All Forum Posts by: Larry K.

Will Barnard I am not an expert on the specific meanings so bear with me...

I think NJ is a "mortgage" state in that we use "mortgages" and not "deeds of trust". Are you using the term "deed of trust" to mean "whatever you use in NJ"

or do you mean DEED OF TRUST specifically and not a mortgage in that a deed of trust has applicability for this purpose I am describing such as being a loan from an individual and not a bank

How does this exactly work? What does the agreement look like? What does it say? Do you need an attorney to write it? Does the SEC need to be involved?

Scenario would be a friend and I agree to go in on a deal together. I'd make the offer (no LLC or anything like that). He would fund the money at closing, say 75%LTV of current value, not ARV. I'd pay the balance with my own funds.
I'd manage and pay for the renovation with my own funds. Get the place leased-up. I'd go for a refi. With money from the conventional refi lender I would pay back my friend. He is done and happy. I have a cash-flowing property with some equity (lets hope)

Neither of us are bankers. So how do you set this up?

If you like doing this stuff yourself then it is OK especially at first. It can help you to get to know the property and the tenants and how they treat the place.

Over time though I think you will want to start to move this stuff towards a handyman or other professional tradesmen. If you do it all yourself what will you do when you are on vacation and the tenant calls about an issue?... Start Googling for help?? You want to have "go to" people so if lining them up means you need to pay them instead of you just doing it yourself then this is just the cost of doing business.

Nathan Emmert
You are correct on the taxes. That's impressive to know a market so far from you. You also mentioned the 2 cities where one could probably find the best cap rates.

Michael Lauther
Are there any sections of Long Island or Northern NJ that you would characterize as being similar to your section of Dayton?

Uwe S.
Bill Gulley
Steve Babiak
Don Hines
Joshua Dorkin

Pretty cool....

Thanks all

When posters are replying directly to one another there is an "@johnsmith" that precedes the response.

How do you do this? Do you click somewhere?

People love hardwood floors today. Very clean and they look great. I don't think people mind the "seasoned" look either. Some even seek it.

Wood can be noisy though. Carpet is much quieter. I'd be cautious about wood floors in a multi-family if there is no insulation at ceiling/floor to other tenant.

Rake it. Topsoil it. Seed it. Walk away. Maybe it will cost $75 + 2 hours.

Let mother nature do her job with sun and rain. Don't do any extra work or cost to get it become like Augusta.

Mow it every 2 weeks.

You'll attract better tenants.

Not sure what your market is like but I just include as an amenity to attract and keep tenants. I also promote it when advertising.

I am sure a lot of tenants like the idea of not having to lug their stuff back and forth to the laundry-mat.