All Forum Posts by: Justin McElroy

Hi Everyone! Is anyone/does anyone know anyone doing wholesale deals in Bergen County these days? Would love to make some connections. Please message me or reply here.

Thank you!

Hi All - I'm looking to implement the "BRR" strategy for my future personal residence and am having trouble finding information on who provides lending in the situation where 1) this will be my primary residence, 2) we will need funding for the purchase as well as renovation costs, and 3) is able to close quickly.

Has anyone done this before or know of any companies that do this? I think the biggest issue is that this is for my primary residence.

I know there is the FHA 203k and Fannie/Freddie products that accomplish this, however, they take too long to close, and I'm looking to make myself look like a cash buyer that can close quickly and indefinitely in as is condition.

Thank you!

@Michael Parmenter sorry for the slow response, Mike. I ended up not exploring either of these options. Sorry I couldn’t be more helpful! 

Side note - I see you’re in Hermosa beach. My wife and I lived in Marina del Rey for several years before work brought us back home to NJ. We’re starting to plan our move back to LA.  If it’s okay with you, I may hit you up for some insight, if you don’t mind. 

Thanks again @Jay Hinrichs! Glad to see this is doable. I also have a note out in the LA sub forum so hopefully I can get some hits there. Appreciate the quick response and all of your input here. I feel like I see your name everywhere on these forums!

Hi @Jay Hinrichs

I'm looking to apply this strategy in Los Angeles - is this lender you speak of in LA - Los Angeles or LA - Louisiana? :) If Los Angeles, would you kindly be able to message me their contact info?

Appreciate it!

Note - I left out a couple of R's: Rent and Repeat. Focusing on Buy, Rehab, Refinance with this one!

My wife and I are looking to relocate back to LA within the next 1-2 years so we're trying to get all of our ducks in a row ahead of time, and am just curious if anyone has used the BRRRR strategy to get into their primary residence? Buy a house, fix it up, cash out refi to recoup most (hopefully all!) of the cash you put into the deal.

We'd be looking to live on the west side (MDR/Culver/PDR) areas and would have enough cash to put down for the property we want, but would love to be able to pull as much cash out as possible once we're done renovating so we can use it for our RE investment mission.

Looking at Zillow and the like, prices are insane right now (2 bed/ 1 baths going for $1mm+), so just curious if anyone knows/has had any luck with wholesalers in the area and banks/lenders in the area that are willing to lend on this type of strategy. We're open to using a HML as well.

Thank you!

Justin

Hi all. Looking to get a quote for new windows and siding. Can anyone recommend a company that they’ve had a positive experience with?

Thank you!

Justin

You’ll be able to find decent options for house hacking as well as a great commute into the city (you have bus and ferry options) in northern Hudson county areas: West New York, Guttenberg, North Bergen. Looks close to Blvd East. Numbers may not be great, but for a house hack with an easy commute you can’t beat it. 

I know in Guttenberg, if you live in the property while renting other parts out, you are not subject to rent control. I would imagine it’s the same throughout Hudson county. 

@Alan Liu Are you planning to live in the property? If so, I believe you can charge whatever rent you would like, and then upon moving out keep the rents as is and rent the unit that you are moving out of at market.  Double check the city code, as @Mark F.mentioned. I house hacked a property in Guttenberg, and this was the case.

If this is purely an investment property, then you are unable to mark to market the rent, unless you do a significant amount of renovations. If the rents haven't been previously registered, I'm not sure what the process would be.

Hey @Mark F. - just want to add some info here. Traditional FHA loans may not be available for use on all properties in distressed/unlivable conditions, however, they have a product called the FHA 203K loan, where, you can buy a property in any condition, and roll the purchase and rehab costs into the mortgage. In this case you still only need to bring at least 3.5% down. How much of a mortgage you can qualify is determined by your financial position and they also separately take into account rental income on the property. I forget the qualifier, but when the property is fully rented out the income (as determined by an appraiser) needs to be over the monthly payment by a certain percentage. This is scrutinized more on 3-4 families, and not so important on single families or duplexes.

If you're looking to owner occupy, this is an incredible option for a first time investor, since not only is it easy entry, but you also are able to leverage a 203K Consultant, who monitors the work done by the contractor and signs off that the work has been completed to the FHA's standards, before the mortgagor releases funds to the contractor. Shady contractors most likely won't touch these types of jobs either, so you know you will be working with quality contractors.