All Forum Posts by: Naomi Spira

Lastly - sis is trying to buy the building from us

originaly (day one after auction) we thought it would be a good idea)

now after we have seen the property and know what a good deal it is - we prefer to keep it instead of the quick flip

It is hard to get our hands on a well priced multifamily and we thought this would be a good intro for us into the buy and hold.

We could sell to her for a quick few bucks - but I want to learn the process. 

However I am concerned about getting too burned...

I have now had numerous dealing with the sis and I realize she is consumate liar and can't be trusted.

thanks all for your quick feedback.

would you sell to her and be rid of it - or try to fight those leases and win a sweet 3 family?

@Jay Hinrichs @gary s.

I don't plan on moving in

I plan on keeping as an investment

If I can't find previous owner (building was forclosed - so seller was the bank), and all my efforts to find and talk with him have failed - why would the judge believe me over tenant?  I am concerned with rent control as well....

The lease is for one year

I know from basement tenant that they signed lease with the sister (but the lease has previous owner's name)

if it is fraud - it will be her word against mine

basement tenant are probably here illegally and I doubt they would testify

We have been flipping houses mainly and started 1 1/2 years ago.

We are up to house #15

I recently bought our first multifamily -  3 family in West New York, NJ at a Sheriff forclosure auction.  It seems that the tenants produced what we consider "sweatheart" leases signed days before the auction at below market rates.  We have not been successful reaching the previous owner, and even if we did - we don't believe he would be honest with us.  2 of the 3 units are occupied by a brother and sister.

Ideally we would like to get them out.  We believe (based on info from other tenants) that sis has been acting as or on behalf of the landlord for years.  

Additional problem - they have been renting the bedrooms out to dormers.  (we met some of those room-mates and they gave us the scoop as to what was going on).

The building is great - brick, newly built, good condition - and based on our comps - each of the 3 bedroom 2 bath units should be renting at around $1800-$2200/month (current condition vs fixed up)

The leases were were given (signed March 1 and we bought building on March 3) are $1000, $1100 for the 3 bedroom units of sis and bro and $1300 of the tiny basement unit rented by non family members.  That is the only unit that is probably true market value.

We considered flipping the building and have some offers - but they want at least one unit empty.

In reality - we would like to keep the building as it has great rent roll potential- but we need to contest these leases.

Any advice?

I find the return to sender letters to be the best leads!  The mailperson writes VAC on letter

It tells me the property is vacant

I love vacant properties

I then research the previous homeowner anyway I can - google obituaries, family members, spokeo, whitepages.

Finding out what is going on with the property gets me a few steps ahead of other investors.

I would love to join this women's group as well.

You need to find out if the first mortgage has been satisfied.

If not - it is in first positiion and would survive the sheriff sale = and you would be responsible for it.

You need to check the book and page on the homeowner in town records.

Second mortgage could be a line of credit.

not sure from your post which is forclosing.

Sometimes - they will announce another outstanding loan at the sheriff sale - BUT NOT ALWAYS!

so make sure to do your homework.  It might be worthwhile to pay a title company to look for you if you don't know how.

Eventually, when you research many properties = this becomes too expensive and you will need to learn how to do the research yourself.

good luck!

The $450K is probably the amount the owner owed the Bank.

The sheriff does NOT list the upset prices.

I would say the most important things to look into before buying at sheriff sale in NJ:

1. tax liens

2. condo liens

3. primary lien that might survive the sale

4. oil tank or other contamination - need of remediation

5. know if property is occupied or vacant

6. ALWAYS go to property first

It is important to learn how to go to the books and records and do your own title search.

We once almost bid on a property that looked great online - but when we drove by - it was gone - burnt to a crisp!

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Vacant

4 Bedroom, 2 bath, fireplace, front porch, detached garage, gated yard, nice wood trim moldings - old world charm, fully finished basement with laundry room, 2 rooms and large Jacuzzi, finished attic/office/playroom - lots of living space.

Price: $250,000

ARV: $350,000

Construction Costs: $30,000

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[email protected] or 917-602-1277

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Construction Costs: approx $30,000

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Email: [email protected] or call 917-602-1277