All Forum Posts by: Alexander Szikla

Hi Kathleen - Going to disagree with the trend here. I think there is tremendous opportunity in Manhattan, especially now. 

Long term, I think NYC will come back as it always has. I am also a great believer in investing when there is distress and deploying capital when you can. 

Personally, I have had the best luck purchasing co-ops from estate sales. They are less desirable than condos and families typically just want to move on and don't wait around for the highest and best offers. 

Even purchasing at the peak, my units still have plenty of equity (albeit less due to COVID-19). 

The only downside is (typically) high monthly maintenance costs and (currently) a tough rental market. 

If you are looking for yield in the short run, Manhattan may not be for you. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made

There are definitive advantages in making a cash offer:

(1) Flexibility on Price - Lower Cost Basis

(2) Quicker Close

(3) Greater Negotiating Power post Inspection

All of these yield to higher yield with one caveat. Cash deals require significant equity, you have no bank helping out with the heavy lifting. Naturally, this will hurt your yield / return on equity and hinder your scalability. 

So the key is to closely understand your ability to refinance. This will allow you to quickly scoop up good deals and then either 

(1) Ideally, get all your money back for the next deal and then some while leaving you with more cash in your pocket to fuel future acquisitions plus leave you with a ton of equity on paper and cash flow after paying down your principal

(2) Get all your money back to simply rinse and repeat - basically, just not get "stuck" in a deal

(3) Get some equity stuck, but enough whereby your return on equity is still astronomical (i.e. if a property is acquired for $100k and cash flows $10k, you are making 10% on your equity -  after refi, you might appraise at $120k and only get $90k back but still cash flow $5k after paying the bank which yields you 50% on your equity). 

Finding a bank that is open to cash out refinances within a few months is also crucial here. 

Also, keep in mind that redeploying capital well and consistently is difficult enough. It is even tougher in smaller increments (saving $10k every year for a few years to buy your next house vs. getting $90k back right away to rock and roll!) Leverage allows you to automatically scale into investments and redeploy consistently as your are paying back debt on already sound acquisitions. 

Feel free to reach out to me directly with any further questions. 

Is it legal to be an RE agent and wholesale deals on the side? Or is that prohibited?

What if you are registered as an agent in one state and wholesale out of state? 

Would appreciate any feedback!

Any successful wholesalers have their favorite mail houses they would recommend?

Hi all,

Looking to establish a relationship with an investor friendly banks with low seasoning periods. I understand the most aggressive is 3 months. I have a properties in Northeast New Jersey which will need to be refinanced. Appreciate any and all recommendations. 

-Alex

Can anyone recommend a reasonably proces garbage removal service in North NJ?

-Alex

Property I am in contract on (attorney review) has an operating oil tank. Can inspectors judge if there is a leak? Will banks refinance me out after seasoning? Or will tank pose an issue?

Thank you

Can anyone recommend a good insurance company for a GL policy on a General Contracting business in NJ? 

Thank You!

Purchasing a property in Wayne, NJ that is in a flood zone and has been elevated (inspector confirmed). The sale is out of an estate, so they do not seem to have an elevation certificate handy. However, having one would greatly reduce my insurance costs.

I've reached out to the municipality and the NJ DEP and have also filed OPRA requests with both the municipality and NJ DEP. Any suggestions on how I could get an elevation certificate?

Thank You!