All Forum Posts by: Jonathan Greene

Is it already listed for auction at the courthouse? If so, how many times has it come up and passed? Often times, properties come up several times to auction and get continued on that day. The more times that happens, the more likely it is ready to sell, but you have to remember that the banks have a million properties and they do not care about getting one condo off their list. If it passes through auction it will end up being listed as an REO on the market which will give them more access anyway.

You also want to check if there are any other liens on the property on top of the mortgage owed. The upset value can include tax liens, IRS liens, etc. Some counties disclose all they know and some have no info so title will need to get that info for you if you really want to bid because with that spread, there isn't much room to work if you are going to renovate it.

One thing to note for you. 99% of real estate agents don't understand the true investor's perspective so the advice you are getting could be skewed, especially since you are new to REI. It's not just about the rents. If they haven't worked with investors, they won't know how to help you assess the rehab costs and as has been said above, rehab costs on 1900s multis can provide some surprises for you. Knob and tube wiring, asbestos, clay plumbing lines, abandoned underground oil tanks, mold. Only an agent who is an investor and works with them can help you find these unseen issues. If you don't find them your first investment will not earn you what you think when you first chart it out.

And if you are just starting out, you want to stick to a two-family to start with. You want to evaluate who is renting in the area. Is it in a good school district, one that families will rent in for the schools, or is public transportation to somewhere important as well. Being a first-time landlord is never what people think it will be so you want to limit your personal exposure by not over-buying on units to start.

An agent's relationship with you should never end after the home has closed, but I am more concerned that you are saying she said the relationship ended after a contract is signed. The agent should be helping you with inspection and the entire process until closed. There should be no certificate of occupancy issues pending after closing. In NJ, the CO must be obtained by the seller prior to closing.

Also, it is unlikely that a brokerage would be ok with an agent soliciting business as pay-per-play scenario as a consultant when many of the things they are consulting on are included in being a good agent and developing a lifelong relationship with you, the client. Good agents never ask you for more money for anything, they get paid via commission. Finding you a good handyman or plumber is setting themselves up to be your contact for the future so that when you are ready to sell, they are still there for you. Any agent who tells you the relationship ends at closing won't be an agent by next year.

Their coaches are trained to hold you accountable in any market and the general strategies won't change much between the U.S. and Canada and really anywhere. I would give him a chance and not worry about where he is, what his background is, and how much he has sold because as long as he can get you moving ahead on your own, you won't care about any of that later. If you find it's not working out, they will definitely reassign you. Think about NBA coaches who never played. They can still be great coaches although many would think they couldn't.

I think for real estate agents coaching can be helpful to springboard your business, but for investing it's very market-specific and personality-driven. I'm not saying REI coaching won't help, but the truth is that you can find most of what you need in these forums or by networking with local investors. All of us at one time tagged along with someone else and learned a ton that way. Most coaching systems are built for general theory and computation and REI is all about knowing your market inside and out and having the connections in it to find deals and close them. If you do need accountability you could find some newer local investors and hold each other accountable. But just like Russell above, I personally know Brentin and he is a very good guy who you could learn from. I'm just not an advocate of REI coaching as a systematic approach.

I agree 100% with @Russell Brazil. Any seller who gives you a 30-day sale window and knows you aren't even in the area is just wasting your time and his or hers. Also, any seller who has completed a flip and does not want to sell on the MLS is nuts. They will make WAY less off-market when a property is done. That is the exact time you go on-market. Not much of this makes sense. I would send a termination and wash your hands of it. This is NOT the type of first listing you want. Your best bet would be to convince him to use a local agent and send it to that agent to run and take a 25% referral.

In my experience, the only way to "prove" to an appraiser that they came in too low is to provide comps that support the value you think it's worth. If you have a friend who is an agent they may be able to find comps that support your anticipated value. Appraisers run a pretty strict formula so you need to show how they missed something or like Tim said above, find the value add that they missed in their appraisal.

@Mark F. awesome. I will keep this linked and start to organize another one. My meetups are a little different. They are really only for investors but may be sponsored by one or two providers. I've gone to a lot of meetups where it's half providers or lenders or etc. and I like to connect direct with investors and take out all the "use me as your agent" or "I can provide X on hard money" so that investors can see where the deals are working and so new investors can learn and network safely. Those may be great events, too though. The more, the better.

I have arranged meetups in the past and would be happy to do so again in Essex County to pull from Essex, Bergen, Union, Passaic, and Morris Co. investors. I agree with many posts above that there are substantial deals in Orange and East Orange for multi-options, but they aren't easy deals. Multis in Northern NJ are getting TONS of bids as so many people are looking to house hack so on-market options end up pushing prices too high a lot of the time. The most important thing in Northern NJ for multi investment, regardless of the town, is public transportation. If you want to increase your options for renters, you can do well by being as close to the train as possible. In towns like Bloomfield, near Watsessing is great, but prices have gotten high. I can work on a new meetup for November if people are interested.

I don't love the property management options in the area and I live here. I would not start using a company for just one multi. I would find someone local who is involved in real estate or management who wants a side job. Sometimes there are wholesalers who are VERY good with tenants who can manage one property for you and maybe more. Companies will charge you more and give your tenants less based on my experience in this area. Until I have several properties in one area, I wouldn't consider using a company because you will serve your tenants better with one person who will be available but of course that person must be reliable.