Question
I am looking for an honest informative opinion on a particular real estate inquiry/idea.?
The New York City real estate market has taken a beating in past two years, with prices tip toeing lifetime lows. There is no doubt in my mind that the prices will return (at least to an extent) to what they once were. This looks like an unbelievable opportunity to make money for people with CAPITAL. But.... What if a group of people came up with the appropriate capital to buy an/group of apartments for the purpose of future sale. For example, If six people came up with $50,000 and bought a 300,000 dollar apartment. In the contract it would explain that all 6 owners are equal, and none of the owners are to live in the apartment. Basically the apartment would be vacant or leased (by a nonowner) until the market returns to normal. What are the holes in my idea? Is this legal/acceptable? I know the concept is very broad and I am leaving out numerous details, but feel free to enlighten me.
5 months ago - 2 answers
Best Answer
Chosen by Asker
This is a great idea, What you are speaking of forming is a real estate limited partnership or a LLC ( Check your state requirements in forming a LLC) I hope you are looking at multiple units instead of just one unit. You should explore all avenues of pre-foreclosures, REO-bank owned properties, divorced and other distressed and probate properties. Forming a LLC cost is approximately $200.00. Forming a limited partnership should run about the same, there are many books on forming limited partnerships. There are few holes involved in this type of investments,except you have to figure out a way to pay partners that want out of the partnership, due to financial hardships that might arise and they need their money, or the ones that become disenchanted with the investment. You can address these very important aspects in your LLC or Limited Partnership Agreement. For legal and tax matters you should contact your attorney and tax consultant. I hope this has been of some use to you, good luck. "FIGHT ON"
5 months ago
Asker's Rating: 
Other Answers
I read the New York Post Every Day. your information is off the mark Manhattan real estate is not that bad. Yes last year the studio on E.14th rented for 1600, now it is 1400 The Condo priced at 28 millions sold for 21 million. There are no bargains. 300k gets you less than 700 sq feet of apt. You will not see an increase in prices, with the unemployment for the city at over 800,000. What with closing costs and expenses you would be waiting 10 years for your asset to increase in value. The average water and sewer bill in the city is 300 a month. Utilities top 500, Association fees 700 month, and on and on.
by sassy2- 5 months ago