All Forum Posts by: Vaughn Smith

@Adam Tiller Be careful investing remotely in a lot of these so called "great markets" ripping off out of owners is a cottage industry. My advice, connect with people doing deal in your target area and see who they are using, a quality referral will often trump any research you can do on your own

@Christina Chatzoglou I'd stay out of Union City (and the Bronx). Moving deals in Union City isn't easy because the city is really strict with their laws especially as it pertains to rent control. Most of the savvy investors tend to stay away and exiting a property can be a challenge. Look at North Bergen, Bayonne, Linden, Carteret and Elizabeth (be careful there) as possible alternatives.

Also take what I said with a grain of salt, if you're not pulling the trigger for a year all of this info could be outdated as the market changes rapidly
 

@Thomas Markowski are you attempting to scale to hit a unit number or is there a cashflow number you need per month? I'd focus on finding your "freedom number" and seeking deeper buys in order to increase your cashflow on the properties you buy vs focusing on the number of units. The market is hot now but there are still deals out there, the key to finding them is relationships. You should be networking, calling, texting and emailing people who may have deals as if it was your full time job.

@Michael Carlson would need more info to help you out here. Morris County, Like most counties is pretty diverse in terms of rentals and property values. In fact one side of a given town can vary quite a bit from the next. I'm assuming it's vacant or will be delivered vacant (you wouldn't be able to raise rents by 50% on existing tenants in most instances.) if so get your agent to run rental comps and assess ARV for the property to make sure your assumptions are solid.

It doesn't sound like the cosmetic reno you're going to do will add much to the ARV (20k on a duplex won't equate to much).

My real question in order to best help you is what is your end goal. Buying a duplex in NJ is more headache than it's worth because the return is too low. You can DM if you have more questions but I'd pass on this deal and revisit my strategy and go for a bigger deal with a better return as a LP or JV.

@Richard Herro Jr. Welcome here are a few tools to help you get started 

Learning the market- Tools like Redfin and Zillow are your friend they offer lots of market data, comps and you can visually see what is unfolding in your market by looking at sales on the map. Watch a show like "straight outta compin" (corny) on YouTube they do a pretty good job of answering questions about running comps and analyzing markets

Don't boil the ocean: Come up with a plan for your real estate investing business then Pick a strategy and go a mile deep! There are tons of options but pick one a lot of the learning is in the doing

Steer your own ship: If you have solid fundamentals in terms of deal analysis, your biz plan and what a good deal looks like you'll have less issues as it pertains to staying the course and underwriting "deals" sent to you by agents and wholesalers (most won't make sense, that's part of the game, just move onto the next one) you as the buyer are the key to the transaction get to the point that you know what works for you and walk away from what doesn't despite external pressures 

Learning about funding is easy, dont sweat it. Stick to simple tactics dont go down the rabbit hole of seller finance sub or novations in the beginning (thank me later) 

Lastly. If you can find your own deals and go straight to seller you will find more profit and cashflow than you can from a  "deal" and agent or wholesale guy sends.

All the best 

 

@Chris Rojas I'd talk to a few different lenders. Start with mortgage brokers and community banks. Walk in and speak to a relationship manager or who ever is in charge of commercial accounts. Often these banks hold onto the paper on the loans they write and work on relationships. If they believe in what you're trying to do they may invest in you especially since you have a property already. Go in with a good narrative about what your companies mission statement and 5 year plan are and you'll have a shot at getting approved. This works best if the property is near where the first one is doesn't have to be the same town but should be in the banks service area. Good luck

@Jehn Gir What town is this project in? Each town functions a bit differently in terms of how strict they are, codes standards and responsiveness (some towns you can fix issues on the phone some you need to go to the city as they never answer the phone). I might be able to help with a bit more info

@Adzo Hidrissou Feel free to reach out if you have any questions, I know a bit about the market in Northern NJ

@Jacob Morgenstern here is some Newark specific advice for you. Omnipresence is the way to go be on every site. Actively manage pricing on every site dont just set it and forget this will keep your vacancy rates low. For Newark Specifically crash Pads will keep you full. Networking or calling local agencies for partnerships does well too as partnerships with local agencies fill vacancies there are several that need STR or MTR (Newark is full of them) everything from economic based agencies like La Casa De Don Pedro to reentry programs to NYC based organizations that bring in workers and would rather not pay for NYC accommodations. I managed a few in Ironbound and on Aldine St back in my Real Estate days these are the tactics I used to keep them full

Take the time to Educate yourself on the market and surrounding areas. Figure out your business plan and exit strategy as you accrue capital and keep an eye on the market it’s hard to tell when the time will be right as the market is in flux.