Peter's Blog

CAP Rate, what is it and how it's calculated?

Peter Z. Nikic — Thu, 08 Oct 2009 09:48:49 -0500

You are looking to buy an apartment building or other commercial property and as you look through the paper work, you see CAP Rate. But what does it mean and how is it calculated? You have at least heard of the term, but it was never clear to you as to what meant.

The CAP Rate is simply dividing the Net Income with the purchase price of the property.

If you were to purchase a multi-family property for $1,000,000 (assume that you are buying all cash) and that property has a rent roll of $100,000. From the $100,000 rent roll, there are expenses (such as taxes, water, fuel oil, repairs, etc) that need to be subtracted. Let's assume that those expenses are $40,000 per year.

This makes your Net Income $60,000 ($100,000 - $40,000 = $60,000). Simple enough to calculate.

Now for the CAP Rate, you divide the purchase price by the Net Income ($60,000 divided by $1,000,000 = 6%). This would be your CAP Rate for this property, 6%.

Once the purchase price is agreed upon, that is a fixed number and easy to use in this calculation. Where it gets a little tricky, is what expenses are included in order to obtain Net Income?

Realistically, ALL expenses associated with operating costs of this property should be included as expenses and subtracted from the Total (or Gross) Income.

Here is a list of expenses which I use to quickly evaluate a property and its CAP Rate (there could be others).

•Ø Vacancy - there will always be a certain vacancy factor which can vary geographically among other factors. A standard for this is 5%, though I just read a report in the Wall Street Journal that US vacancy rates are at 7.8%, a 23 year high.

•Ø Advertising - you will incur advertising fees in order to fill vacancies. I use $25 per unit as a measure.

•Ø Auto & Travel - how far is the property? How often will you go there? Meeting tenants, renting apartments, picking up supplies, etc. I use $50 per unit as a measure.

•Ø Payroll - does the property employ a super or handyman? This should be a known figure.

•Ø Legal Fees - evictions and or other legal fees, chances are they will be an expense at some point. I use ½ of 1% as a standard measure (of course it can vary).

•Ø Management Fees - will you hire a management company or manage the property yourself? Either way, that is a function of operating and should be considered an expense. This expense can vary, but many times it's 6%.

•Ø Repairs - I generally use 5% of my Gross Income as a basis for repair expenses (of course this can vary from year to year).

•Ø Supplies - you will always need supplies, cleaning products, garbage bags, salt, etc. I use 1% as a standard measure (of course it can vary).

•Ø Taxes - property taxes are fixed, but we all know that they seem to be ever increasing.

•Ø Electric - hallway and property lighting, powering boiler or other equipment. This should be a known somewhat fixed figure.

•Ø Water & Sewer - this should be a known fixed number but also has a general tendency to increase year after year. If the property has well & septic, there are expenses there as well. Water testing, purifying, softening as well as septic clean-outs.

•Ø Fuel Oil - this is very important if property has one central boiler where the landlord supplies the heat. Oil prices over the past few years have sky-rocketed. I used to be able to calculate this number by multiplying the number of units with $1,000, but this is no longer accurate (these days, it's more like $1,200 - $1,500 per unit).

Some of these expenses do no apply to every property, depending on its location and design. For me they apply 99% of the time. There may be other operating expenses to consider that may be specific to a region or a particular property. You would be wise to make sure nothing major is left out of the equation.

I had been fixed on buying apartment buildings at 8% CAP rate. Come to find out, there are brokers listing properties for sale at 8% - 11% CAP Rate. Needless to say, that got me all excited since it was at or above what I expected. But when I did my calculations, the CAP rates changed drastically. Many times they would drop down to 5% or 6%.

How did these proposed CAP Rates vary so much from my own estimations? This is the part where the buyer has to be clear on ALL operating expenses. If the seller leaves out the vacancy and management expenses, this alone would greatly change the CAP rate.

Recently I had negotiations with sellers/brokers who would swear that their property has high CAP Rates. They are either unclear as to how to calculate CAP Rates or they are intentionally leaving things out in hopes that the buyer will not pick up on it.

The area that is of most interest to me these days is the Bronx. As it turns out, an 8% CAP Rate is fairly equivalent to 6 times the rent roll. So in the case of our example above, where the property had an annual rent roll of $100,000, the purchase price should be in the ballpark of $600,000. I also find this interesting because in the past, apartment buildings in the Bronx were always priced on the basis of Gross Rent Multiplier (usually around 5 to 6 times the rent roll). Now I understand why buildings were priced this way, it was much simpler yet very consistent to the CAP Rate.

Can you buy apartment buildings at 6% CAP Rate or 8 times the rent? Yes, of course, but your return on your risk, work and investment would not make it a good investment. And unless you held on to that property for a very long time, it just might even be a bad investment.

Of course there are many variations and factors, but this is the basis of CAP rates.

If you own or are looking to buy apartment buildings in the Bronx area, please feel free to email me with any questions or comments.

Peter Nikic, Licensed Real Estate Broker (NY) (914) 804-0037

Broad & Bailey, Inc www.broadnbailey.com peter.nikic@broadnbailey.com

No Records Found! Who is showing your listings?

