All Forum Posts by: Richard S.

Okay thanks!

@Eric Schleif Hammonton is, in fact, the blueberry capital of the world. We just had our annual blueberry festival this past weekend! 

I am not interested in putting all 7 properties under one loan at this time, but I'd be willing to lump a couple together if the right deal was possible. I need to generate some capital so I can continue growing, and I feel like I shouldn't have such a hard time given that these are all owned free and clear and cash flow positive.   I believe the lender was going to traditional banks. 

Seasoning may be an issue since they haven't been owned by the LLC (or myself personally) for 2 years. Though I really need to find a lender that will work with me on that.

@Ryan Goldfarb Yes, they're all in Hammonton, NJ.  Some were purchased in 2014/2015, and some years prior. The purchase prices vary, most are between 50K-150K purchases from the original purchasing party.  

Yes guys, I am as EQUALLY as surprised as you are. I went through Wells Fargo first, who is my primary bank around here, then I went through a loan broker who works with a bunch of banks, and he could't get anything pushed through either. Ever since the mortgage crisis, the traditional banks seem really reluctant to give out loans around here unless they have 2 solid years of tax returns tied directly to the owner of the property. 

Thanks Peter. I am surprised to hear that. If I had the capital to be giving out millions at 15% APR, I'd take it or 10 years or 100. Hard money rates are amazing year over year returns.

I'm also looking for wholesalers in NJ, specifically the South Jersey area. 

If anyone reading this is a wholesaler with properties in this area, please connect with me here or on LinkedIn.

Hello, 

I currently have a portfolio of 7 properties (mixed SFHs, duplex, triplex, quad), owned free and clear, each held by separate LLCs (formed Jan 2016).  The problem I am running into is that most of the traditional banks will not accept rental income from these properties until I have 2 full years of tax returns for them. As an aside, my previous employer switched me from salary to K1 when I became Partner, and the banks also require the 2 most recent years of pay stubs be W2 or K1, but won't accept a combination of both. So this leaves me in a weird situation where there is income coming in, but traditional banks won't accept it. Therefore I'm left seeking a private money lender, preferably located in South Jersey where I do my investing. 

Does anyone have any recommendations (especially, experience) with private money lenders in New Jersey and can refer me to some who have reasonable rates? I'm looking for lenders who will do minimum 10 year mortgages, as I am a buy-and-hold investor and don't want to have to plan to refinance through a traditional bank a couple years in. 

Any referrals would be appreciated. If you are a private money lender, located in South Jersey, I'd appreciate if you have references.  

For what it's worth, I met an uber driver who asked what I did and then proceeded to tell me he has also started investing. Area of choice? Camden. He said the houses are so ridiculously cheap that you can pay cash, rent them easily, and most of the tenants are on government funded housing so the govt writes you a check each month. He said it's worked out very well for him. This was about 2 years ago now, but I'm sure he's killing it around that area. I'd highly recommend it if you are OK dealing with the type of tenants you'll be renting to. I don't think a PM company will go anywhere near it. Also, I'd expect the rents are way lower too. So even if you're getting your houses at $30-$40K you might be looking at $800/mo.  Do your due dilligence on the rents for the area in which you want to buy and make sure they still back out with the possible rent and don't get too caught up by the seemingly fantastic sale prices. 

From what I recall he said his breakevens were about 2-3 years tops.

Hi Julia. I have a number of properties in Hammonton, not far from Mays Landing. I manage my own properties and could speak to you regarding yours.  

E m a i l me at  rs [ at ] sayerandassociates [ dot ] com

Hi @Roy Mitle,

Although I have absolutely no affiliate with Rocket Lawyer, I have found them to be extremely useful in having very state specific agreements that are perfect for real estate investors. For that reason, I suggested checking them out as whatever Lease Agreement they have or your state probably covers all your bases. They have Lease Agreements, as well as Eviction Notices, Operating Agreements, etc -- and they walk you through filling in the blanks with an easy to use questionnaire.  It's a cheap enough resource that it's worth checking out, as I think you'll find like me it will save you a ton of money versus going to your lawyer every time you need an agreement. Just my 2 cents, I hope it helps! 

Hi, @James MasottiI have setup LLCs several times through New Jersey's state website. It's relatively easy and painless (at least in New Jersey) to do it all online, and then get an EIN. As for the Operating Agreement, I have several that I've paid for from attorneys, but after finding Rocket Lawyer, I use it for many of my legal documents. They have state specific legal forms ready to go, and an easy to use questionnaire to help you fill it out as you go. I just logged in to check, an they have an LLC Operating Agreement, and all kinds of other documents that help real estate investors (such as Lease Agreements, Eviction Notices, etc). I highly recommend them, they've been well worth the money for me versus taking all my work to a lawyer.