Patterson, New Jersey

14 Replies

Hey All -

In the next year and a half, the brother and sister in law will be moving to Paterson, NJ to run an after school program. Aside from the obvious issues about doing business with family (which we are very aware of). We are curious if anyone knows anything about Patterson. Ideally, they would be the team on the ground (live in the multi family, and rent out the others), and we would provide a bit more of the capital.

My brother and sister-in-law are handy, and they work in the community, so they're in a great position to know the neighborhood, and invest in its future.

How is the market there? Love to speak with landlords, managers, anyone in the area.

Thanks Kevin, yes. I made that mistake last time I emailed them as well.

Hi Trevor -

I live in New Jersey - in Hunterdon County, which is approximately an hour away from Paterson. However, I mentor a group of young men in Paterson and am familiar with the area. Paterson, like many large cities, has some challenging areas and you should be careful when considering particular parts of the city. You can find attractive cash flow but may have to struggle with crime, safety, etc.

I personally wouldn't invest there because it does not fit my buy & hold criteria but am happy to provide additional thoughts on the area. I can also introduce you to some friends who run a community center in Paterson for another perspective on the city. If interested, send me a PM.

Happy Investing,

-kmj

There are many multi-families there. Its an urban area, some parts are pretty rough.

There are many foreclosures and short sales. Multi-family homes currently available start as low as $24,000.

Medium remaxelitelogoKevin Hill, Re/Max Elite Associates | [email protected] | 201‑214‑1349 | http://www.LiveBergenCounty.com

Thanks for the quick response, guys.

Honestly I would avoid it based on what you have, except that with my brother and sister in law there, they will be actively working with the community. It will give us a unique opportunity to have two people we trust immensely in the property.

I will send over the requests. Thanks.

If they feel comfortable living there, there are plenty of distressed properties to choose from on the market that could be bought low and renovated. Highest multi-family (2-4 family) in the entire city in the past 6 months has only been $350,000.

There are pockets of Paterson that are safer and might be better for investments, but other parts you want to avoid like the plague.

Medium remaxelitelogoKevin Hill, Re/Max Elite Associates | [email protected] | 201‑214‑1349 | http://www.LiveBergenCounty.com

My recommendation in Paterson in terms of areas to live in would be the Hillcrest section and potentially South Paterson section of Paterson, NJ.

Hey Trevor, I have several multi-families in Paterson and like many previous posters have said it can be pretty rough. But with that said I lived there when i was a younger kid and there are some areas worth investing/living in. 

The downtown area for example is pretty active with shoppers and regular folks enjoying the town. I wouldnt exactly be strolling around at night though so I would recommend a place with a driveway so u dont have to park on the street.

As an investment I enjoy Paterson since there is a rich immigrant community who rent in the downtown area and I have recieved good returns over the years.

Good luck and let me know if u have any questions.

I just picked up a foreclosure free n clear in Paterson that I'm wholesaling. I'm going up there in 5 mins lol to get pics and video. If interested hit me up!

If you are comfortable in Paterson come down to Mercer County in the Trenton area.  Similar type challenging areas,  and YES, you should be careful when considering particular parts of the city.  Look at these:

http://postlets.com/s/244-n-broad-st-trenton-nj-08608/11769097

http://postlets.com/s/5-albans-ave-trenton-nj-0861...

http://postlets.com/s/943-terrace-blvd-trenton-nj-...

http://postlets.com/s/1900-s-olden-ave-hamilton-nj...

http://postlets.com/s/58-arbor-ave-trenton-nj-0861...

http://postlets.com/s/mervine-pl-hamilton-nj-08609...

Call me if you want to talk about those.

CARDWELL THAXTON, THE CARDWELL THAXTON GROUP | [email protected] | 908‑456‑1593 | http://Www.cardwellthaxton.com

Hi Trevor, did you eventually invest in Paterson? I recently started looking into the area and saw that the city has rent regulations. I'm curious to know if you or anyone on this forum has knowledge of the rent regulations there.

Hello @Trevor Ewen ,

Not to sound alarmist but the last mayor of Paterson, NJ got convicted for corruption after an FBI investigation. I would recommend staying far away as possible in this area in terms of real estate investment. The taxes are out of this world and the legal system protects the tenants at the financial cost of the landlord. The court system has been known to give tenants tons of flexibility before being evicted. Also the city runs it finances poorly due to corruption in the municipal government. The tenants tend to use these apartments like motels and jump around the city gaining months in free rent through the courts. A lot of good well intentioned people in the city but not good for real estate.

Originally posted by @Alex Jimenez :

Hi Trevor, did you eventually invest in Paterson? I recently started looking into the area and saw that the city has rent regulations. I'm curious to know if you or anyone on this forum has knowledge of the rent regulations there.

 Yes there is rent control in the city of Paterson. I believe the rate is 3% to increase rent.

Anyone have recommendations for banks that will lend in Paterson? I almost bought a multi use building in Paterson through Hubzu but had to back out because of financing.