All Forum Posts by: Moshe Eisenberg

Hi guys,

I'm in contract on a property in North Jersey. I have done several deals with hard money lenders, and partners. I would like to do this deal with private lenders. If there are good private lenders who would be interested in a great return and some equity in the deal please contact me. 

Thank you!

Moshe Eisenberg

Valley View Equities 

845-222-9224

Thanks Sandy Salazar

Hi guys, I own a 3 unit under my LLC free and clear. I would like to use the equity to buy another property. What would you recommend as my best option? 1- Can I take out like a HELOC on an investment property? 2- Someone mentioned to me that you can't get a mortgage on a property owned by an LLC, and it needs to be owned under a personal name for 6 months before getting a mortgage. What's that all about? Any advice on this would be greatly appreciated. P.s. Please tag my name in your response. For some reason I only get notifications when a reply has my name mentioned in it. Thanks!

@Robert Lozzi thanks for the input. Where do I even check for these state rebates in nj?

The following is a quick guide on how to deal with underground oils tanks "before giving a deposit" on a property. 1- The day you see a deal looks like it's a deal for you, order an oil tank sweep (which in north jersey costs around $200). Should be able to get it done within a day or so. 2- If there is no tank good. If there is an underground oil tank, you will need to address it by either # 4 or 5, if you don't have luck with # 3. 3- Check in the local building department if the previous owner took out permits to properly decommission the oil tank. If yes get the paperwork from them. You will give these docs to the lender and to the future buyer. 4- Order Soil Borings and testing. (In north jersey It costs around $550) it takes about a week to get the results back from lab. If results are clean great. If not, do not touch the deal. No one can predict how much it will cost to remediate the soil. 5- Have the oil tank removed. Preferably have the current owner agree to have it removed before closing (the "lender requirement" excuse usually works well). You might wanna offer to pay up to a few thousand dollars to pay for the tank removal. Bank owned properties usually don't agree to this so in order to do this you will need to be creative... If while removing tank you discover contamination walk away from the deal. If it's clean go ahead. This is based on my experience. I would love to hear if anyone has any comments or suggestions. Moshe

Hi guys, I need some advice on a deal in looking at. I'm considering to buy a fixer upper. There was a fire in the house at the entranceway. I would like to inspect the utilities and the electrical before closing on the property but it's all shut off. Does anyone know if I can have the utilities turned on so I can have it tested and inspected. Would PSE&G turn on the electrical in a house after a fire? Perhaps I need a licensed electrician guide me, possibly requesting help from the building department. Any help and advice would be greatly appreciated. Moshe

I would like to share some exciting news. I closed on 2 properties today in north jersey. Both are flips. We'll be doing cosmetic rehab and sell them. I would like to express my deepest appreciation the BP folks, both for the podcasts and the forums. Thanks to BP I have been able to go from just a desire to get into real estate to actually take action and do deals. I wish I found out about BP a few years earlier. I'll try to update when we sell the properties and make the profit.

Hope everyone is having the best time ever. I would like to share a thought I had about the trifecta to look for when hiring a good GC for your flips; Quality work; get the job done in your time frame and within budget. 1st, I once heard on 1 of the BP podcasts (sorry I don't remember who it was on which #) that you can find those that excel in 2, aspects and the 3rd is "okay", but you will rarely find a GC that specializes in all the aspects. So you will have to decide which ones are most important to you. I have been thinking about this and I think that Price is probably what most people look at when making a decision. After all that effects the bottom line and we are in this to make the most profit. But what if I told you that even if a GC overcharges you 15%! (On a 50k rehab that's $7,500 out of your pocket!) if that GC has experience and he excels in Speed it might make your deals more profitable, looking at your annual ROI. A simple example: you buy a 100k property, rehab for 50k, you sell the property for 200k. Your net profit is 30k. So your thinking if you can get a cheaper GC for 15% less you can make 37,500! That's better. No? Maybe. But if the more expensive GC will get the job done in 2 months instead of 3 months and that's to that the duration is the deal will be 5 months instead of 6 months look what will happen. Let's assume you put in 60k of your own cash and had the rest of the cost from a lender on 12-18%. If you make net profit 30k in 6 months that's a 100% annual ROI. If thanks yo your expensive GC your deal takes you only 5 months in total, your ROI will be around 125% annual ROI. And that's besides the savings on carrying costs for the time saved. (Of course you can adjust to your numbers but the formula is basically the same). Of course this is all good if the more expensive GC can deliver a quicker and still a quality job. But based on the little experience I have that was the case. So to sum it up. Speed could possibly overweigh Low Price. (I hope my contractors don't read this and hike their prices on me ;-) Let me know your thoughts on it. Moshe

@Steve Vaughan I mentioned in my post that I have been looking into it and it does sound like the best strategy but I'm hoping to hear from flippers in nj that already have it and is working out for them. Thanks for your input. 

Thanks Rob Beland that makes a lot of sense.