Recent comments in /f/jerseycity

Blecher_onthe_Hudson OP t1_ja9ob4t wrote

Reply to comment by jersey385 in Anyone else get a 'Chapter 91' notice from the city assessor demanding rent & expense info on income property? by Blecher_onthe_Hudson

Now now, lets not be down on the narcissist for being honest, we've had enough trouble recently with the dishonest ones. In their mind, every problem that doesn't directly involve them is a 'you problem', though it does baffle me why it needs to be stated. Narcissism?

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ilikeUni OP t1_ja9l2fw wrote

Reply to comment by pixel_of_moral_decay in How much does a real estate lawyer cost for a standard condo purchase in JC? Looking to get an idea based on your experience. by ilikeUni

I appreciate you saying to not cheap out on the lawyer at a fraction of the cost of the purchase, that put things into perspective. My real estate agent recommended someone to me so if the price is not outrageously higher than the rest, then I wouldn’t even shop around further. I rather go in recommendation than not.

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Blecher_onthe_Hudson OP t1_ja9hiza wrote

Reply to comment by Puzzlekitt in Anyone else get a 'Chapter 91' notice from the city assessor demanding rent & expense info on income property? by Blecher_onthe_Hudson

It's an LLC, but I don't know why that should make a difference. Quite a few individuals hold their single family homes in LLCs.

One working hypothesis for why some people get this might be that their algorithm shows that you are overtaxed and this is a way to preempt your appealing if you don't submit the info, as apparently many fail to do. Most of the articles I found online regarding this issue were about people who failed to submit within the specified 45 days.

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Blecher_onthe_Hudson OP t1_ja9gv7r wrote

Reply to comment by downvotes_puffins in Anyone else get a 'Chapter 91' notice from the city assessor demanding rent & expense info on income property? by Blecher_onthe_Hudson

Residential properties can be bid up by irrational exuberance and as long as the comps support it the banks will loan on it. A commercial property is a business appraised by its income.

What's hilarious is to look at an appraisal of a three family for example, the dishonest appraisers will torture the numbers so that the three completely different methods of appraisal: comps, rents & replacement, all fall within a couple of percentage points of each other.

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Blecher_onthe_Hudson OP t1_ja9g7ix wrote

Reply to comment by bodhipooh in Anyone else get a 'Chapter 91' notice from the city assessor demanding rent & expense info on income property? by Blecher_onthe_Hudson

It's the way it's always been, and typically the tax on a commercial property is lower than what you'd think for a similar residential. Residential is subject to what Alan Greenspan called "irrational exuberance" in the market, whereas a commercial property is a business and businesses are valued according to how profitable they are. Unless you're a tech startup of course!

The real arbiter of all this is the banks. If you try to borrow money for a commercial property that their appraiser says isn't producing enough income for that price, they're just not going to loan you what you want. Most residential properties and especially condos in JC have prices that are unsupported by their rents.

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pixel_of_moral_decay t1_ja9ewux wrote

Reply to comment by Puzzlekitt in How much does a real estate lawyer cost for a standard condo purchase in JC? Looking to get an idea based on your experience. by ilikeUni

I saw over $2k, and as little as $1k calling a few. Yours seems pretty in line with what I’d say is average. I think I spent around the same.

It really depends on the transaction. Foreclosures, title issues, legal issues the HOA is encountering, even some easements may mean you’ll need a lawyer to really dig into what you’re getting involved in. There’s a premium for that.

For a typical closing? 1500ish seems about right.

Regardless, you’re talking a fraction of a percent of the purchase price. No need to cheap out or bargain shop. IMHO just pick the lawyer who spends a few minutes asking some good questions about your purchase and sounds like they’ve got something to offer. They’re literally the only person who’s acting on your behalf in the transaction. And you’ll deal with them a bit. So someone you feel has your interests in mind, and feel comfortable working with is worth an extra couple dollars.

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micmaher99 t1_ja9cl6a wrote

Reply to comment by bodhipooh in Anyone else get a 'Chapter 91' notice from the city assessor demanding rent & expense info on income property? by Blecher_onthe_Hudson

Cash flow is the main determination of market value for most commercial real estate. For 4 unit multifamily and smaller properties, you usually do a sales approach and an income approach. For single family homes or condos, you do a sales comparison approach, but that reflects that some people will buy these and rent them out.

Cash flow is 100% a great indication of market value.

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