All Forum Posts by: Stefan Tsvetkov

Prashant Kumar will explore the use of Digital Marketing in the multifamily real estate syndication business.

Prashant is a multifamily investor and syndicator and general partner at Multifamily Realty Gains. In his current role, he has amassed a portfolio of over 1200 units. He holds Bachelor's in Engineering from Indian Institute of Technology, and a Master's degree from Fairfield University. He is leveraging over 23 years experience as a computer consultant in the US Corporate Sector.

Sign up for Meetup here: https://www.meetup.com/Finance-Meets-Real-Estate/events/272125274/

Note time for the event changed to 6:00pm. Make sure to RSVP at meetup.com (https://www.meetup.com/Finance-Meets-Real-Estate/events/271484863/) 

Awesome! Thanks @Ahmed Elias.

@James LaPosta Technically, if house is not registered for rent control, there is nothing to file. Of course, if going "by the book", need to register the house and do so as an owner occupant, in which case can raise rents also. 3-families not owner occupied, only recently became rent controlled (2018 amendment). They were not so previously, and I am guessing the vast majority of them are not registered with the Rent Control Office.

To your second question, if house was never registered for rent control, there would be no base level recorded, and I suppose a new one would need to be established once you move out. In the event house has been registered, I am not sure (it might be the previous recorded level, or that the house becomes fully decontrolled). 

Union City has no vacancy decontrol as for rent controlled investment properties changing tenants. It is best to contact their office directly, or peruse the ordinance.

@Ahmed Elias Sounds good regarding Trustco Bank, Bergen County branches. What is "Union City Bank" if I may ask? There is MUFG Union Bank / other "Union Bank" I have heard of.

Personally, I would want to sell a property in the current market for 637k, that was purchased for 340k in 2012 (at the very bottom of market) that is rent rolling at 5250 a month. Perfect opportunity to lock in great appreciation before a potential slight downturn, and having collected the rent roll, relative to the lower purchase price, along the way.

Even if Union City not overvalued, but some drop can happen, and is in fact my base case scenario. NJ perhaps additionally risky as pretty big on foreclosures - holding the #1 spot nationwide for a few years now.

@Ahmed Elias

Oh no, of course not. Was referring to FHA myself. Who is your lender if I may ask? For a 10% down conventional loan on a 3-family.

@Ahmed Elias

Yeah I just read the article. It appears they worry that short term orders during COVID-19 (moratorium on rent increases, evictions) could grow into long term policy. I don’t see personally how this can feasibly happen, or be reasonable for that matter. Not too worried personally.

As for the rest, it is for the attorneys to resolve (and your own preference/FHA guidelines). If you can get seller to reduce price due to not vacating a unit, sure that would be great. Else if vacating is necessary as to qualify for the FHA, obviously should pursue that.

10% down sounds high considering how bad an FHA is (with the above characteristic mentioned). Spencer Savings Bank is one lender that offers 10% down for primary residence 3-4 families. Rate is higher and they are operationally inefficient, but if any capacity to switch, please look into it.

@Ahmed Elias Three-family owner occupied in Union City is not subject to rent control (as of the latest ordinances I've seen). Here are my replies:

1. Yes, you can (on both). Not subject to rent control as of current.

2. Evictions are done at the county level, Office of the Special Civil Part, so not generally influenced by municipality sentiment.

3. You can ask. Though not legally so, for the latter need an official eviction process and a good reason (rent non-payment etc)

4. Here are some links (I have posted on other forums also):
Union City Rent Stabilization Ordinance
2018 Amendment

FHA however tempting is a massive rip-off in my opinion. A literal chunk of principal gets forfeited forever (via upfront MIP) and it never gets back to you. Often on a shorter timeline, as one may refinance in several years into another mortgage.

Event Details:

Stefan Tsvetkov, MS Financial Engineering, will explore the state of valuations in U.S. private residential real estate, by means of internally derived metrics and external vendor reports.

Parallels to financial markets and theory are to be made, and finance risk-return characteristics are to be compared against. Relationship to public and commercial real estate markets is to be touched on.

A deeper dive into specific regions and counties will aim to shed light on individual metrics predictive power. Outlook for real estate post 2020 recession is to be constructed from the data on the basis of 2007 Global Financial Crisis outcomes and current levels of valuation.

Presenter Bio:

Stefan is a financial engineer working on the derivatives trading desk for a major insurance company. Manages USD 90 billion derivatives portfolio jointly with several colleagues.

Three years as an individual real estate investor in the multifamily space across several strategies. 

Founder of Envvy Analytics, an investor-geared property analytics software and Pepela Equity Partners, a real estate investment firm. Organizer of Finance Meets Real Estate investor meetup, which is the host of this event.

Event Start: 6:30pm, 21st July 2020

Event Venue: Online, RSVP and link at https://www.meetup.com/Finance-Meets-Real-Estate/events/271484863/

Event Timeline:

6:30-7:30pm - Presentation

7:30-8:00pm - Q&A

Rescheduled to 8 September, thank you.