Keiran is the Forman. Aubry is on vacation.
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.
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