The Crap Starts Hitting the Fan

I witnessed what I feel is maybe the first piece of truly visible, close-to-home crap hitting the giant real estate fan. I went to both my buildings today, and saw that a 6 unit building two doors down is now boarded up. This was a pro board-up with a steel door and steel boards, a product I have never seen before. There was a shut-off notice from the water company for $790, about a single 2 month bill in my estimation.

So what happened? Well I assume that this building is in foreclosure, and the only thing that surprises me is the speed with which it happened. I saw this building turnover twice I think in the not quite fours years I have owned on the block. Each time it came up for sale, I looked into buying that building as well as the one right next door, but each time the price was too high so I didn't bother bidding or looking. It seems to me whoever bought it, obviously paid too much, bought at the top, and ran out of money. Ha ha!

I say “Ha ha” because people have been buying at ridiculous prices for years, so it was inevitable that this would happen. If it was a cold winter, we'd probably see more foreclosures. Meanwhile, on this short block, in a neighborhood that is both up and coming and has seen a dozen or so murders in 2006, there are three buildings going condo. The most expensive is asking $365,000+ per unit, I believe they have parking, but I haven't seen the units. Four doors down is asking $219,000 for what I believe is a four room railroad, no parking. Five doors down is asking around the same for similar units. At a recent open house, they were asking $159,000 for the same unit partially gutted, but unfinished. Seems like they are running out of money and panicking. I'm hoping to own most of the block sooner or later. I hope the market cooperates. I can hardly contain my glee...Bwahahahahahahahahaha!

Black Slime Away

Well, as luck would have it, my super was on her way over to show a few apartments, so she stopped by the complaning tenants apartment to check things out. The tenant wasn't home so she let herself in and checked out the bathtub, and reported back to me. She said she ran the water for a while and that there was no problem. The water was draining, there was no "Slime," and everything was fine.

On her way out, the super ran into the tenant and told her she didn't find anything. The tenant said that it was it was, "No big deal."

So what was that all about?

Black Slime

I just listened to a voicemail from one of my tenants, claiming that “Black Slime” has rained down in her bathroom, and that the water comes out of the spigot “brownish”…She was “Out of the country for ten days,” important that she let me know that she was traveling abroad so I’ll think that she is worldly and cultured. Also good to know where they are spending their money, although she has already paid her January rent in full and on time.

 

I returned her call, only to get voicemail. The super is heading up that way to show some vacant units, so I asked her to check it out. I’ll be down there tomorrow, so I need to know if need to buy anything from Home Depot before I head out, such as Draino for her to drink, or rat poison to sprinkle on her cereal. 

 

I shouldn’t say that, because I try to hold myself out as an example of a professional property manager, albeit one who focuses on the affordable housing sector, not the slumlord that people like to call me…

 

But you have to understand, at anyone time there are at least 10 to 20% of your tenants driving you crazy, while 80 to 90% just shut up and pay.  Guess which group this particular tenant is in.  Anyway, this is the same tenant who was away all last Summer (she’s a teacher), who was visiting her husband (!), who lives in the second city.  When she came back, guess what? Black slime!  At that time she refused to pay her rent and threatened me and informed me that it was a health hazard and that she was educated and didn’t have to live like that etc…Also, I found out, she had been letting her sister use her apartment, and her sister trashed it, clogged up the drains, and failed to report that the bathroom ceiling had collapsed from an earlier leak upstairs that was repaired.

 

Well I fixed everything as soon as she let me in to the apartment to do repairs,  which was after the Legal Aid attorney told her she couldn’t withhold rent and that by law she was required to give me a chance to make repairs.  Of course she didn’t, she called the office of code enforcement first, so they could write up violations.  When she finally let me in, the plumber pulled various hair braids out of the drain (clearly my fault), at my expense, which cleared up the black slime right away.  As for the ceiling, if someone had been home, or informed us that the apartment would be vacant for the Summer, or if her freeloading sister had reported the ceiling collapse, I could have taken care of that right away too. But no, it’s better to blame the landlord and call the city.

 

This is a tough business sometimes.  I’ve earned every freakin’ penny I’ve made and I deserve to be rich!

 

 

 

My Reply to Assemblywoman Vandervalk

Dear Ms. Vandervalk,

I believe the Governor's proposal to cap property taxes at 4% is a good idea and a step in the right direction. Alone it is not enough, because spending is clearly out of control, but at least there could be a reasonable cap on property taxes that is in the realm of actual inflation. I urge you to support this idea if and when it comes up for a vote.

Just so you know, my property taxes in 2000 were around $7200 a year. Although I sold that house in 2005, the current taxes on that property are around $12,000, that's an annual increase of about 11% per year!!!

The 2006 taxes on my current house are $11,600 up $1,100 in just one year or about 10%!!! This is unsustainable for middleclass folks.

Thank you for your hard work and attention to these important matters.

Rosey

Vandervalk Calls for Smaller State Govt. and a Fair School Funding Formula

I received the following e-mail form my state representative Assemblywoman Charlotte Vandervalk, a Bergen County, NJ Republican:

For the last five budgets, the problem has been the same, increased
spending. The priorities of the Governor and the Democrats are very wrong.
The state's work force has increased by 13, 886 state workers, a 23%
increase, in just the last six years, and the state budget has nearly
doubled to $30.8 billion. Republicans and nonpartisan groups, such as the
State Chamber of Commerce offered the Governor more than $2 billion
dollars in spending cuts for the State budget, but the Governor refused
even to consider them.

Our school funding formula is the real driving force behind our high local
property taxes, and it severely shortchanges our area. The State's own
financial data clearly show that while our residents contribute a
significant portion of the State's tax revenue, we do not receive a
commensurate portion of State education aid and that inequity is due
directly to the school funding formula. Unless the formula itself is
changed, there will be no meaningful tax relief for us.

I have had legislation in place for five years which would grant a basic
amount of state aid for every public school child, but it has been ignored
by the party in control simply because the current funding formula
benefits certain key legislative districts like Hoboken and Newark while
giving our school children virtually nothing. Contained in two bills,
A‑144 and ACR‑51, my proposal would reverse the diversion of
funds that has led to our high property taxes. Indeed, this is already
done in many states and would provide real property tax relief while still
allowing us to provide a quality education for our children. There are
many other possibilities for fair formulas, but to date, Trenton has not
tossed anything on the table even for discussion.

In the 2007 Corzine budget, TAXES WERE INCREASED BY $2 BILLION, SPENDING
WAS INCREASED BY 12.5%, PROPERTY REBATES TO HOMEOWNERS WERE CUT, AND OVER $300 MILLION OF "PORK" WAS PUT INTO THE BUDGET.

We, Republicans, although in the minority, offered budget
cuts which were dismissed. The list contained over $2 billion of items
with which most citizens would have agreed did not need to be in the
budget. But these judicious cuts, which would have negated
the need for any new or increased taxes or fees, were ignored by the
Administration and by the press. Several hundred million dollars could
have been saved and still can be saved simply by taking these suggestions.

Lovely Letter I Got From the Gas Company