All Forum Posts by: Joe Sadusky

@Clifford Laguerre there are lenders that will issue loans for non-owner occupant investment properties.  I do think that this may be a case by case scenario however. I know that lenders sometimes want to see some experience before lending for purely investments. 

Do you have a specific part of NJ that you're looking in?  Feel free to send me a message and I can pass along some local lenders. 

@Riley Walz if you plan on doing a lot of investing, there are definitely benefits of getting your license. You will be able to view houses, make offers, and have access to more information when making your offers. 

There are fees that come along with being a realtor (whether you are getting signed contracts or not) that you will need to weigh out your overall cost savings on your investments.  

Bottom line- if you are doing multiple deals a year and can find a Broker without a lot of fees- getting your license definitely could benefit you. 

If you will only being doing maybe one deal a year, or every other year- the costs of keeping your license active may not be worth it.

Good Luck!

@Melanie Kent congratulations on taking the steps to get closer to your first real estate investment. 

I personally find House Hacking (renting out units) to be a very effective way for beginners to get into the game.  If you are able to get a multi-family unit  and live in one as an owner occupant, you will have the benefit of little money down and also the beauty of an income producing asset on your primary residence. This can allow you to save money on living expenses while also saving money for your next opportunity.   

I used house hacking and the BRRR (buy, rent, refinance, repeat) strategies to help get me started with little money.

I would suggest digging into properties that you're interested in within your market.  Put together the numbers and start determining what could be a great deal. BP has calculators to help. 

Best of luck! 

@Nicholas Munford paying cash over financing is definitely a personal preference.

I personally would much rather use whatever cash savings I have as down payments on multiple properties and using financing to secure mortgages on the remainder.  If you are getting properties below market value, you can pull equity out of the property through a refinance.  I believe that using the leverage of your equity is the best way to achieve larger returns. 

@Lamar Jean after you have been house hacking for about a year- hopefully you have had the opportunity to save some money for your next deal. Do you have equity in your property? If so, I highly suggest taking advantage of the BRRR (buy, rent, refinance, repeat) strategy. I have used the BRRR strategy as leverage for my financing of additional properties by doing a refinance and using that money to purchase another property.

Best of luck! 

@Evan Eldridge I agree with @Dave Hutson that house hacking could be great option for you. 

Depending on your market- what kind and how much financing you can get approved for, $8,000 may not get you that far. You will also need to consider how you will finance your renovations, there will be your down payment, additional closing costs, holding costs, insurances, etc. 

If you chose the route of house hacking a multifamily, you can get away with little money down as an owner occupant.  The beauty of house hacking and occupying the unit is less money out of your pocket and the rental income stream that will allow you to save up the funds for your future fix and flip properties. 

I suggest getting all of your finances figured out first and checking with a lender to see how much you could get approved for.   If you are set on fix and flips- look into renovation loans.  

Best of Luck! 

@Ryan Proffit definitely sounds like a cool property, congrats!

If you're banking on building that additional 4-plex on the lot, I suggest checking with local zoning prior to closing the deal.  Why are the current rents so much lower then your anticipated rental income?  I would also make sure that you are looking at the most recent rental comps and also make sure they is a healthy rental market in your area.   Do you plan on getting all new tenants? 

When we run the numbers for rental income, we usually assume around 10% less then what we believe we can actually get.  This way, there is room to accept less rent and not drastically hit our bottom line. 

Best of Luck! 

I agree with @Anthony Solis on the House Hacking.  House Hacking a multi-family could be a great option. 

That is the best way to acquire more properties without having to cough up as much money for a down payment. 

Do you currently have any investments? You may qualify for an FHA loan on a house hack which would get you down to as low as 3.5% down and even credits towards your closing costs.

Good Luck! 

@Diana Leal  what parts of NJ are you specifically looking to invest in?

@Henry Lee congrats on taking the steps to get into real estate and wholesaling!

From my experience, the best use of your money would be having access to reliable information.  We find that getting accurate phone numbers is vital.  We also send letters (which add up quickly- paper/printing, envelope, stamps) 

You will want to spread your marketing funds in such a way that you are able to have multiple contacts with the same leads. It will be important to work on building a relationship with property owners, and some of your leads will take lots of diligence and nurturing. (This could equal the cost of multiple letters sent over a period of time)

Some marketing strategies that we have used on a limited budget is: driving for dollars, using the free public records to analyze and find deals- probate, tax delinquent, absentee owners, and even personally handwriting letters to save on printing costs. 

I would recommend vetting your leads thru multiple streams.  For example- if you decide to drive for dollars and pick out houses that seem to be completely dilapidated and not cared for, look up the property on the public records before spending the marketing money and sending a letter.  See how much the person actually owes on the house (is there even room for this to fit into your budget? etc)

Best of Luck!