All Forum Posts by: Jonathan Steingraber

Hi everyone! I invest in Union/Middlesex/Somerset Counties. I do mostly full gut renovations and recently I'm working on single family new builds.  I am typically working on 5-8 rehabs at any given time. I'm currently renovating a 15,000 square mansion in a historical district of Plainfield, have 2 houses listed that I had renovated, 1 commercial deal under contract and 3 single families in renovation.  I'm also working on subdividing a double-lot in Westfield and building two new constructions homes.

 I'm a licensed realtor in NJ & CA and soon to be in NY.  I also own multi-family properties that cash flow.  I've invested a lot of money, time and energy into my education and in my business.  I started out back in 2007.  I'm 30 years old now and have been working smart and hard for almost 10 years now in the real estate business.  I didn't take the traditional college degree route, instead I jumped right into real estate and I got mentoring from some of the top investors in the country.  I am very grateful for them and for all the opportunities that the real estate business offers us.

Back in March of 2008 I started a real estate club called The NJ Real Estate Social Network. We've been having live meetings every 2nd Wednesday of the month since then.  About 200 of us get together on a monthly basis at The Westwood in Garwood NJ (Union County) from 6-10pm.  If you're interested in being part of our awesome community visit NJRESN.com.  Our theme is "SEEK TO SERVE".  We believe in helping one another vs being competition.  There is enough money and deals to go around for everyone.  

I believe anyone can do this business if they put their mind to it, they focus and surround themselves with the right people.  I wasn't brought up in a household of entrepreneurs or real estate investors. In fact, my parents rented their whole lives but I've learned it only takes one generation to build wealth and it can last for many generations if you pass down both a financial legacy and an educational one.  That is my intention. 

I look forward to this forum, thank you. 

I'd like to throw this out here to see if anyone has any input.  I have an opportunity to partner with a homeowner that has a house on a double-lot.  We have a very high chance of subdividing.  He has multiple cash offers on the table.  One is from a builder for $200k more than my offer but when I brought up the idea of partnering on the deal with him so he could make more money than just selling it outright he loved the idea.  So basically we would have a contract that allowed me to subdivide his lot, then knock down his house and build two houses and we would split the profit.  I've done a financial analysis and he will make $250k more by partnering rather than selling and it creates an opportunity for me to be able to do the deal vs losing out to a builder.  Has anyone ever done this before? What terms should I consider etc? Any ideas would be appreciated. Thanks.

Does anyone have a good experience with a local community bank to fund rehab deals and get lines of credit? If so, please share comments. Thanks in advance!

I'm going to try and keep this simple. I raise money at 8% interest no points for my deals. How? First off, because that's the expectation that I set. Think about it, how many people are out there that would just LOVE an 8% ROI on their money? Would you want a secure 8% ROI on your money if it was in a good deal with a 1st lien position and it was short term? Most people would. The first step is understanding that when you're "raising money" that you're actually "offering an opportunity" and you're helping people that otherwise wouldn't get a good ROI. If you're confident that you have a good deal, you should take the stand that you're not raising money but instead, you're offering an amazing opportunity! I give three hour presentations on "How to Raise Private Money" and when I ask the audience, "How many of you would love a 7-8% rate of return on your money secured by real-estate 80% of the room raises their hands! So engrain it into your mind that you are not asking for money, you're offering an opportunity to people. Obviously you have to present to them in a professional manner and know what the heck you're doing. If you don't, well, game over! Here are some steps to get started. Step 1) Develop your Business Model (Who is your ideal seller, buyer, neighborhoods, etc) Step 2) Build a Team (Leverage their experience, Realtor, Attorney, Contractors, Surveyor, Home Inspector, Environmental Contractor, Architect, Structural Engineer, Stage, Photographer, Title Company, etc) Step 3) Understand your market like the back of your hand (Have a Realtor set you up on HOT SHEETS so you get automatic listings sent to your inbox and you can start getting a pulse on the market) Step 3) Find a Deal (Package the deal and show supporting evidence that it's a good deal, get an appraisal if you have to) Include the following: Company Bio w/ your team members on it, Property Details, Property Tax Card, Scope of Work, Pictures/Video, Comparables, Financial Analysis, Due Diligence Items, and Contact Information. Step 4) Find Private Lender Prospects- Sphere of influence, networking events, ask for referrals, ask CPA, ask attorney, etc. Step 5) Present Opportunity (Take them out to breakfast, lunch or dinner at their favorite restaurant and get to know them, let them get to know you and then set up a follow up appointment to show them a house when you have it under contract) I used this packet and raised $150k from two lenders at 8% for this deal that I closed on last month in Feb. of 2015. Hope this helps you go out there and raise money for your deals! If you need hard money lenders to do a deal quick I know two great Hard Money Lenders too! http://GrandCoastCapital.com and http://www.AlphaFundingSolutions.com!

I recommend asking people that actually invested in the program. If you were buying a franchise, for example a subway, I don't think it would be a good idea to take advice from the local deli owners. The smart thing would be to find people that have already invested in their systems and ask them what they think. Ask a few of them. If you go to FBWINS.com they have hundreds of testimonials, me being one of them. It's good advice to take people out to lunch, go to your local REIA (I own one in NJ, ), and read books. I just don't agree that a few books and lunches is enough to really be educated on how to do this business at high level. I guess it all depends upon your goals but the best advice I could give you is to ask people that did it already not those that haven't. Also, always see if the people that are giving you advice are actually doing the business and how active they are. My site is [LINK TO PERSONAL SITE REMOVED] to get a glimpse of some of the stuff we've done. Good luck with everything and if you're ever in NJ stop by our club. It's every 2nd Wednesday of the month at 6-10pm at The Westwood at 438 North Ave in Garwood NJ 07027.