All Forum Posts by: Joshua Jones

I run a fairly large and successful lending business in NYC focused on commercial loans to small businesses. I'm a young entrepreneur (cough*** Age 33 still kind-a young) with cash to invest. This year I acquired my first multifamily property of 6 units that gets a true 11% yield in a B+ area. A close friend of mine brokers over a billion dollars in RE loans annually and was able to secure a 5% 5yr ARM with 80% LTV on this 800k deal for me in October (18'). Total win!

Now, "I thought I was pretty smart", but it has taken me the better half of 2 years to find this deal in NJ. I underwrite 100s of properties per quarter, developed my own model to UW that's up to my standards (thanks to the Bigger Pocket template), and am ready to buy if I could just find another cash flowing or flip opportunity! 

I cannot find a BRRR for the life of me and with my background I thought I'd have it figured out by now. One could argue that all my effort was worth the deal I found... true... but I can't help to think I'm doing it wrong since my returns aren't moving my personal financial needle. I have the capital, I have the right financing group to position a loan for me, I have investors standing by if I need to make a cash call and yet, at this rate, it will take me 10 years to get 40 units under my belt!

None of this is meant to be "braggadocious", my current success is a product of the effort I've put in (i.e. not a trust fund baby; congrats to anyone who is, seriously). My current effort level in real estate is not yielding the results I would expect. 

Other successful real estate moguls in my network all tell me, ">5% COC doesn't exist in this market anymore". I don't like being told that things "aren't" possible so I proved them wrong with a 800k deal... against their mult-million dollar portfolios... HA I get the last laugh?

In all seriousness, should I be trying to find an out of state market? How does someone randomly pick a state/town to invest in? (I haven't heard a podcast on that yet)

Do BRRR opportunities really exist in NJ? Or anywhere for that matter, in >B neighborhoods?

Is it worth considering <5% cap rates and <5% COC for a strong future position?

Additionally, If I wanted to use a hard money loan to finance the construction portion and do the land acquisition in cash does anyone know how to manipulate the BRRR Bigger Pockets calculator to include that? I'd like to check my work.

I'm analyzing my first BRRR property in NJ, just outside of NYC. I'm considering buying the land in cash and using a hard money loan for construction. At the end of the rehab, I'd fill with tenants, refinance and be a happy investor (in a perfect world).

The back-up plan is to simply flip the property and take the cash out now for the next project.

The Project (2 unit Multi-Family):

Acquisition/rehab

Land Acquisition:     275k (I'd use my cash to buy)

Hard Money Loan: 100k (I might use my home equity line at 4% APR over 20)

ARV: 465k (This is my best assumption based on other comps)

Refinance:                348,650

Cash out:                  26,250

Income:

Rent:                         1800x2 (This is conservative)

Capex/Maint. 300x2

Expenses:                400 (water/trash/electric/sewage/insurance)

Using these numbers the property looks like it generates a COC return of about 30% per anum (on the 26k outstanding). Can someone confirm if I'm thinking about this correctly? I use my own spreadsheets in conjunction with the BP BRRR calculator to come up with this estimate.

Any feedback would be greatly appreciated! Thanks!

I'm an active buyer looking for the right multifamily opportunity in Essex county. I have not been able to find the right purchase in Hudson County yet and want to expand my reach. I'm very liquid and want an agent that understands the investment side of the game. I'm more focused on COC return than long term appreciation.

I'm looking for a multifamily home in the NJ area, along the Eastern coast, within 60 minutes of my location, Hoboken NJ. I'm very familiar with Monmouth County and Hudson County. I'm looking for a real estate agent that can help me find these opportunities while also understanding the returns I'm looking to achieve. I'm a pre-approved buyer ready to make the right purchase. I'm open to light rehab as long as I can model out the returns. 

Focus: 

Cash Flow

then

Appreciation 

I look forward to hearing from you.

"There's no place like home" and that's why I would like to invest near me!

I was lucky enough to buy a place 5 years ago in Union City looking over Hoboken that has greatly appreciated. I'm looking keep luck on my side and start professionally investing in multiplexes. I want to fully understand a market before I choose a deal. However, I find myself priced out of a lot of Jersey City/Hoboken. I'm interested in all areas from Hackensack, Secaucus, and North Bergen all the way through Jersey City but, need a reason to focus on an area! My professional life allows me to save quite a bit annually and I'm prequalified up to a million dollars down (I have 20% down available). I'd love to have an open discussion regarding some target markets and some direction on an area to focus on. Help curb my real estate ADD!

Thanks!