All Forum Posts by: Jessica Zolotorofe

In JSQ you're only getting $1400 for a 2 bedroom!? What kind of condition is the house in? That sounds exceptionally low for that area. Have you spoken to local realtors? And over $12,000 is way too high for taxes there from the sound of the house you are talking about. If taxes are that high on a house that can only rent a 2br for $1400 a month, that property needs a tax appeal immediately! Taxes are based on market value, so those numbers just don't seem to make any sense. Especially not in JC. Maybe take another look?

Are there exceptions to title? In Schedule B to the report?

you can't unfortunately :( @Natalie Kolodij is right. The LLC has to reinvest. The only way to really do separate 1031s is if a property is owned as tenants in common, but not if title is in the actual LLC.

As long as you don't interfere with the contractual rights of the landlord, for example, by telling the tenant not to renew if the landlord doesn't sell you the property, then depending on how you approach, it's not illegal (as always this is not legal advice, and you should consult your attorney). That being said, you should be careful that you don't get a tenant to commit to a renewal prior to being under contract because that will be good reason to significantly increase the purchase price on you. A 30 yr lease with 2 yrs left is worth way less than 2 yrs+a 10 yr option exercised. Practically speaking, though, knowing that the seller could get a way higher price if there are only a few yrs left, likelihood is the seller has already tried to contact the tenant and either couldn't get an answer, or the answer was no. If there are many years left in the current term, and it wouldn't really impact the price if a tenant seemed to intend to extend down the road, the seller may be ok with you asking, and you can always request the ability to contact (not harass, contact) the tenant during due diligence. Landlord will likely want a representative to be allowed to be present during communications, but that's up to your lawyer to work out. If you were to sign anything after you were under contract, changing terms, extending, etc. (assuming that's not prohibited under the contract) make sure it is very clear that you are only the contract purchaser and the lease is subject to your closing title. I would even have the title company or a lawyer hold the signed lease in escrow until you close with an agreement that it is void if for any reason you don't close. Morally, is it wrong to go behind a landlord's back? Maybe, again, depending on the specific facts, but the answer is, yes, under the right circumstances, you definitely can contact the tenant from a legal standpoint. I would reach out to an attorney with the details of your situation to get a more definitive answer. Hope that helps!

Hi Sean! Commercial or residential? 

agreed, @Jeff B. Similar problem here is that the path trains to Manhattan are overcrowded and can't handle the influx of new residential development, and that's before the thousands of units are leased or sold that are still under construction. It'll be interesting to see how the city handles these issues over the next few yrs.  

Ho @Paul Moore. Great info! Inbox me the name of your book when you have a chance. Have a great weekend!

Kazi R. Hi Kazi! You will be ok if you form a JV LLC. It sounds like a fair structure depending on some of the details you put in the agreement. I've done dozens of them for different types of deals, so I'm happy to chat further or answer any questions if you'd like to message me. Have a great weekend!

@Bony Mathew just realized you said not NOT for investment. In that case, totally depends on what you want to spend and what your priorities are as far as walking to bars, restaurants and shops, or having more space and a parking lot. 

Bony Mathew We don't really have standard condos in the more popular areas. They're mostly row homes and apartment buildings that have the condominium form of ownership, but not your typical condo development you're used to seeing. There is an area of JC on the other side of 440 that is a bit removed from the "up and coming" part of the city, but it's a beautiful development, very family friendly, clean and safe, and far more reasonably priced than down here. More comparable to Bayonne pricing probably. It's called Society Hill if you want to check it out. If you have a little bit more capital and want to invest Downtown to lease out, real estate is hotter than it's ever been, but price tags are steep and most of these places are old and need some love. The alternative if you just want some smaller scale steady income, is buying a unit in one of the newer buildings. You can usually collect rent far in excess of your carry costs, but again, big ticket initially and not as huge an upside as some alternatives. Then there is the option of buying in one of the neighborhoods that haven't quite gotten there yet, but should if you have a few years to hold onto the property, like JSQ or Bergen Lafayette, but the rental rates right now are pretty low as the neighborhoods aren't the most desirable and inventory is low on flips or fixer-uppers. Anyway, welcome to NJ and best of luck!