Peter Z. Nikic — Mon, 28 Sep 2009 15:49:29 -0500

Today I got a call from someone who wanted to show one of my listings. He said the showing would be between 12:00 - 1:00 PM. I told him that I would have to check and get back to him.

I called him back confirming that it was OK to show. He asked if it was on sentry lock, I told him that someone would be home.

Well, 1:00 o'clock came and went and no one came to show the house. At this point, I became a little suspicious. His cell number was (516) 864-****. I thought it was unusual, I had recognized it as a Long Island area code, and had asked him about that. It's not unheard of for Long Island agents to be doing business in Westchester, but it is unusual. He said that he never changed the number and he is actually working for a company in Mamaroneck.

At some point during the day, I make it a habit to research agents on the MLS site and get the rest of their contact info. Unfortunately when I searched for this agent by the name he gave me, search results came back "no records found". I searched by company, no records found.

I tried calling him back to make sure there were no other mix-ups. I reached his voicemail which gave a different last name than the one he told me. Definitely something fishy here.

Luckily, nothing happened, homeowner was home, agent never showed up, but I definitely think that something other than a showing was supposed to happen.

Is someone going around pretending to be a real estate agent and then vandalizing or burglarizing homes on the market?

Has anyone else had this happen to them? I sent an email to the MLS office in hopes that they would publicize it. Should I report this to the police? I feel that the police won't want to do anything unless an actual crime was committed.

Any thoughts?

So if you get a call like this, please be careful. And in general I am taking this very seriously with all of my listings.

Update: I heard back from the MLS office. They say that the agent does exist, though I still can't find him on the MLS database. Not sure why.

5 BR, 4 Bath house in Pleasantville, NY - $899,000

Peter Z. Nikic — Wed, 16 Sep 2009 08:36:59 -0500

Pleasantville, NY

Pleasantville, NY

5 BR, 4 Bath - $899,000

Lovingly maintained, immaculate home on one of Pleasantville's most sought-after streets. Built in 1963, half acre of property; walk to all Pleasantville Schools, park, train, stores, theater. Over 2,800 sq. ft. - 4/5 bedrooms, 4 full baths; central A/C, 3 zone heat; eat-in kitchen with all new appliances; home alarm system; new windows; hardwood floors throughout; fireplace; seperate walkout on lower level. Exterior painted in 2003, interior painted in 2005. Two screened in porches (not included in sq. ft.) Two car garage. New washer/dryer. Lots of closets/storage space. All window treatments included.

Call or email (Peter Nikic) for questions, exact address and directions if interested.

Peter (914) 804-0037

For more Photos click here or on any one of the photos above.

24 Family Apartment Complex in Dutchess County - 8% CAP

Peter Z. Nikic — Tue, 15 Sep 2009 11:16:12 -0500

Here's an opportunity to own a beautiful 24 family apartment complex in Dutchess County. Property is priced to sell! at 8% CAP Rate!

Call or email me for details. Peter Nikic (914) 804-0037 peter.nikic@broadnbailey.com

1 BR Apt in Tarrytown - $1,400

Peter Z. Nikic — Tue, 15 Sep 2009 09:17:34 -0500

53 South Washington Street Tarrytown, NY - Apt 1N
Map & Directions

1 BR apartment on first floor with full Bath in 7 family building.

Rent: $1,400 per month Security Deposit: $1,400
Available: September 1, 2009 Heat and hot water included

Great location, apartment will be renovated, all hardwood floors, high ceilings, full bathroom, laundry, seasonal river views, back yard use.

This is a photo of the building. This apartment is on the first floor of a 7 family building which is located centrally in the village of Tarrytown. Two blocks from Metro North RR, 1 block from Tarrytown Music Hall (Main St).

Interested? call (914) 804-0037 or Email

2 Bedroom apartment in Millbrook - $825

Peter Z. Nikic — Tue, 15 Sep 2009 09:13:41 -0500

23 Daniele Lane, Millbrook, NY 12545 - Apt #25
Map & Directions

2 Bedroom apartment with full Bath, living room and eat-in kitchen in a 12 family building. The building contains mostly side by side apartments. There are no apartments below or above this unit. It was completely renovated about a year ago. Utilities Not Included. Private entrance and a private and fenced in front yard. The property is a 24 acre former horse property with a pond, lots of parking, walking and play areas. The pond is equivelent to a 1/4 mile track, great for taking walks around the pond. Close to schools and village.

Rent: $825 per month Security: $825 Available: October 1, 2009

Call Peter for appointment to preview at (914) 804-0037

If interested, call (914) 804-0037 or Email (info@broadnbailey.com)

How in the world does the market create pricing?

Peter Z. Nikic — Mon, 14 Sep 2009 11:07:01 -0500

How many times have you been in situations where you saw a house that was priced much lower than the same house in another neighborhood or state? I feel that I run into these situations all the time.

So what is it that creates these fluctuations in price? How does the "Free Market" do this?

It's really a lot simpler than most people might imagine.

