All Forum Posts by: Hugo Alves

I'm seeking a private money or hard money lender in NJ that will lend on ARV instead of LTV. I'm also looking for the lenders the lend the rehab costs of the project. Am I asking for too much? I have roughly $30k to put into the deal. Thanks in advance

NJ Real Estate Networking Party takes place every 2nd Wednesday of the month and it's located in Garwood, NJ. This is one of the few I've seen be consistent. You can find it on meetup.com

@Katherine S.

The public records within the county should have the IRA data along with the owners information. I would try that route to see if it pulls more specific info.

Call the broker, this has happened to me in the past.

That's a great question that I was asking my realtor the other day. I have a house near me that I'm really interested in but the owner doesn't want to sell. He bought it in 2006, pays $6k yearly on taxes. maybe someone can chime in and shed some light.

BP Family,

I've come across a deal that's in my farm area that I'm having trouble figuring out my strategy. Hopefully you can help me out.

The property is located in Newark, NJ 07105 (Ironbound). This area is known for it's development over the past years and it's rental potential. My goal is to keep the property and rent it out but that's as far as I get.

The owner wants $290,000 for this legal 2 family property. I say this because the house actually has 5 total apartments. Top floor (attic) was converted into an apartment, the basement was converted into an apartment, and finally the house has another 1 family home/apartment attached in the back, pretty much eating up the entire back yard. 

2 Family homes, in the area of this property, are going for roughly $325k - $350k. With the obvious additional apartments, this one could potentially sell for more to another investor, if I ultimately decided on that.

The property needs about $100k worth of renovations performed in order rent for top dollar in the area. With that said, I will be into the deal $390k, on a property that won't appraise high enough for me to get my cash back out. 

Maybe there's something i'm not thinking of and/or not mentioning that someone can call out.

Thanks in advance for any guidance you can provide

Chris, There's a few things to consider. With section 8, the best thing is, you are guaranteed payment because the state will pay the rent. Unless your rent request is higher than whay they will pay, then the tenant needs to come up with the rest. The tenant and the screening process if the biggest part of the equation. As we all know, there are people who need section 8 and others who take advantage of it. You need to make sure take extra time vetting the tenant. If you get someone who's just going through a really rough time but is doing everyrhing to get it together, then you're in the money. If you get someone who's taking advantage of it, well, you might as well get ready to be taken advantage of. Lastly, section 8 has requirements for a property to not only qualify for their program but must also be maintained at all times in order to maintain status. Hiring a good property management company who's on top of things, or ensuring you or someone else you hire put aside additional time for property inspections on a more consistent basis.

• Auction.com
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  Auctions included on the website may also be from third party services, which can increase the number of properties auctioned on the site.
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  Cons:
  Buyers need to be aware of the different fees for real estate auctions.
  Information for properties by third-parties may not be complete
  
  Hubzu
  Pros:
  Website displays properties that are for sell via auction and traditional sales, increasing the number of homes you can compare and contrast online.
  Closing usually takes 30-45 days.
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  Auctions included on the website may be from third party services.
  Easy to navigate website with FAQs.
  Auctions will note if the reserve price has been met.
  Some auctions have an “End Auction Now” button that allows a bidder to become the instant winner.
  Cons:
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  Only has residential properties and land listed on the site.
  Liens are not discovered for the property until the title search process starts.
  Hudson and Marshall
  Pros:
  Closing usually takes 30-45 days.
  Auctions are offered nationwide.
  Properties are sold with a clear title unless noted in the description, which means that there are no other liens or back taxes on the property.
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  Inventory on the website updates in real time.
  Some properties have a “Bid Now” feature.
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  Williams & Williams
  Pros:
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  Their auctions are offered nationwide.
  Help center for buyers.
  Inventory on the website is updated in real time.
  Properties are auctioned with a reserve, unless otherwise disclosed as “absolute” or “without reserve”.
  Easy to navigate website.
  There is a section on financing for buyers who would like to explore financing real estate purchases.
  Cons:
  Buyers need to be aware of the different fees for real estate auctions.
  Only shows real estate Williams & Williams is auctioning.
  Not all auctions will end in a bid being accepted as sellers in auctions with a reserve can take two weeks or longer to decide on the bid offered.
  Insurable title is included in the average closing costs.

@Tonya Weathers You're almost there. The 2% rule = $2,600 like you calculated. A 2% deal would be really great for your ROI but it's not your ROI. Your ROI is calculated as such, using your example. down payment is $8,000 Your rent payments are $2,600 Subtract your expenses (mortgage, insurance, tax, pmi, and any other bills you will pay) let's say that comes out to $2,000. So 2600 - 2000 =600 then multiply your monthly cashflow by 12 months 600 × 12 = 7200 finally divide your yearly cash (7200) by your invested money (down payment) 8000 7200÷8000 = 90% ROI hope this helps

@Miles Presha Reach out to your network and offer a preferred return for their investment. Calculated your anticipated roi, and see what percent return you can offer before reaching. Also keep in mind to make it appealing. If you can't offer me more than the stock market or my ira, then I wouldn't invest. Hope this helps. Good luck