All Forum Posts by: Joe Edwards

@Nick Louie

I personally would force the issue that you want to take the property vacant.

With the rent being below market at the moment the current tenants most likely will not be happy to a increase giving they have enjoyed the discounted cost.

The cost of carry on the vacant side comes with the game. Its better to have extra carrying cost insearch of the right opportunity then having a occupied unit that is paying below mark that doesnt want a increase or even pay at all if your going to evict them. The cost in that option will cost you much more then vacant carrying cost.

Best of luck. NJ is a great place to owner property if your in the right location. Rents are at a premium now

@Kaylee Walterbach

Biggest mistake on my first deal were 2 simple but very important mistakes

1. I totally under estimated the time it was going to take. Its good to be optimistic but much better to function in the worse case scenario

2. Check your emotions at the door. Being emotional in realestate will totally cloud your judgement.

Learning these 2 things years ago has shaped me into the machine i am today lol

@Patrick Flanagan

Im going to shock most on BP and say New Jersey. Northern NJ to be exact. Bergen, Hudson and Essex Counties specifically.

▪︎ BRRRR is great if you know what your doing

▪︎ Very strong property appreciation

▪︎ Rents are extremely strong

▪︎ Demand is very high

Most people avoid the state because of price and property taxes. Its all relative. A 400-500k purchase in 10-15 years will be worth 750-1mil

@Jacob Stokes

Sounds like you have a delusional seller on your hands.

In this case heres how I would handle it and this will make everyone happy.

1- Take the cash offer off the table. Make a offer that allows you the right to close cash or traditional financing

2- Your new offer will have every contingency included. Appraisal, inspections, environmental and sewer line. These will all be discussed and negotiated after reports are issued in review.

3- Make your offer ask or close to ask given that you have all the contingency included in the item 2. This offer will make both (greedy) realtors happy because no matter if you given credits or not the commission is paid out on the accepted price offer.

4- With the contingency in place, the realtors getting there commission you now become the unreasonable buyer for your mom once you get the reports back so you get your credits and land close to where you want to be. This will put you in the driver's seat because you have the deal locked up. They sellers will miss some of the hot market if it indeed is a hot market there. The (greedy) realtors should go to bat for you because the house has been sitting 168 days and they are getting there commission so they just want it done.

I use this process quite a bit when I have sellers that are emotion, delusional or in trust where all the kids are fighting for as much money as possible but have no interest in wasting any of there time dealing with the property because they are all out of state. Its extremely effective. I have received larger credits saving me more money then my original cash offer ibwas going to submit. People tend to wake up when the reports speak of the issues and not the agents.

Good luck! Let me know if you give this a shot and you have success with it

@Eric Malone

I would say get with the times. YouTube, Instagram and Tiktok influencer make more money then most college educated professionals, lawyers and doctors. If they are good at creating there content they can rent your place for $2300 month and make your rental a 50-100k a month revenue stream for themselves because they may use the location to create and produce there content.

This conversation reminds me when I was a kid in a amateur skateboard. People would call us all kinds of names and assumed we would be losers in life. Hahaha little could have they ever imagined most of my friends today are multi millions from it and they are some of the most recognized people in the world. Just some food for thought.

In regards to the collection issue, if she is a second and the issue is her mom I would give her a strong look if her personal debate is in good shape.

Good luck

@James Edward

Here in Northern NJ there is no bubble. Its what I call the perfect storm with some extra fuel which is Covid-19.

The perfect storm:

1- Low Interest rates

2- Low Inventory

3- NO Land to build new construction

4- Location right outside of NYC

5- Enormous household Incomes in area

6- Covid-19 (the fuel to the storm)

7- Large population of people looking for living outside of the NYC (aka suburbs)

The surrounding NYC suburbs have roughly 286 households per sq mile. These suburbs includes NJ, CT, Westchester and Long Island. The island of Manhattan has roughly 27,000 households per sq mile. Normal suburban migration is 1-2%. Covid has pushed the migration to 10-15%.

There isn't enough inventory for a 1-2% migration let alone 10-15% so this housing/ inventory issue is going to be around for a long time.

Also put in perspective that the majority of Manhattan residents exiting have 1-3 kids so the suburbs are real appealing. These residents currently own apartments in NYC that are 2-3bed, 2bath worth 1.5-4mil. Most are making there moves to the suburbs and they keeping there million plus dollar apartments. So they are raising all the pricing in the suburbs because they are over paying by a lot, they are extremely liquid and well qualified.

So if your in a market outside of a major city let me know if things are the same in your market

@Steve Vaughan

Don't forget you can put the guaranteed 10k a month to work in other income generating assets.

The 1mil after tax isn't a million and no matter how you you invest that million your profits/ returns are not guaranteed.

I'll take the 10k equity stream anyday and leverage that 120k 5-10x all day

@Shiloh Lundahl

10k a month for sure! Thats 120k a year and

That 1 mil is 600k+/- after tax. The 10k a month is 120k a year. 5 years you have the 600k+ in hand.

I'm a cashflow man and the only lump some money I need in my life is tax free cash out refi's!

@Jeffrey Evans

Honestly, your wife sounds like mine. Probably a great woman to have by your side.

I call my wife my guard rail. I'm the self employed, pioneer, investor/ calculated risk taker in our family. Im not afraid to lose money and im not phased by creating a lot of it. I see money as a tool to make more and she see it as a necessary tool to maintain our lifestyle and our future.

With that said i let her be herself at all times and I remain myself and keep building our portfolio without batting a eye. I hear her loud and clear when she feels I may be going off the rails. I forces me to tighten my sales pitch up to get here on board. Lol.

At the end after 2 decades of our relationship she trust me and my judgment and I trust her as well.

What I would put in your back pocket to share with your wife is

"SCARED MONEY DONT MAKE MONEY"

Awesome! Maybe search for more distress properties that you can grab on the cheap and fix. If you can put together a good fixer team you can do really well. Most people in the mark now aren't patient at all for the project purchase.