All Forum Posts by: Moshe Eisenberg

Hey guys,

Quick question. I wonder if anyone has some input on this. I'm looking at 2 rehab properties in north jersey. I discussed it with my hard money lender and he suggested I have both properties under 1 LLC. The real advantage I believe will be that I will be saving some closing cost etc. When I mentioned it my attorney he cautioned me that I (or rather my attorney) will have to put in a clause about what happens when I sell 1 property before the other... Some legal stuff which I'm glad I have a good attorney to make sureits all done right. On the other hand the benefit of having it in individual LLCs is probably for accounting purposes.

If anyone has any advice on this I would greatly appreciate it. 

@Matthew B. Sounds like a great deal to me. Good luck!

thanks @Crystal Smith that makes sense. 

Hey Guys,

I just went into contract on a rehab deal in Jersey City. It's a SFH. 3 Bed, 1.5 bath. The basic #s are 100k purchase price. Renovating cost around 35k. I can sell it for 175k.

The broker suggested I add a full bath on the main floor to increase the value of the house. I would love to hear anyone's opinion on this. 

I will tell you now what I'm thinking of doing to determine if it will be worth it. I am planing to get a BPO from an amazing broker I've been dealing with. (Needless to say my BPO guy isn't vested in the deal so he has no reason to "adjust" the value..) I will have him tell me how much more I can get for a 2.5 bath over a 1.5 bath. I will get an estimate from my contractor on cost to add the full bath. If the value goes up significantly more than the cost I will prob go for it. 

Any advice is greatly appreciated!

@Matthew B.  I would be interested to hear a bit more about the pre-foreclosure deal you're in process. I actually signed up for RealtyTrac.com. I believe they have the most updated pre foreclosure Info available but I could never wrap my head aroud approaching the (apparently distressed) owner to try to make a deal. I would love to hear from folks that have done this. 

Hi @Dave Delima. Welcome! I do rehabs and tax liens in north jersey. It's good to see some locals on the site. 

@kristen 

Hey y'all. A few quick points on this subject. 

First, I had a similar story as Kristen. I went to their seminar in my area. As a bonus they offered a package on tax liens which interested me more than the training on flipping. They sold a "guaranty" for around $1,600 that if you bought 10 liens, you will foreclose on at least of them within 6 months. If not you will be able to buy a deed from their vault. I bought that guaranty and that got me into the tax lien business and I happen to be grateful of them opening my eyes to the unique opportunity within this industry. As far as the guaranty I think it's a scam because the foreclosure process takes more than 6 months. 

I would absolutely not buy any liens on vacant land, certainly not in your local area. 

To explain the "discount" they are saying. Based on what you're repeating what they said, they buy seasoned liens on the secondary market. The redemption value at the time of sale (or assignment) includes priciest plus interest. Let me give you an example. (I buy liens in NJ so I will use the 18% interest) 

ABC Fund Inc. bought a tax lien for 2012 taxes on a SFH. Certificate amount at the auction was $10,000. Lets assume there was no bidding on this, 12 months later the redemption value on this will be approx $11,800. This includes the original cert amount plus 18% interest for the year. (let's ignore the penalties and legal fees for now). When Tax Lien Vault buys a seasoned lien from ABC Fund, they might get it at a discount because ABC will be ok to discount from then interest. Now when Tax Vault sells this lien to Kristen for full face value they make the difference. The problem with this (even on SFHs) is 1- you will not be earning interests on the interest amount. That could effect the return by a few % points depending on how much of them price is principal and how much is interest. And 2- Douglas & Tom wrote you have to to pay all the subs (plus interest) in order to get final judgement.

Hi ya'll, I'm new to the BP community. I've been listening to the podcasts and I'm amazed at the amount of knowledge I've been gaining from every 1 of them. I'm currently looking for wholesalers in the north jersey area. If anyone can please hook me up I'd so greatly appreciated! Moshe Eisenberg Valley View Equities 845-222-9224

Very creative indeed. But here is my q. 1- why do you say no cash flow when you hit your full years rent right at the closing. Unless if the reduced purchase price isn't considered cash flow. 2- I wonder if they would offer the 75k buyer to pay the full years rent up front (same as they did with you) if they wouldn't allow them to stay. I'm guessing they would be ok with it in that case they would make the extra 5k and stayed their.