Reg A
Reg D
PPM
Form 10 Registration
S-1
Wednesday, December 3, 2014
Monday, September 15, 2014
99 Washington street, new york, ny
Evaluations for a referral fee. Tried to do a flip. The mutter wanted to desk with exclusive principle only.
Didn't want to risk purchasing a letter of credit.
Seller had no interest in hiring me as a consultant or as a partner.
Referral free it is.
Saturday, April 5, 2014
The River of Money
Get in the rapids. Get in front of the flow. Let it flow through you. take what you want. You have to be in the flow of it.
Identify where the flow is. Look for the river of money. Where is the upstream. Look up stream. it flows past you. get in it, but where is it? You are in a desert or highland. it flows past you from the mountains, in the valleys, to the rivers, to the estuaries to the ocean.
It goes into banks. How does it get into the banks? business deposit it there. People deposit it there.
Where do businesses get it? from the people? where do the businesses get it? from the lenders. Government lending through the banks to the businesses and to the people.
Identify where the flow is. Look for the river of money. Where is the upstream. Look up stream. it flows past you. get in it, but where is it? You are in a desert or highland. it flows past you from the mountains, in the valleys, to the rivers, to the estuaries to the ocean.
It goes into banks. How does it get into the banks? business deposit it there. People deposit it there.
Where do businesses get it? from the people? where do the businesses get it? from the lenders. Government lending through the banks to the businesses and to the people.
Wednesday, October 9, 2013
Tuesday, October 8, 2013
Tuesday, August 27, 2013
20 east end
Extension cords in air.
Lighting in West Stairwell.
Keep electric panels closed.
Hanging fixtures in front of exit on 4th west.
Monday, August 26, 2013
Wednesday, August 21, 2013
Tuesday, August 20, 2013
Dealing with Unruly Owners
Is not uncommon to find s dilapidated building in ever neighborhood in nyc. These buildings appear to
Monday, August 12, 2013
Deal Killers
In my experience, the number killer of all but a few of my deals has been in the owner renegging on the offering and trying to command more money.
In most cases it was like watching a captain go down with his ship. I have yet to master the art of coming in low. I guess they see deals going on around them and want full retail asking price for something requires substantial amount of work to be converted.
In most cases it was like watching a captain go down with his ship. I have yet to master the art of coming in low. I guess they see deals going on around them and want full retail asking price for something requires substantial amount of work to be converted.
Wednesday, August 7, 2013
Investing Tools
In order to be a good investor you have to be knowledgeable, create a clear plan and execute each task, even if it feels like you are jumping off a cliff. As Nike says "Just do it".
The following tools are the top of the line tools necessary to invest in New York City. Some of these are exclusive to New York City and most likley may not apply elsewhere.
Zillow.com
Every real estate agent hates Zillow. But don't worry about that. Zillow is a great tool to research recently sold properties. Although it appears credible, it is NOT a good tool for doing rental or purchase comps. Again, only use it for researching properties that have been sold.
OASISNYC.com
This is a magical web site. I couldn't be a real estate investor in New York City without it. Use the map feature to do a property search. Once you ID the property, use the menu in the right hand column to look up property information. Everything form fines, to real estate transactions and tax records are available. It's awesome.
There are others similiar to Zillow including Property Shark and Trulia.com but for ease of use Zillow is easiest. Again, you are using it to comp recently sold and for sale more than anything else. You can't rely on the estimates they give you.
The following tools are the top of the line tools necessary to invest in New York City. Some of these are exclusive to New York City and most likley may not apply elsewhere.
Zillow.com
Every real estate agent hates Zillow. But don't worry about that. Zillow is a great tool to research recently sold properties. Although it appears credible, it is NOT a good tool for doing rental or purchase comps. Again, only use it for researching properties that have been sold.
OASISNYC.com
This is a magical web site. I couldn't be a real estate investor in New York City without it. Use the map feature to do a property search. Once you ID the property, use the menu in the right hand column to look up property information. Everything form fines, to real estate transactions and tax records are available. It's awesome.
There are others similiar to Zillow including Property Shark and Trulia.com but for ease of use Zillow is easiest. Again, you are using it to comp recently sold and for sale more than anything else. You can't rely on the estimates they give you.
Wednesday, July 31, 2013
It's Electric
It takes years to learn the construction side of real estate.
