All Forum Posts by: Robert Webb

Where do you invest? In Central and Northern NJ, we use attorneys and there is a period of time that while the attorneys are reviewing the contract that the contract is not binding and someone else can bid more or a buying can back out, all with no penalties 

I am having clients get offers accepted in multiple bids and the losing out during attorney review. Just as a point of reference. Very competitive out there.

That being said, put my first flip on the market this week, great time to sell if you currently have property!

Yeah man, I would say that is fair if not under valued. I would agree with @Ali Altieri make sure you get a decent job done or it will just need to be redone in the near future. Same reason I try to put vinyl in instead of carpet, might be slightly more expensive up front but over the long term it will save me money

Hello,

How many cabinets are there? Honestly, that seems like a pretty fair price.

Robert Webb

Hey! I sell real estate primarily and invest as well.

I 100% agree. I have been telling people 4 things:

1. People that were looking before the crisis didnt stop look, they just had to take a 7 week hiatus 

2. People that were forced into their home and hate it for one reason or another (too small, ugly, too expensive, ect) have entered the market with a purpose

3. For NJ specifically, the influx of NYC buyers wanting more space and land and a yard

4. Interest rates have gotten even lower which of course incentivizes buying AND discourages selling to an extent

Dont see this problem going away anytime.

On the plus side if you can find a deal you will probably benefit from the massive inflation that is coming (whether the govt says it's happening or not) although it's a bonus, still buy on the fundamentals 

Robert Webb 

Hey! My flip partner and I have had s lot of success w watching youtube video and a little trial and errors. We use the door hanging brackets. Has worked well so far and keeps costs much lower 

Hope this helps, best of luck

Robert Webb

Hey, dont have too much advice. Other than stating out of Plainfield if you dint want class C and D neighborhoods. South Plainfield would be a better fit with much better schools.

best of luck in your search!

Robert Webb 

Hey RJ - Im also in Somerset County and I also sell Real Estate :) Not sure where you ideally want to be or what your budget looks like, but I myself am trying to buy in Somerville since there is so much happening there and the revitalization is really bringing it to life with so much more to come.

Other areas to consider - Franklin Park in Franklin, a lot of building in N Brunswick right down 27 has lead to an appreciation play there. Raritan Boro, south of Bridgewater, lower prices and taxes but great area and will benefit from Somerville's development. Bridgewater is also a staple with good schools, taxes, family oriented and good commuting. Flemington seems to be close to settling law suits and starting a whole new wave of development in their downtown, Liberty village was just purchased with plans to renovate the space and bring life back.

Just some thoughts - I am finishing up a flip in Hillsborough and purchasing an investment property but after those things settle, I am hoping to get serious about looking in Somerville, its been pretty hot for a while.

Hope this helps!

Robert Webb

Good Morning!

As an investor and a realtor, Would heavily caution about flood zones. Especially early on in your investing career, I would even flat out avoid them. They can potentially break a deal in the future, like you mentioned, if rates go up. While you should of course account for that in your numbers with your purchase (just like taxes will go up over time, and you can increase rent to compensate) flood zones tend to be less desirable areas and that includes for the tenant population as well. While they might not care that you have to pay flood insurance and that your basement floods, they do care about their stuff and their safety. 

Basement floods - is there mold? Does it need to be professionally cleaned out? that's expensive. Did it ruin an HVAC? thats expensive. Sure, maybe FEMA money can help, but then do premiums sky rocket once that money is taken? Is it quick and easy? Are you making money on the property while rehab is going on?

I personally would take a less of an ROI deal over a flood zone deal.

Not to mention, one of the main 4 pillars of real estate investing is appreciation, and while property will appreciate all across town, there is going to be a slower increase in appreciation and less of an increase than a non flood zone property (I would say this is excluding beach properties where this is expected and throughout the entire town)

Hope this helps - I am in Somerset County! So not too far! Best of luck.

Robert Webb

Hey!

While it definitely depends on the HOA, I would say absolutely! I own 2 condo / townhomes currently and am flipping a third right now (we will see what the market looks like on the other side of all this covid 19!) But I definitely wouldn't write off HOAs. In fact, a good HOA can actually assist in securing your investment.

I know the drawbacks are that they can dictate the outside, but as long as the rent and ROI is good, who cares? As long as the properties rent, I don't care if the exterior is white or pink or green.

The HOA fee can go up - yes, that is true of course, and they will. But so do taxes, and that is why rents also go up over time. The key is to buy good HOAs that either have a history of health reserve accounts to go through improvements or fee simple HOAs where the HOA fee is lower but you are responsible for the roof and siding, which means you are in more control of your expenses.

Assessments - yup, these can happen for sure, but again if you buy a good HOA, the assessments should be minimal or even non existent. But even if they do happen, try to think about owning a SFH. You might expect that your HVAC is going to last 25 years, but it could also die at 15 years and there goes 10 years of budgeting that you didn't account for. Things happen in HOAs as well.

Pros - the maintain all the landscaping, you don't have to hope that your tenant does a good job to keep the area nice.They also maintain that owners keep their exteriors nice and presentable. They are people to complain to if a problem house is hurting your rental property. They are *usually* cheaper than SFH to get into allowing quicker entry into landlordship.

Hope this helps - best of luckl!

Robert Webb