All Forum Posts by: Mergim Gjyriqi

Thanks for giving me some insight. I was leaning towards declining the deal even before writing the post but I figured it’d be smart to seek more advice.

Regarding the car loans. He would be charging 5% on $5,000 or more …. And 10% on $4,999 or less.

Profit per car is about $2,000 on average with about 5 cars sold per month

I give him his principal Loan back with no interest.

Hello everyone reading this, I have a potential first deal that I would like to run by you. I own a car dealership and the person I rent from has come to me with a real estate deal. It is a two family home in NJ costing about $380,000 total including closing costs etc. he found the deal privately through one of his workers parents who want to sell their home. This home is worth about $450,000 today so we would be buying at a discount. The plan would be to hold the property and use it as rental income.

Now here is where it gets interesting. To get the deal done, we would need $150,000 down. We would use a 30 year mortgage at 4%. Gross rent is $3,900. There is also a finished basement that is not currently being utilized so there is potential there as well. Taxes are $9,000 for the year. 

1,200 mortgage
746 taxes
120 insurance
120 maintenance
————————-
26,232 annual expenses

.

.

.

2 bedroom $1,700

3 bedroom $2,000

Garage $200

—————

$46,800 annual income

Cash flow should be about $1,500 conservatively per month

Hopefully you’re still reading …. Now, his idea to get the deal done is that he takes care of securing the deal, securing the mortgage (I would not be able to get a mortgage since I am 23 years old & not enough “working experience” for a loan), he also found the deal. My portion of the deal is that I put the $150,000 down for the property and I’m in. This would be my first property. This will be his 50th property.

I put the $150,000 down and then I would receive all the cash flow from the property and he will loan me money if I need for my car dealership and will not charge me interest until the profit from his money on my cars plus the cash flow equals $75,000. Then after this, we split everything 50/50 and he begins charging interest on the money for the cars at the dealership business if I need his money.

That was a lot of info & a lot of moving parts to this deal. This being my first potential deal, I’m all over the place so I’m not sure what to think and can use some advice! Thanks for reading and trying to keep track. Let me know if there’s any questions that I might’ve left out.

@Brock Mogensen Interesting. Even in NJ, with the competition & taxes, you think around $10,000 would be enough for a FHA loan?

@Mergim Gjyriqi we are located in New Jersey

Me and a couple of my buddies were thinking about investing into RE. The subject of what if you had $10,000, how would you invest it/ what would be your next step. Thought it would be interesting to ask this question on the forum!

@Charles Carillo thank you for the advice. I’ll look into wholesaling, I’m not familiar with this at all so I’ll do some researching. I appreciate the reply.

Hey everyone, my name is mergim and I am a 21 year old Rutgers college student. I’ve owned a power washing company for two years now and I have used my profits to pay for school these past three years. I have no debt but this year I am looking to use my finances to invest into real estate. The problem is I will not have enough money to pay for school as well as investing into real estate in New Jersey or even out of state. I have about $10,000 now but according to the numbers, I should have $20,000 when the summer is over. I am looking for some guidance as to how I should go about using my money. Thanks for taking the time to read my post!!