All Forum Posts by: Michael Jones

Hello Sarah,

There are some (business) wholesalers here that have been pounding the streets for deals to investors and there profit. NetWorth, New Western and some others ( I know some names I can share with you). Do your due diligence when purchasing and know the process of who you will use to do the work and what it covers. Know your costs! I am at the end of doing a flip in San Antonio. I would be happy to share more with you.

Let me know if I can help.

Regards,

Mike Jones

I agree with all about pulling permits. However, there is some leniency when you are the home owner as to what you are able to do when you own the home. This means doing the work yourself. Originally from the Northeast and a commercial GC and developer of some housing I would never have ever dreamed of not pulling a permit (permits). I am in the middle of a flip in San Antonio and I would be happy to share more on the skinny here. So, for the time being let's just say that if you are adding on to a dwelling or: doing electrical work with panels, adding plumbing, changing gas lines, etc. - Stick to pulling a permit or at least use a licensed and insured technician that will warranty his work. Until my flip is completed and sold that is the best I advice I can give you here. Remember to do your due diligence when purchasing a SFR to flip or anything else for that matter.

I have not done NPN either as @Ned Carey had posted nor am I knowledgeable enough to discuss the topic. However, regarding foreclosure and tenants - go to a non judicial state. I know NJ is topping at over 900 days for some that are still in there homes just waiting for the hammer to drop.  

@Chris Masons Yes, I know SFR are a little depressed which is great for buyers! The concern is the DOM for a flip. The buy and holds in NJ have interested me in the Section 8 housing believe it or not. The SFR rentals with 20% down on a buy and hold didn't make up for the PITI even with rents from 2k to 3K a month in a decent area. What is crazy when I looked at the stats. for foreclosures the time can be as 900+ days because it is a judicial state. In Texas the owner can be forced out in a matter of 2 -3 months max. - good for a buy and hold. I agree the market is slowly coming back. I have connections in Monmouth and Ocean County that I have been in contact with. I am not really impressed with Ocean where I grew up - It seems never to get out of where it began - stagnant. @Mike D. I lived in my next life after college in Sea Girt then to Point Pleasant. I preferred Point Pleasant and still do. I recently had consulted on a major insurance claim in Mantoloking for a home devasted by "Sandy". There was so much destruction in that area! I know of a group that were going to be purchasing homes in Ortley Beach and areas hit hard by the storm - knowing that the generation that now owned the homes would not be able to rebuild due to the cost, clean up and regulations now in place. It's a shame for those that have to walk away from there property. So, as I began this forum what can be said for NJ and it's potential? 

@Ryan Goldfarb I can believe that you can get as good as the 65% rule at this time. I have looked at properties online from Summit down to Monmouth County which appear to have pockets of decent deals. I am very interested in Long Branch - I always get drawn back the the beach, lol. I will be back in NJ at the end of September and travel through New York as well. 

I will be addressing what I can do and would like to do in NJ in the marketplace. I am involved in a flip at this time in San Antonio. The DOM are great but returns are less. Just like anywhere else if I go into the warzone my returns go up but my life is at stake - no joke. I feel safer in Asbury Park not so much Camden but even Newark I can handle. 

Thanks for lending your knowledge !

I am currently in San Antonio and have been for the last 4 years (Seller's Market - Hot). The deals are here but with lower margins and a lot of competition. The 70% rule does not work here in San Antonio - does it work in NJ?

Originally from NJ I have considered the idea of returning to NJ where I have worked as a GC/developer all my life.  4 years ago when I left, the RE market was down.  Now after 4 years I am thinking that there may be potential to pick up good investments - buy & holds, wholesales and flips.  I am aware that the market has not bounced back yet.

Looking for any and all information on how investors are fairing in the NJ market.  What is trending and where?  Also interested in NY, PA and DE.  

@Rodney Getsy Yes - I did not metion an attorney that you will need. Agreed @Brian Gibbons 

@Ricardo G. 

 I did a lot of research on wrap around mortages as a business plan from listening to a pod cast. Unfortuantely this is not a good plan with so many moving parts and insurance being the a serious issue along with the "due on sale clause". However, owner financing appears to be good plan especially in an a non-judicial state (Texas). If you don't need to get all of your equity out of the house I would get 20 - 30% down and then finance the balance from your purchase price at whatever terms to mirror yours loan with at least 2% on top of that. Or see what would start to pay down your equity better in terms of time and increase the buyers payments to meet your needs. Financing by owner is always more than a conventional loan and definitely due your due diligence on a credit check! If the buyer defaults you may be stuck with mortgage payments for 2 - 3 months in this state but you are back where you started from with a sizeble downpayment and some additional payments made on your mortgage. The risk is foreclosure may upset them to the point of where they damage your residence - character is the best judge of that, but not a safeguard. I would also set up some type of safeguard as to whom the payments go to - I would choose "yourself" to send the check to the bank. That way you will always be the first to know of any default - and make sure you have a penalty clause for any late payments! I am sure more seasoned BP members can give you advice more accurately than I can - but this is my take on it.

Tal - You would not have to take your national exam again but you would need to take the state exam in the state you would want to become licensed in. The certification classes I don't believe you need to take to qualify to take the test but they would obviously help. If you are looking to access the MLS for deals your best bet to avoid costs of being a Realtor would be to find more than one broker to help find what you are looking for. However the MLS is retail so don't be surprised if they don't find what you are looking for. It depends on you business plan for the properties you wish to acquire.

@Mohit Madaan I would be very interested! I am in San Antonio in a SFR flip right now. I have marketed to distressed properties here in San Antonio where I reside. I am also looking at the New York and New Jersey markets because that is where I lived most of my life and know the area very well. I have a residence in the Northeast which enables me to travel there if need be. Please let me know how to proceed with you.