All Forum Posts by: Erik Pedersen

Im interested to see if this works.  I was in a similar situation where a bunch of strange hurdles prevented myself and partner getting a mortgage - could go on for a while about that, but wont - so my partner got a home equity loan against her primary residence to finance the property (buy and hold), and I put about 20k in.

We got the property with the plan to refi out.  However with the refi, the closing costs, i believe they said 3 points plus lots of other closing fees, would absolutely kill the cash out we were looking for.

SO - we are in the middle of getting a HEL against the property with a Investors Loan (from Provident Bank)  Basically no closing costs, its a high interest rate 7% but we are getting 75% of appraised value(which they were conservative on!) 

Would have liked to get more - we are cashing out about $10k so that obviously will be going towards the next house.

SO @Jessica F. if your getting hard money make sure your positive a refi - or in our case - a home equity loan will be enough to cover.  Either way im curious to see how this goes.  Good luck!

I cant really argue with Darren - he most definitely knows more than me and I will look into going that route in the future.  But $97 a month for insurance I don't know how that is overpaying for the coverage Im getting.  All good stuff.

State Farm has been very good, easy, great customer service for my 2 family in Newark.  It was unoccupied when purchased and had a vacant run down house right next to it.(has been fixed up since)

We have dwelling $227k plus $50k additional coverage, 500k liability, loss of rents, a few other benefits.

$97.00/mo. premium.  Although, like you I never had to file a claim yet.

Message me for info if you'd like.

@Kelsey C. Welcome!

Can I ask why you chose a SINGLE family house to start?  Im a big believer in Multi-family houses for many reasons. If a tenant moves out(especially unexpectedly which will happen) you still have income coming in.  And every month you get much more rental income.  A 2 fam 2br each will get you nice coin in N. Jersey especially in a decent neighborhood.

My 2 cents.

@Account Closed 

If you pursue these avenues let me know how it goes Im very interested to hear.  Your planning on buying, fixing up, and holding correct?  I am looking to do exactly this when we get our HEL or refinance done on my newest property.  

Hey @Ahmad Austin 

Only way to figure it out is to get your mailings and marketing out there and start fielding calls.  Reading about it will give you about 10% of what you need to learn.  

So I've only done one wholesale, but it was in Newark.  The key is to find out WHY the seller is selling -- once you find that out - a distressed seller is much more likely to give you a good price and move a deal along as opposed someone who is 'just seeing what you would offer' and not set on selling.  

Just my two cents -- get your marketing out and see what happens.

@Divya Gupta @Glenn Semeraro 

This question gets brought up so often I think there needs to be a sticky for handling this:  People always asking what towns do I invest in I want this, this, this, and my budget it this.  You will be hard pressed to find answers because there's way too many factors to go through in order for it to really work out.

FIND A REALTOR, TELL THEM WHAT YOU WANT, START LOOKING.  Come back with specific questions for something you are interested in.  If the realtor cannot help or does not understand what you are looking for, which happens a lot, find another one.  It's really that simple.  If you want to get into RE investing go and look at what is there.  It's the only way.

Good luck guys!!

Have you tried talking to a realtor telling them what you want then going out and looking? The only way to find something you want is to go out and find it! This question gets brought up so often and there's a simple solution, get a realtor, tell them what you want, start looking.

If the realtor doesnt understand what you are trying to do, which ive come across quite a bit, then get another one and keep going. 

Lots of NJ knowledge in the forums! @Stacey Jackson just ask

If your budget is $500k you can do SO MUCH with that in a lot of areas.  You can probably find a good 3 or 4 family with that in hudson or essex county like @Hasan Hamdan said.  

Start by getting a realtor, tell them what you want and what your looking to do and start searching props.