I'm new here, so I apologize if this isn't where to ask this or if this isn't something that should be asked here, but I'm trying to find a deal in North Jersey for 6 - 10 units. Jersey City, Union City, Harrison, Hoboken, Weehawken, etc.
It seems like finding a good deal online is difficult. So I'm guessing there's better ways. One way I hear is to get in touch with some wholesalers. Or do most wholesalers stick with smaller properties?
Or maybe you guys could recommend a better way to find a good deal? Appreciate any help! Thanks :)
Attorney · Rutherford, NJ · Member since 2015 · 132 posts · 168 votes
7y
@Paul Jurczyk to second @Diana Tian's comments: you should be aware (if you're not already) that all of the cities you mentioned have very different rent control laws, many of which are quite unfavorable for larger multi-units. (Notably, say, Union City). You can find, on the MLS, deals that look great if you assume market rents for all the units, but the reality is often that rents are way below market (and you can do virtually nothing to change them). Market rent, cash-flowing larger multi-families are quite difficult to find (and, even then, it's not really a value add play, since you're not able to increase rents).
I see wholesale "deals" for smaller multi-families in Hudson county not infrequently, but truly good deals are (obviously) more difficult to come by.
Real Estate Agent · Jersey City, NJ · Member since 2014 · 218 posts · 50 votes
7y
@Paul Jurczyk I don't think there are many wholesalers in Hudson County. I rarely see commercial buildings from wholesalers. Very occasionally I see land for sale from them. I think you could attend some local meetups to see if any investors have things they want to unload. Or you could reach out to some commercial brokers who may have off market listing to share before listing on the market. But I haven't seen many good deals; a lot of them are offered at 5% ~ 6% CAP rate.
Attorney · Rutherford, NJ · Member since 2015 · 132 posts · 168 votes
7y
@Paul Jurczyk to second @Diana Tian's comments: you should be aware (if you're not already) that all of the cities you mentioned have very different rent control laws, many of which are quite unfavorable for larger multi-units. (Notably, say, Union City). You can find, on the MLS, deals that look great if you assume market rents for all the units, but the reality is often that rents are way below market (and you can do virtually nothing to change them). Market rent, cash-flowing larger multi-families are quite difficult to find (and, even then, it's not really a value add play, since you're not able to increase rents).
I see wholesale "deals" for smaller multi-families in Hudson county not infrequently, but truly good deals are (obviously) more difficult to come by.
Real Estate Investor/Wholesaler · Philadelphia, PA · Member since 2015 · 757 posts · 318 votes
7y
Best ways to find wholesalers are pretty easy, one way would be to google "we buy houses whichever city, or town" your looking for and I guarantee you will find a few people/companies. Other methods might include Craigslist, FB Groups, Local REI meet ups, there are plenty of ways some will require you leave the house and connect with people face to face.