All Forum Posts by: Stephen Chatto

We have some experienced Mercer County Landlords as guest presenters at our next meetup. It will be a panel discussion and there will be a lot of valuable information for both new and seasoned landlords.

Here is a link to RSVP: http://www.meetup.com/MercerCountyInvestors

Thanks,

Stephen Chatto

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Originally posted by @Steve Haight:

Like what I see, I am long distance. There is not quite enough information on this property to know if we would have any further interest. We could do the legwork ourselves but to stretched out. If you could provide, BPO, CMA. Why are there no pictures of the inside? Is it occupied? We are out of state investors. Nice flyer by the way just lacking a few details.

I have not had a BPO or CMA done on the house. My partner is a Real Estate Agent but if looking for that type of info an independent 3rd party might be best.

Did you click on the link? All the pics are there. Here is the link again

If there is trouble with the link please let me know. I was having some issues with my site but they all seem to be resolved. No the property is not occupied.

Let me know if there is any other questions.

Thanks,

Stephen Chatto

267-580-9017

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Originally posted by @Adrian Samborowski:

Hi Stephen,

Do you have any multi family properties available?

Adrian

Adrian. I have a 6 unit in Trenton and a 2 family in Hamilton.

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Well,

The good thing is I can get a premium price if I sell a property with all City Inspections Passed and Ready to go. As a TRUE Turnkey Rental.

It's mostly a pain. At least they are quick now. It would be 4-5 weeks to get an inspection at the worst and that would hold up closing and keep properties vacant.

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Originally posted by @Scott Weaner:

I am looking for a property manager in central NJ, near Trenton. If anyone has a recommendation, please let me know.

Scott,

Are you still looking? I know someone I would recommend.

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Hey Guys,

There are multiple exit strategies on this one. This Property is cheap enough that it would work as a rental OR a fix and flip. A similar property sold on the retail market (63 Reed, Also 2 Bedroom) in December for 100k and although it was nice, it was completely dated. The house does need some work (See the Pictures) and rehab costs would be completely dependant upon how nice you want to make the house and your intended exit strategy. The taxes are $4,350 per year. Any savvy investor would do well with this home at or asking price of 49k.

Here's a LINK to the details.

Reach out to me at 267-580-9017 if you wanna Check it out.

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Hey Guys, We just got this great property deal on a fixer upper in Trenton NJ. Needs a good bit of cosmetics, But with the Windows, Gas Heater, Electric Panel and Roof Being Newer this property is a bargain.

Click here for the Details.

Feel Free to give me a call with ANY questions that you might have or to get into the house.

Thanks,

Stephen Chatto
267-580-9017

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Hey Guy, We have a deal right now in Trenton NJ. This house is in pretty good shape, and has a tenant in place at $700 per month. That give it a 16% Cap Rate based on our number. As you increase the rent to market your return will only go up.

Click here for Details

Give me a buzz if you want to check it out.

Thanks,

Stephen Chatto
267-580-9017

P.S. Here is some info on Trenton, NJ

LOCATION & TRANSPORTATION: Trenton is phenomenally located, positioned right between Philadelphia and New York. Head down to the recently renovated train station and you are in either city in about 1 hour. That's not the only transportation choice as the River Line is another great way to get around.

DEMAND FOR HOUSING: Trenton being the capital of NJ has a great majority of state jobs. Trenton also borders Pennsylvania. In 2011 a law was passed that all state workers are required to live in NJ effectively cutting off any chance for those people to seek housing across the bridge in PA. The city of Trenton partnered with the NJ Housing and Mortgage Finance Agency and instituted a Live Where you Work Program so that people who work in Trenton can obtain Low-Interest Mortgages to purchase a house in Trenton.

INVESTMENT IN THE CITY: In recent years Trenton has seen a lot of investment in the city. The train station has been rehabilitated, the Roebling Market, New Court House, Thomas Edison State College Expansions and New Residential construction throughout the city.

Why Be a Landlord in Trenton, NJ?

1)Phenomenal return on investment.
2)Housing prices are still very low.
3)Streamlined and fair eviction process.
4)A strong rental market with high rents.

Act now to take advantage of one of real estate's best kept secrets before it's too late.

The Trenton real estate market is on FIRE! With the average purchase price very low and the average rent payments very high; Trenton NJ is the number one buy and hold market in the country today. Where else can you purchase a property and fix it up for a total of $65,000 and rent it out to a tenant paying $1,200 a month?

This is why many of our out-of-state investors are flocking to this city and taking advantage of the phenomenal returns. We are providing our investors with CAP Rates upward of 10% on a consistent basis.

This is why you must act fast and take action now. Once the word gets out, it will only be a matter of time until the prices go up and these insane returns on investment begin to diminish.

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Originally posted by @Mark Ferguson:

Originally posted by @Stephen Chatto:

Originally posted by @Mark Ferguson:

I am a little confused. On the first deal you said it was move in ready, but then the buyer made 60k in repairs. That seems like an awful lot of money to spend on a move in ready home. After you sold the house, how did you know the buyer spent that much on repairs? Is it a guess or did he tell you for some reason?

On the second deal the buyer only ended up spending 20k when you estimated 35k. I understand flip versus rental, but maybe the problem is not the formula, but that you are plugging in the wrong over estimated repair number into the formula? that shows why it is so important to be able to estimate repairs correctly.

I see wholesalers send me deals and most of the numbers are so far off it is a joke. The ARV is over estimated and the repairs are under estimated which are big warning signs. While it may not be important to have those numbers when shopping deals you need to know the numbers to know what to buy.

It is very dangerous to base a purchase simply off cash sales. You don't know what condition those homes are in or what the circumstances are.

1) On the 1st Deal The property was move in ready. How do I know the repairs were 60k. I asked the buyer after all was said and done. He decided to add square footage on the second floor. He decided to change the floor plan on the 1st and second floor. He decided to put a new roof and new siding. Etc. That's why I do not estimate repair cost. I don't know what you are going to do to the house. As a rental it could have been rented as is. It was a Nice well maintained house... A little dated. Most of the guys in the area would have spruced it up for 30-35k... This guy went all out and paid 60k in rehab.

2) On the second deal. There are a lot stuff that is left as is for a rental grade property, and a different grade of items put into it.

The repairs are all made up guesses. Really. They are. Have 3 contractors bid a job (Without giving them an exact scope of work) and you will get completely different numbers. Some will budget for new heater and windows and roof. The other guy won't. Heck even with the scope of work the numbers will vary.

Again. That's why I state the facts when selling a deal. Not guesstimates of ARV and Repair costs.

And no. Cash sales are not the be all and end all of pricing. They are another tool to use when determining a purchase price. And if you're lucky there are pics to compare condition etc.

So what was ARV with only 30k in repairs? If the estimated repairs were 30k for a normal flip that this is not a very good example to prove your point. 225k * .7 - 30k equals 127.5 right at your sale price. Did he go way over budget because he found issues or would the ARV have been much lower with only a $30k rehab?

I know you can't know what every investor plans to do, but you should know the basic ARV and repair costs when you get the deal under contract so you know what your investors will buy. After talking about this more it sounds like you knew exactly what the ARV and repairs would be with multiple situations.

Yes, I had my guess of ARV and Repairs for multiple situation.

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All Forum Posts by: Stephen Chatto

Stephen Chatto has started 70 posts and replied 417 times.

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