All Forum Posts by: Justin Sofman

Hey all, I live in Rutherford, NJ and am looking to get plugged in to some networking meetings.  I have all my $ tied up at the moment in a rehab for my first multi family purchase but I'd like to buy another property in 2022.  Maybe seller financing.  Need to figure it out.  Anyway - networking could possibly help my cause!  Plus, I don't know what I don't know and would love to connect with likeminded people.

Any recommendations?

Appreciate it.

-Justin

Hey BiggerPockets Fam, 

I picked a tough time to get into real estate. I've got a big fat 0 properties. Only been looking to make a purchase as of this year and it is not going great. I've put maybe 5 offers in and have not won any, and they'd be base hit deals (I realize 5 is not a lot). As time goes on and my bonus checks pile up, I start to question, should I just save $120k and purchase a fixer upper SF outright, and then BRRRR it? I'm looking to purchase in a market where that is possible.

It feels like I'm not even close to winning bids on SF houses where the #s barely make sense, and forget multis as there is a lack of inventory. If I convert in going the conventional mortgage route, I would be parting with a lot of my $. The closer I get to $100+ savings, and the more offers I lose, the more enticing it is to try my hand at a legit BRRRR. Just to be clear, the play here is to purchase a fixer upper for say $100k cash, put $20k into it, have it appraise for $150k, and then take out a traditional 80/20% loan. That way I can recoup all of my money and leave no cash in the deal. This is a perfect world scenario, but do you get the gist? I'd get the loan for $120k, the full amount I put into the deal.

What's the polling here folks? On one hand I can be persistent, make a base hit purchase... maybe, and gain some experience. On the other, I could wait out this super tough market, save some $, and try my hand at a BRRRR where I'd recoup some or all of my $ right away. I'm hearing this market is here to stay though. Ahhhh.

Thoughts?

-Justin

@Jonathan Greene you said it with that last sentence! Gotta work with what we’ve got.

@Jonathan Greene Hey, thanks for the tips. Good stuff. Interesting that you say Philly because as of today I became interested in Lehigh county in PA. Noticed that the numbers work very well. Properties with the 1% rule seem easy ish to come by. I also took a look at Philly and it seems to be the same. Any familiarity with Lehigh county? Heard Bethlehem in that county is a pretty solid place to live. What’s your take on why Philly is a good place to look?

@Nick Riccio - FHA 203k loan is the plan. Thanks for the tip.

@Jeffrey Donis - reonomy.com, got it!  That's what I was looking for.  Will incorporate this into my lead gen strategy.  RE is a #s game for sure and must keep that in mind when facing multiple rejections. Thank you. 

@Jason N. - Great stuff, thank you. Will check these places out. As a novice I would prefer to find something on the MLS but am realizing this may not be an options if I want the #s to work. Off market may in fact be where I find the deal.

@David Smith - As mentioned, I'm new to the game but from what I'm being told, it's pretty pretty hot.  Good time to sell, yes.  Was interested in a duplex for $435k and it was bid up to $475k.  

Thanks all!

-Justin

@Gaetano Ciambriello good call. When you break it down like that it makes perfect sense.

@Gaetano Ciambriello Hey, thanks for the reply. What is the reasoning behind that? Haven’t heard that.

Thanks,

Justin

Hey BiggerPockets community! Here's the scenario: I just got my Real Estate license purely to educate myself and use for investment purposes. I listen to BiggerPockets podcast, run numbers, read, search various sites for properties, and am taking steps to action what I've learned. My goal is to put 5% down with an FHA on a multi family house hack. Hoping to renovate and boost ARV.

That being said, I'm a novice.  I'm finding that it's super competitive in northern NJ, namely, in Hudson County.  As soon as a multi family is listed, it's under contract.  I'm hoping to get some tips to increase win probability.  

-How can I target off market multi family properties so I can contact them to see if they want to sell.  Is there a database/list?  Do I have to pay for that? 

-Is this market too hot to compete as a first time (investor) home buyer?  Interest rates are bringing the big dogs over from NYC and they're snatching up the multi fams where the #s make sense w/ cash or a big down payment.  If you've run #s on NJ properties, it's tough to make them make sense from an investment standpoint.

-How can I compete?  I need a property within commuter distance to mid-town Manhattan for my job. 

Any insight is greatly appreciated!!  

Thanks, 

-Justin