All Forum Posts by: Michael Derziotis

So I am looking to purchase an 8/3 REO in Brooklyn, NY. The numbers are great and I have a private investor lined up willing to lend on the property. Now to the problem. The structure is not up to code and has illegal tenants living in it. There are actually 8 units with 8 tenants. Illegal tenants have rights and you cant just force them out. Eviction would take way to long. Its freezing cold in New York, the tenants claim they are paying rent to a landlord and had suspicion of the home being in financial trouble. Obviously whoever the landlord is, is pocketing the cash (the home is foreclosed!). Not sure what the best strategy is to move forward... Paying off 8 tenants wouldn't be cheap and I'd have to get them all to agree. Time isn't on my hands. I want to make a "blind" offer to the bank before they show the home to 100 different investors creating a huge bidding war (seriously). The home needs $150k - $200k in repairs but there is amazing potential. All ideas and experiences to share are well appreciated!

Are you saying they are illegal tenants because they are paying the wrong person (old landlord)? Would like to know if that's what your referring to and if not, if that was the case, would eviction be difficult ?

0 Votes

@Bryan L.I'm pretty sure I get what your referring to. People just overlook the listings because of price point and they don't think there is money there. So you have less competition. Bank needs to rid the property so they settle.

0 Votes

Thanks for the replies thusfar.

@John Horner

My goal is to buy, renovate, and sell to capture more funds. Then buy and hold for retirement. I am a partner in a granite fabrication facility. Started this 12 years ago so I have a built a long list of relationships with other trades and suppliers. Renovating is what makes sense to me for now. I have a lot of high end products and services at a fraction of the cost of what most pay to my advantage.

I think I just need to get out there and start networking a bit and see who or what I can run into. Just a bit hard leaving the office.

0 Votes

I have been searching the mls and other websites everyday and night. Seems that there are not many good deals here in indy for a flip. I'm not sure if I should put this on back burner or keep at it. Long term goal is to buy and hold but need to generate a little more income first. I'm going to my first local REIA meeting in a couple of weeks hoping to gain some contacts. Any more suggestions, input ??

0 Votes

Bill
There are alot of variables to your question. The factors are based by this:

Geographical Location
Stone (many different to choose from)
Thickness (I believe where you are 2cm (3/4") is standard)
Edge Profile
Cutouts (all are additional)
Sinks (who is providing)

I would use the figure $45/SF to cover your tail. Better yet, call the primo granite shop in your area and ask them price for a group 1 stone (industry standard) and additional costs for cutouts.

I've been in the granite business for 12 years so I have a pretty good idea on how this all works. Some mentioned $26/SF. Our market expect to pay $45/SF the cheapest.

Mike
Mike

0 Votes

Hello just found this site. Getting ready to start investing in real estate. My background consits of extensive contruction knowledge and real estate appraisal. Looking forward to all the advice and knowledge I can gain from veterans here....

0 Votes

All Forum Posts by: Michael Derziotis

Michael Derziotis has started 2 posts and replied 6 times.

Post: Illegal tenants! A situation that is happening right now!

Post: Whats left for the little guy?

Post: Whats left for the little guy?

Post: Whats left for the little guy?

Post: Average Cost for Kitchen Granite Countertops?

Post: Hello from Indiana