this one is to slow roll it.   I like the idea of not giving more unless I get more. 

I would love to be able to speak to the seller and be polite and make a nice offer or even no-thank you, but because I'm using realtors on this one, can't really speak or write to the owners directly. 

Hi All, 

I'm negotiating the price of a lot through the realtors (buyers and sellers agents) and have a tight budget.  

Typically its seems that the offers and counter offers go in rapid succession the same day.  However, from the negotiating tactics I've read about, many say to use time to my advantage, i.e. delay my response.  

Does this apply to lot purchases as well?  In other words, if they counter my offer, should I wait a few days before offering another counter, or is it better to respond the same day?

@Chris Puglisi 

To help you get a more accurate idea of developing costs, you can get some rough quotes from a few local contractors.  

In order to go from "raw"land to buildable lot, the big items you need to cover are: 

Water - do you need a well?   

Sewage - do you need a septic system?

Heat - Is gas available on that street? (if not, above ground oil tank needed)

 If there is public sewer, water, and nat gas, then find out what the connection fees are from the town and utility companies.  If you need septic and well, it will get more expensive.

Especially septic, you have to get a perc test done - don't buy the lot on less it can pass a perc - have your attorney make that a contingency in the offer.  

There is a lot that I'd like to purchase to build a single family house on. However, the current zoning in the area requires a 300ft width, while this existing lot is only 220ft.

Is it possible to make the seller an offer contingent upon getting a variance that would allow me to build? If so, who would be awarded the variance...the seller?