Looking For A Capital Partner for a deal in Newark

Looking For A Capital Partner for a deal in Newark

Flipper · Staten Island, NY · Member since 2014 · 116 posts · 31 votes

Greetings,

I'm looking for a capital partner for a deal I would otherwise wholesale, but the numbers look good for a buy and hold.

Newark, NJ

153k Ask

20k Repair

320k ARV

Triplex

4 bed 2 bath

3 bed 1 bath

1 bed 1 bath

It's basically move in ready.

Looks like you can cash flow a good thousand dollars if you buy and hold. The problem is so many people out here are scared of Newark when I talk to them.

Any suggestions?

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New Jersey, NJ · Member since 2015 · 327 posts · 137 votes
9y
Martin Sterling I don't think investors are scare of investing in Newark, they are more concern with the rent control and tenants being a bit difficult to manage. Looks like a good deal, you should try the Essex auction to find some even better ones. I saw one guy win the bid for $20k on a multi that needed full gut but the area was average.
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  • New Jersey, NJ · Member since 2015 · 327 posts · 137 votes
    9y
    Martin Sterling I don't think investors are scare of investing in Newark, they are more concern with the rent control and tenants being a bit difficult to manage. Looks like a good deal, you should try the Essex auction to find some even better ones. I saw one guy win the bid for $20k on a multi that needed full gut but the area was average.
  • Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
    9y
    Martin Sterling 320k arv depends a lot on where in Newark you are referring to.
  • Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    I agree. What area of Newark are you referring to? What are your rents looking like in this area?

  • Flipper · Staten Island, NY · Member since 2014 · 116 posts · 31 votes
    9y

    It's near the corner 11th Avenue West and South 7th street near Rutgers College.

  • Financial Advisor · dallas, TX · Member since 2016 · 19 posts · 17 votes
    9y

    Hey Martin, I went to college at NJIT just around the corner from that property and lived in Newark from 2009 to early 2016.  Best of luck to you in the brick city, but I just want to give you a word of warning about the area you are looking to invest in.  Even though physically this is near the four universities on university heights, as far as the students are concerned it is in another country.  Nobody in college would ever go to that side of town because those who have gone there have been harassed, robbed, beaten, had their cars stolen at red lights, and have been held at gunpoint.  Every student is warned in college on orientation day by the police department not to go there for any reason, and campus police will actually question students who are leaving the campus in that direction and question people who are walking to campus from that direction.

    My first word of advice is to have a full time security guard on your property and leave a radio on inside to let people know that it is occupied.  I worked on a Habitat for Humanity house in Newark and overnight the walls were ripped apart, all copper pipes were stolen along with the water-heater.  My second word of advice is to make a deal with whoever is in charge of that block.  I work in construction and my coworker used to rehab in Newark.  He was harassed on a daily basis.  Eventually he had to pay off the local gang leader to be able to work on his block.  After he did that he was told that nobody would touch any of his materials or tools, and they never did again.

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