All Forum Posts by: Jose Godreau

Hey BP I just wanted to talk about the subtle difference between a contractor and sub-contractor.

Contractor: A contractor is a person or a company that seeks to do business by obtaining contracts and carrying them out. Being a contractor is similar to being a business owner – you negotiate your deals, work for yourself, have your clientele and are rewarded on your own merits. A construction contractor offers a particular suite of skills which he can perform for clients on a contractual basis. As a contractor, you will likely be paid more for work than you would be as a worker because you have put in the effort of finding the customer yourself. Therefore, any profits from contract work belong to the contractor.

Sub-contractor: A subcontractor is a type of contractor. Subcontractors also work on a contractual basis, and they also offer a particular set of skills which they perform for customers. The key point about subcontractors is that they form agreements with the contractor, not with the customer. Subcontractors often specialize in one specific area of construction and try to network with contractors who negotiate for larger jobs that include this area of specialty. In this way, a successful subcontractor will always have work, thanks to their network of contractors.

I work mostly in South jersey but this information is applicable in NJ, North Jersey, and the surrounding areas. Let me know of any experience you've had with contractors/Sub-contractors whether it be Good or bad below.

Hey @Adrian Horta, 

Congratulations on deciding to take the plunge into real estate investing! While Hard Money Lenders will not fund the entire project you can always find gap funders who might be willing to help you out. I have HML I could send you. Pm me and we can talk.

Hey @Account Closed

Here's a thread of what the market currently looks like in south jersey!

 https://www.biggerpockets.com/forums/311/topics/34...

PM me if you have any questions

Hey  @Scott Foster

Take the course in NJ first because it offers more hours then PA which means you would only have to learn about the laws specific to Pennsylvania then take the test there. Its a fairly simple process but you will have to pay for both MLS! you will also have to take one test in NJ and one In PA then you will be licensed in both. IF you have any other questions feel free to pm me

Hey @Wesley Jensen, 

You do not need your own real estate agent to represent you although I would highly suggest it. if you don't get your own agent, the sellers agent will represent both you and the seller which is called dual agency. it's very common, but the agent will not be able to help you as much as if you had your own agent working solely for you! best of luck on your deal!

Hey @Rizwan Khan, 

Congrats on deciding to jump into real estate investing! I think either an apartment or town home could be a good investment property, but I always liked town homes a little more. If you need any help feel free to pm me!

@Bernard Reisz Thank you for the kind words! 

I also agree with the information that you posted. Its quite helpful to know all of the rules as well but if you don't, always run it through people like yourself who do!

Hey BP, 

I wanted to do a quick post on the different ways you could potentially fund your current project whether it be a flip, rental, etc. 

1. Conventional: This loan is a bank loan that is looked at as cash, there are no contingencies and appraisals are easier than you would find in an FHA loan. Also your down payment would be higher and your credit scores have to be higher as well. While most investors don't use conventional loans to fund their projects, some small banks will give a conventional loan to investors looking to flip and only charge interest.

2. FHA: This loan is called 203k rehab loan and is a mortgage given out by the federal housing administration. It is a Great way for new investors to get into a project with less risk. There is a lower down payment, more inspections, and the loan makes you hold on to the property for a designated amount of time before you can sell it. They also make one pay for mortgage insurance in case they default on the loan. 

3. Hard money: This is a loan given out by a hard money broker usually with higher interest rates. If you're doing a lot of volume it's a good way to get into projects. As long as you run your numbers and factor in the higher interest rates you'll be fine. 

4. Private lending: This is a loan given out by someone who has cash on hand, whether it be cash, IRA, or Home Equity Line of Credit. This is the best loan you can receive because everything is negotiable. You have a better chance of acquiring this kind of loan after you have a decent track record of projects.

5. Gap Funder: This is like private lending in the way that you get this from a 3rd party, but different in the fact that the loan you are receiving only covers what your initial loan wont cover. Its a good way to get into a property with more leverage but is also harder to acquire unless you have a decent track record. 

I specialize in south jersey but areas like central jersey, and north jersey should also be able to use this information as well as most other places. These are the most frequent ways i've seen investors use to fund their projects. There are of course more creative ways to fund projects and if you have any other ideas or if you would like to add anything to this list please comment below !