All Forum Posts by: Noel Challenger

This is a good idea. But I wouldn't call up the investors if you don't have a deal ready for them to buy. As you get more involved in the real estate industry you will see that the real players in your market don't really like small talk. They would want you to get to the point and not waste their time.

You can try to get access to the MLS or try to use the county records and Zillow to look up the properties they are currently buying and once you have a property under contract that is similar to what they buy then you can call them.

There is no online course in NJ. I had to go in person. You can either go for 2 weeks and cram the whole 75 hours in there or you can spread it out across 3 months. 

South Jersey is your best bet in finding properties for less than $50,000. Even Trenton and Camden properties are increasing in value year over year.

There's a difference between double closing and back to back closing. Double closing is when you plan to use the end buyers money to fund the purchase of the property from the seller to you and then from you to the buyer. Double closings are no longer allowed in the state of NJ so I've been told by one or two title companies that operate and do a lot of transactions in Northern New Jersey. On the other hand there's a back to back closing where you purchase the property from the seller using your OWN FUNDS and/or hard money and then you sell the property to an end buyer (two transactions). Any title company will do this because these are two transactions that are just like any other transaction. So, we still have the option of closing on the property and then selling it, it just needs to be our own money or a loan that's in our name/LLC's name.

It would be literally impossible to try the BRRRR strategy in Hoboken unless you have a time machine.

Jersey City on the other hand might be more of a promising deal for you. The deal breaker is what do you expect out of this transaction, meaning if you want to buy a 3 family property in Jersey City for $110,000 that is extremely unlikely. But if you are willing to pay $250,000 for a 2 family property that needs some work done to it and then refinance at $375,000, that seems more reasonable.

For us it takes:

20 contacts = one lead

60 leads = one deal

1,200 contacts = one deal

10% reach when dialing which means we have to dial around 12,000 people to get one deal. 

Hey Gal, I see that you are very conservative on your numbers and that can lead to some hiccups later when you buy the property and you're paying more than what you accounted for initially. Irvington has some of the highest tax rates in North Jersey, I would account for more money just to set aside for property taxes. How much are the current owners paying in taxes now? Same with water and sewer,  you pay water by unit which is around 50/month per unit so you'd be paying 2400/year.

Also I noticed you didn't mention any debt servicing so I'm assuming you are paying cash for this property?

You should go to a local bank in the same town the property is located in. They might be willing to give you better loan terms because they only have one branch located in the same town as the property.

Go to your local REIA meetings and connect with them on the Internet using BiggerPockets, Craigslist, Facebook Groups, etc.

Always run your own numbers on the property, trust your own gut feeling!