All Forum Posts by: Alex Staunton

Go take a drive through and you'll understand.

You can find any of this by googling but it's 75 hours of class and it has to be in person.  The class cost around $350 and then the other fees Steven mentioned. There aren't any requirements but there is a background check before the state will give you your license

@Danilo A. I think you're going to have some trouble actually acquiring anything in those neighborhoods unless you're going all cash and above asking. I also am really interested in transit neighborhoods (although in C neighborhoods) and have run into a lot of competition. In Asbury Park, which I know isn't really a commuter city, I offered over asking at least 15x over 2 years. I didn't win one until I was $100k over asking and agreed to take on all the tenants from a charity that placed them there. For Rahway, same thing, I have made at least 10 offers over asking. The one I finally got was under asking but it was an REO so needed to go all cash and the bank doesn't know how many bedrooms/bathrooms it has or even if it's occupied or not.

Joining on this thread.  If you're pulling together a real estate meetup in Hoboken, I'd be interested in joining.  I'm new to the game but recently acquired a 6 family in Asbury Park and am set to close on a condo in Rahway as my first two properties.  I'm also currently in school to get my salesperson license, finishing up in March.

You should talk to Jeff Bonk.  He lives right in Hoboken and knows the surrounding areas really well, https://www.homesbybonk.com/.  I've worked with him on buying my personal residence in condo and have looked a few investment properties with him.

@Julie Kern Great job so far and good luck! I'm interested in following your journey as I've just started on a really similar path. I'm in NJ so taxes are a killer but I picked up a 6 family by the beach a few months ago that brings in around $2,500/monthly cash flow and closing on an REO 2 bedroom condo that will cash flow around $600/month. I'm taking classes now towards getting my RE salesperson license to save money on my own deals and maybe do a little part-time agent work on the side. My goal is around $11,000 a month for me to go full time and another $8,000 for my wife to be able to take that option if she chooses. I figured I'd share as our goals are really similar but you've already been brave enough to quit your W2 and get after it full time!

Investment Info:

Large multi-family (5+ units) buy & hold investment in Asbury Park.

Purchase price: $799,000
Cash invested: $240,000

This was my first investment deal. It's a buy and hold. I put in more cash than I wanted it to be since it under-appraised and I had to throw in an extra $20k. With the down payment, closing costs, and rehabbing 3 of the empty units, I'm into for ~$250k. It was in decent shape, just needed some touching up. It's a big front house (4 family) in the front and a carriage house (2 family) in the back. it's also only a 5 min walk to the beach in Asbury Park, NJ which has been on the rise.

What made you interested in investing in this type of deal?

I originally wanted a beach house/investment combo, maybe just 2 or 3 families and it kinda snowballed into a bigger investment focusing on cash flow. In the future, after we're more financially secure, we may do a more substantial rehab on the ground floor 2 bedroom (about 1300 sq ft) into a beach apartment for ourselves.

How did you find this deal and how did you negotiate it?

It's a really competitive market, usually against cash buyers. I ended up going $100k over the asking price of $699k to a $799k offer and handshake agreement to keep the tenants in place. It was previously owned by a charity that placed the tenants there.

How did you finance this deal?

7 Year ARM, 30 Year Amortization starting at 5.75%

How did you add value to the deal?

New Floors and Paint in all common areas as well as empty units. Cleaning up the grounds outside.

What was the outcome?

It's still a WIP. With renovations to the current apartments after those tenants turn over, I should be able to increase the rent roll from the $8,500 when I purchased the property to around $10,000.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked/am working with Jack Green Realty who helped with the purchase and property management. He also is a contractor and was able to work with me on the rehab. It's been great to only have one point of contact across everything and have an actual contractor showing you the units and getting quick estimates on rehab costs.

@Alex Bekeza  it's a fixed for the life of the loan, structured like a conventional mortgage which is what attracted me to this particular estimate.  The other loan estimates I was getting were fixed for the first 5 (or maybe 10) with interest only payments in the beginning.  I liked that I was digging straight into the principal from the jump but maybe I'm not looking at it the right way.  It's a local bank in NJ, Gibraltar.

@Milton Rivera

Appreciate the response.  I'm more just looking for opinions on the loan terms as this is my first time securing a loan for a multi-fam.    

It does have separate meters and rents are all under market.  I should be able to increase rents to around $11k per month even with charging utilities on top as I update leases/get new tenants.

You're correct on the property management, forgot to include.  I'm currently in a discussion with a company for 5.5% + $35/hr for routine maintenance + 1/2 month fee for finding new tenants.

I'm also trying to get my first loan and here's the best figures I've gotten so far so those look pretty good to me.  I'm under contract for a 6 family in Asbury Park, NJ.