All Forum Posts by: Mark Scarola

Central Jersey Real Estate Investors

This post is for the Feb. 2017 meeting of Central Jersey Real Estate Investors (CJREI). We meet monthly in Monmouth County, NJ on the last Thursday of each month (excluding holidays).

Overview

This meeting will essentially be a networking and strategizing event. We will begin the meeting by having an extended introductions section, where each person in attendance will be given the opportunity to share a little about what they're doing in real estate and/or what they hope to do. We'll ask some followup questions and give you an opportunity to share what it is that you're in need of to further your career.

Topic

At CJREI we like to mix up the format of our meetings. While some meetings are more didactic or lecture-like, others are more discussion based, more networking focused, or informal. This meeting will be a networking and strategizing event.

Perhaps you need funding, a property to flip, a turnkey rental, an electrician, or a new real estate agent. Perhaps you have a situation that you've recently encountered and are looking for for some feedback. Come tell us about it. We'll brainstorm together and hopefully help you come up with a solution. Maybe you have a tenant giving you a hard time. Maybe you're considering refinancing but aren't sure if it's a good idea. Maybe you need help deciding if a recent "opportunity" is too good to be true. If so, bring your deal and we'll talk it over.

If you have a question, deal, or other issue that you'd like some anonymous feedback about from the group please submit it here. We'll discuss the topic and any figures you share all without revealing your identity. When filling out the form it will ask for your name and email address. This will allow us to ask any followup questions that may be needed to properly discuss your question or deal. However, rest assured that your information will be kept confidential and not shared with anyone.

Location

Unfortunately we are unable to continue holding meetings at the Perkins in Eatontown. The location for this event will be announced at a later date. Please check our website for the most recent updates on our new location.

Misc.

@Brian Henry,

What a great idea. It sounds like you have a lot of pieces coming together nicely. You're right in that if you have to pay room and board anyway, why not turn it into an investment especially if you would like to have a future vacation home in Boise. 

I would look into having your son be the primary owner. Since he's going to live there for three years anyway that would allow him/you to get a better interest rate because it's an owner-occupied home and not an investment property (as defined by lenders). You can still have his roommates pay rent, just like you would if you decided to rent out an extra bedroom in your San Diego home.

Your son would also build up his credit in the meantime. Of course you would have to co-sign for him since he's young and doesn't yet have credit history. And I had the same thought too about in time qualifying for in state tuition. Also, have you confirmed that he isn't required to live in campus housing for another year?

Because of potential liability concerns though I wouldn't rent out the place if/when your son isn't living there and managing the property (e.g. over the summer). Once he graduates however, and has met residency requirements that qualified you for the lower interest rate on the original loan, and if he doesn't stay in that house, you could sell it to an LLC that you create in order to get it out of his/your name.

Hi @Alexandra Preziosi,

When it comes to networking there's no better way than going to various events. Here in Jersey, there's at least one group in each county. I would suggest attending a couple of them to get a feel for the vibe. Each is different in its own way and may be more or less appropriate for what you're looking to do. If you take your role as a wholesaler seriously you can do well. Your reputation will carry you, especially in wholesaling.

Welcome to the site James. I think you're wise to realize that your experience can be both a benefit and a potential hindrance. Some concepts will be all too familiar, while other things may be new. Glad to hear you're looking to learn. Good luck.

Wow, thanks for sharing your stories @Jihad Treadwell and @LaToya Grant. Sounds like you both had an eerily similar experience with the same contractor. 

Wow, 6-10 hours a day after work... that's impressive. 

If you are looking to partner with someone you'd be able to combine your money with theirs and potentially get into more deals. You could also offer your services and experience as an electrician to other investors in exchange for the ability to basically watch someone else manage a deal and ask them some questions along the way.

That being said, I wouldn't overlook the $235k you were approved for. You may not be able to get into the neighborhood you want right away, but you should still be able to get started with $235k. 

Also you have a good point about starting with a buy and hold. Not only would it provide some cash flow, but if get some equity in it then you can get a loan based on that equity to use for a flip (combined with a hard money loan).

Thanks for the mention @Eric Waterman. Yes, I run a Monmouth County based RE investment group. I'm not allowed to promote it publicly in the forums (except for the Events and Happenings section), but if you look under my profile you'll find more information.

As @Keith Gilde alluded to most of the NJ stuff online here is focused more on North Jersey and South Jersey, which is not surprising. But over the past few years I've seen a definite interest here in Central Jersey as well.

@Evan R. There are a bunch of groups to consider. The group I lead is in Monmouth County. PM if you want details as I'm not allowed to promote publicly in this forum. You can find my group and others on Meetup. SJREIA has a new chapter in Hackettstown and one in New Brunswick. Those would be the closest to you. But Metropolitan REIA and a few independent groups exist in North Jersey as well.

My suggestion is that you check out a few of them. All groups have something to offer, but some will be more appropriate for what you're looking for. Some are more content rich, others are primarily networking, and for those that provide education the topics typically change each month.

Hi @Syed-Shawn Azam,

I've been working with my recently widowed mother to better organize her retirement assets. I understand what you mean. $100K is nothing to live off of, especially in parts of CA which can be very expensive. Have you looked into annuities at all? I'm not a financial advisor and certainly don't know everything about annuities, but they are one way of at least locking in the money you already have. You can invest a certain amount and the company will then annuitize your investment meaning they'll pay you a certain monthly amount for life (unless you specify ten years, twenty years, etc.) regardless of how long you live. The advantage is that you have at least some fixed income. Even if your friends, relatives, etc. live to be 100 they won't run out of principal like you can with an IRA.

As far as notes, that's something else I've been involved in for the past several years. I'll buy nonperforming note, work them out, and then either collect the payments or sell to another investor. It's possible to answer your question to have a 20% return, but I don't know anyone that would make that kind of guarantee (at least nobody I'd trust). It's also possible to make more or less, just as would be the case with any other type of investment. But I will say that like all investments experience does count for something and there's a greater risk associated with the things you may not know to look out for. Feel free to message me if I can be of further assistance.

Hi @David B.,

Just wanted to wish you well in getting up and running at a FT investor. That's great that you have some experience already. I'm sure it will help make the transition smoother. Let me know if you have any questions about the group that Alex mentioned (I'm the organizer).

BTW... thanks for the mention @W. Alex Benitez.