Rick Aidekman and the crazy world of NYC Landlords

This entry is part 2 of 14 in the series Rick Aidekman and the crazy world of NYC Landlords

Rick Aidekman and the crazy world of Landlords continues. Now that you have met the Dracula Landlord, Rick Aidekman will tell you other stories about dealing with him in real estate transactions as well as other Landlords with dubious pasts. First, some Dracula stories. Dracula first made his name as a result of a tragic situation in one of his buildings. A young boy, about 4 years old, pressed the button for the elevator. It arrived, the door opened, the child stepped in, the elevator wasn’t there. A child’s life gone, in a tragic moment. Dracula was already receiving unwanted publicity due to failure to make repairs and maintain his properties, most of which were in lower income neighborhoods in Brooklyn. This event was thought by the City officials to be a result of his continued disregard of urgent repairs. The Brooklyn District Attorney took notice and went after him for criminal penalties for failure to make repairs. At the same time, the City Housing Agency, HPD, acted and got a receiver appointed to manage many of his properties. Under pressure for both civil and criminal issues, Dracula realized he might be better off selling most of his properties and using the proceeds to get out of the residential real estate world and get into the commercial world, where he wouldn’t be noticed.
This is when we arrived. My partners and I were new to the NYC real estate scene. My partner, who I met through a prominent real estate attorney had raised equity from that law firm and another institutional investor to acquire rent regulated apartments in “secondary neighborhoods” of NYC where there was growth potential. The Dracula owned properties were generally six story buildings with elevators and generally with between 50 and 100 apartments. The buildings were originally built as luxury properties in the 1920s and 1930s when the neighborhoods in Brooklyn were thriving. Then, the exodus to the suburbs started in the 1960s and the upper middle-class and middle-class families moved East to Long Island, or North to Westchester. The properties needed tenants, and thus, lower income tenants filled the units. Many Landlords didn’t know how to make money with sliding rents and rising repairs due to the age of the properties. In fact, Dracula obtained many buildings as result of the owners’ inability to pay their bills, some of which were due to him as a contractor.
In the next part of the series, Rick Aidekman will describe how the properties deteriorated and what rent regulations meant to owners and tenants. Then, how we stepped in and bought the properties.

Series Navigation<< Rick Aidekman reveals the crazy world of NYC Landlords. From the Devil to the Reptile to Dracula and moreRick Aidekman’ Crazy World of NYC Landlords-Individual Stories-Other Characters-Part 3 >>

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