Missy’s hubby has hit another huge obstacle that may finally put an end to the Faux Reality as a “successful real estate developer.” This latest obstacle may be the reason that Joey Gorga recently started a pool business.
Several years ago, Gorga happened to be in the right place at the right time. Saint Joseph’s Hospital (St Joe’s) in Paterson decided to remove itself from managing rental units for it’s visiting fellows/doctors – because the property management was draining resources and finances of the hospital. Since Gorga had just finished converting an abandoned warehouse into residential units near St Joe’s, the Hospital steered it’s displaced employees to Gorga’s project. The units were sold and/or rented to those associated with the Hospital for inflated rates (when compared to the market). Gorga made out like a bandit – the units were immediately occupied without much effort.
Gorga purchased other abandoned manufacturing mills in the area expecting to lure the hospital to once again assist in unloading the units. What Gorga failed to recognize is that several other developers offered units at significant discounts (more in line with market prices). In addition, Gorga overextended himself in the Kinnelon development, the love shack and several projects in Paterson.
When conventional financial institutions refused to modify and/or provide financing for the projects, Gorga turned to private individuals in the area. The following are some, but not all of the private short term, high interest rate financing that Gorga was forced to use to keep one step ahead of financial ruin:
work in progress