Rockland NY · Member since 2019 · 2 posts · 0 votes
Title says it all. I was fortunate enough to be able to buy my first house last year. A year later through renovations I now have 100k in equity. Of this 100k I'll be able to tap into about 50k. My question is would it be idiotic of me to look to wholesalers for my first investment? Considering I have no experience, worried I might end up biting off more then I can chew. Thoughts
Montvale, NJ · Member since 2017 · 38 posts · 24 votes
7y
@Gustavo Deleon
It depends on what you are looking for. I am based in Northern NJ (Bergen County) and I do deals all over northern NJ. Are you looking for a SFH or multi family? Are you looking for a rental as a BRRRR or a house to fix and flip?
I have deals come across my desk all the time. It ranges from 150k deals in Newark to fix and rent to 800k deals needing 200k of renovation to fix and flip for 1.5 million.
Feel free to send me a connection request and let me know what you are looking for. I will steer you clear of deals without the potential of upside equity. I know many of the towns in Northern NJ but get deals all over NJ.
Do you due diligence. There are a lot of “wholesalers” in NJ who are sending out deals close to retail and their repair numbers are no where close to what it takes to do a rehab.
Real Estate Investor · ESSEX COUNTY · Member since 2016 · 32 posts · 4 votes
7y
@Gustavo Deleon
Being a wholesaler myself I don’t think it’s a bad idea
To buy from a wholesaler. We all know that wholesale only means discounted property. The question would be , how much of the discount would you be getting?
Do your do diligence of course . I am in the Northern New Jersey Market. 50k would help with your percentage of purchasing costs with a hard money lender and maybe some of the monthly fees. Do your homework on the Market and be sure to get qualified contractors before you begin. Newark, East Orange , and Irvington are all great market but require different strategies. Hudson County is very tight and expensive. Some sections of Bergen County single families are hard to sell is what I heard from a realtor there. Again do your Market research .
Montvale, NJ · Member since 2017 · 38 posts · 24 votes
7y
@Gustavo Deleon
It depends on what you are looking for. I am based in Northern NJ (Bergen County) and I do deals all over northern NJ. Are you looking for a SFH or multi family? Are you looking for a rental as a BRRRR or a house to fix and flip?
I have deals come across my desk all the time. It ranges from 150k deals in Newark to fix and rent to 800k deals needing 200k of renovation to fix and flip for 1.5 million.
Feel free to send me a connection request and let me know what you are looking for. I will steer you clear of deals without the potential of upside equity. I know many of the towns in Northern NJ but get deals all over NJ.
Do you due diligence. There are a lot of “wholesalers” in NJ who are sending out deals close to retail and their repair numbers are no where close to what it takes to do a rehab.
Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
7y
@Gustavo Deleon Do your research on the market AND the wholesaler, there are a few decent wholesalers out there and many not so decent ones too. Lastly you should also try to get a handle on pricing for the area, many "wholesale deals" are over priced.
@Gustavo Deleon, I am new also and wanted to start doing wholesaling. However, I personally feel you should never really on someone else's numbers until you have worked with them long enough to know how accurate their information is. Double check all numbers sq ft, rehab cost, arv, etc... Once you find a good wholesaler to work with and accuracy is on point then I would say it would give you more comfort but I would still overlook everything. Good luck