All Forum Posts by: Erica L.

Quote from @Mark F.:

I don't lease my own properties for this reason. I have a leasing agent who is an investor as well who's well versed in NJ discrimination laws. He informed me he would present all qualified tenants to me, involving S8, and I could pick the most qualified one. Sorry you have to go through this. Investing in NJ is a different beast.

I lease and manage several of my own properties and have (negligently) said this before (based on reading stuff other investors suggested - who probably aren’t even familiar with Jersey law). I guess I got lucky before, in that no one took it to the next level and reached out to the division of civil rights to formally submit a complaint. However, this lady was super annoying. She messaged me over and over about the property (even after telling her it wasn’t approved for HUD)…. So my last reply was what really got me. In an attempt to explain my rationale (and get her off my back), I said I wouldn’t want to go through the additional inspections and paperwork required from HUD when there was already so much activity on it as it…. And THATS what she filed on the complaint. My thing is, if they’re going to make it mandatory, they shouldn’t impose additional work/inspections for us. If it qualifies for the CO and registration for rental with the township, that should be enough…. I almost feel like it’s discriminatory upon landlords/property managers to make them do more work in order to accept a certain protected class… they want to be equal, let them be equal through and through, right?!?! 😩  

Quote from @Clayton Silva:

Quote from @Erica L.:

Quote from @Clayton Silva:

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?

Didn’t go through yet - max would be 10k but it seems most are 2500 - 5k for 1st offense. 😫 

 Are you serious? Holy cow that seems steep for a 1st offense!  I'm really sorry to hear that.  Any penalty or fine, can always be challenged, and it may be worthwhile to take that to a local claims court or something.

Yea, today I read over previous cases and their outcomes were quite shocking… but hey, you live and learn. If I pay ~5k and stay optimistic, that’s paid for by the cashflow I get from my tenants (on that one particular property) in less than a year… I DEF wont make that mistake again… but hey, it could be worse. 🤷‍♀️ 😂 

Quote from @Clayton Silva:

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?

Didn’t go through yet - max would be 10k but it seems most are 2500 - 5k for 1st offense. 😫 

This is just something I wanted to post because I think a lot of new investors can benefit from this… I love the BP forums and reading from all their experience. However, I HIGHLY suggest you do your own due diligence before taking ANYONES ADVICE.

I thought I read enough to understand that as long as your property wasn't already approved to accept the HUD vouchers (aka Section 8), you could just say that to prospective applicants and move on. I read countless times, it's your option whether or not you want to undertake the additional inspections that are required from HUD.

Well folks, in NJ THAT IS A FALSE STATEMENT - and now that I told a tenant just like that, I’m sorry this listing isn’t currently approved to accept the HUD vouchers - I have officially received a complaint from the Division of civil right saying that my statement was discriminatory and illegal based on the NJ Law against discrimination, as the HUD vouchers are to be considered lawful income….

You live and you learn, now I have learned and will pay for it… if anyone (IN NJ) has went through the same thing, any insight on how to proceed would be greatly appreciated… it’s already been filed and I have a docket number and all… I will be contacting several lawyers come Monday morning… just want to post and educate others, you REALLY need to know YOUR STATE LAW because they vary widely from state to state. I’ve already developed my plan of attack on all future listings, however, if anyone has anything to add of value, it’d be greatly appreciated…

Thanks in advance…. And NJ buy and hold investors - NEVER EVER say you can’t take the voucher…. Even if your unit isn’t currently qualified under the program - you can get stung if you say it to the wrong person…

🫶

@Joel Florek Great post! I was wondering if you could share your lender info? I’ve found it extremely difficult to find a lender who will put a mortgage on a multi family property that’s appraised as rural. Any recommendations would be greatly appreciated. :)

@Farak Kazmi A lot of people are taxed much higher than 24%. Unfortunately, I’m one of them. 

That being said, do you know if you could invest with fundrise (either using a LLC or personally) and then offset the gains with businesses expenses/depreciation of other assets with the business, etc)…Or any other loophole that's similar?

Any insight would be greatly appreciated. 

@Megan King it’s hard for me to see when this was posted as to when you invested. With that plan and investment, what did your quarterly dividend payout? Are you still working with them?

@Dick Mason

Did you ever receive your answer on the 1031? I’m in the same boat - thinking if I can’t find anything within the 45 days, use this as a backup plan. 

@Ramy Man

My answer is equity in a tangible asset. However, is that equity actually worth the hassle (as you mentioned above)? I guess that’s for each individual to determine. I think diversification is key. 

I'm wondering if anyone has taken a "home loan" out on their retirement account and used it for an investment property? Within the guidelines, it says it must be used on a PRIMARY residence. When I called to inquire, they hinted that there's ways to get around this. PLEASE HELP. I know I'd have no problem taking a loan out for general purposes but the max terms are 60 months as opposed to 180 with the "home loan" option. 

I know there must be a lot of people on here with personal experience doing this. Your advice would be greatly appreciated. I just want to weigh out the risk... because I DEFINITELY do not want to pay early withdrawal fees and taxes on my hard-earned, pre-taxed savings.

Thanks in advance.

Erica