All Forum Posts by: Jason Timmerman

I understand all of your points.  It's hard for me to purchase properties and sit on them to wait for gentrification because I simply do not have the capital right now.  I'm more interested in wholesaling and flipping and selling rather then buy and holds. 

I just found it strange because I work in Trenton and there isn't a single good area of this city.  There are some places where you can walk a few blocks and live to tell about it but that's a far cry from wanting to invest there.  And there are other areas that we are warned to never approach.  I've heard so many horror stories from my co-workers that I cant' imagine an area of this city that is conducive to making some money.  Maybe I'm just a coward. 

Hello community,

I am looking for a Monmouth/Ocean County, New Jersey attorney who is familiar with investors and the wholesale process in particular.  I have a few recommendations from an outside source but I was wondering if there are any recos from the investor community.  

Nick, I think you are getting very confused about your membership relationship to the LLC. When the LLC purchases a property from a seller, you are shielded personally. You are acting as a member of the LLC when you sign, you are not signing personally. You cannot sign personally unless your name is listed as the individual buyer. As long as the LLC is listed as the buyer, and you are a member of the LLC, you are fine legally.

@Jessica Zolotorofe

Jessica,

Thanks for the thorough response.  My partners and I have been struggling to find deals on the wholesale side of things because, as you said, the margins are so tight.  We have been focused on primarily suburban areas of Monmouth and Ocean Counties.  We have been marketing heavily, hitting the county probate list, tax delinquency list, inheritance list and have created an absentee owner and equity owner list as well.  So we are sending out 4000-5000 mailers a month and not getting the type of results we were expecting.  Unfortunately, we don't really have the capital or the mentality to buy and hold in areas where the neighborhoods may be developing.  We are flipping homes as well in parts of the state that are conducive to such, there are pockets in Southern NJ especially that seem to be doing well.  But our business model depends on us wholesaling about 20-25 homes a year and we aren't finding the deals. 

There are a lot of properties listed in the marketplace in the horribly ghetto cities of New Jersey like Newark, Trenton, Elizabeth, Paterson, etc.  Is there a market there? Are people actually looking to move into those areas? 

Jeff,

Thank you for the response. I'm not sure why Steve is so hostile. We have established an LLC in NJ but I will secure the loan and purchase property in my own name and then execute a Deed of Transfer moving the property from my personal possession to that of the LLC. This way, we can benefit from my pre-approval and then hopefully put some assets into the LLC which will make it easier to obtain favorable loan rates in the future.

Samuel,

Ideally we would like to establish an LLC in NJ, or a Partnership, with an equal ownership share. The issue is this. My LLC in NC is pre-approved for a hard-money loan at an exceptional rate. My partners in NJ do not have as good credit. We are concerned that putting all three of us on the charter will reduce our borrowing potential with lenders. So we are trying to figure out the best way to be equal partners without sacrificing our ability to borrow. The business structure is where we are struggling. If I were to establish an LLC in NJ as sole owner, can I assign both as managers or does there have to be a sole business manager? I've been trying to research that question and can't find an answer. I suppose I could always hire them as Independent Contractors as pay them via a W-9, but that's not really our intent. We would really like to have equal ownership.

Hello,

So I have an LLC established in North Carolina. I am looking to expand in to the New Jersey market. I have two friends in NJ who are going to act on behalf of the LLC in that state. What is the best model to establish? Do I make them managers? Do we make them agents? Do I execute a power of attorney? If I do execute a power of attorney on behalf of the LLC, won't it transfer power from me to my friends?

Hello,

I am involved in a multi-state partnership that is interested in investing and flipping homes in New Jersey. One of our partners has an established LLC in North Carolina and the LLC is pre-approved for hard money loans. My question is this: Should we continue under the LLC when investing in NJ properties and have the two NJ partners be added as agents to the principal to conduct business in NJ or should we establish a new LLC in NJ for all three partners? The issue with the second option is that we would have to go through the pre-approval process to secure hard-money loans and we would be unlikely to get as favorable of rates as the existing currently enjoys in NC.

Where do you find buyers to populate your list?