All Forum Posts by: Jessica Zolotorofe

Definitely pre-leased is desirable for many reasons. First of all, you know you'll have income quickly. Second of all, you know what kind of build-out the specific tenant wants, especially a national tenant can be picky, and of course the lending process. Banks like pre-leased properties for all the same reasons you do. They'll want to see all signed leases and approvals and permits for the landlord's work before they will disburse any money, in addition to GC, architect and engineering contracts, SNDAs from your tenants you have leased up, approved plans and specs, evidence of builder's risk, etc., so it takes a little homework before the bank will close, but I would get a commitment and then hit the ground running. Hope that helps!

Hi @Matthew Smocovich. You are correct that those are the streets within Hoboken where the projects are. At some point developers pushed all of the low income housing into just a few blocks. It's not the most desirable part of Hoboken, but for people looking to live in that city and pay significantly less for their home, it's not a bad investment. I would research the rental potential and whether the numbers make sense before you buy. 

@Simon Filip can help.

It's definitely getting hot around the Oranges. I've seen a lot of people invest in multi-family there over the last few months. That being said... it's still up and coming, but could be something worth looking into. @Vaughn Smith is a real estate agent that knows a lot about that area. Talk to him and see if he can provide any good insight. 

I don't think they'll work any harder for you, honestly. If you are working with a broker who isn't giving it his or her best effort, then find a new broker, don't try to get the one who isn't performing to perform by offering more money. A regular commission should be sufficient for a broker to do their job well, and most will.

Try @Vaughn Smith. He can assist you with North Jersey. Most realtors, if not all realtors, have a specific area of expertise and don't do the entire state, which is hours long. Vaughn can point you in the right direction. 

I'm a big fan of the comma, but it means nothing at all, completely a preference. If you plan on investing in a few properties, I would use some property identifier as the LLC, so for example, 18 Smith Street, LLC or Smith and the town, LLC. That way paperwork stays relatively simple. If you just want to form a blanket LLC, then any name with Investment or Developers is fine, to echo other posts, I would keep it professional if you are going to seek lending and tenants, but otherwise, it's completely up to you. There's no secret to it, you can use literally anything available. Your dogs name, a flower you like, your favorite color... it really doesn't matter. Also a good idea someone mentioned to decide whether it's just an LLC name or whether you are creating a brand, in which case, checking the website is a good idea, too.

Doesn't matter, technically, but people tend to think everything is a .com, so if the name is already taken for the .com you may run into issues with people going to the wrong site when they try to find you.  I would probably use a site that you can get both the ,com and the .net for.

Hi @Ed Beder! Congratulations! If you have been consulting with CPAs, that's probably a great question to ask them, but I would find one you are comfortable with now to find out how they suggest you take title to the property, whether there are any tax advantages to an entity as opposed to taking title individually, whether there are any tax benefits to certain home improvements, certain tenant income reporting, etc. I'm far from an accountant, so just throwing some potentials out there! Then when tax time comes, someone already has all of your info (closing statements, rent rolls, an understanding of the property and what you can report for deductions, etc) and the process is seamless. If you have an attorney, they can also work closely with your accountant and that helps come tax time, too, and for suggestions on the best way to handle transactions to maximize your tax benefits. Wishing you the best of luck on your new adventure! 

@Kevin Sobilo

Possibly. Though I still think the obligation was on the buyer to confirm. Just like if the seller said the roof was sound and the inspection showed a leak. Any intentional misrepresentation (which is not an easy thing to prove) then maybe, but that would require litigation and depending on the size of the deposit may not be worth it. Maybe a stern letter from counsel, or the threat of litigation would be enough for the seller to give back the deposit without having to go that route. I think the answer here is she needs guidance from her attorney (hopefully she has one!)