A house can only be sold for the price that a buyer is willing (or able) to pay. Why do I say able? I say this because most people will pay approximately 1/3^rd of their income on housing. So a buyer is willing to pay approximately 1/3^rd of their income because they are able to.

Yes, there are conservative people out there who buy modest homes in comparison to their income. Needless to say, that these people either have financial security because they're wealthy or because they're just conservative. They most likely will never face foreclosure on their homes.

And yes, there are people who buy homes that they cannot afford. They expect to make more money in the future which may not always happen. They may lose their jobs or sustain other unforeseen losses. These days, we're seeing a lot more of this type of buyer, hence the foreclosures.

If we analyze this middle section of people who pay approximately 1/3^rd of their income on housing, this is actually the Market and what creates the Market Value (or price) of homes.

Let's look at this backwards. If you earn $36,000 per year; you will be able to afford approximately $12,000 per year for housing. This just happens to break down nicely to $1,000 per month. Whether you are renting or buying, your monthly housing costs cannot exceed $1,000 per month. Makes sense so far?

Now with your $1,000 per month you begin your real estate search, knowing your budget, you eventually find a house or apartment.

Let's say that everyone in your town also makes $36,000 per year (or at least let's say this is the average household income). What do you think the average cost for housing is going to be in your town? If you guessed $1,000 per month, you're right. Of course there are always some variations, but it cannot be any higher because the average household cannot afford to pay any more. Also, it will not be any lower because the seller will always hold out for the highest price which in this case is $1,000 per month.

Still doesn't make sense?

In this example, the average household can only afford $1,000 per month for housing. To simplify this, we won't factor in utilities, taxes, etc, but focus on basic housing costs. If the average household can pay $1,000 per month, then the average sale/rent cannot exceed this. This means that the average sale (or rent) cannot exceed a price which will cause the monthly payment to exceed $1,000.

An average house in this neighborhood will most likely be around $200,000. How did I come up with this? If you buy a $200,000 house with 20% down payment, you will qualify for a $160,000 mortgage. At 6% interest, a $160,000 mortgage payment is just under $1,000 per month.

This is the basis of how this works:

If the average household income is $1,000 per month, then the average home will cost no more than $1,000 per month.

One of the factors that can greatly change the price of a home is the interest rate. If the interest rate was 10% (instead of 6%), then average home would only be about $140,000. At an interest rate of 10% the same person would only qualify for a mortgage of $110,000 plus 20% down payment, making the average home $140,000.

What if the average home in this neighborhood is listed at $250,000. What do you think would happen? Don't think too deep, that is exactly what is happening right now. That is why we have more inventory then buyers and until the prices start coming down, sales will be slow.

Basically, the average home is currently greater than the average income, the result is fewer sales.

(The chart was taken from: http://seekingalpha.com/article/123154-housing-where-is-the-bottom it clearly illustrates my point).

Remember, it's not the home that sets the price, but the income of the household. Interest rates, taxes, utilities, travel expenses, etc are factors that also play a major role.

A few years ago, home prices began to rise at unsustainable rates. What caused these prices to rise so sharply? Did you notice what a drastically difference in price of our $200,000 home when the interest rates went from 6% to 10% (down to $140,000)? Without getting into too many details, people were getting mortgages at 3% with a low down payment. This allowed them to buy that same $200,000 home for as much as $250,000. Before anyone realized what was happening, those $200,000 homes were selling for $250,000. If the 3% interest rate was fixed for 30 years, there would be no problem. But the problem become clear when the interest rates adjusted back to 6%, thereby devaluating those homes back to $200,000.

Do you know someone who bought that $200,000 house for $250,000? They probably took out a mortgage of $225,000. What happened? It seems that the value of the house is actually lower than the mortgage. Where are these houses today? Foreclosure?

A town with an average annual household income of $36,000 will have homes that average $200,000 where a town with an average annual income of $72,000 will have homes that average $400,000. Those homes could be identical in every way except price.

The difference? Average household income.

Wanna know how to catch a Monkey!

Peter Z. Nikic — Thu, 10 Sep 2009 15:07:27 -0500

Catching up with a friend, we got into the conversation of real estate. Not a foreign subject to either of us since I am a licensed real estate broker, he is a contractor as well as both of us being multi-property owners. The conversation began when I asked him if he knew of a particular large scale property owner. I mentioned that I was trying to reach him in efforts to buy one of his buildings which he purchased 2 years ago and is now in financial trouble.

He proceeded to tell me a couple of stories regarding people that he knew that ended up losing large multi-family properties only because they were too stubborn to sell them at the right time and at a reasonable price. I chimed in with a couple of my own stories, and then we discussed how a mutual friend is currently in this same position. Though we both feel bad for our friend, there's little we could do to help him.

After a while, my friend asked me "Do you know how to catch a Monkey?"

I responded "How?"

He said put a banana in a bottle. When the monkey sticks his hand in the bottle to pull the banana out, his grip around the banana in a horizontal position, will not allow him to pull it out. Of course the monkey won't give up so easily, he will continue to try and pull the banana out until he is caught.

He added, "That's the problem with a lot of people and real estate these days. They don't know how to let go of the banana."

