I am a New Investor giving my story on how I purchased my first 2

[Gerald Boone]

Hello Bigger Pockets members

I am located in New Jersey and currently purchased my first  2 properties. I am new to investing but not new to Real Estate. My parents owned a few multi-family properties in Brooklyn New York where I was born and raised. They bought there first property in the 1980's where interest rates were normally over 9%. They also owned an 8 family unit Downtown Brooklyn near the Barclays center and a few others. I helped with such things as renovating units, collecting rent, preparing leases and the eviction process.

I starting working for a housing agency in New York approximately 14 years ago, stayed for 3 years and moved to NJ. I then started working at a housing agency in NJ where I have worked for the last 11 years. So, I have been around Real Estate sitting on the side lines waiting with all kinds of excuses.

So, I recently purchased my first property at the Sheriff sale held in Mercer County. I went this route because my credit score was low and the only way I knew to get a property for the amount of money that I had without credit was to get it at the Sheriff auction all cash.

While inspecting the property that I bought at Sheriff Sale the neighbor of the property recommended a house that was 2 doors down. She told me that the owner had passed away a few months ago and the house is in great condition. I looked online and found the property on one of the realtor sites and noted that the price was too high and it had been on the market for almost a year. I inspected the property made a low offer and they accepted , and that's how I scored 2 properties in 1 month.

This depleted my cash which I was going to use for the sheriff sale property as it will need at least $10,000 worth of work but I will renovate it slowly and rent out the other asap.

[Edward Cevallos]

Hi Gerald,

I'm also located in New Jersey and I've been a full time design and builder in my area for about 11 years now. After helping many investors with there renovation project I decided to venture into the investing side of real estate myself.  I've been successful in my first 2 investment properties and I'm currently looking into making flips into a full time business as well. I've gone to my local county auctions and been out bided twice. My problem is trying to juggle my current business and putting in the time to acquire more pre-foreclosures. Congratulations on your purchases.

[Kyle Burrows]

@Gerald Boone Hey Gerald,

I was wondering what part of New Jersey you were able to find those deals. I live in Brooklyn where the prices are so high it makes it hard to find a good deal so I've been thinking of looking at New Jersey for some better results. Having not spent much time in Jersey, I was wondering what areas are good to look

[Kerryanne Henry]

@Kyle Burrows sweet strategy!! Thanks for sharing, you’re well on your way! I work in the Mercer Area, lmk if you’re  looking to partner on future deals. 

[Gerald Boone]

@kyle burrows I am from Brooklyn also in which I am very familiar with the prices there. I invested in Trenton NJ but many people would say stay away from the ghetto neighborhoods. Also an issue in NJ is the high taxes that you have to account for. The good thing about NJ as a whole is that rents are some of the highest in the country.

[Jerimy Justice]

I really think this is a wonderful story and you should be proud of yourself. It's funny how if you just simply talk with people sometimes how you can find deals. That's the reason why so many investors hit the pavement. Bravo my friend!

[Kyle Burrows]

@Gerald Boone What was your experience with the deals in Trenton? I've heard a number of mixed reviews from people about "bad" areas like this. 

[Gerald Boone]

I'm just starting but if you are from New York than you know almost every area in brooklyn was bad a few years ago.

I will have to get back to you in a few years.

[Gerald Boone]

I bought a 1 family 4 bed 1 bath for $11,700 at auction it will need about $10,000 in renovations. ARV will be $50,000.

[Kyle Burrows]

Good point