If you have no experience, I recommend the first thing you do when inspecting a building is head to the electric meters and check out the electrical services. If they are new, great. If they are old, this may be a deal breaker. By old we mean older than about 1985. I won't get into amps and voltage supply but they make a huge difference on how many apartments or condos you can have and the holding costs of the building while waiting to get converted.
If you have no experience, I recommend the first thing you do when inspecting a building is head to the electric meters and check out the electrical services. If they are new, great. If they are old, this may be a deal breaker. By old we mean older than about 1985. I won't get into amps and voltage supply but they make a huge difference on how many apartments or condos you can have and the holding costs of the building while waiting to get converted.
A turnover in ownership will require the building to be up to code. It could take ConEd a year or more to schedule an appointment to come in and update the electrical service. Check with ConEd before making an offer or at least put it in as a contingency in the offer letter.
If they can guarantee a date, great, make the offer. If not, walk away. You may never be able to have simple things such as air conditioning or luxury appliances without risk of blowing fuses in each apartment.
Wednesday, July 24, 2013
Proposal: 22 West 90th Street
As I was getting to know my investors (and they getting to know me) I presented each investment package in a formal plan. See attached Package.
Wednesday, July 17, 2013
Proposal: 542 West 110th Street
Here is actual correspondence between myself and an investor
*******,
I need to go see the attached property before i can give my opinion,
however this was forwarded to me by my Business Partner. I will take
pictures upon your request.
In order to stay within your scope a single family home would be a
great option. the profits would be over $1 million; however, with the
air rights/FAR, profit potential and also based on location near
Columbia University, you can't go wrong as a hotel.
See attached and below:
Price $3,650,000
Real Estate Taxes (per annum) $9,285
Property Details
Type Multi-Family Townhouse
Service Level Voice Intercom
Block / Lot 1881 / 53
Age / Built Post-war / 1988
Square Feet(Approximate) 5065
Lot Size 25'x70'
Built Size 25'x70'
Building Size 4 Floors / 4 Apts.
Building Access Walk-up
This is a 25' wide, four (4) story modern townhouse built in 1988 by
Smith and Thompson Architects. Currently configured as 4 floor-through
apartments and a penthouse studio, the building could easily be
converted to a single family residence or expanded to accommodate a
larger structure. Plans have been prepared to construct two additional
stories and the building is framed to allow for the addition of an
elevator.
Alternate plans have been approved pursuant to NYC’s quality housing
regulations to construct a 13 story building which would expand the
maximum FAR of 7.20 or approx. 12,765 Sq. Ft.. The property benefits
from a tremendous amount of light, two south facing gardens, a
significant supply of excess air-rights, and excellent access to all
forms of transportation. The property will be delivered vacant and is
ideal for either conversion to a single family home or redevelopment
to a larger building.
*******,
I need to go see the attached property before i can give my opinion,
however this was forwarded to me by my Business Partner. I will take
pictures upon your request.
In order to stay within your scope a single family home would be a
great option. the profits would be over $1 million; however, with the
air rights/FAR, profit potential and also based on location near
Columbia University, you can't go wrong as a hotel.
See attached and below:
Price $3,650,000
Real Estate Taxes (per annum) $9,285
Property Details
Type Multi-Family Townhouse
Service Level Voice Intercom
Block / Lot 1881 / 53
Age / Built Post-war / 1988
Square Feet(Approximate) 5065
Lot Size 25'x70'
Built Size 25'x70'
Building Size 4 Floors / 4 Apts.
Building Access Walk-up
This is a 25' wide, four (4) story modern townhouse built in 1988 by
Smith and Thompson Architects. Currently configured as 4 floor-through
apartments and a penthouse studio, the building could easily be
converted to a single family residence or expanded to accommodate a
larger structure. Plans have been prepared to construct two additional
stories and the building is framed to allow for the addition of an
elevator.
Alternate plans have been approved pursuant to NYC’s quality housing
regulations to construct a 13 story building which would expand the
maximum FAR of 7.20 or approx. 12,765 Sq. Ft.. The property benefits
from a tremendous amount of light, two south facing gardens, a
significant supply of excess air-rights, and excellent access to all
forms of transportation. The property will be delivered vacant and is
ideal for either conversion to a single family home or redevelopment
to a larger building.