I thought this was such a great analogy, that I kept using it the rest of the evening. It seems that many of the property owners that each of us had dealings with did not know how to let go of the banana. Their properties fell into disrepair and eventually were lost to foreclosure. After each subsequent story, I would chime in "they didn't know how to let go of the banana."

Then I mentioned the large scale property owner again. I said that's why I need to get in touch with him. If he's a large scale property owner, he should know how to let go of the banana. He agreed that these types of owners usually know.

Do you know a property owner who's acting like a Monkey? Will someone please tell them to let go of the banana!

Thinking about buying an apartment building in the Bronx?

Peter Z. Nikic — Fri, 04 Sep 2009 15:34:41 -0500

Many of my friends own apartment buildings in the Bronx. I also owned a building there several years ago. If you're unfamiliar with the area, you're probably saying to yourself "Now why would anyone want to buy a building in the Bronx!"

Well, if you're a real estate investor and live in the NYC area, then buildings in the Bronx technically qualify as real estate. Like anywhere else, the Bronx has a wide variety of real estate including warehouses, office buildings, retail centers, private homes, coops, condos and my favorite, apartment buildings.

This was the building that I once owned. It's a 5 story walk-up building with 19 apartments, 2 stores and as you can see from the photo, 2 billboards. Though a little too small, it was a great building to own. I do regret selling it, but at that time, my circumstances were such that I needed to sell it.

So, what do you think so far? Still think I'm crazy? In all honesty, owning and managing apartment buildings in the Bronx is not easy. I guess you have to be a little nutty to want to do this. Yet from another perspective, it could be very rewarding both personally and financially.

When you own an apartment building, you are housing many families, how could this not be personally rewarding? I don't make it a habit to be best friends with my tenants, but I always maintained good relations with them. For the time that I owned the building, I renovated some of the apartments, installed a new intercom system, installed a new boiler, and replaced the roof. Yes, I spent a lot of money, but I had 19 families that needed to stay warm in the winter. They needed the security of an intercom system. Their lives were more fulfilled with a cleaner more well kept building.

But this is a business, not a charity!

Yes, I spent a lot of money and time upgrading and managing the building, but I had 22 paying tenants. The money I spent came from them (at least from those who did pay their rent). These improvements made them happy to pay their rent, which in turn allowed me to make a profit.

The tenants were happy, the building was upgraded and kept clean and I was making a profit. How else can I view this, other than personally and financially rewarding?

Over the past few years, my circumstances changed, once again allowing me to own and manage apartment buildings in the Bronx. I've been looking for some time now, but so far unsuccessful. It seems that over the past few years, the Bronx was infiltrated by large scale investors and REITS. This caused the apartment building market to falsely inflate. Sort of like the rest of the real estate market across the country.

On the surface, it might seem like a good thing, but the problem with this is that many owners are having a hard time selling their buildings at realistic prices. They either sold some properties or knew someone who sold properties at much higher prices a couple of years ago. They can't seem to accept that those prices were unrealistic. For the buyers who bought at those prices, they either have deep pockets or will inevitably have financial problems. For those with deep pockets, they will be able to survive and make it up in the long run.

What is disturbing to me, is those who don't have deep pockets. Their financial problems will become personal problems for the many families that they are housing in their buildings. There is no need for this. The frenzy that lead them to overpaying, is causing problems for everyone including for those of us who are ready to buy.

Properly managing a building in the Bronx takes a lot of work, but overpaying makes it virtually impossible.

Here are a few suggestions on what to look for:

•Ø Get a clear understanding of the income and expenses.

•Ø Know the condition and location of the building

•Ø Plan to spend more time than you think it will take

•Ø Plan to make less money than you think you will make

Over the past 15+ years, I've owned and managed apartment buildings which allowed me to gain a lot of invaluable experience. In addition, I've created spread sheets which allow me to evaluate an apartment building in just a few minutes. I also learned to forecast property values, income, expenses and long term growth with excellent precision. My intention is to use this for my benefit as well as the benefits of dozens maybe hundreds or thousands of families.

Bronx Buildings For Sale

Peter Z. Nikic — Mon, 10 Aug 2009 09:17:13 -0500

In 1994, I bought my first building in the Bronx, a 21 unit 5 story walk-up. I really didn't know what to expect, I had never owned a building before. I remember one night speaking with my wife just before we bought the building. She had said to me "you can teach me how to manage the building, and I'll manage it." I turned and said to her "that's a really good idea, but who's going to teach me?"

As it turned out, I tought myself. Continued to manage the building for several years. The building was mismanaged and needed a lot of attention besides the normal management of a properly managed building. In addition, dealing with city agencies, rent stabilization laws and tenant non-payment/collections seemed to be an ongoing problem.

It literally seemed that the entire process was geared towards making building ownership fail.

Though it was very difficult, it was also very rewarding both personally and financially. After several years, I was able to clean up the building and do many renovations and improvements. I then wound up selling the building for a nice profit.

