All Forum Posts by: Rick Stein

Simply  call the tax office and ask. Their number is 609-989-3070

Hi, Kay,

 Go to Trentonnj.org and look up tax liens. The last sale date was in June. Investing in tax liens can be a tricky business. The owner of the property has a 2 year right of redemption after you purchase the lien. If he redeems, you get the principle and interest. That's fine. But if he does not redeem and you hope to eventually foreclose on the property, you must keep the taxes current or a subsequent purchaser of liens can foreclose you out or you would have to pay subsequent lien holders principle and interest when you foreclose. Also, if you are investing in Trenton and you hope to foreclose after 2 years, you must ask your self what condition the property will be in when you finally take possession. Also, keep in mind that NJ is a judicial state and  it can take an additional 6 months to a year to finally own the property. I am not trying to scars you but just give you a few caveats. There are other considerations, but this is good to start. 

Good luckluck

when I stated that you eliminate closing costs with seller financing, I should have clarified that you eliminate financing cost s such as an appraisal, commitment fee and other fees associated with the lender. 

Welcome to Bigger Pockets and investing. I would chose one or two types of investing to start and learn all I coulda out them. This is a great venue for brain picking. I would also join my local REIA .

The answers above are correct. But, the amount of closing costs depend on the lender. I just closed 2 properties with a credit union who does not escrow taxes nor insurance. Therefore, I eliminated those prepaids. Of course,seller financing is always preferred as you can eliminate all closing costs and prepaids. 

is this a webinar or live at his office?

Hi, Neil,

 There are two components to a lease/ option. The first is the lease. You are leasing a property you own to someone for a predetermined time period.They  are paying you "x" amount each month, a portion of which may or may not be credited towards the purchase price. Simultaneous to this, you have a separate option contract with them for the purchase of the property. They give you a non refundable downpayment. They have an option period, say between the twentieth and twenty fourth month of a two year lease to exercise their option and purchase the home. If they do, you have the profit of the rent money, assuming you had positive cash flow ( I would never buy a property and rent it with a negative cash flow) and the profit you make on the sale of the property.

If they do not purchase the property, you keep their down payment.

besides all that was said already, I would never buy a one bedroom rental. Your market is them a single person or a couple with no kids and the resale market is minuscule.

the roof over the garage needs some work but the house itself is in good condition. It is a turn key property. No, it is not professionally managed. I manage most of my own properties.

I have an assignable contract on a 2 family home in The Franklin Park section of Trenton, NJ. It consists of two one bedroom apartments renting for $675 each. There is also a one car garage which is vacant but can rent for $100/month. Separate gas and electric paid by the tenants. Owner pays water and sewer. Turn key property. Wholesale price is $60,000. Contact me directly for more info if you are interested.