Wednesday, July 10, 2013
Proposal: 228 E 75th
From: Rob Licopoli
Date: Tue, Sep 25, 2012 at 3:07 PM
Subject: 228 E 7th Street, Manhattan
To: *********
**********,
Date: Tue, Sep 25, 2012 at 3:07 PM
Subject: 228 E 7th Street, Manhattan
To: *********
**********,
I've sent a seperate link with exterior photos. 228 E 75th is also in my neighborhood. It is 20' wide with 10 apartments, 1 rent stabilized. for an asking price of $3.3M. Expiration dates are favorable. If this is being considered for a single family conversion then advice from an experienced RE attorney is recommended.
The acquisition costs is $3.3 million and conversion cost is less than $1.4 million w/o an elevator and 1.65 with an elevator. The total investment of $4.5 million with a potential profit of $2.5 million.
This is a gold mine!
| Property Details | ||||||||||||||||||||||||
|
This is a twenty (20) foot wide, four (4) story walk-up building containing ten (10) residential units, of which eight (8) units are one-bedrooms and two (2) are studios. One ground floor one-bedroom has full garden access. There are nine (9) Free Market units and one (1) Rent Stabilized unit. All units are currently occupied. The building measures approximately 5,800 square feet and has about 3,374 square feet of air rights remaining.
The average rent per square foot is $42, which is under market, giving an investor long-term upside along with immediate cash flow. A new boiler (oil) was installed in 2001 and a new roof in 2011. Property is located near all Upper East Side transportation as well as the future 2nd Avenue Subway.
Wednesday, July 3, 2013
To Be An Agent or Not To Be?
In New York City, be a real estate agent. You will have exclusive access to real estate listings and owner information that can only be accessed through a brokerage.
To do this, look on craigslist for brokerages that are seeking to train agents and offer an incentive to do so. Make sure you don't have to pay a fee. At worst, pay the state required fees, but in some cases, brokerages will do this for you. Make sure you work out the hours they will require you to work before you commit. Nothing is truly free.
I don't recommend being an agent in any other state. You are restricted by the laws of all the states, but in NYC it's so restrictive that agents will take you for a ride in order to present you with a property. You can lose up to 6% of a deal or more if you have to go through another agent.
To do this, look on craigslist for brokerages that are seeking to train agents and offer an incentive to do so. Make sure you don't have to pay a fee. At worst, pay the state required fees, but in some cases, brokerages will do this for you. Make sure you work out the hours they will require you to work before you commit. Nothing is truly free.
I don't recommend being an agent in any other state. You are restricted by the laws of all the states, but in NYC it's so restrictive that agents will take you for a ride in order to present you with a property. You can lose up to 6% of a deal or more if you have to go through another agent.
Wednesday, June 26, 2013
Investment Formula
Investors want to make as money as possible. In reality, if they make 25% return or better on their investment, they will be happy. In my experience, time isn't as much of a factor as you'd think. For example, if you can generate a 30% ROI (Return on Investment) over 6 months, that's better than 30% over 30 months; however, they will still accept this return.
It's best to calculate a range of ROI from 30% - 50%. If you call an investor and ask for $2 million to purchase a property and renovate it, they will expect somewhere between $2.6 million - $3 million back at the end of the project, whether it'd be 6 months or 18.
Everyday, you have to know 2 types of comps. Real Estate and Construction. Real Estate comps are the "comparable" prices for finished properties in the neighborhoods you are looking. A block to block comparison is better than a neighborhood based comparison or a borough based comparison. For example, SoHo or Tribeca investments are priced much higher than Brooklyn, Lower East side or Harlem. Always work the comps to be in your favor. The seller will always work the comps to be in their favor. Investors will do the same. Be knowledgeable.
Construction comps are the cost of construction costs per square foot in NYC. There are huge differences for union and non union as well as low end or high end. I will tell you right now, never do low end. Always go big with quality and detail. It pays dividends in the end.
My investors want at least a 30% ROI (Return on Investment) but start at 50% high end ROI. Anything above 50% is unexpected and is a bonus. - and it usually means you mispriced the deal. Missing an estimate on the high side can be as bad for your credibility as estimating to low of a profit. It may seem like you were guessing. Plan for 50%, settle for 30%.
