All Forum Posts by: Edward C.

Hi Brandon Hall You mentioned “technology” a couple of times. Could you provide some examples of what you mean? Thank you.

Hi Steven Sager - yes, please include me on any lists for a meet up. Thank you.

Property taxes are indeed higher, but the region generally rents well (i.e., relatively high rents vs. other part of NJ, stability given access to NYC, etc).  

I suggest you keep doing your research on the various sub-markets in Northern NJ.  Each has it's own quirks that drive rental income and prospects for appreciation.  The other thing that I will note is that more and more existing investors are looking to offload / pare-back portions of their asset portfolios given the recent run-up in values.  As with any type of investing, recommend you focus on the hard fundamentals of each deal and develop your own sense of what the prospects are likely to be for the local economy that you decide to deploy your capital.  

Agree with prior comments.  I am in the process of pruning my portfolio of assets that have appreciated significantly where I can re-deploy the excess cash into other RE markets or asset classes altogether.  

I think this is something that a lot of experienced RE investors are increasingly looking at doing given the current market highs and low interest rate environment.  

Agree with Scott Carr Take funds out tax free and lock in money for a long time with a 3-handle cost of capital. We’ll soon be in a rising rate environment so you’ll be better off borrowing that money now at long term, low rates and redeploying it elsewhere at a higher yield.

Agree with Tyler Mullen that “it depends”. I have also done pretty extensive research and own various insurance policies, including whole life, variable universal life, and term. Generally, I think whole life could have a place in one’s portfolio of financial assets if other tax advantaged investment vehicles have been fully utilized (also assumes sufficient capital has been deployed across other asset classes as well, even if not tax advantaged). If not, term is a much cheaper way to get insurance coverage and ensure your family is taken care of in the event something unfortunate we’re to happen. Whole life only really becomes interesting as a way to manage taxes for those with high net worths.

Hi Alex - welcome to the community. Sounds like you're focused on apartments. What geographic markets are you focused on?

What do you expect to (realistically/conservatively) return on the remaining funds assuming your proposed asset allocation that would result in the $3k funding gap? Perhaps there are other ways to bridge that gap.

Please include me as well. Thanks.

The rental market in parts of Northern NJ (particularly Class A/B neighborhoods) is definitely cooling.  I can confirm that units are on the market a bit longer than a year ago, with owners having to lower rental expectations.

My perspective is that the supply influx of new rental units in both Manhattan/NYC and the parts of Northern NJ that I typically invest in bringing rental rates.

I don't think its an issue of a declining population or economy, but rather lot's of new units coming to market.