Using the IRS 1031 exchange, I bought 2 smaller, 7 family buildings in Westchester County. I quickly realized how much easier it was to manage these buildings over the Bronx building and vowed that I would never buy another building in the Bronx. Over the years though, it wasn't that I would never buy another building in the Bronx, but that it seemed prohibitive to own less than a certain amount of apartments. If I were able to buy a building or buildings with 200 apartments, it would be more than worth owning them. This seems to be a minimal number to offset all the negatives and turn building ownership and management into a positive experience for me as well as the tenants.

Do you own an apartment building in the Bronx and are looking to sell it? I am looking to buy 200 apartments in the Bronx. Ideally it would be 2 - 100 unit buildings or 3 - 70 unit buildings. I am willing to pay as much as 8% CAP Rate for a good building.

Give me a call or email me.

Peter Nikic 914-804-0037

1 BR - $1,400 - Tarrytown, NY

Peter Z. Nikic — Mon, 10 Aug 2009 08:28:58 -0500

53 South Washington Street Tarrytown, NY - Apt 1N
Map & Directions

1 Br - 2 Bath in Millbrook - $850

Peter Z. Nikic — Wed, 25 Mar 2009 10:25:03 -0500

11 Daniele Lane Millbrook, NY - Apt #14
Click here for Map and Directions

1 BR apartment on 2nd floor with 2 full Baths in 3 family house. Spacious, skylights, 2 entrances, parking, yard.

Rent: $850 per month Security Deposit: $850
Available: May 1, 2009 Heat and Hot Water Included

This is a photo of the building. This is a 3 family house which sits on a 24 acre horse property.
Interested? call (914) 804-0037 or Email (info@broadnbailey.com)

Studio Apartment in Millbrook - $550

Peter Z. Nikic — Wed, 25 Mar 2009 10:23:17 -0500

23 Daniele Lane, Millbrook, NY - Apt #17
Click here for Map and Directions

2 room studio apartment with full Bath in 12 family building. Private entrance, front deck and carport included. * Utilities Included (ask for details).

Rent: $550 per month Security Deposit: $550

Available: April 1, 2009

If interested, call Peter at (914) 804-0037 or Email (info@broadnbailey.com)

2 Bedroom Apartment in Pleasantville - $2,200

Peter Z. Nikic — Wed, 25 Mar 2009 10:13:42 -0500

71 Tompkins Ave, Pleasantville, NY - Apt #1
Click here for Map and Directions

Spacious 5 room - 2 BR apartment on first floor with full Bath in large 6 family Tudor.

Rent: $2,200 per month Security Deposit: $2,200
Available: May 1, 2009 Heat and hot water included

Great location, all hardwood floors, seperate dining room, fireplace, front porch on Bedford Rd, parking, laundry. Excellent central village location. 1 block from train (47 min to Grand Central), 1 block from Jacob Burns Film Center, close to all.

Large Living Room

Living Room (different angle)

Working Fireplace

Full Bathroom with tub

Interested? call (914) 804-0037 or Email

2 Bedroom apartment in Millbrook - $800

Peter Z. Nikic — Wed, 25 Mar 2009 10:10:35 -0500

23 Daniele Lane, Millbrook, NY 12545 - Apt #25
Map & Directions

2 Bedroom apartment with full Bath, living room and eat-in kitchen in a 12 family building. The building contains mostly side by side apartments. There are no apartments below or above this unit. It was completely renovated about a year ago. Utilities Not Included. Private entrance and a private and fenced in front yard. The property is a 24 acre former horse property with a pond, lots of parking, walking and play areas. Close to schools and village.

Rent: $800 per month Security: $800

Available: April 1, 2009

If interested, call (914) 804-0037 or Email (info@broadnbailey.com)

1 BR - $1,400 - Tarrytown, NY

Peter Z. Nikic — Thu, 19 Feb 2009 11:13:49 -0600

53 South Washington Street Tarrytown, NY - Apt 1N
Map & Directions

If home prices drop, should property taxes drop?

Peter Z. Nikic — Fri, 24 Oct 2008 08:47:42 -0500

In the current edition of Realtor magazine, there is an article written by John E. Grippa. He says as home prices drop, so should property taxes.

After reading the article, all I kept thinking was that there seems to be something wrong with this concept. I don't mean that John E. Grippa is wrong; I mean there has to be something wrong with the way taxing jurisdictions create their budgets.

I was always under the impression that a taxing jurisdiction had a certain budget, a somewhat known and fixed obligation to its area. For example, they would add up all the costs of the services provided (schools, police, town, emergency, roads, water/sewer, etc) then they would tax according to those needs.

It seems to be just the opposite. It seems like most taxing jurisdictions throughout the US assess residential property based on market value. This means that they create their budget based on how much taxes they can collect. So if property values go up, they collect more. John E. Grippa said that as property values go down, we can appeal those taxes and have them reduced.

But if our taxes are reduced, are the services also reduced? Will garbage collection stop? Will the roads not be plowed in the winter? Will some other service stop or be reduced?

So my question is if taxes are reduced, will services be reduced? I can't imagine that the somewhat fixed services will be reduced. But in thinking this, what happened to the extra income when taxes were higher?

