Skip to main content
No. of Recommendations: 0
Hey Fellow RE Investing Fools. Mark Im glad to see that this board is doing so well. In only 13 posts Ive already learned about Estoppel clauses mind you I never even heard of this before anywhere.

Now an update. Again Im in NYC Queens to be exact. Im currently looking at a Brownstone in Brooklyn an REO. I located it through a Broker, who is somewhat capable in no money down deals...I say somewhat capable.

Heres the Stats
Property is a Legal Three Family
With a Livable Basement.
Bank was asking $165. I got the Broker to touch base with the Bank and see if they were willing to go down to $155. He got back to me on monday said yes.
Market Value for a comp in the neighboorhood = $200-260K.
The Building could be rented as follows
The 3 Floors could rent for as low as 650 to as high as 800 without electricity. I would only worry about heat and water.

Heres my PROBLEM, the tenants are still in the building. The Broker has assured me that the bank will be filing the eviction process at the end of the month. AS a result I have yet to see the entirior of the Building. Structurally speaking it seems in good shape. I know the Brownstones in the neigh. are about 40 to 70 yrs old.

Because on the front end the numbers seem so good. iam seriously considering this deal.

Heres what Im figuring...with 203K which the property qualifies for. I projected a 203 loan of 20K bringing the total loan amount to $175, Im willing to go 5K higher to 80. Looked around and was able to get an idea of mortgage numbers. seems I could get a mortgage at rougly 1685 a month. with three percent down on the $155K.

Heres what I need to know what clauses should I attach to the offer is I do decide to go with this property. I know for sure that I must put some clause to the effect thta my ofer is contigent on the inspection of the property seeing I still have yet to see the interior.

Also it has the potential to be upgraded to a legal four family. But that would just be icing on the cake for later if I decided to actually keep the property for a good rental dont see why i would not.

This post is already too long and I apologize but I need some valuuable input. What am I forgetting what do I need to include in the final offer. What should I be keeping my eyes out for etc.

Ohh I also have been contacted by a pre foreclusure owner of a 3 family house in queens in my neighborhood. I will post this on later.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.