All Forum Posts by: Rick C.

Welcome to BP @Nick Laeder! What type of property are you looking for (single, multi etc.)?

It would probably be less risky/stressful for a new investor to buy something turnkey, rather than something that requires work. Once you get comfortable with the basics, then you can look into purchasing a property that requires more work.

Agreed with @Kevin M. Rooney. If you are going to look outside of your local market, then look outside of the New Jersey. The taxes are too high, at least in the desirable towns, to allow for a decent enough cash flow. If you still want to be able to drive to the property within a few hours, I would recommend checking out communities in Pennsylvania or Delaware.

@Dustin Cook - All real estate is local, so while it is great start that you have made a list of possible markets, I would narrow that list down before you spend too much time searching for deals. A way you can do this is by researching the population growth, employment, type of housing stock, costs of ownership, etc in each market.

Once you have chosen the market you want to invest in, thoroughly study it. Travel there, walk/drive the streets, get to know the prices of each neighborhood, and most importantly, talk to as many people as you can. There are many idiosyncrasies about a market that Zillow will not tell you, but are very well known by locals.

@Shawn Connors - Congrats! Did you mail postcards or letters on that round?

Sounds good; keep us posted! Yes, $35k is low. Perhaps that is one of the reasons why the interest rate is so high.

Great post @Jim Stoffey! One additional cost I would add are the ongoing costs associated with holding a license. Granted those should be more than paid for if your license is being used, but they are a cost nonetheless. For example, membership to the Burlington Camden County Association of Realtors is approximately $700 per year.

Keep us posted on your experience!

Agreed with @Mike D'Arrigo; seems quite high.

Is the loan amount or the length exceptionally low?

@Michelle D. assuming your local laws allow it, I would strongly recommend an earlier late fee date. My leases in Pennsylvania and Florida are late after 3 calendar days, which gives the tenant significantly more motivation to pay than a 30 day late fee would.

These a few things that come to mind:

- Hire an attorney and CPA that are investors themselves. Being able to "talk shop" with them could prove to be very helpful.

- Have your attorney review your lease template.

- Ask your CPA any questions you have regarding writing off expenses.

- If purchasing and/or improving a property, consult with your CPA on how to mitigate taxable events (for example, if you have to sell stock you own to fund the investment).

There are many other questions that could be asked, but given that I do not know much about your situation, I am not sure if they would be relevant.