Going back to the time when home prices were increasing and taxes were increasing. Why were our taxes increased to begin with if the services provided were already being paid for? What did these tax jurisdictions do with all that extra money?

Besides the possibility of these tax jurisdictions having more money than they need, this becomes our burden in many ways. First, as property values increase, so do our taxes with no effort or control from us. But as property values decrease, we have to spend time and money to appeal those taxes. Secondly, higher taxes make homes less appealing and affordable to potential buyers which force us to appeal.

This doesn't seem fair to me; what are your thoughts?

2BR Apartment in Tarrytown, NY - $1,600

Peter Z. Nikic — Fri, 17 Oct 2008 13:16:14 -0500

53 South Washington Street Tarrytown, NY - Apt 1B

2 BR apartment on ground floor with eat-in kitchen and full bath in 7 family building.

Rent: $1,600 per month Security Deposit: $1,600
Available: November 1, 2008 Heat and hot water included

Great location, hardwood floors, full bathroom, laundry, seasonal river views, back yard use.

The apartment is in a 7 family building which is located centrally in the village of Tarrytown. Two blocks from Metro North RR, 1 block from Tarrytown Music Hall (Main St). The apartment is currently occupied but will be available for viewing.

Interested? call (914) 804-0037 or email: info@broadnbailey.com

Spacious 6 room - 2 BR apt on 2nd fl with full Bath - $2,200

Peter Z. Nikic — Wed, 15 Oct 2008 14:42:04 -0500

71 Tompkins Ave, Pleasantville, NY - Apt #4

Spacious 6 room - 2 BR apartment on second floor with full Bath in large 6 family Tudor.

Rent: $2,200 per month Security Deposit: $2,200

Available: December 1, 2008 Heat and hot water included

Great location, all hardwood floors, fireplace, parking, laundry. Excellent central village location. 1 block from train, 1 block from Jacob Burns Film Center, convenient to all.

Large Living Room

Living Room (different angle)

Full Dining Room

Full Bathroom

Kitchen

Interested? call (914) 804-0037 or Email

NAAC's 12th Annual Awards Dinner

Peter Z. Nikic — Wed, 06 Aug 2008 10:48:14 -0500

12th Annual Awards Dinner

EMBRACING THE POSITIVE INTEGRATION OF ALBANIANS INTO THE WORLD COMMUNITY

Friday
September 19, 2008
6:00 PM

Cipriani
110 42nd Street
New York, NY 10017

FRANK G. WISNER
AMBASSADOR
HANDS OF HOPE AWARD

Honoring

ELIOT L. ENGEL
CONGRESSMAN
LIFETIME ACHIEVEMENT AWARD

Dear Friend,

You are cordially invited to join the 12th Annual Awards Dinner of the National Albanian American Council (NAAC), which will be held on Friday, September 19, 2008 (6:00PM) at the prestigious Cipriani 42nd Street in New York City.

This year we honor to Ambassador Frank G. Wisner, Special Envoy of the US Secretary of State to the Kosovo Status Talks, with ‘Hands of Hope Award' - for his historic and unbiased position leading to Kosova's Independence. Moreover, NAAC presents the Lifetime Achievement Award to Congressman Eliot L. Engel - for his superior advocacy and legislative work in support of Albanian causes at the US House of Representatives and broader international community.

Ambassador Wisner and Congressman Engel join a reputable list of previous NAAC honorees, which includes President Bill Clinton, Secretaries of State James Baker and Madeleine Albright, Senator Bob Dole, Assistant Secretary of State James Rubin, Head of UNMIK Soren Jessen Petersen and U.S. Army General Wesley K. Clark.

The gala program will feature a special presentation celebrating the legacy of the renowned Albanian, Archbishop Fan S. Noli - an esteemed churchman, poet, composer, author and scholar whose achievements spanned two continents. This year marks the 100th Anniversary of the Albanian Orthodox Church founded by Fan S. Noli in 1908. Noli also served as Albania's Foreign Minister and Premier in 1924. Moreover, Fan S. Noli represented Albania at the League of Nations, securing international recognition in support of the fledgling state for the first time in the 20th century.

During 2008 Albanian history moved to a new era as Kosova became the world's newest independent state; and Albania became an official member of NATO. These tremendous accomplishments provide us unique opportunities to expand our activities, while also continuing to support Albanians in Macedonia and Montenegro achieving equal economic, political and social opportunities.

With your support, WE can build on these milestones to ensure sustainable peace and prosperity in the Balkans; hence we invite you to join us in embracing the positive integration of Albanians into the global community. Please confirm your participation at this exciting event by reserving your table or ticket now. The 2008 donation amounts are listed below.

Thank you for your continued generosity and partnership.
Warm regards,

Martin Shkreli Chairman, Board of Trustees	Avni Mustafaj Executive Director

Al Foundos & Nino Pjetri Gala Chairmen	Lou Foundos Harry Bajraktari Richard Lukaj Halil Mula Gala Co-Chairs

$10,000
10 dinner tickets in the honoree's section
10 VIP reception tickets and photos with the honorees
Listing in the program

SPONSOR TABLE
$5,000
10 preferred dinner tickets close to the honoree's section
5 VIP reception tickets and photos with the honorees
Listing in the program

PATRON TABLE
$3,000
10 dinner tickets
2 VIP reception tickets and photos with the honorees
Listing in the program

INDIVIDUAL VIP TICKET
$500

INDIVIDUAL STANDARD TICKET
$300

I Love NY . . . How it all started?

