All Forum Posts by: Mark Scarola

Hey @Thiago DaCruz, I run a group here in Monmouth County. If you're interested, feel free to check us out. If you'd like to be added to our contact list, just PM me with your email. 

You don't need to pay to send a PM @George Roxby. Not sure why it wouldn't work for you. Nevertheless, I just added you to the list.

I would add that you should seriously consider putting together something in writing before your would-be partner gives you $1. You said this person is a good friend and I'm sure you want to keep it that way. Even if your friend is hands off, what if the deal doesn't work out for some unforeseen reason? What if you buy a property and the next day a sink hole opens up underneath and swallows the whole thing? OK, that's highly unlikely but the point is still valid. 

As far as how to split things, you said your friend has done this before with other businesses. Why not just ask him what kind of splits he's done with them? Be honest, tell him you want to be fair but aren't sure what fair is. If he's your friend he won't try to screw you over. He'll be honest in return.

Thanks for the mention @Alexander Flores. 

I'm the organizer of the group. It's called CJREI (Central Jersey Real Estate Investors). We meet on the last Thursday of each month in Red Bank. Our next meeting is on Feb. 25th and as mentioned above, @Joseph Scorese will be our guest speaker. 

Feel free to send me a PM if you'd like to RSVP and/or be added to the mailing list to be reminded about upcoming meetings. All are welcome to attend.

I also run a group in Red Bank called Central Jersey REI. We meet on the last Thursday of each month, if you're interested. We're not as large as some of the other groups, but are continuing to develop and grow.

Just a reminder that this meeting is still scheduled for this Thursday. If you're a regular attendee, please keep in mind that we will not be in our regular meeting room due to a scheduling conflict. We will still be at the Red Bank Public Library, but we will be upstairs instead of downstairs. Follow the steps to the right of the front desk up one flight and come right in. 

We may be a little tight on space as this is a smaller room, but we'll make the best of it with however many people are able to attend. Fortunately by then the weather shouldn't continue to be an issue.

Looking for someone who would be interested in investing with a turnkey provider specializing in flipping residential properties. Investing a total of about $70-80,000, we would use hard money to finance the deals. We'd form a new LLC, create an operating agreement, etc. and split the proceeds according to our respective contributions.

Let me know if you're interested or having any thoughts. I know some people are sour on turnkey companies, but they do provide a service that can be beneficial for non-local investors, new investors, busy investors, etc.

Tax liens are senior to other liens including mortgage liens, meaning that if a property is foreclosed upon and sold at auction to a third party bidder the proceeds from that sale would go first to pay off any outstanding tax lien before paying off any of the mortgage loans. 

Also keep in mind that anybody with a lien can foreclose if the debt is not paid as agreed.

Here's a simplified example: There is a with an outstanding tax lien of $10,000, a first mortgage for $320,000, and a second mortgage for $80,000. If the lender of the first mortgage forecloses they're trying to recoup their $320,000. But they only get paid after the tax lien gets paid off in full first. So let's say that the winning bid is $320,000. The first $10,000 would go to the taxes, then $310,000 goes to the first mortgage lien holder (not the full amount they're owed). The second mortgage lien holder gets nothing. If instead the property sold for $350,000 at auction, the first $10,000 again goes to taxes, then the first mortgage gets paid off, and the second mortgage lien holder gets the balance of $20,000. 

The odds are good however that the entity holding the first mortgage lien would pay off the tax lien in advance because they don't want the tax lien holder to foreclose before they do. Why? Because the tax lien holder doesn't care what the winning bid is so long as it's over $10,000. Imagine if the winning bid was $15,000 (unlikely in reality, but theoretically possible). The tax lien holder is paid in full, the first mortgage lien holder gets only $5000, and the second mortgage lien holder gets nothing.

Overview

This month's topic will be Short Sales. Our guest speaker will explain what a short sale is and what it is not, along with the process, and the incentives for each party involved.

Schedule

6:15 Meeting Starts / Open networking
6:45 Announcements and Introduction of Group Members
7:00/7:15 Main Meeting (presentation)
8:15 Open networking time
8:40 Wrap up

Main Meeting

Our guest speaker, Eric Einholz is himself a member of CJREI. In response to feedback received from the group at our December meeting, Eric has been invited to speak this month about short sales.

Previously Eric worked as a Respiratory Therapist and owned a medical staffing company. His real estate experience includes rental properties in three different states, wholesaling, rehabbing, note investing, and of course short sales.

Short sales occur when a homeowner debt exceeds the homes value. In other words, they owe more than they can sell their home for. Eric will explain how this can happen, who the various involved parties are, and provide some insight into the perspectives of each party. For instance, if you were the lender why would you be willing to accept less than what you're owed?

Eric will also discuss how investors such as wholesalers can get involved with short sales as a way of generating a profit. He will also provide examples to help drive home the point and make the concepts discussed more easily understood.

According to CNN, in 2012 short sales accounted for 32% of all home sales. Thus it's not surprising that many real estate investors got involved in them. Though they may not be as common as they were just a few years ago, they still have a place in today's market. So, join us this month to learn how they work, "the good, the bad, and the ugly" of short sales, and if they can work for you!

Location

The meeting will take place at the Red Bank Public Library. On the menu bar above, click "Pages", then scroll down and click on "Red Bank Public Library" for details, pictures, and information on parking.

We will however not be in the downstairs meeting room this month. We will instead be upstairs in the Eisner Room. When you enter the library there is a set of stairs just to the right of the front desk. Proceed one flight up to the door on your left.

There is no admission fee for this meeting. We still however ask that you please RSVP in order that we can have an appropriate number of seats and if applicable other materials available.

Misc.

Welcome to the site @Cory Biscaha. Sounds like you're certainly not afraid of putting in some hard work, which is probably an understatement with you. But it's the best way to get into RE investing. Keep working while you learn and use some of your earning to build up a portfolio of properties.