NJ - with minimal capitol what's your favored way to invest?

[Chris Baist]

I'm in central NJ and studying for my realestate licence. I have a small chunk of cash that I would like to invest after I get my licence. My day job is 6am-230pm so there's alot of daylight left when I get out of work. What would you do if you had to start from scratch and still work your day job?

[Jonathan Greene]

How small and where in central NJ since Newark is North Jersey? NJ is not a great place to invest a small chunk of cash with the taxes in the more Northern parts and the very low inventory.

[Lucas Gallaher]

I am not completely positive where you plan on investing in New Jersey, but here is my thoughts. 

With a smaller amount of capital, investing in certain high-demand areas in New Jersey might be challenging due to the higher property prices. Something you can do is, look into areas that are experiencing growth but are still affordable. These markets often offer better entry points and potential for appreciation. Or even attempt to find opportunities in other states, contacting a local real estate agent to look around. Find somewhere property prices are lower, and rental yields are higher. It’s worth researching markets that are known for being investor-friendly.

[Bernard Joseph S.]

Out of state. NJ like NY is definitely not the best option for newbies or people with limited cash.

[Kerlous Tadres]

Quote from @Chris Baist:

I'm in central NJ and studying for my realestate licence. I have a small chunk of cash that I would like to invest after I get my licence. My day job is 6am-230pm so there's alot of daylight left when I get out of work. What would you do if you had to start from scratch and still work your day job?

 I'm all for getting your real estate license while you are working at your full time job in the beginning! Have you used your owner occupant loan on a house yet, and if not I would try to find somewhere to house hack. Then if you do not like the returns on the house hack/investment you can start looking for out of state opportunities that make sense for you 

[Chris Baist]

Quote from @Jonathan Greene:

How small and where in central NJ since Newark is North Jersey? NJ is not a great place to invest a small chunk of cash with the taxes in the more Northern parts and the very low inventory.

I'm in monmouth and ocean county. Nj is very cash demanding unfortunately and my thought process is to try and find an assumption mortgage to lock in at a low intrest rate and finance the equity the seller is looking for to move. I have about 10-15k to play with which should be enough to cover closing costs and have a small bit in reserve If I can't find a Tennant. I'll be doing this under an LLC and I'm not sure if my personal debt to income ratio will affect the purchase or if the LLC is considered to have its own debt to income ratio.

[Jonathan Greene]

Quote from @Chris Baist:

Quote from @Jonathan Greene:

How small and where in central NJ since Newark is North Jersey? NJ is not a great place to invest a small chunk of cash with the taxes in the more Northern parts and the very low inventory.

I'm in monmouth and ocean county. Nj is very cash demanding unfortunately and my thought process is to try and find an assumption mortgage to lock in at a low intrest rate and finance the equity the seller is looking for to move. I have about 10-15k to play with which should be enough to cover closing costs and have a small bit in reserve If I can't find a Tennant. I'll be doing this under an LLC and I'm not sure if my personal debt to income ratio will affect the purchase or if the LLC is considered to have its own debt to income ratio.

That is not happening in NJ unless you are veteran and can assume a VA loan. Almost nothing else will work in NJ or be found. That's not enough cash on hand and reserves to play in New Jersey in Monmouth or Ocean. There are a couple of towns with lower opportunities, but low appreciation.

You can't close in an LLC and assume or do an owner-occupied loan.

[Calvin Thomas]

Quote from @Chris Baist:

I'm in central NJ and studying for my realestate licence. I have a small chunk of cash that I would like to invest after I get my licence. My day job is 6am-230pm so there's alot of daylight left when I get out of work. What would you do if you had to start from scratch and still work your day job?

I normally say stay close to home, but if you're in CNJ, it can be difficult.  You're near Freehold, so this may be an option, but NJ is not for the faint of heart.

https://www.zillow.com/homedetails/12-Ann-St-Freehold-NJ-077...

[Chris Baist]

Quote from @Jonathan Greene:

Quote from @Chris Baist:

Quote from @Jonathan Greene:

How small and where in central NJ since Newark is North Jersey? NJ is not a great place to invest a small chunk of cash with the taxes in the more Northern parts and the very low inventory.

I'm in monmouth and ocean county. Nj is very cash demanding unfortunately and my thought process is to try and find an assumption mortgage to lock in at a low intrest rate and finance the equity the seller is looking for to move. I have about 10-15k to play with which should be enough to cover closing costs and have a small bit in reserve If I can't find a Tennant. I'll be doing this under an LLC and I'm not sure if my personal debt to income ratio will affect the purchase or if the LLC is considered to have its own debt to income ratio.

