All Forum Posts by: Isadore Nelson

Great to see you're looking into Poughkeepsie. I used to work in the area, not personally investing there, but I have helped handfuls of investors secure financing in Dutchess and Ulster counties, I do know it’s seeing some heightened interest from investors due to its proximity to the ever-expanding NYC and relatively lower property prices compared to alternative areas. If you’re focusing on specific property types (single-family, multifamily, or fix and flips), I’d be happy to help analyze the financials of the deals, without any concern about me sniping any good ones you find for myself, haha.

Let me know how I can assist!

Best, Noah

Thanks for your kind offer.

0 Votes

Upstate New York, New York

Quote from @Concetta Morabito:

Hi Isadore!

I'm also in a similar situation. There is actually a meetup group in Poukeepsie that I saw. Wednesday nights on meetup.com and now I can't find it. I'm going to do some hunting to see where I saw it (it was for wednesday nights at a pub). Let's stay connected!

Definitely, let's chat.

0 Votes

Upstate New York, New York

Quote from @Chris Seveney:

Quote from @V.G Jason:

Quote from @Marcus Auerbach:

caller: "Hey, I am new to real estate and want to invest in Milwaukee for cash flow. I want to use the equity in my CA home for the downpayment"

me: "gasp"

Caller: I read this is the way to do it on the BP forum.

That's the unfortunate truth.

Starting to see it everywhere. I am outside of DC. We also have seen some others that lenders to sell loans. Here are several. this is just a small sample size but this does not mean its everywhere etc. but definitely seeing a lot of fix and flip loans in default getting sold. (note not all the ones below are in default)

422 S Oklahoma Ave, Elk City, OK 73644 | MLS #1095264 | Zillow

15154 Appleton Blvd, Port Charlotte, FL 33981 | MLS #TB8300903 | Zillow

Can you elaborate what you are demonstrating with these properties? Thank you.

1 Vote

Quote from @Samuel Eddinger:

@Account Closed - that's not how this works.

The one caveat on this is that for bigger buildings, the assessment is based on income approach, not market approach so they may not be getting assessed as high as the market approach. In those cases, the taxes could redistribute from larger buildings to smaller buildings (4 units and below).

Does that not go both ways? If say the income of a property (basically rent to value ratio) is high, in comparison to market value, then you'd pay more tax accordingly, no?

0 Votes

Hartford, Connecticut

Quote from @Samuel Eddinger:

@Account Closed - that's not how this works.

In CT, the assessment is used to generate the total grand list. This is the sum of all the personal property (Car and real estate) in the town. At this point, they establish the total town budget. The Mil rate is set at Total town budget / Grand List. If the grand list grows and the town budget doesn't grow, then the mil rate would go down and your tax would not increase.

With the evaluations going up, this will be a year that the towns push the budget's higher so you will see an increase. I'm guessing that it will be something like 10% to 20% but definitely not 40%.

Do you mind me asking how that works, is there a correlation with how they value the property with how much the town needs to cover their budget? I would assume, that they aren't related but it sounds like they are interconnected, what does one have to do with the other? Shouldn't the values placed on properties be objective regardless of motive to cover budget? Thank you, Samuel.

0 Votes

Hartford, Connecticut

Quote from @Helene Goodworth:

OK, so I have updated my spread sheet. The initial spreadsheet was just hours old and therefore was a little rough. I think it makes a little more sense now.

If anyone would like to give me advice on this deal I would love that! I appreciate you all so much. Thanks!

Sent you a DM.

0 Votes

Upstate New York, New York

Quote from @Michael Quarles:

Quote from @Don Konipol:

Quote from @Michael Quarles:

Quote from @Alecia Loveless:

@Helene Goodworth I always put 20% down. But sometimes the appraisal comes back higher so I end up with extra equity after closing.

I have a great relationship with my primary lender and they require at least 20% down. They’re willing to work with me and are local to my market. They don’t sell off their mortgages so I will always have a local connection in case I need assistance with the loan or any other aspect of my business.

