All Forum Posts by: Brett Baginski

Applying for a HELOC can't hurt since you only pay when you decide to withdraw on that balance. So even if you do not need it right now, it will be ready when you come across a good deal.

Just remember to factor in your monthly HELOC payments to your analysis. I used a HELOC to fund my first investment property, which I am closing on in October, and when I was running numbers the HELOC payment ruined a lot of potential deals. Eventually I hope to refinance and be able to pay that HELOC back and put it to work all over again.

My goals are always changing, but right now my monthly cash flow goals look like this...

Goal 1 2019- Do a deal (set to close on 10/23!!)
Goal 2 2021- Replace personal mortgage $1,650
Goal 3 2022- Replace all monthly living expenses $2,600
Goal 4 2024- Retire from W2 job and focus on real estate $7,000
Goal 5 2025- Financially free and living comfortable $10,000

I have my first property under contract and set to close on 10/23.  My lender wants me to start getting the homeowner's insurance policy ready, so I was wondering what companies people in the NJ forum were using, or if you had an agent that you could recommend?  

The property is in Ocean County, 4 bed, 2.5 bath, 1872 sq ft and I have received the following quotes...
NJM- $831
Geico- $1,495
Farmers- did not like their customer service, but waiting to hear back about a quote
Allstate- waiting to hear back
State Farm- waiting to hear back

Thanks!

The area of focus really depends on you.  Where are you from?  How far are you willing to travel to look at properties and maintain them if you do not use property management?

I can't really steer you in any specific direction as that is something you need to decide on.  Initially I was looking at duplexes, but the numbers didn't work for me.  So now I am focusing on single family properties in Ocean County, because that is where the numbers make sense for me.

Multifamily's in my area, Monmouth County and Ocean County, just never seemed to work out. My HELOC payment or needing a larger down payment always killed any possible deal after I ran the numbers. Maybe it will work better for you. Speak to a realtor and get set up on the MLS emails for both single family and multi family units and see what works and what doesn't.

Don't forget to factor in the $600 HELOC payment when running your numbers. I am using a HELOC for my investment as well and it usually ruins a lot of deals.

Hi Rocky,

I would suggest focusing on one investment type for now instead of looking at both residential and commercial. Your question is very vague. To find an area in NJ close to trains to NY, low in crime, near good schools, with low taxes is a needle in a haystack and something everyone is looking for. With 90k from a HELOC and putting 20% down, you are looking at a purchase price of $380,000 to leave money available for closing costs and a reserve for repairs. With this budget, residential might be a more affordable option.

Are you working with a realtor?  They should be able to narrow down your searches.  You can follow the train line and do your own search around the surrounding areas.

Thanks for the response @Barry Pekin.  I wouldn't say my goal is to get involved with wholesaling.  Just saw a possible opportunity and didn't know there was a term for it, "bird dog".  I will look into this concept.  

Hello All,

I received a postcard today from a “we buy homes for cash” company. Has anyone ever followed up with one of these postcards with a potential property?

Every day driving home from work I pass a small house that needs work with a very plain FSBO sign stuck on their front lawn that's been there for months now, nothing posted on Zillow.

Is there a strategy I can use to put these two people in contact? Would I call the seller first and see what he is looking for? Do I have to get this under contract first? Wholesaling was never my goal, but is it possible a finders fee could be made?

Thanks!

Welcome @Ryan Hanrahan !  I am new as well and the BP forums and podcasts have helped me learn so much over the past six months.  Check out the Network-Events tab at the top to find a local real estate meetup in your area.  You will meet a lot of great people there and it's a good place to start networking.  Best of luck!

Welcome @Peter Zeoli ! I am also a beginning investor in NJ, but from Monmouth County.  Currently looking at properties with a real estate agent.  NJ is tough because of the higher barrier to entry with needing a 25% DP on these high home prices.  I'd like my first property to be in NJ, but after analyzing deals for the past few months, out of state seems to get better every day.  Good luck!