All Forum Posts by: Sid Leibowitz

If you are planning a purchase a lot then the right of way is necessary as well as a survey, lot number and address. Is it not? The receiver (owner) is responsible for supplying those and paid tax papers order to sell the lot. They also will have the zoning board stamp on the survey. Talk to your attorney. they will guide you in the process of local law. The sale is contingent on the access and utilities. do not pay for anything until the attorney is aboard with the deal. 

If the current owner is sub dividing the property from their current property, they need to provide access. Laws vary from state to state. Talk with your attorney that would be doing the close before you commit to the deal and talk to utilities to make sure you can get gas, electric and cable in there as well as make sure that you can clear and excavate land for development .  

Laws may differ nationally, In New York you do not have to deal with workers comp if you are not the employer, hire a contractor ( vendor) as long as he has insurance, You have to have a copy of his insurance policy to see what is covered if he has employees then his worker comp would cover . If you employ workers of any type yourself , even in the office you must have workers comp. Its the law in NYS.

Jay . I have been all through that before. Flipping with fast turn around will give you the cash flow. NYS tenant laws make it impossible to guaranty profit or cash flow. By flipping you are more in control of seeing a more immediate profit. Being a landlord is very problematic in NYS. If the tenant does not pay on time you still owe the mortgage on time. Owning a multi may lower your FICO score. You are liable for the finances of your property. Flipping gives you the ability of getting past the mortgage. The more you flip the more credible and solvent you become. you show the banks a track record and the deals can grow more quickly. Holding and renting leaves you exposed to major liability issues and the tenant can leave you with major issues if you decide you want out. Repairs like roof, plumbing, electric  and unexpected utility issues can effect your profit. I found flipping more profitable that being a landlord on long Island.

At one time I was a professional construction buyer and purchased as Home Depot and Loews buys. I was purchasing millions per year. If you are just purchasing limited amounts then I agree with the Home Depot and Loews volume philosophy. They purchase in large volume and their model is to sell with the fastest turnover as possible.  If you are a contractor and you have a resale certificate you can produce that at the pro desk and receive "trade" discounts for purchasing by being in the construction trade, in addition, to not having to pay the sales tax at time of pick up and you can take the material as a deduction when filing taxes after the sale of the property. I have met many contractors that fail to  understand the "trade" courtesy discount and the material deduction at tax time. You can save considerable dollars by purchasing with trade discounts utilizing a resale certificate. Talk to the manager at the pro desk. 

IMHO I find that furniture is not necessary and in fact makes it more difficult for the potential buyer to visualize their own items in the property. I find that a clean slate has worked better for me. Painting white walls and removing all window treatments, showing older but clean appliances and showing humble makes potential buyer feel like they are getting a bargain and will be interested more if they feel they are getting one. The first impressing of clean (no smoke or pet odor in any part of the house is important. They are going to want to decorate themselves anyway. Re-doing kitchens and baths makes the potential buyer feel like they are purchasing the rehab from you at a cost, show old appliances that are bleached and do not smell. They are planning on new ones anyway. Floors just need to be washed and clean as possible. Walls, painted white and cabinets sanitized or painted to remove stains and residue, New light bulbs with natural color, not the LED type, Fix floor tiles if necessary. Wash windows inside and out and repair / replace crumbling brick and mortar if necessary. there should never be indication of water staining or leaking pipes anywhere. Watching flip shows gives you the wrong message of what to do if you want a fast flip. Most buyers do not want to buy a perfect SFR and pay you to do it, Depending on what the neighborhood is like. Most are just looking for a bargain. New window treatments and appliances send out a signal that its not a bargain. No bugs anywhere. It must be able to pass an engineers inspection and must have a CO that there are no issues to deal with to transfer title. repair any hairline crack in cement on exterior walls and walkways. Caulk window drafts and weatherstrip doors. You an easily flip with under 10K rehab budget.

Frank.. Please be more specific, like area that you want to work in. North, South, East or West. Then are you seeking SFR or Multi family or industrial / commercial. Then your investment budget threshold. Best, Sid

The only issues are that you become a landlord and responsible to maintain the property as per the lease and the local code. You will have to maintain the structure, mechanical system which includes plumbing heating and safety issues like leaking or rotting roof. You may have more expenses in case of hurricane. You have to do pest control and maintain insurance. As landlord you have many issues that you are accountable for. When it is time to get the tenant out you may find that is not that easy. Tenants have rights also. You should seek legal advise on this lease from a local attorney that is familiar with your LOCAL real estate laws. All of this and it may not pay you to rent.   

Happy to help Flora. Never approach people that are scamming or stealing services. Notify the authority and have them deal with it. They will document it and take action. This way you will not have to be subjected to hostility, Best

Investing in real estate takes into a vast understanding of business and I can not tell from your posting how much experience you have in the business world. Some people that it is very easy to become successful and sometimes overnight. How long do you know your partners, and what makes them a qualified partner? I am not saying that you or your partners are qualified to form a corporation. The information you provided is so minimal, that I can not tell what level you are on. You could write something more comprehensive about your model.