Overwhelmed in New Jersey

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Overwhelmed in New Jersey

Jose Jusino
Investor · Member since 2017 · 35 posts · 12 votes

Hey BP!

So my name is Jose and unfortunately, I have completely overwhelmed myself. I'm a complete beginner and while learning about all of these Real Estate strategies, lead generation techniques, markets, NJ State Taxes!, etc, I froze myself and don't know what to do.

Many of the strategies that I've considered seem difficult where I currently live because of asking prices and property taxes. I thought about out of state investing but I'm not comfortable leaping into a market that I'm not too familiar with. I've even considered waiting for the market to shift more towards a buyers market but thats just a silly excuse to not get started now.

How did you guys get started in Real Estate? I would love to hear some of your stories about how/why you got started and what strategy you used to get started. Did you face any humps in the beginning? And how did you overcome them.

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Dan Barli
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
7y

Hi @Jose Jusino I can certainly relate to what you're feeling. NJ is a tough market (depending on your strategy) due to the asking prices and expenses. I personally used BP to build teams in other markets. I would recommend you explore that. You can connect with professionals and then whenever you're ready, you should take a trip to that market to see everything yourself and meet the people you spoke with.

That's personally what I did years ago and haven't looked back since. 

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  • Dan Barli
    Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    7y

    Hi @Jose Jusino I can certainly relate to what you're feeling. NJ is a tough market (depending on your strategy) due to the asking prices and expenses. I personally used BP to build teams in other markets. I would recommend you explore that. You can connect with professionals and then whenever you're ready, you should take a trip to that market to see everything yourself and meet the people you spoke with.

    That's personally what I did years ago and haven't looked back since. 

    6Reply
  • Chris T.
    Investor · Highland Park, NJ · Member since 2017 · 12 posts · 6 votes
    7y

    Hi Jose, 

    New Jersey can be difficult to get started for sure because of the barrier to entry with the high prices and property taxes we’re seeing. I still only have a small portfolio, but where I’ve been successful is house hacking in cash flowing areas (ie near colleges) and buying condominiums In neighborhoods that had potential for appreciation (ie jersey city).

    That said, my next investment will likely be out of state. If you look at data on the cost of buying vs renting in the US, New Jersey ranks the worst in terms of the value of home ownership. This disparity obviously impacts single family’s the most, but definitely trickles down to other types of multi family. Essentially, in most cases you are better renting in New Jersey and using your down payment funds to buy an investment property out of state. 

    Best of luck in your search

    3Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    @Jose Jusino I'm not comfortable getting into a market I'm not familiar with either! But if you pick out a good one that cash flows well then you can make a plan to get familiar with it and focus your efforts on that. It's all so very doable.  Just be ok with it taking time, commitment, and consistent effort!

    1Reply
  • John Moses
    Specialist · Red Bank, NJ · Member since 2016 · 34 posts · 19 votes
    7y

    Plenty of people flipping and doing brrr strategy in NJ. Have you made any investor meetings in NJ? Maybe hit a few of them, talk to some folks with boots on the ground.

    1Reply
  • David Smith
    Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes
    7y

    NJ is tough due to tax, rent control , high price and labor cost.  But it is still doable.  You need to act fast when you see something. 

    1Reply
  • Rowen Burney
    Greenville, SC · Member since 2018 · 58 posts · 50 votes
    7y

    I would suggest checking out David Greene's book on long distance real estate investing. Its a game changer.

    1Reply
  • Matthew Rembish
    Flipper/Rehabber · Toms River, NJ · Member since 2014 · 378 posts · 154 votes
    7y

    @Jose Jusino Hey Jose, I felt pretty overwhelmed at first too but it is possible to make properties in NJ work. I've been flipping houses for the last 3 years now and I can say that it's definitely aggressive out there. I would go to some of your local REI club meetings and network a bit. There's a bunch in NJ; sometimes I'll even drive over an hour away to go to some. That will at least enable you to understand what others are doing to be successful and it's always great to network!

    2Reply
  • Cody Z.
    Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
    7y
    Originally posted by @Jose Jusino:

    Hey BP!

    So my name is Jose and unfortunately, I have completely overwhelmed myself. I'm a complete beginner and while learning about all of these Real Estate strategies, lead generation techniques, markets, NJ State Taxes!, etc, I froze myself and don't know what to do.

