All Forum Posts by: Mark Scarola

Overview

This meeting will be considered: intermediate. We will have a guest speaker talking about tax liens and how to obtain properties using this strategy. There will also be ample time for networking.

Schedule

6:30 Doors open
6:45 Announcements and Introduction of Group Members
7:15 Tax lien investing presentation
8:00/8:15 Open networking time
9:00-9:30 Wrap up

Tax Lien Presentation

Our guest speaker will be Ms. Joanne Musa who has over ten years of experience teaching others how to invest in tax liens. She is also a former weightlifting champion and coach. She has spoken about tax liens at various conferences, been featured on popular websites, and was interviewed by Forbes magazine.

Ms. Musa will provide a brief overview of what tax liens are including the difference between tax lien certificates and tax deeds. She'll also explain the auction process which sometimes occurs in person and other times online.

But the focus of her time will be dedicated towards discussing how tax liens can help investors obtain properties at steep discounts. It doesn't always happen, but for those who know what they're doing this can be a great way to position yourself to obtain some very inexpensive properties.

She'll also touch upon how to do due diligence if you can't get inside of a house and the perception by many that tax lien investing is a thing of the past.

Networking

At 6:45 we'll go around the room and introduce ourselves. This is a chance to get to know some of the people in the room and can help you to identify who you might want to seek out and speak with later on during the open networking portion of the evening.

Location

The meeting will take place at the Comfort Inn in Middletown located at 750 Route 35 South. The phone number should you need it is 732-671-3400. Check out our Meetup page for pictures and landmarks.

There will be no food or drink provided, aside from water. 

Admission

There is an admission fee that is used strictly to cover the cost of renting the meeting space. If you pay online through Meetup in advance it's $10. Alternatively you can pay $15 at the door. Additional payment option will be announced at a later date. Please RSVP below so that we can have an appropriate number of seats and if applicable other materials available.

Misc.

I'm a mortgage note investor from New Jersey and need to find an accountant who is familiar with the nuances of note investing. It doesn't matter where in the state they are. I'm even willing to travel into New York or Philadephia so long as the accountant is familiar with NJ and notes. Any recommendations or suggestions would be appreciated. 

It's not a bad idea in theory, but there are some things to consider. For instance, do you want to have roommates if you can't get a multifamily (especially if you plan to stay down the shore)? As you get older you might be less likely to say yes. If you're the landlord you might not want your tenants in the next room either.

You could potentially flip a few properties to build up some cash and then use that to purchase a buy and hold property. You could also buy a property that needs only minor work and live in it yourself. Then do the repairs, have a place to live for a few years, then sell for a profit and move on. Of course there's always the option of partnering with someone to make your cash go further.

We'd certainly need a lot more information. The first thing that comes to mind is, "is it occupied?" If so, how will the repairs be done? If not, then there's no income and because it's a commercial property getting financing will be difficult. 

Thank you to everyone so far who has taken the time to respond. To those who have expressed interest and contacted me I will followup with you regardless of the outcome -- as promised.

As far as the concerns expressed by others, again thank you. I appreciate the words of advice, your wisdom, and warnings. While I am not an attorney myself, I am familiar with what's involved in a syndication, SEC regulations, etc. These are legitimate concerns and I assure anyone who has expressed interest in this idea that they will be properly addressed. I'm not the type of person to try to skirt the law and all the more when other peoples' money is on the line. 

There were a few other points raised as well. The point about having too many decision makers for instance... Again, I appreciate where this is coming from. As was pointed out, some decisions will obviously be larger than others. The larger decisions would receive input from everyone. The smaller and less significant decisions (e.g. should the kitchen have a garbage disposal?) are of course different. It would be impractical to move at any reasonable pace if we were to have to get approval and agreement from a large group for every minor decision. Where the line is between small and large decisions is something we'd have to work out before we get started. Naturally all of this would be spelled out in the operating agreement.

Sounds good Matt. As you get to know the area better I'm sure you'll pick up on the areas that are more multi-family in nature. Phila itself has plenty of multifamily homes. If you prefer the suburbs though, the area certainly has a number of different options, with different areas having different feels. Northwest Phila for instance has a sort of city/suburb mix that many people are attracted to.

It's tough to get started when you're only one person and have limited funds. The solution is simple - find a partner. Of course finding someone locally can be a challenge.

With that said, let me know if you'd be interested in this idea. If there's enough interest, we'll make it happen.

We put together a group of 5-10 investors and pool our money into a new LLC. Investors can be from anywhere in the United States and would share in the profits/losses in an amount relative to their contribution. Investments could start as low as $3000 and go up as high as $20,000.

We would then use those funds to flip a house. We would all have a chance to vote on a prospective property (yes or no) and to contribute in some way. Everyone would be involved or at least have access to what's happening, step by step. We would focus on low-income areas so that we're not overextending ourselves. It's a chance to gain experience, learn from one another, diversify your investments, spread out your risk, and make a profit. Once the deal is complete we can invest together again or go our separate ways.

Hi @Matt Whitermore, 

What type of investments are you considering? Flipping? Buy and hold? Senior housing? Student housing? Single family? Multi-family?

BTW, how do you like the area? I used to live in both Boston and Conshohocken (briefly) myself.

I don't have any rental units along the Shore, but I do live here and I can tell you that towns are still recovering and still rebuilding. Things are much better, but there's still work to be done. You would think though that as far as rentals go that because the inventory is less (homes lost to Sandy) that demand would exceed supply and push prices up. 

In actuality there are still now in July plenty of places still for rent not being used. I don't know if tourists are intentionally staying away or if it just hasn't been hot enough this year... 

You also from an investment perspective need to consider the increased costs associated with places that are now flood zones, raising the height of buildings, etc.

Hi Matt and welcome to the site. I'm sure your construction background will be a great asset to your investing career. I've also heard some people saying good things about Brick.

If you're looking to network with others there are a couple groups in the area. I run one that will be should be meeting next on July 30th in Middletown and there's also one in Manahawkin. I haven't been to that one myself, but it might be of interest to you as well. Good luck!