All Forum Posts by: Helen Kolton

Ana, unfortunaley driving is not possible, I have a very demanding job in NY, i can only do real estate after, before and on the weekends.  But when we can, we always drive by and searching.  

Mike,

As far as realtors, yes, we need a good realtor that has experience working with investors.  it has been nothing but a frustrating experience for us for the last 5 months.  They take every offer personally, get offended, or they just do not submit or never get back to you.  My own realtor said that "he understand my frustration" that's why instead of fighting the system I have to gigure out how tomake it work for me" - does it make sence to you????

I also use (arv 70%) on all my offers.  

After speaking with some investors I have been told that keansburg is tricky, after the storm not many people want to have the hassle of renovating those properties, cause no one is buying in keansburg, its only good for rental.  we saw couple of properties in red bank but there was no deal.

Currently we have been looking in perth amboy,  i believer we found a good multi (2 family) it needs rehabbing but after it will be done it will give us  10% cap rate.

any suggesions how to find a good realor(s) are greatly appreciated.

Thank you

We need help.

We are looking to do fix and flip deal and diligently looking for properties that fit that kind of criteria. We know that the location is the most important. We’ve been search hi and low and our realtor says that everyone wants to do fix and flip. Properties in our area in Monmouth county are selling between 80-100% to list price. If we do come accross something interesting and give an offer, he says that our offers are unrealistic and that other realtor do not want to present our offers or present them in a different light.   Can someone recommend a good area to search for fix and flip properties in Monmouth county, New Jersey area. Where are the hot spots where investors buying and selling? Also do you guys use a particular formula to offer certain price. Thanks to everyone.

Jeff Onofrio

I will not argue with you over the facts.  You are a lender. I took that infomation from a very experienced and knowledgeable person who manages over 50M for a lender.  I am new investor unlike you so it is not my right to argue but I would still be cautions and get at least 3 quotes both from qualified 203k contractors and not.  I was not posting anything false, just told him to be cautious, so if you disagree greate, but do not accuse me of posting disinformation.

Be careful of FHA 203K loan, the list of qualified contractors are skatchy, they know that once you have that 203k you can not use anyone but them, they can take advance of you, use cheap materials and cut corners, just saying be careful.

we had plenty of those agents, we also been fired by them, very frustrating, they take offers very personally or they just don't want to bother for such low commission, or they claim that we are ruining their relationships with other agents.....rediculously stupid, i know.

find another agent and put in your offer.

Hi everyone,

Since we are very new to the real estate investing world, I need advise.

if you would have 2 options:

Option 1

Get a duplex, no appreciation but good residual income – 15% cap rate, in a C- neighborhood – price $170 - Asbury Park Area

Option 2

Get SFR, good neighborhood, waterfront, almost no rehabbing costs, appreciation value, 7% cap rate, - price $170 - Perth Amboy Area

WHAT WOULD YOU PICK

My financial adviser said that i can swing this without FHA loan by putting 50K down. I want to leave FHA for another time, either for my own nice home or for a 4 unit rental BUT in the area where i would consider leaving.

I am torned.  The area in Perth Amboy, NJ is nice, not the greatest but nice, from outside the house looks deceiving but inside is very well taken care of. The second place needs some minor adjustments but for the tenant its ok. No closet space at all, and we noticed tree branches coming through the closet floor, which the owner assured us are not such a big deal, but I know it is a big deal.  The house has lots of perks, not the most updated but nice, energy efficient, low taxes, solar panels on the roof, roof needs a coating,  and kitchen needs updating but if I would to rent it I can leave it as is for now. From the second floor deck you can see the water. Nice cozy house that can be rented for around $1500 (7% cap rate).  The previous owner held it for 25 years and now selling for 170 - I do not see huge appreciation here

The property in Asbury Park is a duplex, with two 3-bedrooms units.  The area is sucks but good rentals, has very little appreciation but excellent Cap Rate

We made an oral agreement with the Seller and I instructed my attorney.  Now I have second thoughts.  tomorrow I had scheduled an inspection for the waterfront property.  Shall i cancel it and get the one in Asbury Park?

Please help.  Thanks.

Hi everyone, great posts.

I live in NJ and the market is tough...i like Buffalo but do not know anything about it. How do you invest in the out of town market?  I have no time to research nor go there myself and get to know the area.  Please advise.  Thank you

@Michael Sherwood

@Aaron Montague

Hi,

I think you are looking for Cap Rate Formula.

You take your net expenses and divide them by purchase price.  Going back to your example:  House Value $200K and monthly Rent is $900

 900x12=10,800

10,800x.30 (approximate expanses) = 3,240 (could be higher, depending on your insurance, taxes, etc.)

10,800 - 3,240 = 7,560.00

7,560 divide by your purchase price 200,000 = 4% cap rate

anything below 7% is not a good investment.

I hope this will help.

here in New Jersey typically investors look for 10% or higher.

i like it, really great point Michael.  I will change my letter.  

Believe it or not previously we sent out postcards to the out of town owners.  We sent our about 50 letters just to see what kind of response we will get.  We had 5 calls back.

It is very time consuming, i have a very demanding job plus we do real estate until all hours of the night, every day and every waking moment.  Learning, reading, crunching numbers, looking at properties.  

We are currently working on 2 possible deals, both REOs and we are waiting a response from the bank.  This would be our first deals and I am a bit nurvious but excited at the same time.

Thank you for your advice.