All Forum Posts by: Scott Royer

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I'm in

I have worked in long-term care for over 20 years now as an Administrator , and now I am running a healthcare consulting business on the side.  Over the last few years, my wife and I have got into real estate investing.  All of these lines of "work" are a passion of mine.  Through the pandemic I helped out quite a few businesses in my area.  

One of the contacts I made during the pandemic told me that he would be willing to sell me his Assisted Living facility (which happens to be right across the street from where I live).  It has been a dream of mine since I got into this industry to own my own healthcare facility.  While my wife and I have a good amount of private capital, I would want to do this deal with someone else's money and my sweat equity.  The facility is underperforming and it should be a good opportunity to buy it while the price is "low" (asking $40 million, with a solar farm that is currently being installed) before the "Silver Tsunami" hits over the next few years.  

Where do I start to talk with someone about investing and what would make sense on paper for me to do this deal?  I have never done commercial investing and I am not sure how many off-market deals like this will come along.  Any help of recommendations would be appreciated.

Totally get it, that was why I posed the question.  The realtor told me that was how they did it, and I was very confused.  I was putting it out there because I figured someone might know something about the subject, but it sounds like the realtor might not have had their facts correct.  Thanks everyone for making me feel less crazy about this subject.

Thanks for your feedback.  The realtor did not specify term, she just stated long-term renters.  I was thinking there was a reason as a landlord to do this and make it easier to adjust rates since you are probably going month to month.  We also have a large population of migrant workers in the area and the consideration was that this might be a way around a standard lease with background and credit checks.  Any thoughts on that?

There is a quadplex going up for sale in my area.  It looks like a great investment, and in speaking with the sellers agent, she said that the quad is fully rented with Long-Term Airbnb.  

How does this work, and is there an advantage to this strategy for a buy and hold investor?  It gives me the feeling that the current renters might not meet the qualifications I generally have for my properties.  I will have to ask more questions of the realtor, but I want to be sure that I ask the right questions.

Is there anyone out there that is currently doing this, and if so, what is your "Why?"  What are some of the questions before I possibly get myself in over my head?  Any help of information is always appreciated.  Thank you so much.

Hello fellow Central New Jersey real estate investors or any person who works with real estate investors.  We will be having our first ever “meet-up”/networking event at the Buffalo Wild Wings in Flemington, NJ.  

All are welcome!  Whether you assist, are, or want to become a real estate investor, help grow your circle at this event.  

This will be a casual social event where you can network with like-minded individuals.  Learn tricks of the trade, help grow your business or just come enjoy some company.   Drinks and food are available but will not be provided.  We look forward to seeing everyone there on September 25th at 5:30pm!

I am looking at taking out a 401k loan to give me enough money to put the money down and fund the needed rehab on an off-market property.  The 401k loan max is $50,000, paid over 5 years, which is the amount I would probably pull to get done what I need to do.   With my 401k, the "penalty" is a 9.5% interest, and it calculates to be approximately $500 per pay check (before tax) to repay the loan.  Technically, this would be approx. $300 per check after tax, but I am also paying the 9.5% interest back to myself pre-tax which I think is a huge win.  

The possible cash flow post renovation could be $700/month, so if I deduct the $600/month that I am paying back into my 401k.  Is the $100/month cash flow worth the investment?  

Am I missing anything important here?  Should I look at this as something I put more value into the equity of the home, and look at this property as something that will have killer cash flow 5 years from now?  Or should I stop my stressing and just move on?

@Matthew Irish-Jones, are you asking about our out-of-state property?  We are using RentRedi to manage them and have a network we developed in the area of people that we trust.  

If you have any properties in the central Jersey area you are looking for assistance with property management, I have another network of contractors that do great work at low costs.  I really want to get some hands-on experience, so any assistance I can provide just let me know.

My wife and I recently got into the investment property game.  We are currently doing out of state investing and have been able to manage our properties remotely by just sending in contractors to do the work needed.  I am looking for some experience locally actually managing a property 24 hours a day, and am wondering if any property managers would be willing to take a couple of doors and give me the chance to manage them?  All I ask in return is for some training, with best practices you use as a property manager.  

I currently operate one of the most successful nursing homes in the state of New Jersey, so I am very familiar with how to run a 24 hour business.  I am looking to better myself and help someone out at the same time.  Please let me know if you have any interest and we can schedule a call.  Thanks!