All Forum Posts by: Erik Pedersen

Background:
2 Family in Newark, NJ
Rent for 1k each Sec. 8
ARV: 150K
Needs about 20k in repairs in bottom unit.

So Ive been working on a wholesale I have under contract - but it seems I am asking too much. Not too big of a deal considering Ive met a few cash buyers and now know them in person and know what they are looking for. I got a chance to meet Ibrahim S - A great guy smart investor!

Anyway, I dont know if the seller would agree to this - but better to have a feasible plan before I present this offer

If the seller agrees to hold a note for ~60k, I make a 15 year amortization schedule at x interest rate balloon payment after 2 - 5 years. Will obviously have to hash out the details.

Myself and my partner would fix up and rent out both apartments for 1k each - we could then go to a bank and do a cash out refinance with 80% of value - the value being 150k.

Do you think this is possible?

When I spoke to my other possible buyer they said that would be their strategy. Difference obviously being they would buy the house for cash.

Appreciate any help.

Michael Krassos Welcome.

To get started I would definitely recommend buying a small multi family. If your able to try to get an FHA loan for a low down payment and / or seller concessions to keep closing costs at a minimum.

Rent out and live in you get tons of experience that will help you with your buy and hold strategy. I live in my multi family's basement LOL.

Im in North NJ as well if you'd like to chat more.

Good luck!!

Wow that was quick Ankit Duggal and Ibrahim S

I just posted a new topic in the Wholesaling forum if you can go over there I have an overview...

I am a new wholesaler and I am about to put a house under contract tomorrow.

SO the place is totally renovated on the top floor - move in ready.

The bottom floor needs quite a bit of cosmetic work, but is nothing structural or huge.

Sellers asking price: $72,500

ARV: ~150k

Repairs: 20k (being safe - will probably be less)

My fee: $2500.

So my asking price is 75k.

http://emailrpt.gsmls.com/public/show_public_report_rpt.do?report=clientfull&Id=85004066_556578

These are the only comps my realtor could find...

Thanks for any help!
Erik

Hey Ned Carey, John Moore, Brandon Turner, Mehran Kamari Thanks so much for the welcome!

Over the past few days, I negotiated and am about sign a contract with a seller tomorrow as a wholesale. Anyone investing in the Newark, NJ area?

Hello all!

I figured my first post should be in the introduction, so here goes:

My name is Erik Pedersen I am 24 years old and I currently live in a basement in Bayonne, NJ.

Sounds bad, but this is actually my first rental property. It is a 2 family house that I bought in December with an FHA Loan. I updated both units - paint, got rid of carpet, updated light fixtures, etc. etc. in the 1BR and 2BR all the while finishing the basement.

It was a crazy 5 months - doing much of the work myself and with a handyman. But I ended up being able to rent out the 1BR in Feb. and the 2BR in April, and I moved into the finished basement.

I cashflow $260 a month - getting paid to live where I want is a pretty sweet deal.

Now that that is done - I will start chapter 2 and begin trying to wholesale where I will be posting in that forum next.

I got into real estate after first going to a 3 day Rich Dad seminar - and I met a stranger there who happened to live close to me - and we went in on the 'advanced training' splitting the cost (which was a lot!)

Anyway, my 9 to 5 is doing IT for a big insurance company - which I very much want to leave.

BP seems amazing and Im looking forward to asking and trying to answer lots of questions.

See ya!
Erik