Jersey City, NJ · Member since 2016 · 43 posts · 9 votes
All this hype about Newark, NJ being the next gold mine in real estate wholesaling. Is this true all just full of hype. The city is RUN DOWN. All these wholesalers out here are Marketing/Pushing the same properties.. it worth investing in or not?
They said Newark would be a GOLD MINE back in 2005 when I started working in real estate down there and look what happened. They have been saying this since the 1990's when I lived in neighboring Belleville and Newark had the highest per capita crime rate in the Nation. Purchasing property based on Anticipation is dangerous. However, Newark always was and always will be a good rental market if you purchase at the correct price for CASH FLOW. Most wholesaler are emailing me as well with the same properties located on the most violent south ward blocks which could be difficult to keep tenants with the high risk cap rates. They can build all the YUPPY places such as Wholefoods, Panera Breads, etc they want it still will never change the 07103,07104,07106,07112,07108,07114 ZIP CODES at all. Down Neck(Ironbound), North Newark (300-900 blocks), down town (very few blocks) and upper Vailsburg are Good areas. Anywhere else I wouldn't touch unless you have EXPERIENCE. As for a wholesaler this shouldn't really effect you as long as you purchase low enough and have enough room for profit. I know many investors that will buy on any block. Let me know what you have because Newark is a great investment overall especially with SECTION 8. Property values have gone up overall but as far as it changing like Hoboken or DOWNTOWN JERSEY CITY that will NEVER happen. I know this as I have been a real estate appraiser in NEWARK for 10 years
Harrison NJ is a completely different market area with a completely different socioeconomic scale, different statistics and superior school system. Harrison has a lot of opportunity with all the PATH line construction.
Unfortunately, a lot of people jump into wholesaling because they read or heard that was the place to start. More unfortunately, the ones who wrote that nonsense don't give you any viable game plan. The result? The blind leading the lame.
There is a lot of investment happening in Newark. Many businesses are moving there from Manhattan, a new tech incubator just launched, and a whole foods is even planned in downtown. The key is to be in the right part of town. All the colleges offer many opportunities as well.
I think neighboring Harrison is also interesting with the Rd Bulls arena, new PATH station planned, and al of the investment in resi/ retail to create a commuter friendly downtown.
They said Newark would be a GOLD MINE back in 2005 when I started working in real estate down there and look what happened. They have been saying this since the 1990's when I lived in neighboring Belleville and Newark had the highest per capita crime rate in the Nation. Purchasing property based on Anticipation is dangerous. However, Newark always was and always will be a good rental market if you purchase at the correct price for CASH FLOW. Most wholesaler are emailing me as well with the same properties located on the most violent south ward blocks which could be difficult to keep tenants with the high risk cap rates. They can build all the YUPPY places such as Wholefoods, Panera Breads, etc they want it still will never change the 07103,07104,07106,07112,07108,07114 ZIP CODES at all. Down Neck(Ironbound), North Newark (300-900 blocks), down town (very few blocks) and upper Vailsburg are Good areas. Anywhere else I wouldn't touch unless you have EXPERIENCE. As for a wholesaler this shouldn't really effect you as long as you purchase low enough and have enough room for profit. I know many investors that will buy on any block. Let me know what you have because Newark is a great investment overall especially with SECTION 8. Property values have gone up overall but as far as it changing like Hoboken or DOWNTOWN JERSEY CITY that will NEVER happen. I know this as I have been a real estate appraiser in NEWARK for 10 years
Harrison NJ is a completely different market area with a completely different socioeconomic scale, different statistics and superior school system. Harrison has a lot of opportunity with all the PATH line construction.
Im a cash investor in Newark. I think its a great market if you avoid the worst areas. However i havent bought a single deal from a wholesaler yet. Im looking for a good wholesaler to send deals my way.
Unfortunately, a lot of people jump into wholesaling because they read or heard that was the place to start. More unfortunately, the ones who wrote that nonsense don't give you any viable game plan. The result? The blind leading the lame.
There is a lot of investment happening in Newark. Many businesses are moving there from Manhattan, a new tech incubator just launched, and a whole foods is even planned in downtown. The key is to be in the right part of town. All the colleges offer many opportunities as well.
I think neighboring Harrison is also interesting with the Rd Bulls arena, new PATH station planned, and al of the investment in resi/ retail to create a commuter friendly downtown.
