My Real Estate Beginnings (PART ONE)

My wife, Barbara, was a school teacher and I was a songwriter. One incredible combination. She would get up at about 5am, get dressed and arrive at her school at about 7am. I would arise at 10am, get to the Big Apple at noon and start to write songs at about 1:30pm.

Our hours were really not compatible. Our backgrounds were really far apart as well. Pretty as a picture Barbara looked a lot like “Elizabeth Taylor”. Part time she worked at Triple AAA in both insurance and travel. She became an expert in both fields. She was a very smart individual who later, became a Vice President of an Insurance Company.

We met at the “Mushroom Farm” a bar and restaurant in West Orange almost exactly in between my apartment in Irvington and her parents’ place in Patterson, N.J.. We both don’t drink and, yet we met at a bar (it was a place for singles to meet to dance). She was Syrian, Italian and Catholic. I was totally opposite. I am Jewish! We met during the “lightning War” between Syria and Israel. What a combination of lives! Her father who was the Syrian, loved to go to the track. I did as well and we went together a number of times. He would make his picks and tell me, and then, after he left to make his bets, at the seller’s window, he would often change his mind, but, liking his picks, I did bet on his choices and WON Quite often! He was really happy for me, especially since these were his own picks. We really became good pals.

My very first experience in the field of real estate was during my first marriage when I put a down payment in the amount of $3,500.00 on a new “Colonial Style”, four bedroom, 2 1/2 bath house which was located at a far end of a circle-end street. It was during the year, 1969. We were really very fortunate because only ten years later, the prime rate rose to 20% and there were no mortgages being made available through banks, mortgage companies or private lenders.

In these early days, there was no such thing as, “Credit Scores” or credit ratings. But I’m sure I was probably considered, “qualified” for such a loan, because I had purchased a few cars by borrowing the money and I made all my payments in a timely manner, and eventually paid them all off, in full.

I worked for a music company in New York and the owners’ assistant, “Barbara” did all the accounting. She was the one who wrote out all the checks and sent out the annual tax forms.

My ex and I picked out this wonderful large home from a fancy Model Home magazine showing four or five different model homes. Ours was to be built inside section of a circle end street in Piscataway, N. J.

I filled out the mortgage application which was backed by F.H.A. and got a phone call about two days later. I had stated my income on the application and I found that the income stated was enough to support the monthly payments.

The processor asked me if I could verify that amount of income. I gave the N.Y. office phone number. Immediately, I called Barbara and gave her the figure I had given the mortgage processor and they called Barbara minutes later, when she verified that same amount “verbally”.

Imagine at age 27, I was qualified to buy this huge house!!!

This process was far different than today where credit scores and credit histories are crucial in making the determination as to whether one is qualified or not. Well, we got the home and were “in like Flynn” .. (I guess I shouldn’t use the name, “Flynn” during this huge fiasco with General Michael Flynn!)

Sometime later, after our split up, my ex-wife moved back to North Jersey, where she was a teacher and lived there all her life, I was left with a mortgage payment which was really unaffordable, relying on my playing keyboards in the studio, and royalties were quite unsteady and in one quarter, I would receive a big check and the next quarter a smaller one. I never really knew exactly what amount of royalties I would receive.

So, I decided to rent out a bedroom. The home was located nearby Rutgers University and there were students, teachers and working people, who needed a place to live, so this was a great idea, I thought.

“Richard” became my first roommate was a young man who was a philosophy major in his final year of school. He minored in Theology. I wondered, “what in the world would such a diploma earn someone with these studies? I think he never found out about his future in his studies, as he went into the Travel Agency business after he left the house.

Richard taught me quite a bit about, “Cooking”. He even invented some great dishes. He ended up marrying a girl who I introduced him to who was introduced to me by my friend, “Steve” who always brought by young ladies (after I was separated, of course!).

The cost of this house, as I remember, was $34,500.00. The final mortgage payment with taxes and insurance was $316.00 per month. We were fortunate by buying this home at that time.

I found that the $50.00 per week rental income, caused my monthly payments and house expenses to become much more affordable. Because this plan was working out so well, I rented a second room and then a third and final bedroom.

With the two more bedrooms rented, by that time, I was earning about $1,000.00 a month and paying my mortgage and house expenses and still ‘netting’ about $500.00 a month as pure “profit. I counted 68 tenants during a 14-year period of owning this home. 90% of these tenants became my best friends during those great years!

“This is terrific!” .. “What a great way to earn money!“.

I didn’t realize I was slowly becoming a unique version of a “property manager”. I didn’t realize with a strength in math and the creativity to come up with unique ideas, I had the ability to excel in the business of “Real Estate Investing”.

When my ex and I mutually agreed to split up, since I came up with the down payment and made all the payments for that first year, I was the one who could afford to keep the house and make future monthly payments. She agreed and we parted as “Friends”.

“Stay Tuned for the next segment, “Red Carpet Realty” (PART TWO)”