All Forum Posts by: Mateusz Prawdzik

@Ammon Gutierrez Do what I did @19... Drop out and jump in feet first and be prepared to lots of money... Now 20 years old (1 year in the business) doing 5 properties at a time and done 12 deals collectively with my partner since I started. Everything is risk/reward... if you're prepared and expected to lose money, any money that you don't lose, is a plus. I've lost lots of money, never got mentored, never bought any programs... that's all a load of bull Sh!t, nothing is better than learning from your own mistakes. I know lot more than real Estate, there is nothing that a simple book in the library can't teach you.. College is business. I don't believe in it, it's a way to get into debt and never start doing anything that you're passionate about. That's just my .02, but then again, I got very lucky, can't say I didn't. I don't know anyone my age that is in a position that I am in, not boasting, just simply saying that it takes luck as well as hard work in order to be successful. 

@Jessey Kwong It all depends on what you are trying to do... If you are looking to fix and flip... I would suggest using cash as this would give you a higher MONETARY return. If you leverage, it will give you a higher Return on Investment. Totally different things, less holding costs and fees, and less money out, increase the %age of return.

If you are looking to just buy and hold without renovating and acquire turn key properties, I would suggest purchasing with a loan and refinancing or potentially even just getting a 25 year mortgage with 7 year terms.. 

If you are doing the BRRR strategy, buy with hard money and rehab, rent, and refi, to pull equity out.

The goal is to increase the COC Return. (Cash on Cash) as much as possible.

All in all, regardless, purchasing cash is ALWAYS the best but in reality do you have that much capital where you can afford to lock it up for 6months - 12 months a time. 

@Christopher Lugo Clifton, Garfield great for rentals as taxes are lower than most areas of NJ. Nutley is definitely more a flip market. I have never done anything in those any of those areas but now plenty of people that have. I am looking at a commercial unit in Garfield right now, but nothing set in stone just yet.

@Peter Banyan What you said is correct, if the numbers work, Buy, rehab, Rent, Refi and move on. That is the name of the game.. With that being said, even though that is the name of the game, it's EVERYONE'S game now so finding discount deals is almost slim to impossible, and if you do it's very rare. You have to look for deals off the market. So right now a lot of people are buying just to buy and say that they are in the game because "FLIPPING HOUSES IS COOL" hahaha. But yes, if you can find properties for that kind of discount definitely do it.

@David Weintraub Thanks for directing people towards me, you're the best. Appreciate it

@Rashad Colton Like @Carlos Zapata Said, just use the standard Realtors contract but just make sure that the seller knows that you are making changes to it like term 38. No Assignment (I think it's 38...) Make sure that all changes are known to both parties and amend the inspection period and the closing period.... You can use a regular contract but just make sure both parties are aware of any changes on the contract.

Does anyone know anyone like for NJ? 

@Harjeet Bhatti Learn something new everyday... I didn't know that at all. Thanks for the help, I seem to know most things about the flipping aspect but when it comes to the retail and end buyer side of the business. 

@Andrew Campbell I am definitely thinking for the long term more, I don't know what the prices in texas are for construction and resell but 25k for a total gut doesn't sound too bad for the prices in NJ. If you think that I should only spend 5-7k a unit, then that's what I will do but I mean I would be buying this property for around 86k a unit, and the average sale price per unit in the town that I am doing this in is in the 200s. I don't know what kind of rehab cost I can allocate but I think a higher number to achieve a better look and higher rent might be worth it.

@Michael Henry I don't know the area, but just check the houses that have sold... All houses sell you just need to give the end buyer a reason to why your house is worth the money. With that being said, I would probably discount the same EXACT house that is away from the train tracks where you can't hear the train, about 20%-30% from what the one that is right next to the train. But the house has to literally be the same, meaning same size, same beds/baths, same finishes, same style, same everything. I might even put some nicer stuff like better insulation and windows that way the people walk in and can't hear a single thing. Sound proofing basically.

@Andrew Campbell Thanks I appreciate it, I have lenders that I use for the flipping and developing aspect... but since this is my first deal in buy and hold, I was just asking around because I figured it was a different beast. I can tell you right off the bat what a unit will need in rehab... but another question that I had is how much out of your experiences would you devote to one unit that will be renting out for 1500? Would you touch any of the mechanicals inside the wall if they don't need fixing to prevent future problems or would you just do cosmetic stuff? Something like a full gut of a 800sqft unit would probably cost me like 25k, if not the best finishes. 

@Alina Trigub Hey Alina, I texted you and then realized that you responded to my BP post. I will text you about this, Thanks for the advice. Really appreciate it