They said Newark would be a GOLD MINE back in 2005 when I started working in real estate down there and look what happened. They have been saying this since the 1990's when I lived in neighboring Belleville and Newark had the highest per capita crime rate in the Nation. Purchasing property based on Anticipation is dangerous. However, Newark always was and always will be a good rental market if you purchase at the correct price for CASH FLOW. Most wholesaler are emailing me as well with the same properties located on the most violent south ward blocks which could be difficult to keep tenants with the high risk cap rates. They can build all the YUPPY places such as Wholefoods, Panera Breads, etc they want it still will never change the 07103,07104,07106,07112,07108,07114 ZIP CODES at all. Down Neck(Ironbound), North Newark (300-900 blocks), down town (very few blocks) and upper Vailsburg are Good areas. Anywhere else I wouldn't touch unless you have EXPERIENCE. As for a wholesaler this shouldn't really effect you as long as you purchase low enough and have enough room for profit. I know many investors that will buy on any block. Let me know what you have because Newark is a great investment overall especially with SECTION 8. Property values have gone up overall but as far as it changing like Hoboken or DOWNTOWN JERSEY CITY that will NEVER happen. I know this as I have been a real estate appraiser in NEWARK for 10 years
Harrison NJ is a completely different market area with a completely different socioeconomic scale, different statistics and superior school system. Harrison has a lot of opportunity with all the PATH line construction.
Hey Angelo,
You're right about upper Vailsburg area... just closed to 2 deals 2 blocks away from each other.. Cash investors love this area. Thanks for your insight.... Lets Build..
Im a cash investor in Newark. I think its a great market if you avoid the worst areas. However i havent bought a single deal from a wholesaler yet. Im looking for a good wholesaler to send deals my way.
Hey Allan,
I have access to some great discounted properties in NEWARK.. lets set something up.
Hi everyone, I'm new to this site as well as real estate investing. I live in Rutherford NJ and have started to look at some properties in the area. I'm mostly looking to buy and hold for cash flow and figure my market is buildings for 10 to 15 apartments. Can someone help/guide me in this space?
I'm a real estate agent in Essex county. Our office is located downtown Newark. Every week I get more and more calls from investors looking for deals in Newark (since I specialize in foreclosure properties) and a lot of people confuse low price for a great deal. Certain areas of Newark are far from bouncing back and becoming a low crime area. Crime drops value more than anything else in an area. Condition in Newark can be overlooked if a property is in the right area
Harrison is not Newark. There are a large number of larger multi family investment companies that have purchased pretty much all the land down by the Path Station and will develop it fully over the next 5 years. Expect to see a totally different landscape on top of what you already see there. Most of them are quite bullish on their expectation for that market. At least that's what the big players said when I attended the NJ Multi family summit which was last October.
Newark has a lot of, let's say challenging neighborhoods. Doesn't mean you can't make money there however if I personally was investing in Newark the only place I could see myself putting money into would be the Ironbound section. I think it's unique and a number of people are actually moving there from neighborhoods in the city (like Brooklyn) because the commute can be easier and the rents are more affordable. I would think that as time goes by the investment in the Ironbound will only go up and it will become the hipster area of Newark. Food is good there and again the commute can be very easy.
Do I see Newark imploding? Possibly, but not the desirable areas where you can commute easily into the city. Those will only continue to improve as they will offer a lower cost alternative to places like Jersey City and Hoboken, along with the 5 boroughs themselves.
Well, speaking more as an academic than as the newbie investor that I am, I am not sure anybody really thinks Newark is "a bomb waiting to explode." The image that comes to mind is that of the riots, and that seems so very far fetched today despite everything that's taking place. Chatting with urban planners and researchers, the consensus is that the worst that can happen to Newark is nothing, and that the status quo would remain. It is no secret that Newark is rundown, that the violence in some areas is beyond tolerable (just look at all the shootings this week), and yes, it is going to take lot to bring the city back. Yet there is SO much happening in Newark. It is no secret either that a ton of investment and development both public and private is taking place in the city and along this (transit) corridor. (And yes, it's going to take a lot more, but if we were looking for places that are already fully developed we would be talking about Hoboken and the likes, and where is the opportunity in that?). The thing with development is that it is strategically uneven. So, investing in Newark requires doing one's homework diligently, and, as @Ibrahim Hughes stresses, that it it also requires investing in its people. And this latter part is what ought to keep investors looking for an easier buck away.
I think most markets have good and Bad areas. Some Markets entry point just dos not work. Manhattan , San Fran. Now being said " I was born and raised on Long Island. Still come to NY- NJ bi monthly. I see more ,and more Northern investors buying , investing , and or moving our way.Taxes , cost of living and just in general better numbers. With that being said I was in Buffalo, Ny looking for deals in 2013.
So regardless where you from or looking there are players in almost every area.