All Forum Posts by: Jonathan Greene

@Nick Cucci if you are using companies to purchase from and property manage, there is already a built-in conflict to me, especially in another state. Did you view these in person at any time? I am personally not an advocate for out-of-state REI on your first few deals. I feel like you need to be able to see the properties and interact with them and the property managers to get your money out of it. I feel like if the money you are paying to these companies is audited, you are probably losing a lot more money than you should be.

If you are looking for high quality, I recommend Wyanoke Builders in Montclair. They will GC the whole thing but may be a bit more expensive. It really depends on how much work you want to do on a project @Anthony Hidalgo . I know of some smaller outfits as well.

@Su Soma, I have several clients who go every week and bid. What @Account Closed said is spot on for the cashier's check to bring. The starting bids are below the upset when they upset is super high, but when the upset is low, the starting bids are higher. There is no $100 start price and many properties that are on the list do not make it.

Buying at the sheriff's sales is a must-research endeavor. You must know the block values, home values, area comps and you must assess the rehab from the outside only. You need to know the top out flip value for a flip and the rental income potential for a hold.

The final list is posted at 1 pm and usually the auction begins at 1:30. I hope this helps.

@Lamar George , it's illegal to contact a seller before the home actually expires, but there are agents who do that. You can't make the inquiry until it's expired on the MLS and that is why people get bombarded on that day.

Those taxes are realistic in Essex, but your rents should be much higher. Multi-family rents will run higher than condos, with proper upkeep of the units. You can certainly do well with multi-units in Essex, especially if you can rehab and grab some in East Orange or Orange. Your rent spread back will be much better there than Bloomfield, where your taxes will be higher. Train access is a must in Essex to get the best rents.

My pleasure @Walmsley Gedeon. 

@Account Closed. He is a colleague of mine and works the Central Florida area. He understands the investor game and can help. PM me for his contact info.

@Jessica Zolotorofe - I work the multi-family market a lot and the influx of investors looking to buy multi-family homes has increased a TON in the last year. This is not just new development, but existing structures are selling way over asking price. I think there are a couple reasons for this:

1. Buy and hold investors in our areas of NJ can make income and then a profit on even a shorter hold than before because of the demand. This is party based on NY transit lines out our way, as well as the comparative value of living in a more "homey" environment of a multi-family than a condo or apartment building (also often more pet friendly with backyard access).

2. The multi-family investor market has been flooded with owner/occupiers who see house hacking as a viable alternative/income producer.

3. The first-time buyer is persuaded by the higher pre-approval with the thought of income in return, but unfortunately, this is producing a lot of unprepared landlords who don't realize they pay 1.5x the price for 1/2 the space (if they live in half) and 2x the responsibilities.

I don't think it's oversaturated, but because SO many NYC people and investors are looking to invest on the train lines in NJ, there is possibly an overestimation of many of the true values of multi-units in my market and nearby.

@Erez Friedlander , no, of course no GFE with cash, but at least request a modified closing costs version from your title company/attorney relationship involved.