All Forum Posts by: Vaughn Smith

@Vincent Paventa You may want to skip trace owners of rooming houses in your targeted area and call them directly, this would probably be your best source of sound advice. Also make sure that you're up to date on the rules for the city state and county as it pertains to rooming houses and factor in higher than average insurance costs as you do your DD. Good luck  

@Alkjad Lelaj Hello, I'm not sure that I follow your questions, but here is a bit of advice to help you as it pertains to NJ Sherrifs auctions

1) Partner with a seasoned investor and/or attorney that have experience with sheriffs auctions, the sales are nuanced and there is a lot of due diligence that you need to do before placing your bid, the title searches are a great place to start but you shouldn't stop there you need to run OPRA reports, check city violations view the property (if possible) etc

2) Understand the redemption period and how it works, the auction isnt always over after you place a winning bid make sure you understand the redemption period before you spend additional funds, buy materials etc

3) Each county auction is a bit different as are the profile of the buyers/ level of competition make sure that you're prepared as some auctions the bids are very aggressive (almost nonsensical) and others they are a bit more laid back comparatively.

4) Not every property at an auction is a deal so don't bid blindly, auctions can be a great place to purchase a property but there are properties there that are also over valued and may not make sense based on your expected rate of return/investment strategy 

@Miguel DelaPena that degree will be put to the test at times in this business lol. @Patrick Kaiser real estate is an interesting business its the biggest transaction most buyers and sellers will ever involve themselves in (including investors) yet people tend to make decisions based emotion rather than logic. I used to let these things bother me when I was new, but now I present the facts to sellers or buyers (on the investing and retail side) and let people do what they wish, if they don't believe as you believe and trust your expertise or if the client is more emotional than logical no data points will change their mind 

@Keith T Williams Zillow is one of if not the largest data aggregator in real estate, not a perfect option but probably the best free option out there. For a low cost option you may want to look into prop stream, if they have MLS data for your area they are pretty good too

@Nathanael Tinaya when looking at a historic home you'll want to call the town to see what renovations you can and can't do on the property, some of the rules that govern historic properties can be limiting in certain instances and can hurt you bottom line (ie. having to replace a slate roof) or ARV (not being able to update curb appeal or add central heat or air).Also with the seller finance portion make sure the terms don't ruin your deal, the balloon payment can wipe out your profits for years to come if its too high for instance so you may want to double check that the terms of the deal really make sense and to ensure you can cashflow for years to come with whichever method you choose

@Andrew Cruickshank you're correct about the inventory in Morris County, there aren't many multi families on the market and getting approved with VA/FHA loans out there can be a challenge due to many common misconceptions about borrowers for both products. You may need to take a look at unconventional means to find a deal out there as the MLS only provides limited options. Also, you may want to shop around for different lenders that offer VA loans so that you have more options, all VA loan providers aren't the same find a seasoned lender that knows the ins and outs of VA lending. There are also a few hacks for using VA loans that are a bit uncommon if you qualify for them they can be a game changer

@Ansel Ueshiro I'd suggest a few steps to help you get started (if you haven't done these things already)

1) Have a clear expectation of what type of area/tenant you're interested in, $450k in northern NJ now typically places you in a C- area, the property will probably have non paying tenants or you may end up with a small property in a nicer area where its tough to cash flow.

2) Look outside of Northern NJ if you head further south or west you'll find better value 

3) consider non traditional house hacks, perhaps you use part of the property you hope to buy as a STR instead of searching for a multi family

@Samuel Woods Harrington it takes a lot of fortitude to put yourself out there, be careful though when offering free labor. Here are a few things you can do to assist in your search for a mentor. Use your data providers to pull cash buyers, call them and offer your services, this way you know you're talking to people who are actually doing deals. Be clear about your expectations in conversations with investors, let them know exactly what you're willing to learn, how much time you can dedicate and what you're willing to do as you assist them.

@Janice Reaves You definitely don't need your RE license to invest (most agents don't invest and many don't know much about the subject tbh) People have probably commented on the cost of holding a license, but their numbers are probably low, here's why. 

In NJ there are several different MLS' each one covers a different territory (though some overlap) each one comes with a different fee so if you live in JC for instance and want local deals you could join the HCMLS, but if after a while you want deals out of your territory you may need to join a different MLS all together and, depending on the brokerage you're a part of that may not be an option (your broker may not be a member of the MLS you're interested in).

The last bit of advice id give you is two fold, learn one strategy at a time and work on executing (you mentioned 8 focuses) also be careful how much YouTube, Podcasts and IG content you consume, it all sounds great and its all very exiting but often times people are left confused, frustrated and terrified as they don't quite know what to do next or what works in their target market

@Amanda Bruce Id tread lightly on that deal, the numbers you posted are really tight when you factor in soft costs, decreased sale prices as the market corrects itself and the fluctuations in buyer interest as insurance rates change like the weather. Th biggest red flag here is that your budget for a full gut renovation is really low even for a small house.