All Forum Posts by: Jonathan Greene

If you are looking for your first deal in three separate locations and using agents in each one and they know that, they will first ask are you looking to and do you have the means to close in all locations. Because if not, you are going to be wasting two of the agents time. As an agent, in order to be comfortable with out of state buyers, I want to see a proof of funds and also know your plan for properties. I also want to use something like UberConference to make sure we have a good idea of how we both work.

You are asking a lot of agents who don't know if you will do 10 deals with them if it works or if you are looking for the best deal with 3 realtors and when you find it, you will opt out of the other areas. Running comps is not simple if done right, especially for investors. You want to know block values, foreclosure prices, market prices, this all takes time so you need to show the agent if you are intending on making this a business and how you are going to do it. Automated comps are not comps.

Any agent can put you on an MLS drip every morning, that's basic. In terms of all lowball offers, you have a much better chance of finding an agent to do this where you live. Being out of state and expecting an agent who you have never done a deal with to look at the properties for you, do all the comps, assess everything and then basically be responsible for your purchase, all tied in with low-ball offers is going to be very hard.

I hope this helps.

@Cody Jensen, unfortunately, you have just dealt with the 90% of realtors who are just looking for a quick sale and don't want to do anything for it. Of the 10% of good agents left, 99% of those agents don't understand investors and how they work. In their defense, there are plenty of "investors" who give agents the runaround, use them for information and then find a way to buy without them so it's not all unfounded. The best thing to do is to do the research for investor-friendly agents in the area and then quiz them about what they know about investment properties. I would not recommend calling the listing agent on any deals. The listing agent must always keep the seller first in mind and even in the case of dual agency (both sides), the seller is their priority because the seller pays the entire commission. I would be happy to help find you a referral in the areas you are looking if you need it.

@Dylan Wang , all of those towns for multi-family homes are constant bidding wars. Even in Belleville, I have had buyers lose out on 15 offers on a small multi. Everyone wants them. Montclair, Glen Ridge, Maplewood and South Orange for multis you will overpay to get them and the rent plus taxes will not provide an annual return worthy of the spend although the ultimate value will rise on a hold over time.

It depends on your price point and your neighborhood preference where to look. I like West Orange because there is more inventory, but the multis go fast there as well. Close to the train in Orange in East Orange will provide a return over time, but many properties need some fixing to get up to the right rent roll.

Welcome to Bigger Pockets @Emmanuel Lopez . Happy to connect with you.

@Conor S. congrats on your first foray into the multi game. As @Darren Sager said, say little. Don't give them an opening to tell you all about the prior landlord and the issues. Establish a business-like approach right away, shake hands, get their full info and set a time to do a condition report of each unit. Don't overwhelm them in the beginning, they will all be scared they are getting evicted (since one is).

@Michael S. there is good advice above. Never work with a tenant to determine rent. Find a local agent who can determine fair market value for comparable rented units in your area and make that the rent. If he has been there for six years he is surely renting under value so you will need to up the rent.

As said above, don't open the door to upgrades. Tell him you need to take a condition report of the unit at the time of the new lease and walk every inch of the property taking notes. If you do like him as a tenant, do repairs that you see fit that were neglected over time, which is common when taking over a duplex rental.

There are standard lease application forms and a standard lease. Just PM me and I can send you a copy of both, no problem.

@Francesco G. , yes - as long as the LLC has been in existence for two years with tax returns. PM me if you need the info on one of those lenders.

@Hubert Sarfo, they can just run the tax record to see who owns it and then will likely get overflow mail sometimes so it won't be hard to figure out. To buy with an LLC with a mortgage you would need 2 years of tax returns flowing through the entity. It may be possible to offload to a formed LLC after, but you would need to consult an accountant to determine if that can be done.

Welcome to the game @Hubert Sarfo . It sounds like you have a solid gameplan, but you have to be very cautious with what you buy as a first-timer. Have you ever done any rehab work on a home? If you are looking for a 3-family you will be doing it all day and night, especially if they know you live there. You won't be able to form an LLC and use a mortgage so the tenants will know you are the landlord and they will be knocking on your door. Be prepared for this. Happy to help with any other guidance.

@Andy Rivera , in North Jersey it is usually set up so the renter pays the realtor fee. If you want the highest level of vetted tenants and less worry, find an agent who knows how to market a rental property and get you many options to choose from. If a renter can pay 1.5 mo security, 1 mo rent and 1 mo realtor fee (split between listing agent and renting agent) then you know they have decent money in the bank.

Too many investors rent to friends or go to Craigslist or try to vet the tenant themselves without the use of sites like NTN. You need to know everything about someone you are renting to and a standard rental application will give you information that you can verify. You must have a proper application and lease to even think about starting your career as a landlord and when you use an agent who is experienced in managing the offer process, you should have multiple qualified tenants to choose from.

Once decided, you need to go through the lease with the tenant, in person, line by line, if you plan on being the person they call for anything that goes on.