All Forum Posts by: Steve Novosel

Hello Everyone, I have been looking to enter into a real estate investment for some time now, and looking specifically at cash flow properties. My ultimate plan is to have several income producing properties. I feel as though this is the best way to develop long-term wealth in real estate. Recently I have come across a property currently rented by a group of tenants in a growing college town. The landlord is fed up with the tenants, as they usually leave the dwelling in a dirty state (the house is in a college town, so this can be expected). The tenants are part of a fraternity and so the tradition of renting the house has become a year-to-year thing. I have spoken with the landlord about obtaining this property, and he wants well over what the property would actually appraise for, so I don't believe that a mortgage is in the question. However, he mentioned that he would not be interested in an owner financing option as he probably wants his return immediately after selling (stubborn seller- how original). The property is a diamond in the rough, and having gone to school in this town, I know the potential of owning this property 15 years from now. What options do I have? I don't have the capital to purchase the property outright, or even put money down on a mortgage, and I don't believe the seller is willing to finance (though this could change after constant follow ups). The first question I know I will get is "why would you want a property that the tenants are unruly?" Having gone through the financials of the property from top to bottom, including principal, taxes, insurance, repairs/maintenance, and utilities, I will make a profit- and that is assuming a relatively high repair/maintenance cost. Essentially, after having calculated the investment, I have concluded that it is absolutely worthwhile. But how do I get in it? Any suggestions will help and I appreciate everyone taking the time to read this.

Do you think that is a reasonable/possible offer?

I'm not exactly sure how I would go about this, so I wanted to come to this forum to help articulate my ideas. I was a member of a fraternity at a small state school. I've since left that school about 1 year ago but have maintained contact with the fraternity members as most of them are around my age. At my school the fraternity houses are usually just rentals that the chapter rents from a third party landlord, thus there are generally 1 year agreements. This differs from most larger schools as the chapter general owns, or the school owns, the chapter house. The current landlord has become extremely discontent with the tenants, threatening to find new tenants, because of the condition of the house. This is where I come in. The landlord has expressed an interest in selling the property to the alumni, who have not taken any action on this offer. But his willingness to sell seems to me that he may just want to part ways with the headache. I have been interested in buying to hold for quite a while, but without the starting capital to be able to buy a residential rental property on my own. The property itself is an amazing investment- 4 buildings on the lot (two structures certified for housing), a garage, and a large commercial structure. The property is listed as "commercial", and with a growing fraternity , and a growing school, additions to the property would continue to add living space, increasing the amount paid each month in rent. How could i insert myself into the equation between this landlord and my old fraternity chapter as tenants? My question is: how can I say to the landlord "I will pay you a flat fee of $2,500 a month, but be responsible for all repairs and maintenance, managing the property myself and collecting on my own rent agreement." What can a situation like this be considered? Owner financing? Any help would be appreciated, and thank you to everyone who took the time to read.

Hi Everyone, I currently am a licensed realtor in NJ and have been for about 2 years now. I'm starting to look at investing (buy and hold) in Delaware because of the lower taxes and higher cash flow. Would getting my license in Delaware be necessary? What pros/cons would having a license in the state I invest in bring to the table? Any feedback would be appreciated. Thanks

Hey everyone- Thanks for reading. I currently live in NJ however am considering moving my investment to Delaware because of the lower taxes. Could anyone recommend a good area in Delaware with a strong rental market? I have been considering college towns but I'm looking for some feedback from anyone who has worked with tenants before in Delaware. Thanks again!

Good evening Bigger Pockets community, Thanks for reading. I currently work as a realtor in the south jersey area (as a side job). However, I am looking to start investing my commissions in rental properties, or flipping properties. I am young (22) with some decent capital saved up. But not nearly enough to buy cash. Is starting off with having a mortgage a bad idea? Can anyone recommend any good rental market areas in philly and/or south jersey? Ideally I am looking for some advice to a brand new investor on some things you wish you did starting out. Thanks everyone, Steve

Hello everyone,

I am a college student currently as well as a Real Estate Agent. As an agent, I help students (my friends and peers) find off campus housing. At my school, having an off campus house is extremely desirable. I have found an excellent potential rental property that I have shown to several groups of students, many of which who have said they would be willing to sign a lease immediately, as well as have their parents' cosign, should the property become available. The property in question is currently for sale at 149k, and is new construction. A mortgage payment for a house at this price would be around 500-600 plus real estate taxes and homeowner's insurance. In my rental market, a house of this size and location could be 1800/month. How would I go about doing this without having to shell out the first 20k for closing costs, down payment, and mortgage payments for the first 6 months until the tenants begin to make payments? Like I said, I have guaranteed tenants, I would only need possession of the property. What would be the best way to go about this with minimal out put?

hi everyone,

I'm looking to get started on buying and flipping houses. I have seen a property in my area at a great price and great potential. However, there has been a fire previously and there is smoke damage. What should I look for in order to tell if the property can be fixed?

I'm from New Jersey and plan on enrolling in the Real Estate licensing course that is required here. For all of the veteran agents/investors out there, what would be some specific first steps you wish you had taken immediately following you getting your license? I'm really trying to get the ball rolling before I finish the class and would appreciate any advice. Thanks again,

-Steve

I'm currently a student at a growing, yet relatively small university. I plan to enter the Real Estate field in late January with the course being offered sometime earlier in the month. My goal is to gain experience by leasing to students, customers that I am in direct contact with. The student population is roughly around 7,000 that live on campus however the school is projecting to bring in around 23,000 students in 10 years. I am in several organizations throughout campus so networking by word of mouth is how I plan to spread my service around. Anyways, in my college town my landlords use a Realtor to write up leases, list the properties, find tenants, etc. I feel as though because I am a student and also have my license I would be valuable to landlords looking for tenants. I know that all commissions are negotiable, and I would even be willing to take a lower percentage in order to build a clientele. Are there any veteran Realtors in NJ that could shed some light on this? Any advice would be helpful. I don't expect to make large amounts of money, but use this as experience building so that I am able to enter the selling market and work my up. I have a broker and funds have already been sorted out.