I think it is related to the high property taxes, high cost of living in NJ in general, the new SALT law and creeping mortgage interest rates...those who don't buy with big profit margins built in will be challenged to make money when they exit the deal. 

My value is that I'm currently the acquisitions manager for a wholesaler and have done 30+ deals this year and know how to analyze different neighborhoods which opens this investor up to being able to do more deals with larger profit margins.

There is profit margin to be made if the project is completed but for various reasons, I need to liquidate my capital and can no longer complete the project.

I try to  stay away from the marginal lenders who do not understand the space well and so put in unfavorable conditions on the borrower to try and mitigate risk due to their lack of knowledge.  

As to @David Decker, I am wondering how much your profit margin is in these properties? 

Thanks for the comments.Vijaianand Thirunageswaram, I would have the kept the rental, but I was moving and decided the margin was too skinny to move it to a property manager.

I think you'd be surprised how thin the margins are.

You need to work with experienced local pros, if the margin is low. 

The margins for cash flow 1.

However I contend that is not characteristic of the general investor - the majority get marginal deals.