All Forum Posts by: Mark Gee

@Bill Gulley 

Hi Bill   - I've been combing over BP threads about this matter for a couple of hours and I really like your response above. My question is this, I'm in a situation where an assignment fee is a non-starter. I have a seller and I have a buyer. I'm not a consultant, totally agree that is problematic. However, to some degree, I AM a marketer and that's how I found the seller. In your opinion, do you find being paid as a marketing freelancer problematic? Obviously, I'm not asking for legal advice... just your opinion b/c I know you have a great deal of experience. Thanks!

 Hi @Bill Gulley   - I've been combing over BP threads about this matter for a couple of hours and I really like your response above.  My question is this, I'm in a situation where an assignment fee is a non-starter.  I have a seller and I have a buyer.  I'm not a consultant, totally agree that is problematic.  However, to some degree, I AM a marketer and that's how I found the seller.  In your opinion, do you find being paid as a marketing freelancer problematic?  Obviously, I'm not asking for legal advice... just your opinion b/c I know you have a great deal of experience.  Thanks!

I'm purchasing a property (land) for $540k in Monmouth County NJ.  The seller will not agree to any contract with a assignment fee and any discussion of the matter is a deal breaker.  I'm trying to think of creative ways to proceed with the deal without having to close on the purchase myself and then sell it to the ultimate buyer. For sure, a double closing is one solution, BUT is there any other creative solutions??  Thanks very much All.  

Good morning @John Hamilton. I'd want to my $100k to grow into $300k and set that as my goal within 24-36 months. Put it in my journal and see that goal every morning. I'd be inclined to do it as quickly and safely as possible.  For me, that would mean value add rentals.  So for easy math I'd purchase and control 2 properties with about 40-45k invested in each.  The remainder (along with some credit cards or other private money if needed) would be used for a very timely rehab and rent.  I would make sure I had a few hours a day to keep both projects moving along and contractors on pace. Bonus if its a contractor I've worked with in the past and know how they operate. I would do very little manual labor myself and just focus on the project management.  These value add deals would mostly involve cleaning, painting, repairing a few leaks, new appliances and carpet.  Nothing major.  Possibly a couple new windows.  They would be in good areas where homes are selling in less than 90 days.

The rents would bring in >12% return. After 1 year, I would 1031 exchange those properties for another set of similar, more expensive value add rentals. The money is really made upfront, so the discount to ARV should be substantial with more than 1 comp to back it up. I like at least a 30% discount (including rehab costs). Use the BP calculators to discern what makes sense and not lose sight of holding costs. Be conservative and find winners by running as many properties through your filter as possible.

There are some great replies here and some good wisdom shared, but @Matt Nettles can you share more information about the numbers.  [Solicitation Removed by Moderators] But 28-unit complexes, off-market in a strong market are not easy to come by.  

Hi @Wallace Zhen, you are located in a great town, but I agree that 100-200k doesn't go very far there.  I'd look at markets in the Southeast US, where there's a good amount of migration and job growth.   Atlanta metro, Nashville, and Lexington come to mind as strong markets, but there are dozens of strong metro's, and submarkets on those metros that fit your terms above.   Let me know what you find out!  Would love to work with another Hobokenite.

Hey @Kazi Islam  NJ is a great place to invest and I have been doing so for more than a decade.  I've found Monmouth County to be the best location for finding value with high rents.  I have an agent who's very good at finding these deals and has helped me reach 40 units to date.  DM for details.  

What is the criteria you are look for presently? Perhaps a return metric you are focused on?

Cheers.

Hi @Derrick Machado   I'm a buyer in Monmouth County so please share some properties with me.  Generally, I look for minimal rehabs, no development properties that need TLC and competent management.  Good luck on your journey!

I've finally expanded outside my home state of NJ and am in the process of buying two townhomes in Lancaster County PA, specifically West Hempfield.  The properties are both vacant and located in what I would describe as a C area.  We'll be doing a light/medium rehab with a local management company: cleaning, new flooring, paint, lighting, replacing decking.  There is a large amount on deferred maintenance in each unit.  Currently working with American Heritage Properties but I'm interested in exploring other possibilities as well. I'd like to work with someone who has good experience turning units and knows the area well.

Any input from locals would be appreciated.  Thanks!

Hi @Pearly Tan I've been working in Hoboken for about 15 years and its' a very tricky town to do business in. I hope your MIL sees your side of the argument because I've seen things go very wrong as 2 year timelines tend to double,,, especially if you make a mistake with drawings/permitting.

Another issue is there is a surplus of rental supply currently and rents have been steadily coming down in JC/Hoboken last 6 months or so.

Best of luck!