All Forum Posts by: Nick Hakim

Arvin - 

I would recommend finding a local bank or credit union with lots of exposure to the market. These banks typically have a better understanding of the market fundamentals and will offer you a higher LTV. Unless you're able to secure the property at a number far below appraised value you'll likely have to post 25-40% as a down payment. Other factors that banks will consider include major capital improvements required at the property and sponsor (buyer) experience in MF investing.

Hope this helps!

Nick

Karla - please include me in your list. Thanks!

@Erika Unhold - Similar to @Ron Daugherty, I like to ask for labor only quotes. I then use websites like Build.com or Wayfair to source the majority of the materials and have them shipped directly to the project site. Small things like caulk, grout, screws, thin-set are the responsibility of the contractor. I like having control over the quality and cost of material.

Conveniently located in New York Catskills region, the resort is tucked in among towering pines and crisp, clear lakes. This secluded country resort provides services with the perfect mix of comfort, charm, and relaxation. The property, centered between New Paltz, Kingston, Woodstock, and Rhinebeck, is complete with:

• 9 cabins
• 7 motel rooms - Cabins & Motels brought in $300k in 2016
• Three-bedroom rental house - Rented on a 12 mo term for $2,400/mo
• Fully refurbished stone house built in the 1600's - Occupied by owner but can be vacated and rented for $2,000/mo or nightly on Airbnb for approx $300/night
• Income producing cell tower - $2,500/mo
• The property is also rented out for entire weekends in exchange for site fee's. Ideal for Family reunions, weddings, parties, corporate retreats, etc. Typical site fee's are approx $10k for two days + rental of all cabins/motels.

The property also boasts two pristine lakes, two gazebos, an indoor banquet facility and commercial kitchen, and an outdoor pavilion and bar that seats 300. This is a rare opportunity to acquire a value-add resort with TONS of development and growth potential. The cabins need approximately $5k/each in capital improvements and the nightly rates can be increased by 15-20%. The property maintains high occupancy levels due to the amount of tourism and proximity to Manhattan and Brooklyn. It operates as a great weekend getaway. 

Asking $2,000,000 and the seller is CREATIVE and open to trading up into multifamily, assisted living, office, or mixed-use along the east coast. Bring me an offer!

Keywords: New York, Kingston, Hudson Valley, Catskills, New Paltz, Rhinebeck, Resort, Airbnb, Motel, Hotel, Vacation, Lake, Getaway, Value Add, Income Producing

Achi - 

There are several management structures that could provide a win-win type situation for you and the owner. There are several questions that need to be answered in order to arrive at the ideal management structure, such as:

1. What is the current rent/remaining term on all spaces? (re-tenanting or re-negotiating leases for 5 spaces over the next 1-2 years can be very cumbersome, therefore will likely warrant a higher management fee)

2. Type of tenancy.

3. Type of lease (gross or net)

4. Will you be responsible for things like managing build outs and capital improvement projects?

Feel free to send me a PM to discuss further. I would be happy to share details about my experience managing retail properties.

Regards,

Nick

@Will Kronberger I am a Kingston native and have a great deal of experience owning and managing properties in the area. Feel free to send me a PM if you'd like to hop on the phone and chat.

Does anyone in this thread have experience flipping in Weequahic? I'm vetting a few opportunities in the area and would like to get a better understanding of who the post reno buyers are down there. Families? Rental owners?

Any feedback would be appreciated.

Hey BP-

I have been canvassing the Newark area for flip opportunities and would like to seek the counsel of local agent's / wholesalers / flippers. I am specifically interested in finding 1-2 family homes in Ironbound or Weequahic that need moderate to significant improvements. I would like to keep the deal size between $100-200k (inclusive of reno budget). I can close quickly for the right opportunity.

Can anyone out there can recommend local agents / wholesalers? Any help would be greatly appreciated.

Nick

Thanks! @Mark Smith

@Jeff B. Thanks for the reply. We have always included prohibitive language in our leases, but there were several loopholes that we have since addressed.

Hello Everyone,

I've noticed that the forums for the NYC market are surprisingly sparse, but I'm assuming that's due to the level of difficulty associated with breaking into the market here. I'd like to generate discussion surrounding a few regulatory/political issues that have become prevalent amongst owner/operators in the NYC market. The first and most pressing issue is the recent growth of the Airbnb rental market and the subsequent regulation that has been imposed by the city.

New York City building code considers any stay less than thirty days (where the leaseholder is not present), "Transient Use", which, in turn, places that unit in the "hotel" category. Therefore, by nature of it's use, that unit is evading New York City's mandatory hotel tax of 5.785%

To curb this growing issue (AirBnb has an estimated 25,000 active listings in the 5 boroughs), Mayor Deblasio has created a special task force to seek out, inspect and impose monetary fine's on the individuals responsible. Here's the catch: although landlords in most cases have no idea that this is going on within their buildings AND have no equitable association with these de facto hotels, the task force is fining the landlords, NOT the tenants who are responsible. Below is a recent scenario that we were faced with:

Ana rented a free market studio apartment from our company in August 2015. Unbeknown to us, Ana began renting her apartment out on Airbnb. The Mayor's special task force found her listing and went to the building with the DOB inspector, the FDNY Inspector, and two uniformed policemen. They then proceeded to knock on every door in the building looking for suitcases or signs of "transient use."  Of course, they found renters in Ana's unit and wrote US, the landlord, a $2,400 violation for transient use. THEN, since the building was now considered a "hotel", the DOB inspector wrote a $2,000 violation for having an invalid C/O, the FDNY inspector wrote us a $3,000 violation for having the improper means of egress, and a $2,000 violation for an incorrect sprinkler system.

To make matters worse, if we are found to have another unit in the building with illegal occupancy, the fine is then raised to $1,000.00 per day until both tenants are evicted. Here is the best part: New York City evictions, due to anti-landlord policymakers and judges, can take as long as 60-90 days to process, meaning that fines could be anywhere between $70 & $100K...

To prevent that from happening we have implemented a zero tolerance policy across our entire portfolio and have been forced to take a MUCH more hands-on approach to managing our buildings, including:

1. Monitoring Airbnb, VRBO, Homeaway and other sites SEVERAL times a day.
2. Periodically knocking on doors of tenants we suspect are illegally subletting.
3. Removing locks/installing keyless entry
4. Ammending leases to allow for impromptu inspections/termination clauses.

Has anyone else out there in NYC or SF encountered this issue? If so, how are you handling it? Something needs to be done, and I'm planning on leading this battle. Would love to hear any feedback/suggestions.

Best,

Nick