All Forum Posts by: Anthony Marin

Hi @Steven Kelts

The answer to your question would have been no a month ago BUT the Newark NJ council and Mayor just passed an ordinance that states that owner occupied units and brand new units which were both exempt from rent control are now subject to a 5% rent increase cap every year.  This is controversial because it contradicts state law on the brand new units and looks to be heading to court.  I hope this answers your question but if you would like more details about this and investing in Newark please feel free to contact me as I own a brokerage in the Ironbound.  

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Hi @Djimitri Celestin

The most important thing when investing in Newark is what area are you investing in?  Once you know the risk/reward on those deals then we can discuss what type of loans work best for those deals.  At a high level the East, Central and North are the better areas to invest in.  The South and the West are more challenging.  Even with that said, in all those areas there are blocks you don't want to invest in.  I own a brokerage in Newark and if I can be a resource for you please feel free to DM me.  Thanks and wish you the best.

Hi @Angela Aybar,

First of all congrats on getting through the 2007 situation and coming out on the other side because a lot of people would've quit there.  What is your real estate goal?  Is it to have a portfolio of 1000 units?  Is it to make $5000 or $10,000 a month in cash flow  Is it to utilize depreciation and tax benefits to reduce your income? You gotta know this first.

If you want to make $5000-$10,000/Mo. in cashflow, I think you should stay the course because you have a good base.  Find a partner with good credit to buy another property or 2.  If you can find the deal and bring cash then all you need is someone that can sign on the loan.  At that point you'll have a solid cash flowing portfolio and lenders (the right ones) will pay less attention to your credit and more attention to your successful portfolio.

If you want a portfolio of 1000 units, I think you should sell these 2 properties and get with a real estate syndication group looking at large multifamily (maybe in the midwest like @Vanessa Ivonne Hernandez suggested) and you can invest alongside them on the GP or LP side.  You can turn your 4 units into 250 units relatively quickly.

Hope that helps and it looks like we are both from Newark so if I can help in any way please feel free to DM me.

@Matt Berte

Hi, the only places in Essex or Hudson county you'll find anything under $300K are in Irvington and the most dilapidated parts of Jersey City and Newark.  Unless you have experience investing in those areas I wouldn't suggest it.  Save some more money and begin looking in North Newark where you will be able to find some decent deals that need work above $400k

@Steven Kelts

Hi Steven, I am an investor, owner of a brokerage (focusing on property management and tenant placement) and a resident of the Ironbound section of Newark.  In my opinion you are over-valueing short term gains instead of thinking about the potential of stable, lucrative long term gains.  The area you're in is considered one of the best areas in Newark and if you renovate those apartments to a high standard you will get rents at the high range of all rents in Newark.  The other thing to consider after you renovate, is that you can do a cash-out refinance and recover funds.   Your idea of renting to the construction workers nearby is not bad but after October 2022 you'll be in the same situation and no one knows where the market, rates, rents, etc. will be.  @Ryan Paltridge is correct about the subleasing for those tenants, you may think you're renting to two and it may wind up being a lot more.  Playing the long game has never hurt me is real estate, but being short-sighted has bitten me in the *** a few times.  Please feel free to reach out to me if I can be of any assistance.

@Mor Haffman

Glad to hear that you purchased in Newark.  If I or my company can help in any way please do not hesitate to reach out.

Hi,

@Reuben Joseph I am an investor, broker and I also live in Newark NJ.  I've invested in properties in and around Newark.  If I can help in any way please feel free to DM me.  Good luck in your 

Hi @Matthew Kelley

@David Wrenn brings up very good points and those are headwinds for the market but it depends what you mean by a couple of years?  I could see things getting a little bumpy over the next year or 2 but if you mean 3+ years, I think values will be much higher.  Even with those headwinds, the tailwinds of lack of supply, low interest rates, access to capital and almost everyone having equity in their property doesn't seem like the recipe for a big correction.

Hello BP community, I am looking at some 10 and 20+ unit buildings in Jersey City New Jersey and am wondering what the rent control laws are and how they are being enforced?  Any information would be helpful.  Thank you