All Forum Posts by: Allan Szlafrok

@Tiffany Archer Talk to some hard money lenders to get a better idea what fees are like and how much of a down payment on the property they require. Some lenders want 30% down for purchase and some will do 0%.I can recommend a few good lenders in NJ. Remember hard money loans are typically for a year only at which point you need to sell or refinance so you have to move quickly. You can definitely have a conventional lender take out the hard money loan and replace it with permanent financing but if you don’t qualify now there’s a good chance you won’t when the original loan comes due. That being said there are some programs out there for long term financing for investors who may not qualify with a traditional bank as they care more about the asset and it’s cash flow than who the borrower is. I know a few people who can help with that as well. The bottom loan is talk to some hard money lenders and some conventional lenders before you jump in so you don’t get stuck.

Do the math and see if the deal makes more sense as a knock down and new construction. Ive seen a lot of those fire damaged houses and if the damage is too extensive they dont really make any sense to repair. Thats why they sit for there for years until the city goes ahead and tears it down themselves. I'd sooner get in touch with a builder and see what it would cost to do ground up development on some of these. Usually the sellers are just happy to get an offer and get it off their books.

@Gershom Lewis I'm gonna be honest I think you are doing it backwards. I'm from NYC but I have significant investing experience in ATL from a few years back. I would start looking there as prices are way lower and you can get started faster. Your 25k down payment will go a lot farther in ATL than here here and unless you are looking to house hack something small with an FHA or VA loan in a marginal area of BK or Queens I think you should spend the next couple of months learning and making phone calls down to property mangers and brokers in ATL. If you are looking for a pre qualification for something owner occupied in NYC I recommend talking to smaller community banks and local credit unions. They are much easier to work with. I can recommend some great brokers and attorneys in ATL if you are interested.

@Michelle Backer I grew up in Brooklyn as well and I can tell you it’s very hard to find a good deal over there. And with the new rent control laws going into effect it’s gonna take a while before the market settles down over there and values find their equilibrium. Id wait Brooklyn out for a bit and see what happens. If you like Brooklyn you may like Jersey City as well I’ve found some great deals there over the last few years. Nice brownstone style house and small multi family’s like the kind I grew up in as a kid. As to wether or not a recession is coming soon all I can tell you is that if you are going to buy something make sure it’s something with solid cash flow so that you can absorb a tough market and not be forced to cough up your property. Finance conservatively and look for strong flow. If you do that a recession will just be mildly uncomfortable and not catastrophic.

@Avery H.

My brother used to work for this firm they are very good. Ask for Dani he’s a friend of mine and one of the partners there.

Jeffrey Zwick and Associates

266 Broadway, Suite 403

Brooklyn, NY 11211

@Mindy Jensen Hey I just submitted the form. I’ve already got a book available on Amazon and I love to write. I’ve also appeared on several podcasts including one with Joe Fairless which should debut in a couple of months (you know how backed up he is). I think I’d make a great contributor to the site and I’m looking forward to hearing from you.

@Nelson Del Castillo Its not just fire damaged properties if the utilities have been turned off for a long time the utility company will often require both town inspections for the work you will do as well as their own inspection before they issue a “cut card” to turn the power back on. It can be a lengthy process depending on your utility. Get a licensed electrician to give you a quote and have him fill out the application for the utility company. Make sure you are the contact person so you are updated at all times. After you get approval from your local inspector they will come down and do their final inspection and install meters if necessary. Pain in the read but that’s how it’s done.

@Kulin Dakwala if you have significant assets to protect an umbrella policy is never a bad idea. Like if you own a nice expensive primary home or other assets. 

@Nam Hoang You night need an asbestos specialist to take that out most demo companies won’t do it. Then again some might but probably not the legal way. A lot of people just put new flooring over it because it’s usually best to leave it alone if you can. Removing the asbestos tile could wind up being a bigger expense than you anticipated. Other than that if that’s all you want then that’s all you will get and it should be a good way to get itemized pricing for the job. Doesn’t look like you are doing anything that needs permits so that’s good.

@Jeremy M Danan I have a lot of experience in Newark. You need to be very careful about what neighborhoods and even blocks to invest in. You also need to be aware of the various rent control and other landlord guidelines. There is a lot of opportunity there but a lot of dangers for investors there too. For under 500k properties i like certain sections of the North Ward north of Bloomfield Ave especially and the East Ward but its kinda pricey over in the East Ward. Think about Elizabeth in Union County as well although property taxes make it tough over there.