New Real Estate Investors in New Jersey

[Lyndon Timbang]

   Hello BP members, my wife and I are new Real Estate Investors  from New Jersey. We are looking forward to learn from everybody here. Our goal is to start with Rehabbing then rentals for passive income.  Any pointers or advise are appreciated.

  Thanks.

[Moises Mari]

@Lyndon Timbang, Welcome to BP!  Let me start off by saying that I love investing in North Jersey, whether is Bergen, Essex, Hudson county, this are all great areas to invest in New Jersey, just make sure you work your numbers and you should do well. How are you planning on financing the deal?  If you haven't done this yet, I would definitely start by doing the following:

1) Finding the funds to perform the deal - There is no point in networking with realtors if at the end of the day you realize  you can not fund the deal when you find the right property. Finding the funds is crucial, as the market gets more competitive its always good to work with cash when working on the rehabs as it gives you more flexibility to negotiate the price and closing periods on some deals. Private money is probably the cheapest option, however, hard to come by, so if you already have made those connections make sure you nurture them.  Hard money would probably be my last approach as they have the highest interest rates, along with origination fees/points, I have seen some hard money lenders charge 3/4% points on the loans along with 10-14% interest which could very quickly eat up your profits.  There is always the 203k Construction loan option, let me know if you would like a lender referral, I have worked with a couple of amazing lenders in the area on many of my own deals, PM me if you like their contact info. If you have the funds on your own, then you are set to a great start!

2) Find the right contractor - This step can be either 2 or 3 as it's just as important as finding a good realtor or wholesaler to get you the best deal on a property. Make sure you have 2-3 contractors to give you an estimate for when you find a deal, never rely just in one because you just never know if they can produce.  Work with more than one contractor even if they have been referred by someone, trust me, I have personal experience with this.. haha 

3) Find a good realtor or wholesaler - Find a great real estate agent or wholesaler to get you the best deal, make sure you work with an investor friendly agent as not all real estate agents know much about investments. You may find yourself being directed to deals that do not make any sense as the numbers may not work for your purposes. 

4) If selling -  If you decide to sell, at some point you will want to find a real estate agent to list and sell the property, I am not bias due to the fact that I'm a real estate agent myself, I started as an investor, later then turned into full-time investor, then later realized I could help people with my knowledge negotiating their deals and getting a paid in the process.  I do see the benefit in having a real estate agent that understands the market and location.  This will help you get the most money for your property.  

5) If renting  -  If you decide to rent, then perhaps is not necessary to hire a real estate agent to screen, however, I would suggest you do as in most cases they will have more experience screening tenants.  If you are not going to hire an agent, make sure you read up and understand well the process of screening a tenant as this can make you or break you. Best of luck!!!