All Forum Posts by: Herman Chen

Hi fellow BP members, I am relatively new to BP and the real estate investment industry. I just started out as a home inspector in the Jersey City area of NJ. Through going out every day, i meet all sorts of various home owners, sick, absentee owners, inherited the property, bad tenant, disabilities, unable to pay taxes, etc. I have a list of these motivated sellers that I want to contact. But I’m new without any wholesale experience and don’t want to get tied up in a bad deal, or unable to answer phone calls and miss out on the other opportunities. Are there any BP members in this area that would be interested to partner on some deals? I’m very familiar with the area in terms of rent rates and conditions of homes and their prices. It would be great to partner with someone who can walk me through the process, and in turn I can provide the leads. If anyone is interest pls connect with me. Thanks!

@ro 

@Ro Maga

Haha, well this job doesn’t pay too much so it’s be great to supplement my income. I was forced to make a career change and chose a career in real estate to get involved, I know I won’t make a good realtor. 

I’d like to add, in case it makes a differ nice or for any experienced negotiators:

Deal #1: property owner is 91 yrs old diagnosed with leukemia and few months left. Son is taking care of selling property. 

Deal #2: current owner cannot stand second floor tenant and told me he just  wants out ASAP. 

@David Weintraub

These are properties towards the south part of Jersey City, but still close to the Light Rail.

I'm looking in the Jersey City area because I'm a home inspector in the area and currently doing a tax revaluation for Jersey City.  I walk door to door for hours each day for my job and I see the appreciation for the properties.  I also like this area because close to NYC, there's never a worry of a population or job market decline.

I get to speak to a lot of homeowners, some who can't afford their homes, some who inherited, some who can't stand their tenants and just want out...  I run into motivated sellers almost on a daily basis who haven't yet listed their homes for sale.  I think there's a lot of potential here

@Jason D.

Thanks so much Jason!  That information is so helpful and I really appreciate you taking the time to look it over.

@Jason D. 

Yes, I forgot to list the taxes, thanks.

Deal 1 Annual Tax is $4159

Deal 2 Annual Tax is $5819

I have $300,000 cash I can use, so either to use all for one property or to leverage for more, it would be great to hear your thoughts on that too.

And I will hire property managers 

Dear BP members, 

I have been reading and listening to BP podcasts and am anxious to close on my first deal.  The two deals listed below are in the Jersey City, NJ area.  I think property around here is relatively more expensive and I think would be difficult to find a 2% Rule deal.  50% ruIe works.  I would be so grateful for any advice they can give on these two potential deals.  Thanks in advance!

Deal #1

Asking Price: $340,000

2 Unit duplex 

SqFt: 2827

Rent: 2600 / month (for both units together)

Brand new renovation just done on one floor, other floor needs $20,000 to renovate

Deal #2

Asking Price: $399,999

2 Unit duplex

SqFt: 2500

Rent: 2900 / month (for both units together)

Already has tenants.  If tenants leave, I would spend about $60,000 to gut renovate

Are there any experienced BP members that can help me to analyze this deal?  I've done some calculations myself but I would feel much better if I can compare my analysis to experienced investors.  

Thanks so much!

Mateusz Prawdzik thanks for your advice. And great to meet another new jerseyian investor. I am definitely focused as an investor. I've been reading and researching a lot and I think I've figured out how I want to invest and a plan to do it right. I'm excited to find a property and get started to get some hands on experience. It'd be great to connect once I get started and have some experience to contribute.

@Clayton Mobley Thanks for the detailed post.  It's puts into perspective how much I still need to learn.  I plan to pay off my debt to my NJ property by end of November to 'stop the leak' and then 1031 that and/or sell one China property to finance other purchases.  I will take on a certain amount of loan to acquire more properties.

I'm set on selling the first of my China property cause in China you can't 'own' any property or land.  When you buy it, you essentially purchase it for 50 years (now some are 70), after-which, if China doesn't want the land back, you are able to repurchase it from them at what price they deem.  I purchased my first property there in 2005 so pretty soon it will be on the downhill.  

And thanks for the three rules you mentioned.  I'll definitely check them out!

@Paulette Midgette WOW, you nailed it right on - determine your property's appreciation rate - That's exactly what I need to do.  I think if I borrow a couple thousand from BoMom, I can pay off my mortgage by end of November.  Then at least I can positive cash flow while deciding what to do about the property.  I like that unit because of it's location, but at the current rate, numbers-wise it makes sense to sell.  Thanks for your suggestion to check the appreciation rate, and your post.  I think that will make all the difference.

@Sung Those are great questions, and I will soon find out.  I only just moved back and my [new] accountant is just sorting that out now.  US, or foreign citizens, are allowed to purchase ONE home per city.  So if you live in Beijing, you can only buy one apartment in Beijing.  This rule does not apply to Chinese citizens, so they can buy multiple units.

From what I understand from some friends (US Citizens) who have sold their properties overseas, there is no 'need' to declare overseas assets now.  Only need to declare it when you sell it, and since the US doesn't know the original purchase price, they depend on the seller to declare that.  And the difference in profit is taxed as income.

Anyone on BP know for certain?