All Forum Posts by: Jason Timmerman

Tax delinquencies are done at the county and municipality level.  You cannot get a list from the NJ Treasury. 

As a wholesaler in the area I take personal blame.  I am appalled that flippers have to find properties on the open market.  There is no reason these properties should ever be listed.  Properties like this need to be discovered and wholesaled long before they are listed. 

Chris,

There are multiple ways to get the info.  First you can use listsource or another property generator and buy a list of the homes that have been recently involved in foreclosure proceedings.  Then look up the address by block and lot with the County Clerk's Office and get the full property report. 

You can also file an OPRA request with the County Court and ask for all foreclosure filings.  This is difficult because you will have to sort through tons and tons of paperwork and it usually is not cost efficient. 

You have to remember that you can see sale contracts and mortgages but you are not entitled to the payment history.  That is confidential information between the lender and lendee.  So you cannot know who is or is not falling behind on their mortgage until pre-foreclosure action starts in the court.

Also, I have to warn you that foreclosures are not the best source of leads in Monmouth County.  The vast, and I mean VAST majority (95%+) of homeowners facing foreclosure in Monmouth County have no equity and are underwater on their mortgages.  And without equity they have no motivation to sell.  They will owe far more on their mortgage than you will pay them for their property.  It's much easier and safer for them to allow the bank to foreclose because the bank will then forgive the remainder of the deficiency after the Sheriff's Sale.

You are more likely to get a shot at these properties once they because REOs, but obviously you will be facing a lot of competition as well. 

Jeremy,

I am pretty sure Camden is a no go.  I work in Trenton so maybe I see it through a practical lens but I can't imagine a single person in the world choosing to live here.  Newark is being gentrified so there is a market there but there is also a ton of competition.  My partners and I really wanted to find a market in Monmouth or Ocean because it seemed like there are not a lot of wholesalers working those areas.  But it has been a tough road so far.

Hello,

Newbie trying to wholesale in Monmouth and Ocean Counties, New Jersey.  It seems as though the market is extremely tight here.  We've spent about $6,000 on mailings and other marketing efforts.  We are struggling to find motivated sellers.  No one in this area seems to be desperate to sell.  Those who do want to sell are looking for close to retail.  The few good deals we come across, end buyers don't seem to want.  I'm not sure what other avenues to look towards.  Any help would be appreciated.

Erik,

My property taxes are 3.2%. 

Such things make NJ a very different real estate market.  People always cite the 70% rule when looking for a property to flip.  In NJ, a lot of times, finding a house at that rate is just not possible.  Plus, your holding costs are going to be much higher.  In order to be successful in NJ, you need to be willing to profit less per unit.  Volume is key.  You'll come across a few good ones, but if you are only looking for optimal deals you're going to go belly up.  Or at least, you will have to maintain a steady job on the side.

Howell and Freehold in Monmouth County both have tax sales once a year in April

@Kenny Oliver Kenny, one thing you have to be sure of is that the property you are looking to purchase isn't the "San Bernandino" of the area.  You say the only place you can find numbers like that near you is in San Bernadino?  Why do you think the property in NJ is in any nicer of an area?  NJ urban areas are horrendous and amongst the worst in the nation.  Camden, Trenton, Newark, Elizabeth, Paterson are all amongst the most gang and crime ridden cities in the country.  If I were going to take a change on investing in the ghetto, I'd want to do it closer to home.

Dean Semer at Semer Law is an experienced attorney who represents investors in Monmouth County.  My group has used him before

Well the County Clerk and in Monmouth County, the Hall of Records, are the places to go to obtain some of the information you are seeking.  At the County Clerk's office you will be able to request a property report and that will show you the secondary liens on the property. 

What do you mean the house might settle?  If you are referring to the homeowners settling with the bank that is a very, exceedingly rare circumstance once the Sheriff's Sale date has been assigned.  There are two statutory deferments of the date.  These exist ostensibly to allow the homeowner to attempt to come up with the money and to find another place to live.  But I don't know if I've ever seen a homeowner come up with the money. 

As for the starting bid, the bank has to make the first bid and it will always be the deficiency owned on the mortgage. On many properties purchased during the real estate boom between 2004-2007, the deficiency will be far greater than the value of the house. Many times you will have a $300,000 house with a mortgage deficiency of $500,000. You need to do your research so that you are not wasting your time at auctions. Many of these properties become REO and when they re-hit the market you will have a shot at them but you will also be in competitive bidding wars on the good ones.

Your best bet is to work with a wholesaler and/or make sure you are only going to the Sheriff's auctions for worthwhile properties.  There are obviously some good auction properties but there will also be a lot of competition.