Looking for a mentor in NJ!

[Abby Flynn]

Hi! I just recently moved back home to NJ for work and decided to move back in with my parents (not fun but ironically closer to where my job got transferred rather than getting a place) so I am saving a ton more money that will hopefully enable me to make my first deal this year. I am hoping to buy within the tristate area (NY, NY, PA) but am open to purchasing out of state if the situation works out, as I may not live here forever. I work in Construction Project Management and have found that way more people than I think have found an avenue into RE that has been supplemental income and even a hobby for them depending upon which route they took. I am eager to get started and would love to get the know the market here at home.

With that said, I am new to this end of the industry and am looking for some guidance and advice in every aspect. 

-Is an LLC worth it?

-what kind of deals are you finding here?

-is it worth doing a fix and flip first for a quicker cash return?

-How much money did you have when you got started?

-what type of low down payment financing options do I have outside of FHA?

Thanks to anyone that replies! Looking forward to connecting.

[Dan M.]

Hello Abby,

My answers to your questions, everyone has different opinions but here are mine:

1) Yes it is 100% worth it, if not only for the business line of credit you can establish

2) Deals are harder and harder to find, at least where I am from and surrounding areas. Interest rates are high and prices are high.

3) Yes it can be a great way to start snowballing money, but remember some critical parts. Your numbers have to be near perfect. You have to include all the costs appropriately. Realtor fees, income tax, correct arv, correct costs. Its not uncommon for someone with little experience to overestimate how much they will walk away with and under estimate construction costs.  Materials and labor have gone up greatly in the past few years.

4) 50,000 but average home costs were only 200,000 at the time ( 25% down commercial loan). Depending on how you want to aquire the property, or flip, or whatever I think you need to strategize how you want to acquire property first then come up with the number based on a percentage of down payment + closing costs of the house prices you are targeting.

5) Talk to a few local bank lenders and see what first time home buyer programs they are offering. If your going to house hack and live in a place it can be a great way to get a property for much less than 25% down. Just bear in mind your payment will be higher the less you put down.

Hope this helps. Feel free to reach out if you have any other questions.