Peter Z. Nikic — Tue, 22 Jul 2008 11:47:10 -0500

The year was 1977, New York City, on the verge of bankruptcy, dreary, dark, crime was rampant. It was like a scene of Gotham City from "Batman." Real estate was so bad; the City of NY became the biggest landlord in the city as landlords abandoned their buildings, the city obligated to pick them up and keep them running.

So how is it that now, just 30 years later, the NYC real estate market is hotter than ever and everywhere you turn you see the slogan "I Love NY". Even if you're not from NY, more than likely you've seen this or a similar slogan such as "I Love John" or "I Love TX". How did this "I Love . . . " craze begin?

We even have a group here on Active Rain called "I Love NY".

You must have wondered how or when this started.

Last year, I've had the privilege of speaking with the creator of the "I Love NY" advertising campaign. It was a momentous time because it was now 30 years since he originally kicked off the campaign (in 1977).

New York was running out of money and time. The New York State Tourism Department needed to do something to improve the image of NYC. With a very small budget, they hired a NYC advertising agency headed by Stan Dragotti and Charlie Moss. I had known Stan for several years and was most impressed by him having been married to supermodel Cheryl Tiegs. But when he explained to me how he created and developed the "I Love NY" ad campaign, I was totally mesmerized (sorry Cheryl).

His idea was to incorporate all of the Broadway actors and have them sing "I love New York". The ad campaign was a success; the jingle became NY State's official song, the "I Love NY" slogan stuck. The TV commercial became one of the greatest commercials of all time.

In less than 30 years, New York went from being a dark, crime ridden city ranked 8^th most desired city in the US to visit, now the #1 tourist destination in the world. I don't have to tell you that real estate values have reached skyscraper proportions and NYC is no longer the biggest landlord in the city.

Stan Dragotti also went on to direct several movies including "Mr. Mom" starring Michael Keaton and "Love at First Bite" with George Hamilton as well as others. He also won the Tony Theater Award in 1978 for his "I love New York Broadway Show Tours." As for me, I am honored to know him and that he is of Albanian descent, which is how I got to know him in the first place.

Pleasantville, it's Real and in Color!

Peter Z. Nikic — Sun, 20 Jul 2008 12:20:43 -0500

Often I get asked "Pleasantville? Like the movie?" I reply "yes, only in color". With a population of just over 7,000 and an area of less than 2 square miles, Pleasantville is small yet highly desirable. Located in central Westchester, just 45 minutes from mid-town Manhattan. It's small size does not even warrant school bussing, making it a walking community. All children either walk or are dropped off at school. The Pleasantville schools always rank among the best schools in the country, but one of the things that impressed me most is that every morning (rain, shine, snow or sleet) the school superintendent was there to greet each and every child as they were dropped off. Though we only lived 2 blocks from the school, many times we would drive our children to school. Deep down inside, I think we did it because it felt so special dropping our children off and seeing the school superintendent welcoming them with a big smile and a warm greeting.

Each year (in May) this small and close-knit community celebrates Pleasantville Day. The day starts off with practically all village residents parading down Bedford Road, a street lined with old Victorian homes. We were fortunate enough to own and live in one of these old homes and always felt that our front porch was like holding front row seats to this and several other spectacular parades during the year (other parades included the Memorial Day parade, fireman's parade and ragamuffin parade). The parade would be greeted at Memorial Plaza (village center) with games, rides, music, clubs and local vendors. The day usually ends with a spectacular fireworks show or outdoor movie at the sports fields on Marble Ave.

These fields are also home to the annual Pleasantville Music Festival where performers like Joan Osborne, Graham Parker and other less known bands play. Attendance exceeds 6,000 making it like an overgrown family picnic to music.

On not so special occasions, local residents tend to frequent the local gourmet coffee shops, restaurants and even a 50's styled soda shop. In the evenings, one of my favorite things is movie going at the Jacob Burns Film Center - a fine arts film center where it's not uncommon to see or meet famous celebrities like George Clooney, Selma Hayek, Ron Howard, Glen Close and Woody Allen just to name a few. The film center has been so successful, that they are building a 26,000 square foot film production and educational center.

Many people say, "but the houses are so expensive and the taxes so high". I tell them, "if you want to buy a house, you're right. But if you want to buy a home, a community, a great place for your family, you can't afford not to live here". So whether it's the parades, the schools, commute to the city, local shops, music festival, theater or old Victorian homes, I'm sure you will love Pleasantville.

Pleasantville, it's real and in color!

