All Forum Posts by: Fred Shandler

^excellent advice, I will absolutely do that.

and yes, NJ is EXTREMELY expensive. Trying to find a deal that cash flows has been very difficult. I have my first REIA meeting in a couple weeks, so hopefully that will be a good experience.

But it is VERY tempting to invest further away, as deals are much easier to come by. I'd like to hear some feedback from investors in expensive markets -NJ/NY/LA/SF, etc.

Thanks
-Fred

solid advice, many thanks. Mike, your book was AWESOME. I'm going to re-read it this weekend.

...Is 3-3.5 hours away considered long distance investing? Could I possibly network with contractors (for purposes of having a "team" in place) and actually manage the property myself?

I'm strongly considering doing my first deal (rental) out of state (I'm in NJ, property would be in upstate NY -4 hours away). As a first time buyer (and current renter), it is MUCH easier to get started investing in a market that is more affordable, as opposed to where I currently live.

So, I've located a whole seller and, what seems to be, a very good property management company. BUT, after reading MikeOH's book last night (great read!), he refers to this type of deal as "financial suicide" for first timers and that has me really questioning if this is a good idea or not. Specifically after reading the horror stories and realizing how it may be prudent to be within a car-drive away from your properties.

Any feedback, experience, stories would be GREATLY appreciated.

Long term plan -hold onto rentals and continue to re-invest, through equity and funds gained, into other rentals. Current resources are certainly limited, which is why I'd be taking a line of credit out for my first deal. Also, the properties I'm looking at are through a wholeseller.

I'm inclined to only use borrowed money for a 20% down payment (as opposed to the full amount), then build slowly through equity. Thus, limiting my amount borrowed from a loan against my business while focusing my effort to build through equity.

And I'm still a beginner and only in my mid-twenties, so this is very intimidating. Any advice is greatly appreciated.

For my first potential deal (2 family, 30-40k - 2%/50% rules in place). In the interest of making my first deal at the lowest possible price, what do you think about my borrowing a business line of credit (from my current business) for the full purchase price, as opposed to financing 80/20. Now, I may be wrong, but if I borrow a line of credit (at 6.5%, which I could pay off over 30 years -the rate is not fixed), that would technically be paying the seller in "cash", right? From there, I'd re-invest through equity gained from that purchase.

So again:

Take out a business line of credit and pay in full, in the interest of obtaining the lowest possible first deal price, then building through equity -bad idea?

OR

I could use money borrowed for multiple down payments -but that may lessen my negotiating leverage.

(My plan is to buy and hold as a long-term investment)

Eric - good advice, profile changed 8)

Also, I'm going to the

DedicatedLearner - I'm going to give the Metro group a try at their Jan. meeting. Will you be there?

Hello all...I've been piecing together tons of info. from the site and am sort of putting it all together. I am, however, still fairly unclear on few steps in the basic sequence/process of purchasing a property.

Generally speaking:

-Find the prop.

-Make offer. If you're working with a realtor, is this something that is done solely from their office or can it be done over the phone/internet. If you're not working with an agent, however, what does the offer sheet look like/consist of.

-Wait for the offer to be accepted? How long will a buyer usually take to decide?

-When are the inspections and appraisals performed?

Thanks!

anyone??

I posted this in the local section, but got no response...There are a few different groups in Northern NJ and I really want to join one. Which one should I go with, are some better than others? (I'm a rookie).

Thanks!
Fred

I'm eager to join a REIA, but am not sure which to join as there are a few options. Does anyone have experience with any of the north NJ groups?