All Forum Posts by: Eric Waterman

well in NJ we are a tax lien state. Once a homeowner gets behind on their property taxes the county wants their money so they will auction off the back taxes in the form of a lien. Once auctioned off, the homeowner has 2 years to redeem the lien, or pay it off plus whatever interest is owed to the investor.  If they don’t redeem within 2 years the Investor has the right to foreclose on the homeowner. That happens only about 5% of the time. I had been focusing on mailing the homeowners within that 2 year window. I know Monmouth County has a terrific OPRS website that you can find all the tax lien certificates issued. It’s very easy to use.  I would cross check the certs with any redemptions and any unredeemed cert was added to my list. I don’t know about middlesex county, but you could google middlesex county OPRS.

Are you looking for pre tax lien auction or post tax lien auction?

Hi BP community,

I'm looking at an 8 unit property that has 7 out of 8 units physically vacant, though I have no idea if the lone tenant is paying. The listing agent is unresponsive and will not provide the financials I require to evaluate. Now, assuming 100% economic vacancy, how would I go about evaluating an income multifamily property that has no income? This is in a C class neighborhood. I cannot find any comparable properties with with to compare. It is actually in a single family zoned neighborhood. I talked to the town about this and they said this property was built before the zoning changes to single family, thus it was grandfathered.

The asking price is $415k, which I think is nuts for a vacant property. There are two buildings on the lot: 1, 6-unit building (all 1 bed apts) and a duplex (both units 2 beds each).

I would appreciate any and all feedback. 

Thanks!

Best regards,

Eric Waterman

You can go on Craigslist and call all the we buy houses ads...they are 80% wholesalers (I made that stat up), but gives you an idea. 

What areas of NJ are you looking to invest in? I can help you out In finding deals in Monmouth and Ocean county. I am a wholesaler. Sometimes I get stuff outside that area but that's my focus. Let's connect.

Best regards,

Eric Waterman

Hey no problem, will do. Can you do me a favor and send me a PM with the criteria you are looking for in a rental or flip opportunity and what markets?  Also please provide the best contact info for you. That will help me out when something comes up.

Ha! I think I figured it out, partially anyway. The MLS listing has the mailing address of the LLC. Type in the mailing address in google, or use websites njparcels or look up on njtaxrecords and there you should be able to get the names...takes some digging. This doesn't help if the LLC mailing address is a PO box however...work in progress.

I am building a Buyers list and I have pulled several hundred cash transactions off the MLS for the area I intend to market for deals...there are several LLCs as you would expect. Although I have the LLC mailing address, I would like to know who the members are in that LLC. I've been searching google...I thought that was public information? Anyone with any tips?

Thanks!

have you set aside any money per month for future capital expenditures (CapEx)? That's your roof, mechanicals, or other larger improvements.

Hey BP community, I have a question for you. I received a lead today and the seller owns a mixed use building. The second floor is a 1 bedroom apartment that rents for $1,150/mo. The owner works his business out of the ground floor office space...he is an accountant. He owes only 20k on the property. He tells me his building is zoned for mixed use and approved for professionals with employees up to 3. He is mainly located in a residential area. Trying to figure out what this property is worth. I have never evaluated a mixed use building. I operate in the residential space. I'm guessing the way to evaluate I think is similar to an SFR...look for comps in the area. Being that this is in a more residential area I'm having an a difficult time finding comps. Do you have some pointers on evaluating this property. Guy wants out and I'd like to help him out. I would appreciate any insight that you have. Thanks!

Best regards,

Eric Waterman

2% rule is tough to find in NJ, especially on MLS, given the high holding costs and general real estate prices. Hey, nothing is impossible...but you may need to go to rougher neighborhoods to get 2% deals in NJ. I want to buy in good school districts and good neighborhoods. Depends on what your goals and strategy are. I'd be interested to know if anyone is finding 2% deals in NJ. Think about it, say 3/2 SFR rents for 2k/mo, you'd need to buy all in at 100k, including any renovations. You can find 100k houses, but will they rent for 2k? At least in my market a house renting for 2k is going to sell for 300k or more. Again, you may find a really motivated seller by doing some direct seller marketing, so you may be able to pick up a property cheaper. Also the 2% rule is a guideline, you have to analyze each deal on its own merits.