All Forum Posts by: Jonathan Greene

@Erez Friedlander - estimate closing costs at around 3%. I have seen it get closer to 4% in certain instances, but 3% should prepare you safely. Just make sure to get a GFE as far in advance as possible so you are clear on the costs and so there are no surprises down the road.

@Maria Palma - the foreclosure market where I am in NJ is hot right now. I work with several investors who buy at the sheriff's sales each week, but the only way to buy foreclosures and make money is to have someone who can do the research, assess the block value and balance that against the potential out price on the other end to see if it's worth it. Bloomfield, NJ is very hot right now, but we are also finding value in many of the surrounding towns. You do have to flip quickly here because the taxes are high. Let me know what other information I can provide you.

Expireds are not a valid investment opportunity in most cases and as said above, you must partner with a local real estate agent to get you access. You have to let them do the work for you to get in the door. Homes expire for three reasons:

1. priced too high (aka seller is unreasonable)

2. upkeep of the home does not match the price point (aka too much work for the money)

3. access was limited by the owner or tenant (aka invisible)

If you look at the three notes in parentheses, these all do not bode well for an investor looking to swoop in and buy at 60-70%. One more very important note about expired sellers - they get called incessantly by real estate agents the day it expires so they often take a break from selling. 3 months later they are ripe, but still not so much for investors.

Hi @Maria Palma . My sister and I have four properties in the Carlsbad/Encinitas area, but they are all single family investment properties. I have also found the buy-in high around there, but we generally hold and rent for 3 years, then sell and have done well with that strategy in those areas. Happy to put you in touch with some colleagues in the area who have helped us.

I agree with @Darren Sager 100%. Newark is not the place for your first investment property. The Essex County Sheriff's Sales every week are very heavy on Newark and Irvington, but they are best flipped by experienced investors who know the processes in these towns because, as many have said, the values fluctuate on a block-by-block basis. A lot of first-time investors are looking in Bloomfield (great train access), but the taxes are high and the players in the game are vast. I like Orange and East Orange for first-time flip opportunities because you can get in at a good price, do a clean, lower cost renovation, and get out ok on the other end.

@Stephen Settanni - if this is going to be your first foray into real estate investment, it should NOT be that far away. It should be in your backyard so you can manage the investment instead of paying someone else to do it. Even if you are looking for a buy and hold investment, making your first outside of an easy commute will lead to excess expenses and issues that you won't be able to resolve with your eyes. You will always have to rely on someone else as to what is actually happening. Invest, just not in Raleigh right now.

@Account Closed - my son is in 10th grade and he is getting his license when he is old enough. I don't know what he will do with it either, but it's a great platform for learning about real estate investment, networking, and understanding the ins and outs of transactions from another viewpoint. I hope he comes to work on my team one day, but not until he has tried other things that he wants to do first. I hope that helps.

Homepath has the First Look period just for owner/occupants, but they definitely prefer an owner/occupant even after the First Look period ends. It is not uncommon to not hear much from the agent or only receive your notifications online. Homepath is set up so the agent doesn't make much money and therefore doesn't end up doing a lot. I had a client get very far with one, with no issues, but we found an underground oil tank and they would not remove it so we canceled. Homepath is not ideal for investors trying to buy.

@Michael Imperiale - if your house is priced lower than any other house in the neighborhood and is still not selling, there have to be some things about the home that aren't working. Homes don't sell for two reasons - priced too high, issues with the home. And if your market has a lot for sale (I lived in FL for 14 years and was just leaving when the bottom dropped out), there is no reason to hold this property any longer. Drop the price, cut your losses and invest this money in a better property.