All Forum Posts by: Stephen Chatto

@Ray Agosto - I have a contact I use at realtytrac to get all my lists! PM me and I would be more than happy to share his info. They are like 0.15 per lead. I don't know that he want's me posting it in public. But Mailings do keep the calls coming in. It's how you handle those leads that make you successful.

2 Votes

Started playing with the Bigger Pockets Rental Analyzer today. Seems like the purchase cap rate does not take into consideration the initial investment in repairs.

For Example : https://www.biggerpockets.com/sharable-pdf

NOI is 540 Per month, Purchase Price is 50k. So purchase Cap Rate is (540*12)/50,000 = 12.96%

That is not taking into consideration the repairs needed on the house of 8,000.

I get that the 8000 is not part of the purchase price, but an initial expense needed as soon as purchased, so it seems like it should be included in the purchase price cap rate.

Thoughts?

Seems like the "Cash on Cash ROI" is the most relevant Cap Rate on the proforma.

0 Votes

I agree with @Scott Weaner - SJREIA is a must if you want to invest in NJ.

0 Votes

One other thing. Have you ensured you can get a mortgage. Most lenders shy away from loans with such small loan amounts.

0 Votes

I am an active investor in Trenton NJ. I love it from a buy and hold perspective. The number work Phenomenally, the eviction process is fair, and the tenant pool is VERY Strong. Feel free to reach out to me if you have any questions about Trenton NJ Investing.

1 Vote

Originally posted by @Fred Gonzalo:

@Stephen Chatto you seem to be very knowledgable about Trenton. Ive dealt with some property managers in south broad st...which seem where a few are..but they all suck! I bought a property like 6 months ago, and thought Extra property mgmt. on Broad st. could've run it, but all they did was talk a good one, and not produce the outcomes I was looking for, never returned by phone calls back and said they were getting in contact with the city and this and that...but nothing ever panned out. I sold the property already and now live in California. To ALL people that want to invest in TRENTON, NJ ...Stephen is right...save yourself a headache and get yourself a property mgmt...but FIRST...BE SURE TO CHECK THEM OUT..ask for references..talk to people that they have managed before and do a google search and check reviews on them. That was something I should've done this year when I bought my property in February this year. I have about 13 properties now in different states.. but I could say that Trenton was the worst management..and I only have myself to blame for not doing my research. Good luck guys! and remember...talk to REAL people and do your homework before investing in Trenton. don't get fooled by a smile..and yes yes yes just so you can sign the papers and then get trapped.

Thanks all. Have a nice day.

Good advise. Property management is what keeps the asset performing, and probably more important than the asset itself.

0 Votes

Originally posted by @Sheltocks M.:

Excellent.awesome. Will add it. Yes it's worth it. i will move forward. Thank you so m uh for your time and attention. Will advise when I close.

Did you Close?

0 Votes

All Forum Posts by: Stephen Chatto

Stephen Chatto has started 70 posts and replied 417 times.

Post: Wholesaler Trenton, NJ

Post: Finding a No Name Mortgage Holder

Post: Finding a No Name Mortgage Holder

Post: I'm Using My own letter system but i do need advice.

Post: Purchase Cap Rate vs. Pro Forma Cap Rate

Post: Newbie investor from NJ

Post: First deal analysis help

Post: Newbie investor from NJ

Post: Trenton NJ

Post: Should I pay the water bill to close this deal?