All available loopholes, which allowed deregulation of units were, unfortunately, closed by our elected officials, except the substantial rehab strategy, which requires 80% vacancy throughout the building and 75% replacement of all building-wide systems, you are essentially forced to renovate the complete building and still at the mercy of DHCR.. which has the final saying

The market is kind of in a stalemate with owners who aren't forced or want to sell just holding on, and buyers waiting for deals at prices that make sense.

LP equity positions are lower in the capital stack, meaning if the property value declines and a forced sale covers only the debt, the equity is completely wiped out.

It's how you force equity and make connections.

If you don't file, they may never take you seriously and essentially force you to have to file.

Normally, the cap on seller concessions is 6% of the sale price, but that’s not the case for commercial loans.Here are the trade-offs:5-year stepped prepayment: A typical residential loan at this price point isn’t allowed in the state, but with commercial, those rules are different.20-year amortization: This means higher payments, but it forced me to ensure my deal works under strict terms.Interest rate: It came in at 7.9%, not stellar but still good.Overall, I’m pretty proud of this deal.

Lots of people would lose their entire life savings (either through fraud, market forces, or simple lack of execution).

Codes are easy to work around so Fair housing is never a concern.I would never accepted any applicant because I am forced to.

Also grading the surface to force surface water to run away from the foundation even just a few feet can make a difference.

Were straddling between doing a 121exc and 1031 or just selling straightup with the 121exc and paying the remaining CG taxes to have some flexibility on where to reinvest v forced timeline of the 1031.