That is not happening in NJ unless you are veteran and can assume a VA loan. Almost nothing else will work in NJ or be found. That's not enough cash on hand and reserves to play in New Jersey in Monmouth or Ocean. There are a couple of towns with lower opportunities, but low appreciation.

You can't close in an LLC and assume or do an owner-occupied loan.

I didn't know you couldn't do that under an LLC thankyou for informing me. I'm from monmouth /ocean but I was not planning on investing in these areas that would be financial suicide in my position. I had my sights set on south west nj, gloucester, Salem, Atlantic, Cumberland. I'm not afraid to travel either, Maryland Delaware Pennsylvania. I'm not even sure if getting my realestate licence is even nessicery. I believe in nj I have to work under a broker for 35 deals befor I'm allowed to go off on my own (not quite sure). It was more so to educate myself and have as much information as possible befor jumping into realestate investing

[Calvin Thomas]

Additionally, some counties in New Jersey have a 10k down payment assistance program.  You househack in one unit, stay there a year, rent it out, and move on to the next property.

https://nj211.org/resource-search/program/63456651

[Calvin Thomas]

Quote from @Chris Baist:

Quote from @Jonathan Greene:

Quote from @Chris Baist:

Quote from @Jonathan Greene:

How small and where in central NJ since Newark is North Jersey? NJ is not a great place to invest a small chunk of cash with the taxes in the more Northern parts and the very low inventory.

I'm in monmouth and ocean county. Nj is very cash demanding unfortunately and my thought process is to try and find an assumption mortgage to lock in at a low intrest rate and finance the equity the seller is looking for to move. I have about 10-15k to play with which should be enough to cover closing costs and have a small bit in reserve If I can't find a Tennant. I'll be doing this under an LLC and I'm not sure if my personal debt to income ratio will affect the purchase or if the LLC is considered to have its own debt to income ratio.

That is not happening in NJ unless you are veteran and can assume a VA loan. Almost nothing else will work in NJ or be found. That's not enough cash on hand and reserves to play in New Jersey in Monmouth or Ocean. There are a couple of towns with lower opportunities, but low appreciation.

You can't close in an LLC and assume or do an owner-occupied loan.

I didn't know you couldn't do that under an LLC thankyou for informing me. I'm from monmouth /ocean but I was not planning on investing in these areas that would be financial suicide in my position. I had my sights set on south west nj, gloucester, Salem, Atlantic, Cumberland. I'm not afraid to travel either, Maryland Delaware Pennsylvania. I'm not even sure if getting my realestate licence is even nessicery. I believe in nj I have to work under a broker for 35 deals befor I'm allowed to go off on my own (not quite sure). It was more so to educate myself and have as much information as possible befor jumping into realestate investing

In New Jersey, you need to work under a broker for 3 years before you can then sit for the brokers exam.  There is no requirement to do 35 deals, only time.

[Chris Baist]

Quote from @Calvin Thomas:
Additionally, some counties in New Jersey have a 10k down payment assistance program.  You househack in one unit, stay there a year, rent it out, and move on to the next property.

https://nj211.org/resource-search/program/63456651

 Currently I own a 3 bed 2 bath ranch 1700 sqft 1/2 acre lot. I purchased an apartment before covid when prices rocketed and sold it for 40k over purchase price. Then I put most of the profit down on my current residence and locked in at 2.75%. It's my woman, 9 month and me in the house so there's no option to house hack right now.

I had the perfect opportunity to have a solid start in real estate but at the time I wasn't thinking this would be something I want to get into.

[Scott Mac]

Nice suit...

I don't know what you do for a living, but you could try burning the candle at both ends.

(one end of the candle) Move into a cheaper way of living if possible, such as rent a room from someone who you have commonality with in some way.

(the other end of the candle) While at the same time picking up a second job. Trying to find something that pays well where the work is easy for you.

Something as simple as handing out golf clubs at the local putt putt golf, or possibly being a waiter at a very high priced restaurant and taking home good tips.

So what I'm getting at is Cash is King. Maybe try to solve that dragon at your door while you have some time opportunity to do it. 

Nobody ever went into a deal saying -- I have too much cash.

Good Luck!

[Chris Baist]

Quote from @Scott Mac:

Nice suit...

I don't know what you do for a living, but you could try burning the candle at both ends.

