All Forum Posts by: Louis L.

Connecting with new people amid the pandemic has been tougher. Does anyone know of active real estate investor meetups or local groups in North Jersey?

I've specifically been looking to connect with wholesalers. However, getting to know other local investors is also always great.

Any local info will be appreciated!

I would also consider the fact that the tenants probably speak to one another, so I would be careful in doing anything to some and not others. As a business decision, raising all to market rent sounds nice, but you may find yourself with an empty building if you push it too far. I'd increase them all to a degree, but the actual amount would reflect how long they've lived there, whether they're a tenant that has a lease etc. 

Also, I once had this issue where tenants subletted to new occupants before I bought a property and they wanted their security deposits back, which was a strain/problem to deal with. 

All in all, I think it's a balance of being fair to the tenants as a group as well as making them understand that you have to pay your bills as well, and they have to abide by it so you can run your business.

I think each state has different laws about bed bugs and how landlords have to deal with them. I had a bed bug issue like this too. all in all, you can't prove who brought them in and in the end it's your responsibility to make the unit habitable. so, while it definitely pricey I'd say it falls on you to foot the bill. if you do want to go after the old tenant, I would probably say to barter by taking 30% of the deposit, but again if you dont know who it is it's hard to make a case to do so.

Marlow - these are the perfect questions to start out with, I'll share my experience as an owner. Some responses though I do believe depend on the investor strategy as well as market type (luxury, working class or somewhere in between)

4 unit and less multifamily, and especially duplexes tend to use sale comparable, so forcing rent say 20% might be great for cash flow but may not actually affect your appraisal and potential sale value all that much. For example, I might put in new floors in my basement rental, add a washer dryer in each unit, and install other new cosmetic upgrades, which might get me 200 to 400 bucks more a month in rent (worth it here in jersey city) but my appraisal will probably not be significantly higher if I requested another.

Now, if I legally added a bathroom or bedroom, put an addition on a house, converted a garage into livable space, ripped out all the outdated utility infrastructure or other improvement like that (things that inspectors and appraisers work with on their reports) this would definitely add value. but...it all does come down to comps. its a tricky game im still trying to figure out myself as someone prepping to flip/improve a rental for my next deal.

Regarding cash flow increases, you could potentially rent out parking spaces or a garage if you have them available. The other option I think is obvious to refinance if you have a favorable potential gain from doing so. Another way I have increased my cash flow on a property is renting out by the room, where 2 or potentially 3 tenants live communally in one apartment. This also decreases non-payment risk, but can on the flip side add to headache if they don't get along at some point. Secondly, related to the prior strategy, I have increased cash flow on that same property of mine is renting out a bonus room to one tenant exclusively, which they utilized for an office space. 

I hope some of this helps, and I'd be glad to learn of other individuals ways of increasing their cash flow!

Justin - The no and low money down book is pretty fantastic and easily digestible - even gives some good tips. you dont learn in real estate school. Firstly though, I'd make the top priority be increasing your credit, at least to a score above 600 to start, with an end-target of 700+ or even 750+, which will always keep you in good shape in the eyes of any lender, hard money or bank.

If you analyze the refi stats at the 10-year mark, accounting for inflation and assuming a conservative interest rate, does that refi situation make sense in the eyes of the bank? Are you worried the appraisal is going to be significantly lower than the requested loan amount? IJ'd be interested to hear some more detail on this :)

Thanks Canesha! Yes I think that's quite wise to kind of drive around and check out what's happening. Although it can seem a little nosey from the perspective of the guys working on the site, I think with good intent it would work!

Hey everyone! As a possibility for my next career step, I'm thinking it would be a great experience to work with a small developer that either flips multifamily structures or builds ground-up smaller residential buildings. I've done one deal on my own as of now as a buy and hold, and I have one degree in engineering and another in real estate development. I think it's probably best to gain some more real-world local experience with rehab/construction before undertaking a project like this of my own. 

So, I'm looking for some advice about the best way to identify some of these local smaller developers (I live in NYC) to find out if they're open to hiring me to join their team. Where does one find these people? Or perhaps a better question, what steps should I take to get into the circles of such individuals?

Any advice or suggested new perspectives will surely be appreciated!

Hi there Hubert. I did my first house hack in Jersey City, and had similar questions. I'd firstly ask your agent about the best lenders, since they typically have a bunch they can list from past transactions off the. top of their head. Then you can call them up individually and ask about specific requirements.I would think based on that credit score that you shouldn't have an issue getting an FHA loan with a w-2 job.

I must say the FHA process was a breeze. I was one of those who had to make a few repairs for the inspector, but even with that things went well.

Definitely shop around with lenders, too. just because you find one that seems great, you never know if there could be better terms available by calling a couple more. If you have any other questions with FHA stuff, I'd gladly help.

Without a doubt, I look for assertiveness. I credit part of the success of my first deal to my real estate agent, who was never afraid to call up a colleague to ask about what new properties just hit the market and not afraid to consistently follow up with a seller after an offer was put in. Being assertive and clear is definitely one of the best qualities an agent can have.