All Forum Posts by: Mateusz Prawdzik

@Inshad Kaller I hope all went well with the closing and the property but most insurance doesn't get implemented until 30 days called the seasoning period, but that is if you own the property already. When you are purchasing, don't feel rushed or pressured like @Brian Ploszay said. This is actually even better for you, because then you can renegotiate the contract price after the fact. Your attorney should put this on pause and take it from there. If anyone should be worried, it's the current owner. 

@Milan Obradovic I would definitely  be interested in meeting if you can make your way to NJ, just reach out to me via PM and we can schedule something. In regards to the areas, just like any town, there is good and bad parts. The towns that you named are all good though but there are the worse parts and the better parts. But even the worse parts are not bad compared to like Newark and such.

@Lakshay G. From what you wrote the only thing that I think is higher than normal is the appraisal fee. I pay $400 for mine but that could also be because I am in NJ, so I am not sure. Everything else that you are telling me is actually really good....

What kind of points are you paying? Underwriting and Processing is right on the head, everyone charges the same amount.. They aren't charging you an attorney fee which I am assuming is because they have their own inhouse attorney. Re-inspection fee is probably for the draws, each time they come out and inspect for a draw inspection to disburse the rehab money back to you, the guy has to get paid.

AND on top of all that, you are getting 4.75% interest, where the hell are you getting this kind of rate from? Connect me with this lender please... that is, if he is legit and isn't a scammer. I would definitely bring this guy TONS and TONS of business with the volume that I have been doing this year. 

Everything that you are writing makes 100% sense, it isn't crazy at all, if anything is better than most people get. What kind of ARV do they lend on and how much of the Acquisition do they lend up to and Rehab up to? Let me know these and I will let you know if these are also good rates and terms.

@Jason Vanterpool Hey Jason, great to hear that you closed on 6 new properties all at the same time. Please connect with me so I can share the contact info to my insurance guy that I use. He is great and will work on getting you the best coverage for the best price. With that being said, if you own the properties out right, then you don't need insurance but that is a risk that you take.

@Brian Volland Just like Brian said, in NJ it's the same. You can negotiate with the seller to do cash for keys because "TECHNICALLY" you are purchasing the property with all assets and things attached to it, including tenants. UNLESS, on the contract, likes clause #9 or so... it says all items that are excluded from the sale, if tenants are not included, then it's the current owners to get them out before you close on the property.

@Steve A. Hey Steve, why are you looking for something Seattle when you are living in NYC? I am missing something? If you really meant NYC, then I can help you out. If you meant Seattle truly, then I can't do anything for you as far as lending goes... With that being said, that is AWESOME that you took your first step to getting something done In REI. The first step is the hardest I along with many others can vouch for that. It is good to hear that more and more people are jumping and trying to make something out of nothing. It drives more competition along with prices... this can be a good thing and a very bad thing as well.

If you ever have any questions about the rehab, arv, and anything regarding the whole process start to finish, please connect with me I will help you out like I have help many others on BP as well. I try to teach and mentor as many people as I can in the community because the more others grow, the more I grow. Don't be afraid to ask any questions you have, I can shed some light on lots of things. Being a builder/rehabber, most of my experience will be in that side of REI but I am very knowledgeable in other aspects of REI, so I will gladly be able to help you to the best of my ability.

Additionally, I don't know what Quicken is talking about by 99% of lenders are collateral based... and they are telling you that you can't use your investments to finance the investment properties... that doesn't make sense to me. Time to find some other company or someone else to do your financing for the property. And going back to what I said, I can attempt to help you out to the best of my ability.

@Milan Obradovic Hey, great to see that you finally took a step forward and are making things happen. I live in Bergen county but I don't deal with rentals, I am just a flipper and do most of my business in Union county as finding good deals in Teaneck is not easy... with that being said, I do have 3-4 deals in Bergen county but they were off market so I got lucky. Finding something good on the market in Bergen County will be difficult for sure, I can vouch for that, and if you are looking for something that will cash flow after expenses so you can live for free, that will be EVEN HARDER. 

Are you looking for something that needs work and can be refinanced or are you looking for something that is ready to go? Where specifically are you looking for in Bergen county?

Just so you know, Union city is Hudson county, and finding something for 1200 in Union city... I wish you good luck. Go out more to Bergen county because the commute to the City will only be like 10-20 minute difference as all the buses from Bergen county to NYC have their own lane so they don't sit in traffic during the Morning commute. Are you in a time crunch to move? If you are not, I would wait the market it out slightly and then maybe buy for cheaper in a couple of years, if you are looking to move rather soon, you just need a good agent that is on the MLS all the time to look for good deals for you where house hacking can be possible (if that is your goal of course).

I am in the same position as you are with the 3 family in Bergen county.. but I am not in a hurry and want something that I can develop or rehab myself and live in after and refinance. 

If you have any questions, don't be afraid to connect with me and reach out, I can shed some insight as well on the market here around me and what I think would be the best option for you.

@Tom R. To my understanding.... now this might not be true everywhere, but if you know what their occupation is and you ask what company they work for, you can maybe get an understand as to whether they work under the books or on the books. If they work on the books then CS is relevant, if it's off the books, then it's a matter of just making sure that they can produce the rent. Most people if the family passed all other background checks and you can meet and talk with the family and they seem sincere, shouldn't be a problem but then again, I know friends that were stuck with headaches and I know friends that thought this person was going be a nightmare and was the nicest and most respectable tenant out there... So it's tough to say, best thing to do is to meet the person if you are doing the property managing yourself. 

I would say 600-650 is a good cut off, depending on the area of course.... 

@Sterling Fields The approach that Gabe Amedee mentioned works sometimes but I don't like it as much. It's the start high deduct from there. You tell them you would be willing to off X for the property if it was in perfect condition but then you say that  because  there is damages I would unfortunately have to deduct Y. I think this is what Gabe is saying and I am not the biggest fan of this but I have seen it work for some people for sure. I would rather just schedule a time to go see the property and tell them upfront what is wrong and what it is going to cost to fix it (exaggerate the cost slightly) and then tell them because of this your offer is X.

@Andrew Brewer You are definitely going to benefit more from just doing repairs and calling it a day... Not only is taking the whole house to the studs going to run you more money but more time as well. This isn't even talking about knocking it down and make a new house... With the work that I have been doing (new construction, addition, full Gut, Renovation) my costs are roughly $170/sqft (depending on finishes, this was a really nice finish look) $120/sqft , $80/sqft, $70/sqft... in that order. This also varies on what kind of addition you are talking about... Just a second floor addition, or a new slab foundation + framing up addition. In the construction game, everything comes into play...

@Jamie S. THe reason why you aren't getting anything less that $200/sqft is because the builder has to deal with the headache is making money off everything that he does. IF you the builder was doing it for himself... he can easily get the prices I stated above... These are NJ prices, I am not talking about prices else where but I am almost sure that if the builder is good enough, his prices are just as good or better.