I came up with the following formula after time. This formula isn't designed to give you the profit, which is traditional in most formulas. This formula is deigned to determine the Acquisition Price. If you can't get the acquisition price, then the deal isn't worth it. If you can get the acquisition price, you are certain to make a significant profit. This needs to be black and white for investors.
Selling Price. In New York City, the selling price is going to be the neighborhood comps. Theres not too much you can do to drive up the selling price, even if you do high end fixtures and kitchen. Going high end simply beats out your competitors. You may be able to go a little higher, but investors i've worked with don't buy into this. They always take the most conservative route. Ultimately, you need to manifest what the profit will be. If you can't plan for the minimal ROI then don't do the deal.
S = Selling Price
C = Construction cost
A = Acquisition Price (Investment Price)
P1 - Profit at 30%
P2 = Profit at 50%
30% formula:
A= P1(S-C)
50% formula:
A=P2(S-C)
It's best to calculate a range of ROI from 30% - 50%. If you call an investor and ask for $2 million to purchase a property and renovate it, they will expect somewhere between $2.6 million - $3 million back at the end of the project, whether it'd be 6 months or 18.
Everyday, you have to know 2 types of comps. Real Estate and Construction. Real Estate comps are the "comparable" prices for finished properties in the neighborhoods you are looking. A block to block comparison is better than a neighborhood based comparison or a borough based comparison. For example, SoHo or Tribeca investments are priced much higher than Brooklyn, Lower East side or Harlem. Always work the comps to be in your favor. The seller will always work the comps to be in their favor. Investors will do the same. Be knowledgeable.
Construction comps are the cost of construction costs per square foot in NYC. There are huge differences for union and non union as well as low end or high end. I will tell you right now, never do low end. Always go big with quality and detail. It pays dividends in the end.
My investors want at least a 30% ROI (Return on Investment) but start at 50% high end ROI. Anything above 50% is unexpected and is a bonus. - and it usually means you mispriced the deal. Missing an estimate on the high side can be as bad for your credibility as estimating to low of a profit. It may seem like you were guessing. Plan for 50%, settle for 30%.
I came up with the following formula after time. This formula isn't designed to give you the profit, which is traditional in most formulas. This formula is deigned to determine the Acquisition Price. If you can't get the acquisition price, then the deal isn't worth it. If you can get the acquisition price, you are certain to make a significant profit. This needs to be black and white for investors.
Selling Price. In New York City, the selling price is going to be the neighborhood comps. Theres not too much you can do to drive up the selling price, even if you do high end fixtures and kitchen. Going high end simply beats out your competitors. You may be able to go a little higher, but investors i've worked with don't buy into this. They always take the most conservative route. Ultimately, you need to manifest what the profit will be. If you can't plan for the minimal ROI then don't do the deal.
S = Selling Price
C = Construction cost
A = Acquisition Price (Investment Price)
P1 - Profit at 30%
P2 = Profit at 50%
30% formula:
A= P1(S-C)
50% formula:
A=P2(S-C)
Wednesday, June 19, 2013
Finding Investors
Go to Craigslist, look under the section called Services Offered then Financial Services. Or you can also Google "real estate investors" or "lending brokers".
There are tons of lending brokers. They get paid when they get you an investment. They are on your side and will help you structure a deal for the investment pool. They will refer you to the right investor. Because of state investing laws, they are State specific, so stay within your state when looking. Some are licensed in more than one state. You have to ask. They will usually tell you first thing.
I placed a link below (may die out over time) as well as a photo of their advertisement. OK people - These ads are real. If you have a good investment, (30% or better ROI) then they will invest in you. If you have construction experience, you are qualified to manage this investment. Know what you are talking about and there will be more investors than you can handle. See Investment formula to know how to put a deal together.
CLnew yorkmanhattanall services offeredfinancial services
There are tons of lending brokers. They get paid when they get you an investment. They are on your side and will help you structure a deal for the investment pool. They will refer you to the right investor. Because of state investing laws, they are State specific, so stay within your state when looking. Some are licensed in more than one state. You have to ask. They will usually tell you first thing.
I placed a link below (may die out over time) as well as a photo of their advertisement. OK people - These ads are real. If you have a good investment, (30% or better ROI) then they will invest in you. If you have construction experience, you are qualified to manage this investment. Know what you are talking about and there will be more investors than you can handle. See Investment formula to know how to put a deal together.
CLnew yorkmanhattanall services offeredfinancial services
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