I’m the owner of a seasoned general contracting company with extensive experience in residential remodeling and assisting other investors with property flips. As I’m now looking to start purchasing and flipping properties on my own, I’m seeking any advice or guidance on getting started, particularly when it comes to finding good deals in the Central New Jersey area.
In addition to learning more about the investment side, I’m also open to networking and offering my expertise from a contracting perspective to help others in the community.
I appreciate any insights and look forward to connecting!
Lender · Savoy, TX · Member since 2020 · 187 posts · 78 votes
2y
Hello Patrick, from my experience as a lender in the current market there is an abundance of financing available for 1-4 units, on Fix and Flip, New Construction and Rental market. I think that compared to 10 years ago, the financing is more aggressive, and there is more competition. You may already know this but as a good rule of thumb if Property purchase price plus rehab is less than or equal to 70% of the After repaired value you are going to be a winner 9/10 times. The other important item to consider is keeping your Credit score above 680, this gives you the opportunity to refinance without tax returns into a 30 year fixed rate Rental Loan, or DSCR Loan. The rates on those are between 5.99-8.99% depending on loan to value, fico score, and investor experience. Hope this helps.
It sounds like you’re in a great spot to jump into property flipping, especially with your background in general contracting. Here are some friendly tips to help you get started in Central New Jersey:
Network with Local Investors: Join real estate meetups or online groups in Central New Jersey. Connecting with other investors can lead to potential deals and partnerships.
Use Real Estate Websites: Check out sites like Zillow, Realtor.com, and Redfin to find properties that are priced lower than usual or have been sitting on the market for a while. Look for homes that need some cosmetic updates—they’re often great for flipping!
Direct Mail Campaigns: Think about sending postcards or letters to homeowners in specific neighborhoods, especially those who might be facing financial challenges or have inherited properties. This can help you find deals that aren’t listed publicly.
Work with Real Estate Agents: Find agents who specialize in investment properties. They often know about listings before they hit the market and can guide you to good neighborhoods for flipping.
Use Your Contracting Skills: Your experience in contracting is a huge asset! Use it to quickly assess properties and estimate renovation costs, which will help you make smart offers.
Join Local Real Estate Groups: Get involved in local investment groups. This is a great way to find deals and share your knowledge with others.
Stay Informed: Keep an eye on market trends in Central New Jersey. Knowing which neighborhoods are growing can help you make better investment choices.
Explore Financing Options: Look into different ways to finance your flips, like hard money loans or private lenders. Having a solid financial plan will make the buying process smoother.
By using your contracting experience and getting involved in the local real estate community, you’ll be set up for success in finding and flipping properties.
Good luck, and feel free to reach out if you have any questions or need more guidance. I'll be happy to help you with the financing aspect of your investments.
Realtor · NJ · Member since 2024 · 19 posts · 4 votes
2y
Hi Patrick! Central NJ is a great place to invest - I own property myself here, and we manage around 300 rentals in the area. Personally, I like New Brunswick because of the constant growth at Rutgers, J&J, RWJ, etc - tons of opportunity and we never worry about vacancy here. Happy to connect, welcome to BP!
Welcome to Bigger Pockets. Bigger Pockets is a great place for education and networking and is full of great content.
I recommend that you check out the following resources:
1. Start by reading the Ultimate Real Estate Investing Guide: https://www.biggerpockets.com/guides/ultimate-real-estate-investing-guide/introduction
2. Check out other online guides available here: https://www.biggerpockets.com/guides
3. Take a look at BP's blog where new articles are published every day: https://www.biggerpockets.com/blog
4. If you want to network or ask specific questions about your local market, go to your local real estate forum and connect with investors from your area: https://www.biggerpockets.com/forums/86-local-real-estate-networking
5. You can meet local investors by registering to attend real estate events in your area: https://www.biggerpockets.com/forums/521-events-and-happenings
6. BP has various tools to help you analyze your deals (rentals, flips, wholesale, etc). : https://www.biggerpockets.com/investment-calculators
7. If you can't find what you're looking for, try the Bigger Pockets Fileplace. It contains hundreds of files such as ebooks, checklists and spreadsheets for real estate investors: https://www.biggerpockets.com/files
Real Estate Agent · Jersey City, NJ · Member since 2022 · 82 posts · 61 votes
2y
I think the most logical place for you to start is by connecting with an investor-specific agent in Central Jersey. Perhaps scan the forums on BP or use the agent finder tool? A lot of the busy ones are not frequently on the forums, so you may have to do some searching.
Attorney · Rutherford, NJ · Member since 2020 · 60 posts · 37 votes
2y
@Patrick Scalici Avoid taking over any tenant owned properties. Removing tenants is a serious pain in New Jersey - though I realize those specific deals may be rehab and profit opportunities. If you're going under contract, make sure it is required to be delivered vacant of all tenants (and you'd probably save a good amount of time making that known upfront before entering contract negotiations). I see many times the deals get sent to the attorneys to "handle it" but this should be sorted out upfront whether tenant stays or goes.
In terms of having the tenant removed, there is no way to have them removed from the legal perspective if they are paying rent and you weren't going to move into the unit. There is a few other reasons to evict that are not applicable 99% of the time.
Hey whats up Patrick I’m a general contractor in middlesex county and my company has been buying flips in Essex and middlesex since 2017
It’s a great idea to expand and start getting into flips
My advice would be don’t worry so much about the region your buying a house in besides being careful of flood zones but other then that just make sure you can add value to the property because as you know it’s insane in jersey now. House worth 400k needs 100k of work and agent is listing it for 435k telling you it’s a handyman project
With my experience the last year a lot of houses go under contract and then reappear so just stick true to your numbers and don’t get wrapped up into a bidding war
I hope my little rant helps but good luck to you and maybe will be out there bidding on some houses lmao good luck brother!
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