All Forum Posts by: Shea Stringert

Hello -

I am hoping to get some advice on buying investment properties that are known to have lead paint present. I'm buying in the Hudson County, NJ area for any of you who know the specifics of this market.

My question is how do you treat this? I know there are waivers you can have signed and notices you must give on this but is it to big of a risk to even take on or is it easy to deal with? I'm curious to know any legal situations that any of you have dealt with over dealing with a lead paint property? Is the liklihood of a lawsuit pretty high (obviously more when children are involved)? Can tenants get around the waiver in a lawsuit?

Lastly, how difficult is it to get rid of? Do those of you who buy homes with lead paint present remove it immediately or just get waivers signed and remove when you are turning over the apartment?

Appreciate any and all insight even from out of area!

Thanks,
Shea

Joel Owens Totally agree with all your thoughts. Unfortunately this being my first deal I don't have a reputation to go off of so is why I got the pre-approval of funds already and plan on buying a property that is less than my pre-approval amount. Not sure what else I can do to show that I am serious, am capable of buying, and absolutely plan to when the deal is right.

Dion DePaoli Your thorough reply was very helpful. Use a sellers agent - check!

Couple questions/comments. I realize loopnet is much more useful for true commercial properties (5 units and higher, and other stuff i'm not interested in) but they do have some properties similar to what I'm looking for so have used as a tool. I'm also using realtor.com and trying to use that brokers MLS tool but as I said his doesn't have all the properties seemingly (or the agents just aren't listing them there for some reason).

Your point on me getting some of the commission makes perfect sense and what I thought was law anyway so appreciate the confirmation there.

I'm actually looking in Jersey City, NJ but assume the same of the contract. After all the above, it definitely seems like there is no real upside to not using an agent where as using one has a lot (especially in referrals). That said, do you know a way I can go about finding a good sellers agent that has experience specifically in the area I am looking for? Invenstment property that is not owner occupied in my specific market. I want someone who has knowledge of the rental market as well as a lot of experience buying investment properties to help. Or am I going over board with wanting all that in my situation and knowledge?

Dion DePaoli I appreciate your thought and comment. I have to admit I have to do a better job of explaining my questions and situation more thoroughly. I created this post to get the questions answered. I'm more using the property I've found as an example for this question of mine. The property I will eventually put an offer on will be quite similar - 2 unit multifamily as an investment property. I am already prequalified for well over the purchase price. I have been talking to a broker for about 2 months now and have been learning from him but I'm not getting quick feedback form him as I doubt I am at the top of his priority list. It is through him how I've learned about the market prices, what to expect at what price, going cap rates, GRM's, etc. for the area I'm looking in. Problem is he doesn't send me any properties and his MLS listings don't seem to have all the listings (or his site is broken) so I have to hunt on my own.

I guess it also isn't obvious that I know I need to do due diligence on the property by getting it thoroughly inspected, check to see what this years property tax will equate to, as well as the other expense like water, trash, etc. I plan on only buying a property that has each unit individually metered as well.

I don't pretend I know even half the stuff I need to know in order to confidently answer my original question, but again is why I am asking on here.

John Lydic I appreciate your thought on not listening to naysayers, you'll never get anywhere if you do! Your comment is part of why I am asking this question. My current broker isn't giving me any attention at all so why would I ensure he gets a commision on the deal if he isn't going to give me the best help possible to close. That said, I don't have any recommendations for good fix it people, or inspectors so is a reason why I think I would need one. Although I could network to find some good people for both, my concern is over negotiation of the price and setting up the deal properly. I read in one of the books that I could use a buyers broker where I'll get some of the commission they receive on the deal at close, but find that hard to believe.

Bill Gulley Can you comment a little more on the listing agent being a transitional agency not being good for me? Is it purely because that agent won't have my own best interests in mind? That is definitely something I am concerned about and one of the positive to me using my own agent in the list of pro/cons. I plan on offering close to the asking price as even at full price it is a pretty good deal for me. Regardless I plan to hold on to it for a while as well since it will be a good amount positive cash flow after all expenses, maintenance, etc. are paid/saved. An attorney probably wont pull comps but before I made an offer I would check them myself to ensure I was proposing an appropriate price anyway.

Really the question is, is there any benefit monetarily for me not to use a broker? If not then it wouldn't make sense, I believe. If I can use just my attorney and get half of the "buyers" commission back at closing then that would definitely be a benefit. I'm not trying to cut corners by any means, I want to ensure I do this properly and intelligently so that when i take over the property everything goes as smoothly as it can. Again, appreciate any and all insights and advice on any of the notes I made above!

Thanks all!

Hello All,

As I've mentioned before I'll be buying my first property within the next couple months. I've found a potential property I plan on visiting tomorrow that I found using loopnet. I was able to find the property and make a meeting without a broker so am wondering if I even need to use one or can use my real-estate lawyer to facilitate the deal? What are your suggestions?

I already know the price is right, cap rate is within range ofnwhat market is buying at, etc. I've never bought a property before so leads me to think I should use a broker just b/c of that but hate to pay a large commission when I did all the property finding work.

Please let me know benefits ofnusing one and/or how you're able to bypass using one and still cover your all your basis.

Really appreciate any and all advice!!

Wondering the same myself.

Appreciate all the insights! I have a friend who basically rebuilt his entire house without getting all the proper permits and that's exactly the type of nightmare I want to avoid. I think for my case, since I am basically looking for something turnkey to walk into that needs only a cosmetic lift, I'll steer clear of these deals.

Thanks for all the responses. It seems like getting a deal is easier during those months for sure but I def didn't take into consideration that it's more difficult to get work done during those months. My plan however is to buy something mostly turnkey that needs some light cosmetic work to increase rents with - nothing major so this shouldn't be a big issue.

Hey BP MFH investors out there, hoping to get some help on these type of deals. I'm not sure if this is NJ specific or not but hoping your experience can shed some light.

I've seen a number of homes with descriptions that say "Sold As Is - buyer responsible for permits". I realize this is extremely vague but hoping those who have purchased distressed properties or even ones titled like this can lend some insight into what this means. I realize this pertains to permits on construction of parts or the entire home but don't understand how something could be built without all those permits already. Or if they were, how one could even go about getting permits for the work since it wasn't done to code in the first place.

Have any of you come across this or dealt with deals like this?

I'm mulling over the concept of waiting till winter months, January - February specifically to start putting offers on 2 unit MFH's. My questions are:
1) Since this isn't during busy season of tenant turnover, lots of selling, etc. I am assuming the properties I find will be more inclined to sell (thus negotiate) then during the summer months?
2) Since I am on the east coast, can snow cover up problems with homes (cracks, yard issues, etc.) and make it harder to inspect them or does the colder weather make issues even more apparent thus easier to detect?
3) What has been your experience of buying Spring/Summer vs. Winter?

I feel like I can get a better deal during the winter months when sellers are more motivated to sell since they're selling during a slow season but hoping you guys can share your experiences and knowledge.

Thanks!
Shea