All Forum Posts by: Tory Ellis

Hey @Derrick Best Welcome to the BP world!! My advice to you would be to take the next week or so to read the Beginners Guides eBooks, Become a Pro member if you haven't already done so, Watch the webinars, listen to the podcast. By the time you've done all of that your head should be filled with excitement and the 1000 ways your gonna get rich! (LoL).... At this point I advise that you take another day or 2 just to figure out which lane you may want to drive in. Once you have that figured out, look for that niche on the BP forums, read as many threads that interest you and start asking questions. Most importantly you have to take action!!!.

I know that you're going to read about prices and numbers that make NO Sense in our NYC market however the methodology is the same. 

Feel free to reach out to me and I will do my best to help you in anyway that I can.. 

Happy and Healthy Investing My Friend!!! 

@Ben Leybovich Lol..... I was actually waiting on you to tell me to run!!. I posted all the info that I received from the broker on the thread, I would love for you to take a look and maybe tell me if I should still run or how It needs to be structured for it to work. Just wanted you to know that I love reading your post man! to me you're one of the best and funniest!!.

@Christopher Telles  thanks for the clarification. Take a look at the thread because I just posted the info I got from the Broker maybe you can help shed some light.

 Thanks Chris I actually wasn't aware of that and I was actually hoping that I could convert those units into Free Market rents once the leases expired being as that is what happened to apt 2L.

 Thanks Jackson because I ran all the same numbers and came up with all the same answers you did which confused the heck outta me, which lead to me writing this post for help in the first place.

This is from the DHCR report as of 11/11/14

Note: Apartment 2L which was Rent Stabilized is now one of the 3 Free Market units according to the pro forma. My Question is.... Are the property revenue actual rents or are they made up?

This is the information that I have to go off of so I hope this helps you all to better understand how to help me analyze this deal. Even if its not a deal I still need your help in order to understand Why its not a deal? and What would make it a good one for future reference?

First let me start off by stating that i'm a rookie who's following the advice of many BP podcast and webinars by trying to take action!!!. So thank you @Brandon Turner @Ben Leybovich @Michael Blank and others for your great insight.

I did what I was told and established a relationship with a commercial broker who in turn sent me an off market listing that I believe is a great value add property.

This is a 8 unit MFR in an "A CLASS" neighborhood located in Bklyn NY within 2-10min walking distance to any and all amenities, (Barclay's Center, Malls, Shopping center, Banks, Restaurants, Museum, Parks etc.)

All 8 units are 4 rooms (2bedrooms) including 1 duplex apt.....  5 units are rent stabilized and 3 units are free market including Duplex, all of which are receiving way less than market rents.

Typical Market rents for 2 bedrooms in this area are 3k+/mth, also the typical vacancy rates for this area are @ 2%-3.5% (Bklyn market analysis). All leases will expire in 2016...

As far as market comps for this property goes, the only property in the area like this one is next door and is selling each unit as condos. This building sold in 2013 for 1.66mill.

AS PER PROFORMA

Asking Price = $3,400,000 GAI = $163,494 Expenses (ESTIMATED) = $44,391 NOI = $119,103 NOI / 3.4MIL = 3.5% CAP RATE (TYPICAL CAP RATES IN NYC IS 3.5 -4%)

However I'm lost on what the real financials are because of the DHCR reports a rent roll totaling $5,484/mth from the Rent Stabilized apts ONLY!! information on this report is as of November 11, 2014.

None of the rents from the free market apts were included on this DHCR report. Does this mean that the Free Market apts are vacant?

AS PER DHCR REPORT

GAI = $65,808         are these the actual numbers?

Expenses (ESTIMATED) = $44,391     why are the expenses estimated?

NOI = $21,417 is this the true NOI ?

Can anyone help me figure out a reasonable offer based on the above information? If there isn't enough info what else do I need to know?

I want to at least make an offer so that the Broker doesn't write me off as a tire kicker and stops sending me listings.

Any suggestions on what my next conversation with the broker should be?

I want to thank everyone in advance for the feed back...

Hey guys I'm trying to learn how to be a R.E rock star like most of you so PLEASE DON'T BEAT ME UP!!!! I've seen how brutal some of you are on the newbies on the forums.

Don't get me wrong I can take it with the best of them but do remember this is a learning curve for us newbies...





yes thats the formula in "theory" but like Steve said finding deals in New York that meet those requirements are another thing entirely.

@J Scott  @Himanshu Jain 

Yes, this is very helpfulI!  I believe that I am actually in the way of progress where I am right now.  I have identified many developments in the area that I am looking at, such as major strip & outlet mall expansions, new housing developments being build, many renovations of long standing abandoned properties, and even talks of a small college in the near future.  My question is, how do I identify whether I should be buying and holding, opposed to buy and flip?  

How do I identify whether the demographics in this area are plausible?  What are the flags within the demographics that will tell me which direction I need to go?  Can you help me to understand what area within the demographics are good indicators of opportunities for investing?  I am not sure if I should be more focused on economic indicators or social ones, age, race...  I guess I need to know "how" to read and interpret the demographics, along with my observations in what's developing, in order to make a sound decision for investments.  

I truly appreciate your insight and guidance in this area, and am eager to develop a system that works for me.

Thank you.

Hello BP!

I always read in the forums or in other members post that they performed some type of analysis (micro,macro) of their given areas in order to assess their earning potential within that given area.

My question is How do you perform an analysis of an area for REI ?

What are the questions that I need answered to ensure a thorough analysis ?

Any and All help is Greatly Appreciated so thanks in advance.