Calling all Out of State Investors who live in New Jersey!

10 Replies

Hi BP family,

Is there anyone out there currently living in NJ who also happens to invest out of state? If you live in NJ, especially north Jersey, you know prices can get pretty expensive relative to other markets. After reading @David Greene 's book on out of state RE investing (which was excellent by the way), I became motivated to buy and hold without using a turnkey company in markets with lower costs to entry, lower property taxes and laws that are more landlord friendly. 

Now that I have taken the leap, I would like to connect with other investors living in NJ who have done or are planning to do the same thing. I am hoping we can bring each other value by sharing experiences (good and bad), knowledge of different markets as well as our networks. We all have our individual goals we have set out to achieve. I'm thinking we may be able to help each other get there faster while side-stepping some of the landmines. 

Hey Gabriel,

I fit your criteria. I am in Jersey City and I currently invest in Allentown / Lehigh Valley. Good cash flows and the close drive from North Jersey is why I chose that area. What areas are you currently considering?

Hey @Gabriel Green-Lemons ! I actually did that down south - while living in Louisiana, I invested in NJ as a passive investor for a duplex in Trenton, then shortly after partnered to buy an 8-unit in Atlanta. Most of my buyers in the Lehigh Valley are out of state. My two bits of advice - define what your ideal market looks like before you start your research to avoid bias, and make sure you have your whole team together before committing to closing. Buying out of state without a turnkey is not too difficult, you just have to put the work in to get the right people working together. By working with already established investors in the local market (not turnkey, but as a partner on their deals) I was able to leverage their systems and contacts, which made things go smoothly.

I've made it four years without regretting my decision to invest out of state. In my opinion, the biggest challenge is going to be finding a good contractor - the good ones aren't cheap, and the cheap ones aren't good. Keep an eye on your property management - I've had to fire three so far, but the turnover was surprisingly easy. Most of all, good luck!

Hi @Raymond Y. and @David Ribardo . I appreciate you guys responding!

@Raymond Y. Very Nice. I had an graduate internship one summer at a hospital in that area years ago. What is your niche? Multifamily, single family, commercial?  

I have been focusing on Indianapolis, IN since last summer.  I was drawn to the area based on higher rent to value ratios. I am open to exploring  other markets. I purchased a SFH through a turnkey company in October, but did not have a good experience. I decided not to use turnkey companies again and put together a team (RE agent, lender, property manager, contractor) and just had an offer accepted on a 3bed/1.5ba SFH. At this time I am looking for SFH homes in C+/B- areas to execute the BRRRR strategy.

@David Ribardo  I appreciate your advice! I agree with you 100% about putting together a team. Finding the right people is crucial.  I found the WRONG people when I first went the turnkey route. You're right, reaching out to established investors within the market has paid off. I have not looked to partner with anyone yet, but I have found some investors who live in the greater Indianapolis are who are also BP members. I was able to get referrals from them for a a wholesaler, PM and contractor. I'm hoping the renovation on the home I'm working on now goes smoothly. You have got to be the 100th RE investor I've spoken to that advised finding a good contractor is easier said than done, so I am mentally preparing myself for more ups and downs. 

I'm glad to hear you are having success with the duplex and 8-unit building! Are you still looking to buy more small multis in ATL? I had looked at that market briefly and would ultimately like to get into small multis myself.

Gabe, I think that's what makes the difference in successful investors - staying in the game even when things go wrong, and focusing on improving their business. 

Atlanta has treated me well. It's a strong market, and I've got a good partner there. We actually just got a very attractive offer, and if inspections go well, will be closing on the sale of that 8-unit in June. We will most likely be reinvesting the profits (60% ROI after holding it for 1 year and 1 day!) with a 1031 into another 8-12 unit property. As long as you can keep reinvesting your profits, you will be able to do more and bigger deals. Sounds like you are on track to be crushing it in the next few years!

I live in Jersey City and invest in North East PA and the returns have been good with 7 short term rentals. Would be happy to connect and discuss opportunities.

@David Ribardo I agree. I wouldn't call myself a "successful investor" yet, but I'm certainly going to see this thing through. I have lost money in the past, but I am focused on my WHY and will continue learn lessons and adapt and improve. Congratulations to you and your partner on what sounds like a great win! You guys are where I would like to be. Thanks for the motivation. The 1031 exchange is such a powerful way to build wealth and graduate to larger properties. 

Hey @Steven O'Leary thanks for joining the conversation! I would definitely like to connect.

I currently live in NJ and I am planning on investing in the Lehigh Valley or other surrounding areas in PA. Right now I’m beginning to save and build capital in the hopes of taking the plunge in the next 1-2 years.

@Gabriel Green-Lemons It is great that you have a team in Indy already. I am looking at small multifamilies to start and I recently found a good team. I am going to try to scale as much as possible before looking to diversify. It would be great to keep in touch just in case I ever want to venture out to Indy.

@Gabriel Green-Lemons I have recently purchased my first multi family in Allentown and am in the process of pulling a BRRRR. Definitely would like to connect and share experiences. Good luck investing!

@Mario Ciccarelli glad you joined the discussion! I wish you success as you save up to get started soon.

@Raymond Y. I'm glad to have a team as well. Honestly, I would prefer to have started purchasing multifams, but after speaking with local PMs and investors, I discovered it was not going to be easy to find 2-4 unit properties in decent areas to buy and rehab within the price range of my credit line limit (less than 100k). I certainly would like to hear more about your experience as you scale. 

@Stephen Kunen congratulations on the purchase and getting the process of the BRRRR started! Thanks for the good luck wishes as well! BRRRR'ing multifams is the next step for me as I continue to increase my total credit line. I'm hoping to learn a great deal by the end of this first one I'm working on in Indy. I'd be glad to share my experience. I'm sure I can learn from yours as well.

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