Pleasantville Links:

pleasantville-ny.gov

burnsfilmcenter.org

wikipedia.org/wiki/Pleasantville,_New_York

americantowns.com/ny/pleasantville

pleasantvillemusicfestival.com

"Only God should be privileged to live alone"

Peter Z. Nikic — Sat, 12 Jul 2008 11:56:13 -0500

My mother is moving in with me, along with my wife and 3 children. Yes, there will be difficult times, but over-all I think it's the best thing. My children will be closer to their grandmother. My wife is very open and understanding with my mom, and as a result I think both will benefit. Me, well, it's my mom, the woman who gave me birth and raised me when I needed her most. How could I turn my back on her now?

This morning, feeling like she may be a burden to us, my mom said "I wish I had enough money to buy an apartment." For me, the money is not as much of a factor as not wanting my mom to live alone. I recently saw a great movie called the "Edge of Heaven" where one character says, "Only God should be privileged to live alone." I have plenty of apartments where my mom could live either rent-free or low rent. And even if I couldn't do it alone, then my 2 brothers would happily help.

It got me thinking about a tenant that I had in the past. I bought a building, and one of the tenants was a very old woman, living alone (I'll call her Eva). I remember her as being a very sweet old lady I would stop by and chat with her every now and then. She spoke so proudly of her late husband and how they emigrated from Poland. She spoke highly of her daughter "The doctor" and her son-in law "The Doctor." Oh! And of course the grandchildren! There were 2 of them, a boy and girl, both attending prestigious Ivy League Universities.

About 7 years later, in 2005, Eva passed away. Her daughter, son-in-law and grandchildren all gathered to collect her belongings. I had only met her daughter in the past, and as I watched them come and go for several days, I felt like I knew them through the stories I was told. I quickly realized that the bond was one sided, as they walked by me with barely a glance. To them, I was a stranger. On the verge of tears, I contemplated talking with the grandchildren (who were now post college) and telling them how proud their grandmother was of them. Only I couldn't because it seemed that they lost (or never had) a connection with their grandmother, so I didn't bother.

For years, I felt really sorry for Eva, but on that day I really felt sad for her grandchildren. They lost so many precious times with their grandmother that they will never be able to recover. How could I not take
my mother in? I owe it to my children and their grandmother. I admire the person responsible for creating the mother-daughter house, only I wish it were called grandmother-granddaughter instead.

4 apts on 64th St in Manhattan - under $1 mil

Peter Z. Nikic — Fri, 11 Jul 2008 13:08:14 -0500

Yes, you read this right. 4 apartments on 64th Street off Central Park West for under $1 million. Market
value over $2 million, that's more than 50% off. 2 One BR's, 2 Studio's, all sold only as package, all
cash.

I think it's a great way to buy 4 apartments for less than $1 mil in Manhattan. Current value is $2.1 mil (based on sq footage and Manhattan prices). This is if all apartments were vacant and on the market.

Each apartment could become available anytime and most likely they won't all become available at the same time.

Question is: do you have $1 million cash and can you afford to shell out another $2,200 per month until the 1st apt becomes available? once the 1st apt becomes available, the rent should cover expenses. but this is hard to predict as to when it will happen (could be next year or 10 years from now).

At the very least, this is interesting to think about.

Draw back: all rented (rent controlled tenants).
Upside: Great Future Potential (legacy)

							Sq	FREE
Location	Apt #		Rent	Maintenance	NET	shares	Footage	Market Value

Rear Facing	2F	1 Bedrm	$ 299.48	$ 869.88	-$570	215	675	$ 650,000.00
Front Facing	3B	1 Bedrm	$ 286.62	$ 987.36	-$701	244	675	$ 675,000.00
Rear Facing	5D	Studio	$ 223.22	$ 646.80	-$424	160	375	$ 375,000.00
Front Facing	8A	Studio	$ 206.89	$ 736.56	-$530	182	375	$ 400,000.00

			$1,016.21		-$2,224	801	2,100	$2,100,000.00

Is your Realtor a "Giver" or a "Taker"?

Peter Z. Nikic — Tue, 01 Jul 2008 10:39:38 -0500

You've heard the phrase, "It is better to give than it is to receive". This may be true depending on who you ask. Everyone we know falls under one of these two qualities. They are either "Givers" or "Takers".

So is your real estate agent a "Giver" or "Taker"? If you don't know, then you don't know your real estate agent well enough to work for you. Get to know your agent. Find out if she is a "Giver" or "Taker".

Why is it important to know this and when your real estate agent should be a "Giver" and when should she be a "Taker"?

If you are looking to buy a house, your realtor should be a Giver. Why? Because Buyer's Agents are Givers. I say this, because a realtor, who wants to help someone buy a home, truly gets satisfaction in helping the buyer. This is the person who will agree that it is better to give than it is to receive.

The Giver is the person you want representing you as a Buyer's Agent.

Now that we know that a "Giver" is someone who has your best interest in mind, why on earth would you use a real estate agent who is a "Taker"? Well, if a buyer's agent is a "Giver", then conversely, a seller's agent is a "Taker".

A seller's agent uses their Taker qualities to sell your home because deep down inside, they need to get the best and highest price. Yes, they are in contract with you to do this, but their satisfaction comes from selling the house without regard to the buyer or seller. As a result, you (the seller) just happen to be the beneficiary of a Seller's Agent who is a Taker.

The Taker is the person you want selling your home.