There’s plenty of good reasons to put 20% down and to me, not being concert leveraged is of primary concern.

Why are you always putting 20% down? I’m perplexed.

What makes a “good” deal can differ enormously from person to person. Low down payment is a significant part of your criteria, Michael, and it obviously fits your personal needs, wants, financial position, goals….
But for myself, for instance, ability to pay a low dp is of absolutely no importance. My main criteria is purchasing below market value, with a 12% or better ROI. In fact, it’s a LOT easier to find a good / great below market deal if (1) you offer all cash, quick close, NOT subject to financing and or (2) the property is one in which obtaining financing is difficult, if not impossible.

Another example of where low DP is not preferable is when we syndicate property purchases. We almost always utilize 50% leverage. The reason is that we have a relationship with a regional bank that will provide financing and which if we limit leverage to 50% will (1) charge interest at their lowest commercial rate fixed for 20 years with no balloon, (2) charge 0 origination points and no “junk” fees and(3) allow us to sell the property with either a sub to or a wrap loan without increasing the interest rate - in other words no due on sale clause. We sold one property this year where we wrapped the 4% mortgage note into a 10% note and as a result are enjoying a 17% annual ROI for a minimum of 2 years and possibly as long as 10 years if the borrower/buyer does not pay us off early.

After 40+ years of real estate investing, in many different markets across the country during many different economic climates, both in residential and (primarily) in commercial, I can tell you that hard and fast “rules” should be constantly evaluated to see if they are limiting the opportunity to “jump start” your wealth building.

I would much rather buy at 65-70% of As Is value utilizing sub2 and seller financing with zero to very little down then wholetail the property. it’s certainly more difficult to find and negotiate however I don’t have much exposure And little at risk capital

Ultimately it’s more enjoyable to me

You've found 100 deals with seller financing and sub2 arrangements? That's impressive.

0 Votes

Upstate New York, New York

Quote from @Dan H.:

I am surprised a tenant would accept as low as $200 to leave a unit

I never do cash for keys. I do not desire to reward tenants for poor behavior.

I explain the consequences of an eviction to the tenant. I explain they will have difficulty Renting a quality unit, that I will ding their credit, that I will attempt to garnish their future income to recover what they owe. They believe I will do what I state because I have always done what I told them I would do.

My market has a low vacancy rate. Poor tenants cannot obtain quality housing. My tenant requirements includes no evictions, ever. No excuses accepted

So far with a combination of good screening and good luck, I have never needed to evict a tenant.

When the time comes to evict our first tenant, I will hire the best lawyer and let the expert take care of it. I will add the cost of the eviction to what tenant owes, and if the cost is not recovered I will consider it a cost of doing business.

What I will not do is pay a bad tenant to leave so that another landlord gets stuck with having to deal with a bad tenant that I have rewarded for their poor behavior.

Do not do cash for keys.

Good luck

"will ding their credit", is that always true? What if you don't have their SSN, how do you make sure it is associated with them for future record?

1 Vote

Good evening!

I’m exploring investment opportunities in the Poughkeepsie area and have a few questions about some properties I’m considering. Is anyone familiar with the local market and available to chat?

Thank you!

0 Votes

Upstate New York, New York

All Forum Posts by: Isadore Nelson

Isadore Nelson has started 18 posts and replied 96 times.

Post: Poughkeepsie, NY. Wanna connect?

Post: Poughkeepsie, NY. Wanna connect?

Post: Poughkeepsie, NY. Wanna connect?

Post: Do Not Be This Guy... When $0 down hurts

Post: Middletown CT, fight a 40 percent tax increase 2023

Post: Middletown CT, fight a 40 percent tax increase 2023

Post: Another potential deal that I am trying to figure out

Post: Another potential deal that I am trying to figure out

Post: Has anyone figured out a cheaper alternative to Cash for Keys

Post: Poughkeepsie, NY. Wanna connect?