All Forum Posts by: Jason Lee

"Most Millennials regret buying a home"

Really? Where's your data?

RFP submissions are due next month so can't see how anything is coming this year.

15% is customary. It's not law and it is negotiable. Some brokers will negotiate, others will not. I suggested you try to negotiate, not that the broker expects just one month and is trying to get more. They expect 15%. Dont assume you'll be successful negotiating down to one month just because you don't have your own broker. No, you can't represent yourself and ask for the 7.5% fee unless you hold an NY real estate license.

FYI streeteasy began charging brokers to list rentals last year and so the number of listings there has drop pretty significantly, particularly at lower price points. I would try nybits, and even the nytimes (which no longer charges brokers).

You're negotiating with two separate entities and while, in the end, you have a net cost, those negotiations aren't necessarily linked like you've assumed they are. The owner has turned down your lower offer. He's just lowered the price, has it available during the best season to have a lease signed, and has it at a low price point. He's probably not too worried about getting it rented. If this landlord only has a few units he might be motivated but more likely he's got a few hundred and could care less. Is this a single unit in a co-op or condo, or in a larger rental building?

Your offering more broker fee to the broker isn't going to change the owners mind. The broker wants to get a deal done and if the owner told him no to your lower offer, then the answer is no. If you're a great candidate with high income, then that was most likely relayed to the owner already.

If there's any wiggle room it's on the broker's part. If you had your own broker representing you, then the commission would be split, so at best 7.5% for each broker. You don't have your own broker so the listing broker could collect the entire amount... which is why he's negotiable.

I would try coming up on price and try to get the fee down to 1 month.

As for the area, I have actually sold in the neighborhood (on the corner of Bradhurst and 150th). It's a lot of younger couples and singles in the condos and condo conversions. The area has improved quite a bit over the past several years but not as much or as quickly as west of the park or a little further south near 145th. 

Zestimates, etc are worthless. Have you run your own comps? Ask for new appraisals and cherry pick your own comps, then meet with the appraiser and hand them your comps. As you walk through together point out all the upgrades you've made. If I have a deal (representing the buyer or seller) where I think the appraisal will be a challenge, I go and try to make my case. They usually appreciate the extra info and are happy to take my comps. If you think there are comps that could hurt you, then point those out too and give reasons as to why those are not good comps for you. If you have an agent then they should be doing this for you.

You're looking at historically low cash flow/high appreciation areas and predicting low cash flow.

Where are you getting -3% from? Manhattan median rent is up YOY Q2 0.6%, ppsf is up 2.3%, number of leases is up 5.2%, days on market is down -34.1%. Vacancy rate in May was 1.85%. 

Your bank is going to limit how much of a credit you can receive, I believe it's capped at 6% of the purchase price. So you could agree to a combination in reduction of purchase price and credit. Speak to your lender about what exactly they will allow.

If an investor is eager to pay 350K all-cash off market, I'll bet you can find a retail buyer (or an unsophisticated "investor") to pay even more.

1.5 hour radius is a relatively large area. I would first try to decide between how active/passive you want to be and what your goals are for cash flow/appreciation. That will help you focus your search. Also your budget.

I would consider Bayonne, and Bergen Lafayette, McGinley Sq, the Heights in JC to all be up and coming. There is tremendous YOY appreciation but there's also a lot of competition. I would try to stay near Light Rail and transportation options. For single family I would look in Bergen County zoned for good schools, something that needs work and you can force appreciation through reno or addition. It's pretty frothy there, too. 

There is no 'purchase price.' The father owns the properties and conveys them to his LLC for no consideration, then it's exempt from transfer tax.