    Many of the strategies that I've considered seem difficult where I currently live because of asking prices and property taxes. I thought about out of state investing but I'm not comfortable leaping into a market that I'm not too familiar with. I've even considered waiting for the market to shift more towards a buyers market but thats just a silly excuse to not get started now.

    How did you guys get started in Real Estate? I would love to hear some of your stories about how/why you got started and what strategy you used to get started. Did you face any humps in the beginning? And how did you overcome them.

     Hi Jose,

    I think, as everyone has said, NJ is a super tough market to get started in unless you have some serious capital. I can appreciate how you're feeling as I was in your exact boat for almost a year and half! It's sad to say - but I overwhelmed myself to the point that I could not move forward and, at best, only left and right (Shiny Object Syndrome). Fast forward and I am currently under contract for a FHA 203k Multifamily and I am determined to get this deal done.

    My advice is to pick an area in NJ that you like and are comfortable with and start attending REIAs, events, networking to find deals in that area. Feel free to PM me regarding marketing, team recommendations (agent, attorney, mortgage, etc.) of you'd like.

    The key takeaway is this - Write down the steps you need to take and then only focus on one at a time - and also remember to breathe lol. If you want it bad enough, it is totally yours for the taking. 

    Best of luck!

    2Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    7y

    Start slow and start with one property.  

    1Reply
  • Fred Shatzoff
    Lender · Member since 2019 · 604 posts · 160 votes
    7y

    @John Moses @Chris T.@Jose Jusino @Dan Barli @Matthew Rembish @Cody Z.  Good old New Jersey nothing is easy.  Hi fellow New Jersians.

    2Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    7y

    @Jose Jusino you are a "complete beginner," no matter where you invest you will likely hit an over whelmed phase.  NJ is a unique state.  It is different from most and has its difficulties which is why many people look elsewhere but eventually if you stay the course you may find what you are looking for and you will look back and understand all you are going through is part of the process.  

    973-975-3895
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    1Reply
  • Joseph Ghobrial
    Bayonne, NJ · Member since 2017 · 32 posts · 16 votes
    7y

    The problem is you tried to learn too much with no action. Try following up each thing you learned with a call to action. Try implementing it, don't be afraid to fail. Analyze many deals. Get out there and hustle! That's the best way to learn. 

    Founder, Refix Real Estate LLC

    1Reply
  • Andi Sjamsu
    Princeton Jct, NJ · Member since 2017 · 25 posts · 8 votes
    7y

    Hi Jose,

    Agreed that NJ can be tough, but then again, Metro NYC/North Jersey is tough.  Philly (especially like So Philly) is very affordable to invest.  We (my wife & I) are just now looking at investing, but 21 years ago we made the plunge to buy a property with a Princeton mailing address (it was actually in Plainsboro) & moved down from Queens.  We bought the smallest/cheapest townhouse in an excellent community and were fortunate to go from $104k ($5k down) to $270k in 9 years and moved to our current house (single family detached).  I was trying to find a multi family 21 years ago, but those are almost non existent in West Windsor where we now live or Plainsboro. 

    Now that the kids are out of the house, we are finally looking at multi family to house hack (we'll live in 1 side while tenants pay a good chunk of the mortgage).  We're not keen on the idea of renting out say 1 of the bedrooms since we'd see the tenant all the time and have to share the 1 full bath as well as the rest of the house.  If our house was setup differently, the room sublet would work well.

    I had a friend who bought a 2 BR condo back in '90, rented out the 2nd BR and had a net monthly cost of like $250/mo.  He sold out 15 years later, gained like $150k (while spending like $45k to live there), so if it's an option, I'd suggest looking at house hack as perhaps a good first move.  2BR condo (like my buddy did after I nagged him for like 4 years to do it) can be a good starting point and will likely be within your budget.

    It doesn't say where you live or what areas you're looking in, but I'd stay with the old adage: "buy the cheapest house in the best neighborhood".

    Good luck with your search & as others have said, take the first step.  Had we not bought the townhouse in '98, we wouldn't have this house today.

    1Reply
  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    7y

    I started here in NJ more than 20 years ago.  The landscape was a bit different.  Small multis weren't en vogue and real estate investing was less competitive. Still, I leveraged everything to get into my first place and it was well worth.  Can't tell you the impact it's made long term in my life.   NJ is hard, yes, but that's a good thing.  If it was easy then everyone would be here and the market would have greater ups and downs.  

    862-208-2287Podcast Guest on Show #48
    2Reply
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