New Jersey investors??????????

Question

Hey everyone, I was wondering if there were any investors from NJ in here? If so id like to share some experiences and talk about the market in Nj. I just started rei last month. I bought a 1b condo in Somerdale and rented it out. Im learning a lot just from doing that. I would love to talk to some seasoned vets in NJ and discuss experiences with people in the same boat as me(i cant stand the name "Newbie" so lets just say Novices) lol. Thanks Guys!!!

Andrea Hewitt · Answer

Yes, I plan on staying in NJ and investing all over the country, not just TX.

The investors club that I went to was:
http://www.njreclub.com/

It seems to me that investing out of state is done quite often, but you need to give up some comfort and control to do it. You have to be trusting of the team of people that you use in each area, and be willing and able to change people that are not working out if needed. We have been lucky so far. We have an excellent realtor.

I also feel that investing out of state will let me run our investments more easily and free up my time for other money-making ventures. I fear that if a property is too easy for me to get to,  I will be tempted to run over every time there is a problem. I do not want to get tied down in the minutia of managing the property. That is what I hire the property managers for.

Jennifer Petrillo · Answer

@Andrea Hewitt, houses are sitting on the market for longer and selling for (sometimes a lot) less than asking price, we are in Hunterdon County and are getting the feeling that first time home buyers are not so interested in the suburbs anymore. Banks are getting greedier with the foreclosures, listing them pretty high and not leaving much profit margin for investors anymore. I don't know who's "making a killing" in this market, may have been some embellishing going on at that meeting. The low priced properties in my area need a ton of work, they have water damage, mold, bad septic systems, failed roofs, underground oil tanks, etc. Takes a lot to bring them back to life.

@Scott Allan, how are you making money on a 399K condo charging $2500 rent? That's not even one percent. What do your numbers look like?

Amul Sutaria · Answer

I'm in New Jersey, feel free to connect w/ me.

Scott Allan · Answer

What I meant was "market adjustment".  Just as you are seeing pretty much in a lot of areas, that with all of the new factors, ie. interest rates, inventory available, etc....prices that were inflated the last couple of years are being corrected or adjusted in certain areas.  Basically, prices are coming down.  But again, this is in certain areas.

Andrea Hewitt · Answer

What do you mean when you say that NJ is in the process of being adjusted?

Scott Allan · Answer

I am from NJ and moved down to FL 6 years ago.  I am sales director to a real estate firm owned by a lender.  In addition I am licensed in NJ and know quite a bit about the market.  You are right that investors are making money on pre-foreclosures.  NJ is pretty tight right now and is in the process of being adjusted.  There are some pretty good deals in the NY metro area of NJ.  Rental rates in a gated community range around $2500 to $2800 monthly.  There are homeowners in a specific community that I have bought in located in Clifton, NJ that is panning out really well.  I paid $399,000 for a 1600 sq. ft. townhome and am renting it for $2500.  I feel that Clifton is in a glut right now but is prime to come back with the talk of a desparately needed high school to be built to help the over crowded local HS that they already have.  Not only that, but the Clifton train station which is a half mile away (walking distance) gets you in Penn Station NY and/or Hoboken/Jersey City in 25 minutes.  I am truly speculating in this market but I feel comfortable with the numbers and future use of the city.

Keith Allibone · Answer

DO you plan on living in nj and investing in tx? I thought about investing in re out of state but I wanted to talk with someone who dose and see how they feel about it. Tell me more about this investors club. Is it in Nj?

Andrea Hewitt · Answer

I am a Novice investor from New Jersey. I just started up this past year so I so not have much in the way of real life experience to share with you. I actually am not even looking to invest in New Jersey. The housing prices are so out of control here that I could not afford to purchase anything here. I have been looking to buy in Texas. 
However I attended my first investors meeting last week and heard that the investors who buy pre-foreclosure and foreclosures are making a killing in NJ because people overextended themselves too much because the interest rates were low. Now they can't keep up with the payments are are losing their houses. So, the investors are swooping in and making a lot of money.

I prefer to buy and hold method of making money. At least for now.

New Jersey investors??????????

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