All Forum Posts by: Ankit Duggal

@Scott L. Great points and thank you for sharing your experience. You bring up some great points. You are competing against the hedge funds and they do have resources, scale and patience. So how you can possibly compete? Well you can if you narrow you focus areas and include strategic urban markets within your investment markets. I know you have stated that no investor has recently invested in tax liens and been successful doing it for a viable financial return profile.

So let me be the first one to tell you that you can invest in tax liens and make returns even in a competitive state like NJ. My tax lien investment firm, Anbar Group, whose first year invested in over $150,000 of tax liens earning an entity level 18% and our capital partners making 8-10%.Yes it is a ton of leg work but that is all investment asset classes in general.

@Jeff Neckonoff it really depends as those are two very investment asset classes and revenue generation models. If you are seeking less headaches and returns a fixed return profile then I would state go for tax liens. However, if you want upside and wish to complete a value generation activity then fix and flip should remain in your investment wheelhouse.

If they dont redeem you and you go through the tax lien foreclosure process then yes they would get wiped.

Thanks Jerry. I am the king of bad jokes so I will take that as a compliment. You are absolutely correct that due diligence is what kills you in the business. With the right systems and spreadsheets, it can go a lot easier and once you have your market narrowed. Thanks for the listen

It is not any different to foreclosure on the tax lien given the trust. Your service could be more difficult but your attorney will be able to help resolve any issues. I have personally used Michael Pellegrino and would recommend his office for your tax lien foreclosure.

@Dave Versch You need a tax lien foreclosure attorney. The best ones that I know of are Pellegrino & Assoicates in Denville.

@Joseph Tarallo if you want to learn about the Newark market. The easiest way to start is to develop an investment criteria and seek out multifamily in each market that matches that criteria. Then drive each asset areas during the day and see what markets you feel within.

@Logan Zanki Here are answers to your questions:

Does anyone know the laws for wholesaling in New Jersey?

There are no specific statutes related to wholesaling in the state of New Jersey

I would like to do a double closing, but I was told this is illegal in New Jersey. Is this true, does anyone have a direct link to where I can read these laws?

As Jscott stated a double closing is "purchasing a property and then quickly turning around and selling that same proper." Double closing is not illegal in the state of NJ. You can close with a table funder and i have acted in that capacity on deals with fellow investors.

What about assignment of the contract, can you do that in New Jersey?

You can do assignments of contract in NJ. You just have to make sure that your contract with the seller is an assignable contract.

Jared is correct that you can pay into any other open liens as the water lien gave you standing to purchase other liens. This is a technique a lot of investors use in New Jersey to buy small liens such as water bills for the opportunity to purchase larger liens over the 2 year investment holding period.

Amul

Adding value add improvements to your parents house will help you fetch top dollar. Paramus is a great market with a highly regraded school system. A couple of things to consider when making this decision:

1. What is the $50k multiplier. What I mean by that statement is how much of an increase does that $50k bring to the market value of your property?

2. How much of a discomfort will it cause to your parents who are residing either at a hotel or at the asset while you are improving asset?

I think it is a decision that needs to be balanced with financial gain and personal discomfort

In term of the loan, I agree that it is better to tap the home equity of the asset but remember to do it a risk adjusted manner as you will have to pay the interest carry on the line of credit.

Ankit