Newark Horror Stories

18 Replies

What are your biggest regrets/mistakes in the Newark area? What do you wish you knew when you first started? For me it's to be more on top of my tenants' rent payments because I had to evict someone after 3 months of non payment and still haven't received it.

Hey, i think that would be covered anywhere, not just Newark.

I wish i would researched the town more before buying. My purchases are far from bad but i do see other areas in Newark progressing more. I would like to get closer to weequahic park and downtown area.

Newark NJ home delinquency is 6 times the annual rate. Look it up, as it was voted the #1 city in the nation most likeliest to crash. I have done real estate here for 13 years and saw the best of times and worst of times in the Newark market. I do know you can make good money in the right area, however, evicting tenants in Newark (essex) is the lengthiest process in the state due to their high volume. This information came from my law firm which is one of the largest landlord/tenant law firms in the state and based out of Newark. 

I drove thru a "nice" part of newark as per the advice of someone, Upper Roseville, no thanks. Haven't checked out Forest Hill yet.

@Mark F. are there nice areas of Newark....depends on how you define nice lol.  I’m working on my second large mixed use project here.  This one is in the DTFD and it’s really starting to change my opinion of Newark.  There is a great passion within much of the political community, headquartered businesses like Prudential/Audible etc for change and it’s happening rapidly. 

I just met with one of the developers of the old baseball stadium and they demo’d an entire semi pro stadium in a week wanting to get in ground in a hurry.

I would check out the Iron Bound, Halsey street,  etc in DT.  Forrest Hill is also “nice” for Newark standards.

@David Wrenn lol you're right. I drove thru Iron Bound after hearing about it and definitely saw the appeal. I've heard Forrest Hill is nice by Newark standards.

I get why people want to invest in Newark but personally I dont want to deal with the headaches of C- and D areas. But RE isn't my full time job either.

@Mark F. unfortunately they found lead in a large scale mixed use building we worked on about a decade ago just this week which wasn’t supposed to be possible to do to the size of the lines carrying the water into the building.  I’m happy they’re taking it seriously and addressing the problem however around 2.5 years to replace the lines is really unfortunate for the residents of the city.

@David Wrenn Yikes I haven't been keeping up with it. That's terrible. I hope the city budgeted for it and doesn't lose the growth it seemed to be gaining. You owned the building or just help develop it?

Originally posted by @David Wrenn :

@Mark F. are there nice areas of Newark....depends on how you define nice lol.  I’m working on my second large mixed use project here.  This one is in the DTFD and it’s really starting to change my opinion of Newark.  There is a great passion within much of the political community, headquartered businesses like Prudential/Audible etc for change and it’s happening rapidly. 

I just met with one of the developers of the old baseball stadium and they demo’d an entire semi pro stadium in a week wanting to get in ground in a hurry.

I would check out the Iron Bound, Halsey street,  etc in DT.  Forrest Hill is also “nice” for Newark standards.

Forest Heroin oh I mean Forest Hills haha...Iron Bound = over priced with no cash flow. Neighborhood has the crime spill over from Terrill Homes project, Pennington Court but is still great neighborhood. My boy got in at the right time Down Neck "ironbound" in 2013. His Same multi family now is double in price and would be Negative Cash Flow

@David Wrenn Wow so big time stuff, very cool. As a developer, have you heard of a lot going on in Bayonne? Seems like as number of large apartment buildings are/have coming to the area.

@David Wrenn good to know. Not a bad place for a multi. I live here for now and IMO it's only a matter of time before a whole foods/TJ gets put in.

@Mark F.

To add to what @David Wrenn wrote, our glass & glazing company has worked on many large-scale, mixed-use development projects in the area. Not sure what the total project costs were on those projects and we lost a few bids. But these are projects where just glass and glazing scope is in the six to seven figures. 

I must say I never looked into investing in Newark as an investor. But based on the projects we worked on, people with serious money/clout think the area has potential. Maybe they are not as bullish as they are in say Jersey City. But they are going forward with these projects.  

Now it's hard to say how these projects would impact smaller investors in the area. But it's generally good to be in a market where folks with serious money are looking to do new construction projects. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here