All Forum Posts by: Michael Lettieri

@Dimitri Paspalaris

From my understanding flood insurance is subsidized by the federal government. This makes it much cheaper than the market rate would be and hence a good investment. If you’re in a flood zone you should get it.

@Tom Wagner

Hey Tom, I am evaluating the same strategy for North Jersey as well. Curious what neighborhoods you were focusing on?

I was looking at Jersey City but I’m getting nervous that the rental market is over saturated now. Especially with people like yourself moving away from the area.

@Amy Zhang

I would get an additional electric baseboard heater for the first floor. Lock the thermostat to what is comfortable for the second floor then let the first floor utilize the baseboard heater when it gets cold.

I am buying a 4 unit property. Currently 2 of the 4 units are rented near but slightly below market rate. The owner stated he could deliver the units empty if needed. I do not plan on doing major repairs at the moment, maybe down the road. Should I take them up on their offer and have the property delivered empty so I can place my own tenants? Or should I leave the tenants in place and be happy that they are able to pay rent at the moment? Thank you for any advice.

After doing some research it seems that during the financial crisis commercial properties fell 30% off their peak value and residential property fell 20% off its peak value.

Is everyone assuming this is what will happen again?

Thank you for all of the advice. In New Jersey you need a real estate agent present to view a property. Once an agent shows you a property are you bound to them and must use them to close?

If there are any investors on this board that were actively investing during the financial crisis/great recession I would appreciate your advice. I am looking to buy my first property and I guess this is either good timing or bad timing depending how you look at it. I haven't seen an affect on the real estate market yet in New Jersey however I assume it is just a matter of time. How long did it take the financial crisis to affect the real estate market and how long was it until the market bottomed out? I assume it will take anywhere from 6 months to 2 years for us to see the true affects on the market and distressed assets coming onto the market. This is because the foreclosure process can take such a long time. Thank you for any advice and past experiences you can share on this.

I’ve seen postings of people doing deals ‘solo’. Does this mean that they are buying properties without real estate agents? Is this legal in New Jersey where I live? Thank you for your help.

I've seen wholesalers mentioned on this site. Can someone give a quick breakdown of them and how to get in touch with them. I assume these are listings that are outside of the MLS. Thank you.

@Farrukh Madaminov

I’m trying to figure out how to price a deal and calculate renovation costs. How do people typically calculate renovation costs?

I’m not looking for firm prices just estimates. Would the contractor need to visit the house or do contractors give general estimates over the phone?