All Forum Posts by: Kevin Blanchard

Yes I can help. I worked be happy to look at your drawings

I would check around on this site for other articles. I specifically remember an attorney saying something to the effect that this executive order is most likely not valid because it interferes with a private contract between two people. I think there will be some lawsuits against the Governor for this very reason, but I don't really know how to handle the situation if it actually comes up. Best of luck.

@Tim Engler why take on the risk? You could always ask that it be delivered vacant. This may require you to pay more, but bad tenants are very risky. As the others have said, you can't evict right now and it will last for some time after the state of emergency is lifted. Even if COVID-19 wasn't affecting the situation it is difficult to evict in NJ and it is not a landlord friendly state. With that being said, you could take on the risk and try to get a good deal, them maybe offer them cash for their keys. Good luck.

@John Walter it will take about 3 months to close, and they need a whole bunch of information like bids and insurance from contractors. They also need to send out someone that will essentially be checking the construction work when you are ready for draws. They charge a few hundred per draw and this specialist person cost me $1,000 for an initial visit. They also come up with a rough budget. The company I used factored in a huge contingency (I think it was like 20%). I was able to get them to lower that to 15% (which I think is still high for what I was doing.) HUD just changed the rules so you would have to ask the person who is doing it for you a lot of questions. The money would go directly to the GC (unless you are doing the work, but they have certain criteria you need to pass). If you don't use all the construction money it goes to paying down you principle however your monthly amount will not change. For example you take out a loan of $150k for acquisition and $150k for construction, $300k total but only spend $100k on construction your total payments would still be on the $300k not the $250k you actually spent. There is a way that since you took $50k to pay down the principle that you can have them "adjust" the loan (I forget the proper terminology they use), but it's not guaranteed. Hope that helps some.

@Viktor Gadachek your best bet is to google map search local insurance companies and then to call 3 of them and get the rates directly from them. I havea few investment properties in northern new jersey and found that State Farm offered a good rate. I previously had Liberty Mutual. It is also a good idea to review your insurance every few years to ensure you continue to get the best rates.

@Robert Yarnell thanks for your service and good luck. Sounds like you are already off to the running.

Brag post ahead. This is my second deal I have done. The first being a value add long-term buy and hold. This second property that is a massive 3,760 4-bedroom 2.5 bathroom single family home that I recently purchased for $180,000. My total construction cost is estimated to be $140,000 and I estimate it will take approximately 4 months to complete and 2-3 months to sell. This will bring my total investment in the property to somewhere around $332,000. The ARV is approximately $440,000 and after closing cost my profit should be around $68,000. Onto the next one...

@Nicole Ramirez figure out your investing strategy. Do you want to wholesale, fix and and flip, note investing, buy and hold, etc. I have found that some of these investment strategies work better for others than they do me, so figure out which one suits you best. For example, if I didn't have a lot of money for a downpayment I would probably pursue wholesale deals. Or if I really want build my wealth up quickly I may look to fix and flip some properties. It really is individualized and whatever suits you now may not be the best strategy for you 1 year from now. Once you figure out what you want to do then identify a few markets you can do that strategy in. Then crush it!

@Daniel Colon it really depends on which neighborhood you are in. Like any city there are certain sections that aren’t the best. Greenville, Lincoln Park, Bergen-Lafayette, etc are not the best area

@Robert Delaney what do you have in mind? Also, are you asking ONLY about property management, or other aspects of real estate?