All Forum Posts by: Rafael Norat

@Jen L.

Sounds like you are in a very competitive market. The larger the market, the bigger your network better be. You should have REAs in your area (real estate groups). Finds them and attend them regularly. New Jersey is very competitive (as comparison). For me to invest in the area, I find in absolutely necessary to attend the REAs and develop good relationships. Always something comes out of those relationships that yields a good result. That's what feeds you during the tight times.

@Jen L.

Hey Jen! I feel that there are ALWAYS deals to be had so long as you have a good lead generation system regardless of the area. There's always a motivated need to sell quickly and/or at discount at some point. In my area, I've built up some great relationships and finds deals when Im not even directly looking. Could be a tenant, lender, another investor.. In NJ, it must be as competitive as any other US market. Regardless, I know plenty of seasoned investors that never struggle to find good deals. The quantities may vary depending on the time of market, but they always do seem to be there if you look hard enough..

Any current member who have completed the ROBS process? I am leaving a current employment early next year and am considering transferring my 401k as such. I've spoken with several companies which perform the process but would like to get an opinion from investors who have or are executing. I won't kill you with questions. Just want to get a high-level idea of your experience as I explore my options. Please PM me if possible. Thanks. Rafael

Hi all! Congrats an getting started! I've been involved in investing in northern NJ and PA for about 3-4 years now, so willing to provide any feedback I can for you. Bottom line: good investments are to be had anywhere, so long as your team and system are good. Cream rises to the top! Rafael

Good stuff and congrats man! Always useful and forces you to make it pay for itself.

@mo 

@Mo Farraj

I haven't done any projects in NJ for a bit, but I'd suggest going to both REAs in NJ and NY and seeing who's doing what and where successfully. There are successful investors in all areas. Irvington, for example, has incredibly high property taxes for union county in comparison to current property value. But there are still some investors that love the area and do well. Other investors rather stick with upper scale areas such as Montclair, Hoboken, short hills. It all depends on where you want to get started and how well of a support team you can build in those areas. Once you have that, focus there and there alone until your system is plug and play and you can move your money and experience elsewhere. 

PM me and I'll shoot you the NJ REAs I usually go to.

Mo Farraj Mo, congrats on getting started! Try to attend the local REAs on your area to gain network access and knowledge as well. BP has one in Manhattan I believe. A lot of ways to move with your funds. Get some local knowledge on the market and pick someone's brain that has done rehabs in that area before. Something as simple as running into the wrong city inspector can make your project a nightmare. That kind of knowledge can be found at the local reas. Best wishes my man! Don't hit up the mafia just yet...

David Weintraub I'll try to make it down that way man! Any NJ folks down south should definitely go to this. David does a great job organizing and implementing a great network experience.

@Jeff Moore

Jeff, thanks for the reply. Yes, average about $52/units. That's the common Ava weave for the area. No rehab needed.

ATTENTION Lenders (Conventional or Private),

I have an offer to purchase 14 residential units in total located in the Wilkes Barre, PA area. These units are finished and fully rented with long-term tenants. The investor/ owner has owned these properties for 10 years+ and is looking to liquidate. Total purchase price is $725k.

Highlighted property/offer details are as follows:

PROPERY DETAILS

Property Address Number of units Monthly Rent

==============================================================

18634 3 675+675+675 = 2025

18706 2 675+ 695 = 1370

18706 3 (Bldg # 1) 590+530+530 = 1650

2 (Bldg #2) 490+700 = 1190

18706 2 750+695 = 1445

18702 2 675+ 675 = 1350

---------- --------

Total: 14 Units $ 9030 Monthly Gross Rent

=============================================================

PROPERTY TAXES + INSURANCE

Property Address Property Taxes Insurance

----------------------------------------------------------------------------------------------

18634 2862.12 1010.00

18706 2244.76 456.00

18706 5132.85 1299.00

18706 1888.62 425.00

18702 1483.15 620.00

-------------------- --------------

Total: Property Taxes - $13,591.50, Insurance - $3,810.00

=============================================================

MISC EXPENSES

18634 Garbage Collection: 660.00

Sewer (total): 682.08

18706 Garbage Collection: -0-

Sewer: 423.60

18706 Garbage Collection: -0-

Sewer: 1051.60

18706 Garbage Collection: 430.00

Sewer: 423.60

18702 Garbage Collection: 106.00

Sewer: 423.60

----------

Total: $4190.88

=============================================================

OTHER MISC. EXPENSES ( Maintenance etc )

$5000.00

============================================================

Total Gross Income: $108,360

Total Annual Taxes: $13,591

Total Insurance: $3,810

Total Garbage + Sewer: $4,190

Total Misc + Maintenance: $5,000

----------

Net Income: $81,769

PRICE: $725,000

20% DOWN: $145,000

------------

MORTGAGE AMOUNT: $580,000

-The seller is willing to carry back 10-15% LTV in a second position

-I am seeking a lender (private/conventional) willing to take a 1st position for 75-80% LTV amortized over 30 years, payout in 15-20 years

-Wilkes Barre PA is a classic linear market. Hospitals, Universities, Industrial Parks, and Pharmaceutical Call-Centers dominate the labor market.

-I own 40+ units in the area and have developed reputable management & rehab crews to support.

-Details information, including personal portfolio, balance sheets, tax returns, rent rolls can and will be provided to serious inquiries

Feel free to contact me directly if you have questions.

Thanks.

Rafael