All Forum Posts by: Mark K.

Hello,

I posted this in the general sales forum initially and I realized it's a very locally based NYC question so I am reposting here!

Anyways, I've got an accepted offer and financing lined up and now have received the offering plan (400+ pages). To give you some background, I am the first person to buy into a new 8 unit condo-building in Brooklyn. This is my first time buying and everything up to this point was fairly straight forward. I figured I just sign the purchase agreement and move in move in by April (what listing agent told me).

Of course, it's never that simple, especially in NYC. Long story short, there are two issues that are making me reconsider.

- Sponsor has yet to receive Temporary Certificate of Occupancy and in turn the Offering Plan has not been declared effective. They cannot get TCoO until 2 units are sold, I would be the first person to buy in. This means closing could potentially be months away while another buyer goes into contract. Awaiting word from sponsor on how long this will actually be but how would they know? They'd need another offer to come through on another unit right?

- 421A contingency based off final Certification of Eligibility. The building has 421A but the FINAL certification won't come through (if at all) until 90 days after the TCoO. The sponsor has received preliminary approval but not yet final which is not guaranteed. Is there a way to get a sense of whether or not the building will get the FINAL certification?  I went on NYC gov page and the property is listed as an "Exempt Property as of Final Roll FY'18/19".  That doesn't necessarily mean it's getting a FINAL certification though right?

So I'm in a position where closing is open ended and the tax abatement is uncertain. I really want this place but am not going to do anything stupid. Is all this normal for a new development? Is this more of a thing where I just need to give it time (to close)? I have done research on the developer and his other buildings and everything seems to check out. Since this is my first time, I am being particularly cautious.

I just wanted to get a second opinion from the community at large. Your help is appreciated!

Hello, I've got an accepted offer and financing lined up and now have received the offering plan (400+ pages). To give you some background, I am the first person to buy into a new 8 unit condo-building in Brooklyn. This is my first time and everything up to this point was fairly straight forward. I figured I just sign the purchase agreement and move in move in by April (what listing agent told me).  

Of course, it's never that simple, especially in NYC. Long story short, there are two issues that are making me reconsider.

- Sponsor has yet to receive Temporary Certificate of Occupancy and in turn the Offering Plan declared effective. They cannot get TCoO until 2 units are sold, I would be the first person to buy in. This means closing could potentially be months away. Awaiting word from sponsor on how long this will actually be but how would they know? They'd need another offer to come through on another unit right?

- 421A contingency based off final Certification of Eligibility. The building has 421A but the FINAL certification won't come through (if at all) until 90 days after the TCoO. The sponsor has received preliminary approval but not yet final which is not guaranteed.

So I'm in a position where closing is open ended and the tax abatement is uncertain. I really want this place but am not going to do anything stupid. Is all this normal for a new development? Is this more of a thing where I just need to give it time (to close)? I have done research on the developer and his other buildings and everything seems to check out. Since this is my first time, I am being particularly cautious.

I just wanted to get a second opinion from the community at large. Your help is appreciated!

Yes, I'd use it as a rental. I thought $2,200 is conservative but my RE agent said to use that but he felt it could rent for more like $2,300-$2,400. 

@Russell Brazil It's in a great area definitely not on the outskirts of MoCo. 4 bed, 2 bath maybe I am totally under estimating the rent but again I got that from my friend. However, in using the "2% Rule" for rent, that would mean the rent is $9K which makes no sense. 

Hello,

I started out here in early 2015 and for about three months tried to learn everything I could about REI. Long story short, life happened and I felt very stifled and limited living in Manhattan as I was priced out of nearly everything.

Anyways, fast forward to today, the house across the street from my parents in Montgomery County, MD is for sale. It's been on the market for a couple months without an offer according to my parents and we know the owner is trying to sell quickly. 

Now I'm scrambling and trying to go back and read my old notes and read up on basic fundamentals again. In the back of mind, I keep remember read rule #1 is don't invest in something you don't understand. However, this opportunity seems perfect in terms of location. As far as numbers go, I was hoping you can help me on that. They don't seem to make sense to me but one of my good friends is a local realtor and I'm meeting with him tomorrow. I just think the house is too much. Below are the numbers I've crunched, please let me know if I'm missing something. Your feedback is appreciated!

As I've been doing my education over the last three months, I was was dead set on the buy and hold strategy.  I still think it's a great strategy but I have a significant hurdle in that I want to invest remotely.  Yes, I know it's been done plenty of times but as a newbie, I don't know if I'm willing to take that risk.  

I like buy and hold b/c of the cash flow potential and tax advantages with interest and depreciation write-offs.  However, I got very discouraged when I realized I would probably need around a dozen (give or take) properties to cash flow at "just" $3K a month.  

Anyways, I've recently been reading up on note buying but am not finding the info I'm seeking.  It's still somewhat difficult to wrap my head around what note buying is and what it entails.  

A few questions below...

• Does note buying has the same cash flow potential and tax advantages?
• What happens when the note is paid? How do I make money off the note then?
• How would you compare cash flow vs. getting paid a high return on a note every month?  I'm still trying to wrap my head around this.
• How would you compare finding deals? Discounted private note vs. discounted SFH?

Any other info you could provide would be great!

Hellp BP Fam,

What does it mean to "carry back the loan/paper/mortgage"?  Could you provide a contextual example?  

I am researching note buying and have heard this phrase brought up a few times.  Thank you in advance!

one last try...

Can anyone help me break these numbers down?

Hello,

I am looking to invest in a buy and hold SFH in Montgomery County, MD within the next year and will be in the area this weekend. I've been spending the last few months bringing myself up to speed on the fundamentals of REI but still have A LOT to learn. I'd love to sit down with an experienced investor in the area that would be open to answering the many questions I have specific to investing in the area.

This is an open invite for coffee/drinks/lunch for your time and knowledge. I’d love nothing more than to pick your brain, I know it will go a long way in accelerating my growth. If this sounds like something you’re interested in please feel free to respond to the post or message me privately.


Thanks!

thanks for everyone's insight, as a newbie i would to hear what more people have to say

Anyone? Really curious as to what your thoughts are...