Browse Tag: new jersey

Video: How To Buy A 13-Unit Apartment Building

Matt Faircloth of New Jersey’s Derosa Group is a small real estate investor getting bigger, and he took some time to make a good video about how.  Getting investors together for a 13-unit multifamily property represented a big milestone – one that many in the residential space have on their minds as they eye ways to break into the commercial real estate industry.

Concise and personable, Fairlcoth’s clip tells the story of moving from investing in duplexes to a seven-figure property – snagging the building for below market to boot. Definitely worth a look.

REALTORS® Relief Foundation Hurricane Sandy Donations

Logo of Realtors Relief FoundationDuring the REALTORS® Conference & Expo in Orlando NAR collected donations to the REALTORS® Relief Foundation (RRF) for Hurricane Sandy disaster assistance. At a member forum at the conference, NAR President Moe Veissi announced that NAR would match members’ donations up to $500,000.  Moe later wrote on Realtor.org:

“As REALTORS®, we help build and maintain communities. We aren’t just there when the time comes to buy or sell a home. We are there during periods of need as well. Now—in the wake of Hurricane Sandy—is one of those occasions.

It will take more time to know the full impact of Hurricane Sandy, but the devastation in the mid-Atlantic is widespread. I personally have contacted the state associations in New York, New Jersey, and all the affected areas. At this point, we know that more than 8.2 million homes and businesses lost power in the United States because of Sandy, and there is a significant loss of life attributed to this deadly storm.

For more than 11 years, the REALTORS® Relief Foundation has been dedicated to providing housing-related assistance to victims of disasters. Without a doubt, there are many, many families out there who need our help now. If you can spare even a small amount, now is the time to make that commitment. A little bit can go a long way when we all give.

So please, follow your heart and reach out a helping hand to those in need.”

You can make a donation today to Hurricane Sandy victims through the REALTORS® Relief Foundation.

The REALTORS® Relief Foundation distributes one hundred percent of all funds collected to disaster relief causes. The funds are distributed on an “as-needed” basis by the Foundation’s Directors. The Foundation cannot guarantee donors that donations made in response to a particular disaster will be used for that specific disaster, but the Foundation does guarantee all donors that one hundred percent of their donation will be used for an appropriate disaster relief effort.

For the RRF, REALTORS® have raised and successfully distributed over $23 million in its 11 year history with the grants going directly to victims of disasters to provide immediate & temporary housing related assistance – that’s the mission and focus.  In many disaster situations, RRF checks have been the first forms of aid victims have received.  Because the RRF guarantees that 100% of each donation will go directly to the victims, we do not give our funds to other charities to further distribute.  The majority of charities take administrative fees out of each donation and the final net amount that ultimately reaches the victim is usually less than the original amount donated.   For Sandy, we’ve raised $1.9 million since the beginning of November and have already sent help to 200 members who have been impacted by this superstorm.  There are many more RRF will be assisting in the coming weeks.
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Hurricane Sandy: The Commercial Property Toll

Crane Collapse on 57th Street
Crane Collapse on 57th Street (Photo credit: Sarah_Ackerman)

First, the good news. With thoughts to those on the eastern seaboard still struggling with interrupted electrical, infrastructure damage and the like, it appears that the aftermath of Hurricane Sandy is not going to seriously disrupt the wider US economy.  That’s not to minimize the very real trials of our friends out east, it’s rather to put things into perspective. Sandy’s huge impact up against the monumentally enormous, single largest economy in the world  – the $14 trillon GDP US economy – means at a big enough scale, Sandy might just be a blip on the books.

That said,  Sandy’s impact to commercial property in the northeastern seaboard is significant and still being compiled:

  • Some risk management professionals are touting disaster models that say that Sandy will top out last year’s $4.7 billion in damages left by Hurricane Irene.
  • Bloomberg reports a significant fraction of lower Manhattan’s office space is still not fit for occupation.  Reports were up to a third as of November 13th.
  • The Fed puts Sandy’s impact on industrial production at a loss of 0.4% in October.  Excluding Sandy’s impact, production at US factories, mines and utilities would have been up about 0.6 percent.
  • Due to the closure of Wall Street, delays were felt in pricing of over $7 billion worth of commercial mortgage-backed securities, including bond issues from Motel 6 and Las Vegas’s Fashion Show Mall.
  • Sandy-induced interruptions in the foreclosure pipeline ranged from courthouse closings to the GSEs announcing a 12-month freeze on New York and New Jersey foreclosures on loans held by Freddie Mac.
  • Commercial lease terms plus Sandy equals rent interruptions.  Since most commercial leases stipulate a landlord needs to provide working conditions as a stipulation for collecting rent payments, landlords are either dipping into their own pockets to find space for tenants in unaffected areas, or seeing no rent as the recovery proceeds.
  • Physical damage to structure and contents of office, industrial, retail and multifamily.
  • Business interruption caused by storm surge.
  • Losses to infrastructure and follow-on business interruptions. See: flooding of tunnels and subways.
2005’s Katrina topped $100 billion in damage; the number suggest that this time around, New York and New Jersey could have had it worse with Sandy.