Building RE Team In NY - Posted by matt

Posted by matt on January 27, 2002 at 22:47:41:

Frank,

Every bit of information that I get helps. Thanks again.

Regards,
Matt

Building RE Team In NY - Posted by matt

Posted by matt on January 25, 2002 at 14:43:30:

I am a investor that is currently building my investment team on Long Island, NY. I am looking for:

  1. Other investors
  2. Real estate attorneys
  3. Mortgage brokers
  4. Contractors
  5. Hard money lenders
  6. Accountants
  7. Real estate agents

If anyone can give me a reference to any of the above in the NY area, or you are one of the above, please email me and let me know the best way for me to contact you.

Regards,
Matt

Don’t know what to tell You - Posted by Frank Chin

Posted by Frank Chin on January 26, 2002 at 07:59:50:

Hi Matt:

Can’t tell from your posts whether you’re just starting out or expanding. But some observations:

1- Other Investors

Usually, investors like to know your track record, successes. Do you have a deal on hand worth looking at??

2- Real Estate Attornies

The RE club I go to gave that as one of the benefits of joining. They had a few that gave some talks at the Club I gone to and handed out business cards.

One speaker did LLC’s, LP for investors, and the more recent one is a specialist on tax sales.

3- Mortgage Brokers

These guys are busy and won’t give you the time of day unless you got a deal in hand. Just give you an example.

I was looking for “no doc” loans, and got a listing in the NYC off the internet. Left messages and half of them got back to me.

Had a pleasant chat with one lady who called me back two days later said she’s backed up two weeks but will do me a favor. Told me to go to Greenpoint Bank myself and get the No Doc HELOC I was looking for. Said that’s where she would’ve sent my paperwork to if she had the time. Her tip saved me 1.75% or $1,750.00 in fees on a 100K line.

Got the HELOC from application to closing in four weeks.

  1. Contractors

A very challeging task.

These guys are very particular about the area they work in, and will not travel more than 45 minutes to a job. Then there are licensing issues.

I owned a number of properties scattered in Queens and Nassau County. My Queens electrician does not have a Nassau license. My Queens plumber has licenses in NYC and Nassau but is doing me a favor in Nassau as he lives in Nassau but all his work is in Queens.

I recently had to do a roof and sidng job and the contractors recommended were too busy. After waiting from May to August for an estimate, I finally got a recommendation from the local Century 21 rental guy for a roofer, and he did a wonderful job, and reasonable, a total ripoof roof job for $3,700 with comparables at $4,900. His card says he does siding. Got him to do the sidng but it was a TOTAL DISASTER. Regualr contractors will not redo the work, and I finally got an UNLICENSED guy from the Pennysaver paying another $1,900 to take off half the siding to properly re-align it. I then spent THREE MORE WEEKS caulking, flashing to get it exactly right.

So I think the best bet is the figure out where to get pennysavers from the local area, figure out a way to interview contractors in them, and qualify them.

  1. Hard Money Lenders

Go to the RE Club meetings. I wondered where these guys hang out once, and when I went to the Club meeting, one Hard Money Lender chased me down the hall
to give me his information packet.

  1. Accountants

I gone through a number, about 4 of them, in 20 years.

  1. Real Estate Agents

Run around with a bunch and find a knowledgable one. My take is if they can do CRE, they won’t be agents.

Give you another example.

I just rented out a SFH myself, but also gave an agent a chance at it. She held a open house for me.

I had a chance to talk about her RE career, and she mentioned she’s 40, been in the businss over 10 years, has no retirement or 401K. She asked me how she can make it in Real Estate.

She started telling me how expensive houses are, how is she going to be able get the down payment, on and on. Exactly what newbies talk about on this board. Now this lady’s been doing it for over 10 years.

So in conclusion, I don’t knoiw what to tell you.

Frank Chin

Re: Don’t know what to tell You - Posted by matt

Posted by matt on January 27, 2002 at 20:00:29:

Frank,

Thanks for getting back to me.

I’m a beginner. I want to assign my contracts to rehabbers. From what I 've read, this is the best way to get started. Currently I’m trying to build a list of buyers(rehabbers/investors) that would want to buy the contracts I do get.

There are two terms that you mentioned in your message that I’m not familiar with,“no doc” loans and HELOC. Could you explain those to me?

Thanks again for your help.

Regards,
Matt

Re: Don’t know what to tell You - Posted by Frank Chin

Posted by Frank Chin on January 27, 2002 at 20:28:27:

Hi Matt:

“No Doc” Loans depends on the appraised value of the property only. You don’t need to be employed as the Bank is not concerned about your income.

While we’re on the subject, there’s “stated income” or “no income check” loans. The bank verifies that you are employed, but is not concerned with how much you make.

Because the rates between these two types of loans are about the same, mortgage brokers recommend “no doc” as it is a lot simpler and faster.

This compares to conventional loans where banks take into consideration how much you make, the debt you are to incur, and calculate a DSR (Debt Service Ratio).

HELOC: Home Equity Line Of Credit

Hope this helps.

Frank Chin