All Forum Posts by: Chris Masons

Wow,

Joel that is VERY important information here. I need to look into this more deeply.

SO your saying even if classified out of flood zone lender can still require flood insurance? But how would the house differ at that point from any other property not in a flood zone? I guess there will be a record showing it was in a flood zone all these years and what was done to get it out of it perhaps?

Maybe to lenders this isn't enough? Just the mere assocoation ofo it once being in a flood zone could spook them?

thx Joel. I need to do more homework!

regards,
Chris

Federal PAcific was based out of NJ and jsut my luck just about every house I bought had fed pacific stab lock breakers and I had to change them out.

They were based in Newark NJ. God knows how many homes they are in her ein NJ I'd say good 40% at one time!!

Chris

Thx for all the info guys. Yeah the situation is one corner of the back of the property has a depression on the cement where it meets the house and as a result this corner falls 4 inches below the base flood elevation, requiring Flood insurance to the tune of about 2,500 a year. This house stayed dry through Irene here and I checked with the neighbors as well as the owner prior to this one who owned the house since 1962.

Anyway, the current owner bought this house for a song via estate sale to rehab. Prior owners owned it outright so there was no required flood insurance. Current owner is beside himself about this issue. He met with town engineer and hired an engineer who raised the low spots by redoing the walkway, had a new survey done as well as an elevation cert. and applied for the LOMA to get it lifted from the flood zone. This is what is holding me back from buying the house.

It is a nice 2 family, all brick very low maintenance fits my profile of houses I look for. I have a great tenant ready to move in actually. He has dropped price considerably due to winter setting in and anxious to sell as I pretty sure he has a hard money loan coming due.

Anyway, I will keep you guys updated on how things progress.

thanks!

Chris

Has anyone had success in getting a property out of a flood zone after having work done to the property IE. raising a part of all of the landscape so that it sits above base flood plane?

Once this work is done there needs to be a LOMA submitted to FEMA.

Looking for anyone who has been through this before and how long FEMA can take to respond?

thx in advance,
Chris

Hi (Neighbor) Denise,

Nice to see another jersey body here. Seems we are few and far between!

I am a investor/landlord looking for great multi family buys in Union county.

Welcome!

regards,
Chris

Hi Nate,

I am assuming an attorney is not required to do closing in your state.

Here in North Jersey I am pretty sure an attorney is required which would handle mosst of the back end stuff. IE. coordinating with title company, recording lien at county court house. I guess you or the title company would be doing those steps in the absence of a RE attorney?

You should make sure you have all your what ifs addressed in the terms of your Note. YOu can find a basic one and customize it I would think? Long as it falls within the guidelines of state law.

NJ is a weird state, in SOuth JErsey an attorney is NOT required and Title company does the closing......

Chris

I agree with Rob. IF he just left and didn't do any damage to the dwelling then consider yoru friend ahead and a lesson learned - NEVER EVER let a tenant move in with out collecting full security deposit.

Chris

Hi Ken,

You say in your original post the buyer knew that there was a constant backup problem. That being said, has something else happed aside from this? Did the line break so now they have no choice but to dig and replace the line? Or has it just backed up like what was described?

Even if the line is now broke it was most likely caused by improper snaking done by the new owners. That would be a tough case to prove you were/are liable for.

I'd just sit tight and wait it out. LIke everyone said he is probably bluffing and wanting some easy money with scare tatics.

good luck,
Chris

I worked for my uncle in a machine shop when I was in my very early 20s And would hear him talk about the money he made on real estate. He bought low and sold high. Most were his primary residences actually.

I always was a good saver and had saved up a nice chunk of change at that point and the thought of buying and renting for long term positive cashflow was very appealing. What better then to have other people's money work for you.

So at 23 via FHA loan I bought my first investment property - a 4 family with an additional apartment in basement. I rented the whole thing out and still lived at home with mom, had great positive cashflow - I belief at the time I was banking around 1,500 monthly which quickly enabled me to move on to other investments including my first primary which was a 2 family.

I still think about doing it full time sometimes but would need about 4 or 5 more good properties but I make decent money at my day job and need benefits. The reality is tenants drive me crazy doing this part time and if I did it full time I think I'd go insane!! Sometimes being at my day job I feel at peace if you know what I mean LOL

Chris

That would probably make him feel more comfortable getting rent directly.

I am about to close on a contract for deed deal here in NJ on a 2 family where new wner is taking first floor and current tenant is remaining in 2nd floor. The 2nd floor tenant will still be paying rent to me directly and new owner will be paying the difference to me.

good luck and let us know how it pans out.

regards,
Chris