(one end of the candle) Move into a cheaper way of living if possible, such as rent a room from someone who you have commonality with in some way.

(the other end of the candle) While at the same time picking up a second job. Trying to find something that pays well where the work is easy for you.

Something as simple as handing out golf clubs at the local putt putt golf, or possibly being a waiter at a very high priced restaurant and taking home good tips.

So what I'm getting at is Cash is King. Maybe try to solve that dragon at your door while you have some time opportunity to do it. 

Nobody ever went into a deal saying -- I have too much cash.

Good Luck!

 Thankyou, that is my favorite suit! I'm a union worker and I'm usually in safety orange and dirty pants. Moving is not an option for my family and I at the moment. So I have to find a way to make my goals of financial freedom happen with the hand I'm delt. I have an aray of skills that most people do not. Side jobs are few and far between in my line of work but I do currently options trade the spy index when I see the proper entry. It's the source of most of my liquid cash.

[Jonathan Greene]

Quote from @Chris Baist:

Quote from @Jonathan Greene:

Quote from @Chris Baist:

Quote from @Jonathan Greene:

How small and where in central NJ since Newark is North Jersey? NJ is not a great place to invest a small chunk of cash with the taxes in the more Northern parts and the very low inventory.

I'm in monmouth and ocean county. Nj is very cash demanding unfortunately and my thought process is to try and find an assumption mortgage to lock in at a low intrest rate and finance the equity the seller is looking for to move. I have about 10-15k to play with which should be enough to cover closing costs and have a small bit in reserve If I can't find a Tennant. I'll be doing this under an LLC and I'm not sure if my personal debt to income ratio will affect the purchase or if the LLC is considered to have its own debt to income ratio.

That is not happening in NJ unless you are veteran and can assume a VA loan. Almost nothing else will work in NJ or be found. That's not enough cash on hand and reserves to play in New Jersey in Monmouth or Ocean. There are a couple of towns with lower opportunities, but low appreciation.

You can't close in an LLC and assume or do an owner-occupied loan.

I didn't know you couldn't do that under an LLC thankyou for informing me. I'm from monmouth /ocean but I was not planning on investing in these areas that would be financial suicide in my position. I had my sights set on south west nj, gloucester, Salem, Atlantic, Cumberland. I'm not afraid to travel either, Maryland Delaware Pennsylvania. I'm not even sure if getting my realestate licence is even nessicery. I believe in nj I have to work under a broker for 35 deals befor I'm allowed to go off on my own (not quite sure). It was more so to educate myself and have as much information as possible befor jumping into realestate investing

You always have to work under a broker in NJ unless you get your broker's license and you can't do that for 3 years after getting your salesperson license. There is no way to do real estate on your own. Salem County has "deals" but not much appreciation.

[Michael Brattelli]

@Chris Baist Look in the southern counties, Gloucester, Salem, Camden, Atlantic, and house hack a duplex. It’s tough to find inventory that numbers make sense on right now so while you’re looking keep saving because the good deals are not turn key. As far as a brokers license you don’t have to have 35 deals but you do have to show that you’ve been licensed and working full time for 3 years. They want to see a track record of you selling homes not just being licensed for 3 years.

[Richard Loniewski]

There are a lot of investors out there that need additional capital, start networking to find an investor with a property that is willing to JV, make sure you vet their deal well and have a JV agreement in place. It will get you the experience without all the hard work of locating a property and it gets you in the game.

[Vaughn Smith]

@Chris Baist You got some sound advice here from @Jonathan Greene I wouldn't try to find an investment to fit a small budget. I would take that money and do one of a few things with it:

1-Look for a JV partner to do a larger deal with

2-Keep learning about the market and investing as a whole and sit on the money until you have enough education to leverage it

3-Use the money to set up your real estate business and buy leads & marketing betting on yourself may be the best of the options

Also tread lightly around the leave NJ advice places like OH, Baltimore, even parts of South Jersey can be money pits where ripping off out of towers is a cottage industry.

[Joseph Guzzardi Jr]

@Chris Baist When you say minimal capital I'm not sure how much you are referring to. There's a couple options in my opinion.

The first is to partner with someone. (This is likely going to be with someone that you trust and already have a relationship with).

The second is to hustle/grind do whatever you can to increase your active income for the time being. If you are free after 230p, find something else real estate related to work at for a handful of hrs a few days a week and stockpile that cash.

Lastly, NJ is a great market and there are multiple spots in south NJ that #s still work and aren't completely in War Zones. I suggest you leverage an experienced investor to know where these locations are...